Owens-Corning Inc (OC, Financial), a prominent player in the construction industry, is currently trading at $136.95 with a market capitalization of $12.34 billion. The company's stock price has seen a gain of 4.73% today and an impressive 10.41% over the past four weeks. In this article, we will delve into the company's GF Score of 87/100, which indicates good outperformance potential. The GF Score is a comprehensive stock performance ranking system developed by GuruFocus, which takes into account five key aspects: Financial Strength, Profitability Rank, Growth Rank, GF Value Rank, and Momentum Rank.
Financial Strength Analysis
Owens-Corning Inc's Financial Strength Rank stands at 6/10. This rank measures the robustness of a company's financial situation, considering factors such as its interest coverage (14.46), debt to revenue ratio (0.33), and Altman Z score (3.35). The company's relatively low debt burden and healthy interest coverage ratio indicate a strong financial position.
Profitability Rank Analysis
The company's Profitability Rank is 9/10, reflecting its high profitability. This rank considers factors such as the operating margin (15.28%), Piotroski F-Score (8), and the trend of the operating margin (5-year average of 7.50%). The company's consistent profitability over the past 10 years (9 years of profitability) and a predictability rank of 3 further underscore its strong performance.
Growth Rank Analysis
Owens-Corning Inc's Growth Rank is 9/10, indicating robust growth in terms of revenue and profitability. The company's 5-year revenue growth rate is 10.90%, and its 3-year revenue growth rate is 15.40%. Additionally, the 5-year EBITDA growth rate stands at 15.30%, reflecting a consistent increase in the company's business operations.
GF Value Rank Analysis
The company's GF Value Rank is 3/10, determined by the price-to-GF-Value ratio. This rank suggests that the stock is currently overvalued. However, it's important to note that the GF Value Rank is not the most sensitive parameter affecting stock performance.
Momentum Rank Analysis
The Momentum Rank of Owens-Corning Inc is 6/10, calculated using the standardized momentum ratio and other momentum indicators. This rank suggests a moderate momentum in the company's stock price.
Competitor Analysis
When compared to its main competitors, Owens-Corning Inc holds its ground with a GF Score of 87. Lennox International Inc (LII, Financial) has a GF Score of 90, Carlisle Companies Inc (CSL, Financial) scores 91, and Masco Corp (MAS, Financial) also has a GF Score of 90.
Conclusion
In conclusion, Owens-Corning Inc's overall GF Score of 87/100 suggests good outperformance potential. The company's strong financial strength, high profitability, robust growth, and moderate momentum contribute to this score. However, investors should be cautious of the company's current overvaluation as indicated by its GF Value Rank. As always, it's crucial to conduct thorough research and consider various factors before making investment decisions.
