One-glance verdict
Undervalued
$228.33 our estimate vs market $121.60
Wall Street consensus: $146.31 (-35.9% lower than our fair-value estimate)
47% below our estimate, below the bear case
Fundamentals snapshot
Owens Corning
OC · NYQ · Industrials · Building Products & Equipment
Current price
$121.60
52-week range
$97.53 - $159.91
Market cap
$9.61B
Balance sheet
Stretched
6.11x Adequate
Net debt $5.46B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Free cash flow was positive in 10/10 years.
- Reward Dividend yield is 2.7% with 13-year payout history.
- Risk Net debt grew 152.2% over 3 years.
- Risk Return on equity was -9.5% last year — the company lost money on shareholders' equity.
What this company does
Owens Corning
Owens Corning makes common building materials like roofing shingles, their famous pink insulation, and doors for both new houses and commercial buildings. The company's sales come from these construction and renovation projects, so its success is often tied to the overall health of the housing market.
How the company got here
Owens Corning started in 1938 as a joint venture between two large glass companies, Owens-Illinois and Corning Glass Works, to commercially produce glass fiber. [2, 6, 8] The company is famous for inventing fiberglass insulation and has been a fixture on the Fortune 500 list of largest companies since the list began in 1955. [2, 10] Many people recognize the brand by its use of the Pink Panther cartoon character as a mascot, which started in 1980. [2] After facing challenges from asbestos-related lawsuits in the past, the company has recently reshaped itself to focus more specifically on building products for homes and commercial buildings. [1, 9, 18]
What it actually does
Owens Corning makes materials used to build and repair homes and other buildings. [26] Think of the big rolls of pink insulation you see in an attic, the shingles on a roof, or the doors on a house—these are the kinds of products the company specializes in. [11, 21] They sell these materials to distributors, home centers like Home Depot or Lowe's, and professional contractors who are building new homes or remodeling existing ones. The company is a leader in the North American and European markets for these core building products. [9, 12]
Roofing
This part of the business makes the shingles that cover a house's roof, as well as all the other layers and components that go underneath to protect the home from weather. [20, 21] Instead of just selling shingles, they market a complete roofing system designed to work together for better protection. [20] Homeowners and builders pay for these products when they are putting a new roof on a house or replacing an old one. This is one of the company's largest and most established business lines. [12]
Insulation
This is the business Owens Corning is most famous for, especially its pink-colored FIBERGLAS™ insulation. [1] This segment creates a wide variety of insulation products that help keep buildings warm in the winter and cool in the summer, which saves on energy bills. [23] Their products are used everywhere from residential attics and walls to large commercial buildings and industrial pipes. [11, 23] This is a core part of the company that serves homeowners, builders, and industrial customers. [11]
Doors
This is the newest business for Owens Corning, created through a recent acquisition (when one company buys another) in 2024. [3, 14] This segment focuses on making and selling residential doors, both for the inside of a house and for exterior entryways. Adding doors to its product lineup was a strategic move to become a more focused supplier of essential products for home construction and remodeling. [12] This is currently a smaller but important part of the company's overall business.
What management is betting on now
The company's main strategy is to be a focused leader in building products for homes and commercial properties in North America and Europe. [9, 18] Management is concentrating on strengthening its top positions in roofing, insulation, and its new doors business to produce more reliable profits. [4, 14] A big part of their plan involves sustainability, as many of their products, like insulation, help customers save energy. [4, 13] They are also focused on returning cash to investors through dividends (a share of the profits paid to stockholders) and share buybacks (when the company purchases its own stock to increase the value of the remaining shares). [3, 9]
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$558.00M
FY2024 Q4
$479.00M
FY2025 Q1
$-252.00M
FY2025 Q2
$129.00M
FY2025 Q3
$752.00M
FY2025 Q4
$333.00M
FY2026 Q1
$-387.00M
FY2026 Q2
$199.00M
Revenue
$2.76B
Net income
$226.00M
Diluted EPS
2.80
Operating cash flow
$398.00M
Free cash flow
$199.00M
Fetching…
Sources
Revenue
$2.27B
Net income
$-105.00M
Diluted EPS
-1.29
Operating cash flow
$-154.00M
Free cash flow
$-387.00M
Fetching…
Sources
Revenue
$2.14B
Net income
$-298.00M
Diluted EPS
-3.47
Operating cash flow
$590.00M
Free cash flow
$333.00M
Fetching…
Sources
Revenue
$2.68B
Net income
$-494.00M
Diluted EPS
-5.92
Operating cash flow
$918.00M
Free cash flow
$752.00M
Fetching…
Sources
Revenue
$2.75B
Net income
$363.00M
Diluted EPS
4.25
Operating cash flow
$327.00M
Free cash flow
$129.00M
Fetching…
Sources
Revenue
$2.53B
Net income
$-93.00M
Diluted EPS
-1.08
Operating cash flow
$-49.00M
Free cash flow
$-252.00M
Fetching…
Sources
Revenue
$2.84B
Net income
$-258.00M
Diluted EPS
-2.92
Operating cash flow
$676.00M
Free cash flow
$479.00M
Fetching…
Sources
Revenue
$3.05B
Net income
$321.00M
Diluted EPS
3.65
Operating cash flow
$699.00M
Free cash flow
$558.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $228.33 vs current price $121.60
Wall Street consensus is the average analyst price target: $146.31 (-35.9% lower than our fair-value estimate).
Our most-likely fair value is $228.33 a share — about 87.8% above today's price of $121.60, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $5.5B. Interest coverage 6.1x.
Net debt
$5.46B
Interest coverage
6.11x
Owens Corning's profit covers its interest bill about 6.1 times over. which is stronger than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
OC
BASELINE
Owens Corning
Total debt $5.73B Interest coverage 6.11x This is the baseline the peer rows are being compared against.
Total debt $5.24B Interest coverage 2.87x -53% vs OC Carries about 2.1x less debt cushion than OC.
Total debt $3.48B Interest coverage 12.41x +103% vs OC Carries about 2.0x more debt cushion than OC.
Total debt $2.80B Interest coverage 5.39x -12% vs OC Has roughly the same debt cushion as OC.
Total debt $1.20B Interest coverage 12.19x +100% vs OC Carries about 2.0x more debt cushion than OC.
Total debt $408.40M Interest coverage 33.62x +450% vs OC Carries about 5.5x more debt cushion than OC.
What you should know
The case for and against OC
2 Rewards
3 Risks
Rewards
-
Free cash flow was positive in 10/10 years.
-
Dividend yield is 2.7% with 13-year payout history.
Risks
-
Net debt grew 152.2% over 3 years.
-
Return on equity was -9.5% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 1.1% (peer median: 2.0%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
11.20x
P/B
2.55x
P/S
0.98x
EV/EBITDA
7.81x
PEG ratio
1.51x
Profitability
How much profit each dollar creates
Gross margin
26.2%
Operating margin
17.8%
Net margin
-6.8%
ROE
-9.5%
ROA
5.8%
Health
Liquidity and balance-sheet strength
Debt / equity
1.50x
Current ratio
1.16x
Quick ratio
0.60x
Total debt
$5.73B
Total cash
$271.00M
Growth
How the business has been compounding
Revenue TTM
$9.85B
Revenue 5Y CAGR
4.4%
EPS TTM
-5.07
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$1.75B
Free CF TTM
$962.00M
FCF margin
9.8%
Dividend
Shareholder payout
Yield
2.7%
Payout ratio
103.9%
Last ex-div date
2026-10-19