November 23, 2023
Top 10 Stock Owens Corning Strong Buy Recommendation

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For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).

360° View: Obermatt 360° View Owens Corning Strong Buy

360 METRICS	November 23, 2023
VALUE
VALUE	89
GROWTH
GROWTH	49
SAFETY
SAFETY	73
SENTIMENT
SENTIMENT	87
360° VIEW
360° VIEW	100

ANALYSIS: With an Obermatt 360° View of 100 (better than 100% compared with alternatives) for 2023, overall professional sentiment and financial characteristics for the stock Owens Corning are very positive. The 360° View is based on consolidating four consolidated indicators, with half of the indicators below and half above average for Owens Corning. The consolidated Value Rank has an attractive rank of 89, which means that the share price of Owens Corning is on the lower side compared with typical size in indicators such as revenues, profits, and invested capital. This means the stock price is lower than for 89% of alternative stocks in the same industry. The company is also safely financed with a Safety rank of 73. In addition, professional market sentiment is above average compared with other stock investment alternatives with a Sentiment Rank of 87. But the consolidated Growth Rank has a low rank of 49, which means that the company is below average in terms of growth and momentum when looking at financial metrics such as revenue, profit, and invested capital growth as well as stock returns. 51 of its competitors have better growth. ...read more

RECOMMENDATION: With a consolidated 360° View of 100, Owens Corning is better positioned than 100% of all alternative stock investment opportunities based on the Obermatt Method. Three out of four consolidated Obermatt Ranks show above-average performance. The stock has as good value (Value Rank of 89), secure financing practices (Safety Rank of 73), and positive market sentiment in the professional investor community (Sentiment Rank of 87). It is a solid stock investment where the risk of paying too much for the shares is limited, and disappointments are less likely to occur. The company’s growth expectations are below the industry average (Growth Rank of 49), but that could also be temporary since professional investors remain optimistic despite the low growth numbers. The low price as reflected in the good Value Rank could indicate that the company's future is challenging. The below-par growth performance may be the reason for this. Companies that grow less are typically cheaper than fast-growing competitors. We recommend evaluating whether the future of Owens Corning is as difficult as the stock’s low price suggests, despite the positive professional investor sentiment. Since the professional community is optimistic, you might have less to worry about, and the stock may just go through a more challenging phase now, indicating good timing. ...read more

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Sentiment Strategy: Professional Market Sentiment for Owens Corning very positive

SENTIMENT METRICS	November 23, 2023
ANALYST OPINION
ANALYST OPINION	42
OPINIONS CHANGE
OPINIONS CHANGE	81
PRO HOLDINGS
PRO HOLDINGS	91
MARKET PULSE
MARKET PULSE	68
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	87

ANALYSIS: With an Obermatt Sentiment Rank of 87 (better than 87% compared with alternatives) for 2023, overall professional sentiment and engagement for the stock Owens Corning is very positive. The Sentiment Rank is based on consolidating four sentiment indicators, with all but one indicator above average for Owens Corning. Analyst Opinions are at a rank of 42 (worse than 58% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. But they are changing their opinions! Analyst Opinions Change has a rank of 81, which indicates a shift in stock research experts opinions for the better. In other words, they are getting more optimistic about stock investments in Owens Corning. Even better, the Professional Investors rank is 91, meaning that professional investors hold more stock in this company than in 91% of alternative investment opportunities. Pros tend to favor investing in this company. Furthermore, Market Pulse has a rank of 68, which means that the current professional news and professional social networks are upbeat when discussing this company (more positive news than for 68% of competitors). ...read more

RECOMMENDATION: With a consolidated Sentiment Rank of 87 (more positive than 87% compared with investment alternatives), Owens Corning has a reputation among professional investors that is significantly higher than that of its competitors. While analysts are still critical of the company, some are changing their minds. In addition, the professional news channels are optimistic, and many institutional investors have already bought stock in the company. These are encouraging signals, despite the still lower level of analyst recommendations. They may be due to a problematic past, and about to change. The positive sentiment signals are stronger than the negative. ...read more

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Value Strategy: Owens Corning Stock Price Value at the top

VALUE METRICS	November 23, 2023
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	43
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	91
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	56
DIVIDEND YIELD
DIVIDEND YIELD	85
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	89

ANALYSIS: With an Obermatt Value Rank of 89 (better than 89% compared with alternatives) for 2023, Owens Corning shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Owens Corning. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 91 which means that the stock price compared with what market professionals expect for future profits is lower than for 91% of comparable companies, indicating a good value concerning Owens Corning's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 56, and for Dividend Yield with a Dividend Yield Rank of 85. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 57% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 43). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 89, is a buy recommendation based on Owens Corning's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that Owens Corning has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing Owens Corning shares. ...read more

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Growth Strategy: Owens Corning Growth Momentum low

GROWTH METRICS	November 23, 2023
REVENUE GROWTH
REVENUE GROWTH	11
PROFIT GROWTH
PROFIT GROWTH	54
CAPITAL GROWTH
CAPITAL GROWTH	37
STOCK RETURNS
STOCK RETURNS	89
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	49

ANALYSIS: With an Obermatt Growth Rank of 49 (better than 49% compared with alternatives), Owens Corning shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Owens Corning. Profit Growth has a rank of 54, which means that currently professionals expect the company to grow its profits more than 54% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 89 (above 89% of alternative investments). But Sales Growth has a below the median rank of 11, which means that, currently, professionals expect the company to grow less than 89% of its competitors, and Capital Growth also has a lower rank of 37. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 49, is a hold recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for Owens Corning. ...read more

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Safety Strategy: Owens Corning Debt Financing Safety above-average

SAFETY METRICS	November 23, 2023
LEVERAGE
LEVERAGE	42
REFINANCING
REFINANCING	47
LIQUIDITY
LIQUIDITY	98
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	73

ANALYSIS: With an Obermatt Safety Rank of 73 (better than 73% compared with alternatives), the company Owens Corning has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Owens Corning is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Owens Corning. Liquidity is at 98, meaning the company generates more profit to service its debt than 98% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 47, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 53% of its competitors. Leverage is also high at a rank of 42, which means that the company has an above-average debt-to-equity ratio. It has more debt than 58% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 73 (better than 73% compared with alternatives), Owens Corning has a financing structure that is safer than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. ...read more

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Combined financial peformance: Owens Corning Top Financial Performance

COMBINED PERFORMANCE	November 23, 2023
VALUE
VALUE	89
GROWTH
GROWTH	49
SAFETY
SAFETY	98
COMBINED
COMBINED	92

ANALYSIS: With an Obermatt Combined Rank of 92 (better than 92% compared with investment alternatives), Owens Corning (Building Products, USA) shares have much better financial characteristics than comparable stocks. Shares of Owens Corning are a good value (attractively priced) with a consolidated Value Rank of 89 (better than 89% of alternatives), are safely financed (Safety Rank of 73, which means low debt burdens), but show below-average growth (Growth Rank of 49). ...read more

RECOMMENDATION: A Combined Rank of 92, is a strong buy recommendation based on Owens Corning's financial characteristics. As the company Owens Corning's key financial metrics exhibit good value (Obermatt Value Rank of 89) but low growth (Obermatt Growth Rank of 49) while being safely financed (Obermatt Safety Rank of 73), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 89% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. ...read more

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