OC
Owens Corning
Industrial/Transportation
03/24/2014
Presented
| Date | 03/21/2014 |
| Price | $42.91 |
| Market Cap | $5.07B |
| Ent Value | $7.08B |
| P/E Ratio | 21x |
| Book Value | $31.34 |
| Div Yield | 1.6% |
| Shares O/S | 118.16M |
| Ave Daily Vol | 1,460,000 |
| Short Int | 4.15% |
Current
| Price | $187.00 |
| Market Cap | $16.26B |
| Owens Corning, together with its subsidiaries, produces and sells glass fiber reinforcements and other materials for composite systems; and residential and commercial building materials worldwide. It operates in two segments, Composites and Building Materials. The Composites segment manufactures, fabricates, and sells glass reinforcements in the form of fiber; and manufactures and sells glass fiber products in the form of fabrics, mat, veil, and other specialized products. Its products are used in pipe, roofing shingles, sporting goods, computers, telecommunications cables, boats, aircraft, defense, automotive, industrial containers, and wind-energy applications in the power and energy, housing, water distribution, industrial, transportation, consumer, and aerospace/military markets. The Building Materials segment manufactures and sells fiberglass insulation into residential, commercial, industrial, and other markets for thermal and acoustical applications; and manufactures and sells glass fiber pipe insulation, flexible duct media, and foam insulation used in above- and below-grade construction applications. It also manufactures and sells residential roofing shingles and oxidized asphalt materials used in residential and commercial construction, and specialty applications. This segment sells its insulation products, and shingles and roofing accessories to insulation installers, home centers, lumberyards, retailers, and distributors; and asphalt to roofing contractors and distributors for built-up roofing asphalt systems, as well as to manufacturers in other industries, including automotive, chemical, rubber, and construction industries. The company was founded in 1938 and is headquartered in Toledo, Ohio. |
Highlights
The presenter is not presently long shares of Owens Corning (OC), but he hopes to have an attractive entry point soon. He believes the company has the potential to miss first quarter estimates by a meaningful amount (based on his estimates for input costs like natural gas and other factors), but the underlying business is okay and he would utilize any weakness in the share price to establish a position. If he uses a sum-of-parts valuation for the company, investors appear to be getting the residential construction exposure (the insulation business) for cheap/ potentially “free,” especially if shares do drop on a negative print.
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