Abrasive, Asbestos & Misc Nonmetallic Mineral Prods
Owens Corning engages in manufacture and sale of insulation, roofing, and fiberglass composite materials in the United States, Canada, Europe, the Asia Pacific, Latin America, and internationally. It operates in three segments: Composites, Insulation, and Roofing. The Composites segment manufactures, fabricates, and sells glass reinforcements in the form of fiber; and glass fiber products in the form of fabrics, non-wovens, and other specialized products. Its products are used in building structures, roofing shingles, tubs and showers, pools, decking, flooring, pipes and tanks, poles, electrical equipment, and wind-energy turbine blades. This segment sells its products directly to parts molders, fabricators, and shingle manufacturers. The Insulation segment manufactures and sells thermal and acoustical batts, loosefill insulation, spray foam insulation, foam sheathing and accessories under the Owens Corning PINK, and FIBERGLAS brands; and glass fiber pipe insulation, energy efficient flexible duct media, bonded and granulated mineral wool insulation, cellular glass insulation, and foam insulation under the FOAMULAR, FOAMGLAS, and Paroc brand names used in construction applications. This segment sells its products primarily to the insulation installers, home centers, lumberyards, retailers, and distributors. The Roofing segment manufactures and sells laminate and strip asphalt roofing shingles, oxidized asphalt materials, and roofing components used in residential and commercial construction, and specialty applications, as well as synthetic packaging materials. This segment sells its products through distributors, home centers, lumberyards, retailers, and contractors, as well as to roofing contractors for built-up roofing asphalt systems; and manufacturers in automotive, chemical, rubber, and construction industries. The company was incorporated in 1938 and is headquartered in Toledo, Ohio.
Discounted Cash Flow Valuation of Owens Corning
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
The average Net Margin over the past 5 years is +6.15%.
The trend of Net Margin over the past 5 years is +1.19%.
The average ROA over the past 5 years is +8.98%.
The trend of ROA over the past 5 years is +1.32%.
The average ROE over the past 5 years is +11.39%.
The trend of ROE over the past 5 years is +3.24%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
The Debt/FCF trailing twelve month is 2.63.
The trend of Debt/FCF over the past 5 years is -1.09.
Graham’s Stability measure stands at -0.93.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
The Revenue CAGR over the past 5 years is +8.86%.
The trend of Revenue growth rate over the past 5 years is +1.53%.
The Earnings CAGR over the past 5 years is +33.84%.
The trend of Earnings growth rate over the past 5 years is -0.5%.
The Equity CAGR over the past 5 years is +1.8%.
The trend of Equity growth rate over the past 5 years is +0.39%.
The FCF CAGR over the past 5 years is +14.12%.
The trend of FCF growth rate over the past 5 years is -22.7%.