One-glance verdict
Undervalued
$162.43 our estimate vs market $129.70
Wall Street consensus: $176.53 (8.7% higher than our fair-value estimate)
20% below our estimate, below the bear case
Fundamentals snapshot
Owens Corning
OC · NYQ · Industrials · Building Products & Equipment
Current price
$129.70
52-week range
$97.53 - $159.91
Market cap
$10.25B
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 2.4% 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, primarily selling roofing shingles, pink insulation, and doors for new houses and remodeling projects. Because its products are essential for construction, the company's sales are closely tied to the health of the housing market. This makes its business cyclical (meaning its performance tends to rise and fall with the economy), so it generally does well when more people are building or renovating homes.
How the company got here
Owens Corning was formed in 1938 as a partnership between two large American glass companies, Owens-Illinois and Corning Glass Works, to commercially produce glass fiber. A key moment was an accidental discovery in 1932 where a jet of compressed air hit molten glass, creating fine glass fibers. The company has been on the Fortune 500 list every year since the list's creation in 1955. A significant challenge arose from the company's use of asbestos in an insulation product, leading to numerous lawsuits. In May 2024, the company acquired Masonite International, a major provider of interior and exterior doors.
What it actually does
Owens Corning makes building and construction materials that are used in homes and other buildings. You might recognize their pink FIBERGLAS™ insulation. They also make roofing shingles, the protective layers you see on top of houses, as well as other materials that help make buildings more energy-efficient and quiet. Their products are sold to distributors, home centers like Home Depot or Lowe's, and directly to homebuilders and contractors. The company is also known for its Pink Panther mascot, which appears in many of its advertisements.
Roofing
This part of the company manufactures and sells the shingles that cover the roofs of houses. These include both traditional asphalt shingles and other roofing components that help protect a home from the weather. This segment is a major contributor to the company's overall business, providing essential products for both new home construction and remodeling projects. Customers are typically roofing contractors and distributors who buy these materials for installation.
Insulation
This is likely the most familiar part of Owens Corning's business, famous for its pink insulation. This segment creates thermal and acoustical insulation products for homes and commercial buildings, which help keep them warm in the winter, cool in the summer, and quieter year-round. They sell these products in various forms, like batts (pre-cut blankets), loosefill that can be blown into attics, and rigid foam boards. This is a core part of their business, focused on improving energy efficiency for building owners.
Doors
Through its acquisition of Masonite in 2024, Owens Corning now has a significant business in residential doors. This segment produces and sells both interior doors for inside the home and exterior doors that lead outside. The doors are made from a variety of materials including wood, fiberglass, and metal. This is a newer, but substantial, part of the company's overall portfolio, aimed at providing a wider range of essential products for home construction and renovation.
What management is betting on now
Management is focused on strengthening its position as a leader in building and construction products, particularly for residential markets in North America and Europe. A key part of their strategy is to expand their offerings and provide more complete solutions for home building and remodeling. They are also investing in making their manufacturing processes more efficient to improve their margins (the amount of profit they make from sales). The company is committed to returning a significant portion of its free cash flow (the cash left over after paying for operating expenses and capital expenditures) to shareholders through dividends (a portion of profits paid out to shareholders) and share repurchases (when a company buys its own stock, reducing the number of shares outstanding).
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 $162.43 vs current price $129.70
Wall Street consensus is the average analyst price target: $176.53 (8.7% higher than our fair-value estimate).
Our most-likely fair value is $162.43 a share — about 25.2% above today's price of $129.70, 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 $2.89B Interest coverage 12.77x +109% vs OC Carries about 2.1x more debt cushion than OC.
Total debt $4.52B Interest coverage 3.13x -49% vs OC Carries about 2.0x less debt cushion than OC.
Total debt $5.24B Interest coverage 2.87x -53% vs OC Carries about 2.1x less 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 2.4% 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: 1.2%).
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
10.80x
P/B
2.72x
P/S
1.04x
EV/EBITDA
8.23x
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
-4.81
EPS 5Y CAGR
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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
2.4%
Payout ratio
31.6%
Last ex-div date
2026-07-20