OC
Owens Corning
Industrial/Transportation
02/17/2015
Presented
| Date | 02/12/2015 |
| Price | $38.72 |
| Market Cap | $4.56B |
| Ent Value | $6.55B |
| P/E Ratio | 21.07x |
| Book Value | $31.34 |
| Div Yield | 1.7% |
| Shares O/S | 117.75M |
| Ave Daily Vol | 1,710,000 |
| Short Int | 4.17% |
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 three segments: Composites, Insulation, and Roofing. 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, consumer electronics, 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 Insulation 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, bonded and granulated mineral wool insulation, and foam insulation used in above- and below-grade construction applications. It sells its products primarily to the insulation installers, home centers, lumberyards, retailers, and distributors. The Roofing segment manufactures and sells residential roofing shingles and oxidized asphalt materials used in residential and commercial construction, and specialty applications. This segment sells its products through home centers, lumberyards, retailers, distributors, and contractors, as well as to roofing contractors and distributors for built-up roofing asphalt systems and to manufacturers various other industries, including automotive, chemical, rubber, and construction. The company was founded in 1938 and is headquartered in Toledo, Ohio. |
Publicly traded companies mentioned herein: Owens Corning (OC)
Highlights
The presenter is long shares of Owens Corning (OC) and believes the risk/ reward is attractive at present levels (~$38). He thinks the stock could “nearly double” over the next 12 months if his assumptions about the dynamics at play on the roofing side of the business (the largest contributor to EBITDA) are correct. Investors seem to generally dislike OC after being let down by results last year when roofing “imploded” despite a recovery in the other areas of the business. Now, the setup appears to be perfect for the roofing segment to contribute and drive better than expected results.
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