Owens Corning [NYSE:OC]: Analyst Rating and Earnings
Stock market traders frequently keep their eyes on what Wall Street experts as it relates to a potential investment. For Owens Corning [OC], the most recent analyst consensus recommendation available since its latest financial results for the quarter ending in December. On average, stock market experts give OC an Outperform rating. Its stock price has been found in the range of 40.64 to 82.71. This is compared to its latest closing price of $50.88.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Owens Corning [OC] is sitting at 2.42. This is compared to 1 month ago, when its average rating was 2.42.
For the quarter ending in Dec-18 Owens Corning [OC] generated $1.72 billion in sales. That’s 2.68% higher than the average estimate of $1.68 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes peeled for the soon-to-be-published financial results of this company, which are expected to be made public on Wed 24 Apr (In 12 Days).
Fundamental Analysis of Owens Corning [OC]
Now let’s turn to look at profitability: with a current Operating Margin for Owens Corning [OC] sitting at +12.29 and its Gross Margin at +23.37, this company’s Net Margin is now 7.70%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 12.10, and its Return on Invested Capital has reached 8.50%. Its Return on Equity is 12.91, and its Return on Assets is 5.92. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates OC financial performance.
Turning to investigate this organization’s capital structure, Owens Corning [OC] has generated a Total Debt to Total Equity ratio of 79.08. Similarly, its Total Debt to Total Capital is 44.16, while its Total Debt to Total Assets stands at 34.66. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 78.50, and its Long-Term Debt to Total Capital is 43.83. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 6.51 and its Total Debt to EBITDA Value is 2.61. The Enterprise Value to Sales for this firm is now 1.20, and its Total Debt to Enterprise Value stands at 0.41. Owens Corning [OC] has a Price to Book Ratio of 1.12, a Price to Cash Flow Ratio of 6.10 and P/E Ratio of 10.50. These metrics all suggest that Owens Corning is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Owens Corning [OC] earns $352,850 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 8.82 and its Total Asset Turnover is 0.77. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.74 and its Current Ratio is 1.58. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Owens Corning [OC] has 108.95M shares outstanding, amounting to a total market cap of $5.60B. Its stock price has been found in the range of 40.64 to 82.71. At its current price, it has moved by -37.82% from its 52-week high, and it has moved 26.55% from its 52-week low.
This stock’s Beta value is currently 1.19, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 60.11. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Owens Corning [OC] a Reliable Buy?
Shares of Owens Corning [OC], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.