📊 OC Key Takeaways
Is Owens Corning (OC) a Good Investment?
Owens Corning faces a severe profitability crisis with a $522M net loss and -5.2% net margin, while carrying $5.1B in debt with dangerously weak 1.4x interest coverage. Despite generating $962M in free cash flow, the company's inability to generate profits combined with high leverage (1.33x D/E) creates substantial financial risk and shareholder value destruction.
Owens Corning generates strong cash flow ($1.79B OCF) and solid free cash flow (9.5% margin) despite a GAAP net loss, indicating meaningful non-cash items or working-capital effects. Profitability is under pressure with a 3.6% operating margin, negative ROE, and thin 1.4x interest coverage alongside elevated leverage. Margin recovery and deleveraging are required to translate cash strength into durable earnings quality.
Why Buy Owens Corning Stock? OC Key Strengths
- Positive free cash flow of $962M with 9.5% FCF margin shows underlying business cash generation despite net losses
- Operating cash flow of $1.8B demonstrates core operational cash generation capability
- Gross margin of 28.1% indicates some pricing power and operational efficiency in manufacturing
- Robust operating cash flow and positive FCF after heavy capex
- Healthy gross margin of 28.1%
- Modest top-line growth (+2.6% YoY)
OC Stock Risks: Owens Corning Investment Risks
- Significant net loss of -$522M with -5.2% net margin indicates fundamental unprofitability and negative ROE/ROA
- Interest coverage ratio of 1.4x is critically weak, leaving minimal cushion for debt service with $5.1B long-term debt outstanding
- Quick ratio of 0.70x below 1.0 signals liquidity stress; cash position of $345M is low relative to debt obligations
- Modest 2.6% revenue growth insufficient to reverse operational challenges and improve profitability
- Negative net income and sharply lower EPS
- Low interest coverage (1.4x) with higher leverage (D/E 1.33x)
- Liquidity tightness with quick ratio 0.70 and limited cash
Key Metrics to Watch
- Quarterly net income and net margin trajectory toward profitability
- Interest coverage ratio trend and debt reduction progress
- Free cash flow sustainability and cash balance adequacy for debt service
- Operating margin
- Interest coverage
Owens Corning (OC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Owens Corning presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
OC Profit Margin, ROE & Profitability Analysis
OC vs Materials Sector: How Owens Corning Compares
How Owens Corning compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Owens Corning Stock Overvalued? OC Valuation Analysis 2026
Based on fundamental analysis, Owens Corning shows some fundamental concerns relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Owens Corning Balance Sheet: OC Debt, Cash & Liquidity
OC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Owens Corning's revenue has grown significantly by 19% over the 5-year period, indicating strong business expansion. The most recent EPS of $13.14 reflects profitable operations.
OC Revenue Growth, EPS Growth & YoY Performance
OC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $2.7B | -$224.0M | $-2.63 |
| Q2 2025 | $2.5B | $270.0M | $3.15 |
| Q1 2025 | $2.0B | -$93.0M | $-1.08 |
| Q3 2024 | $2.5B | $285.0M | $3.65 |
| Q2 2024 | $2.6B | $285.0M | $3.24 |
| Q1 2024 | $2.3B | $299.0M | $3.40 |
| Q3 2023 | $2.5B | $304.0M | $3.71 |
| Q2 2023 | $2.6B | $304.0M | $3.49 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Owens Corning Dividends, Buybacks & Capital Allocation
OC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Owens Corning (CIK: 0001370946)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 13, 2026 | 4 | xslF345X06/wk-form4_1776112462.xml | View → |
| Apr 13, 2026 | 4 | xslF345X06/wk-form4_1776112455.xml | View → |
| Apr 13, 2026 | 4 | xslF345X06/wk-form4_1776112444.xml | View → |
| Apr 13, 2026 | 4 | xslF345X06/wk-form4_1776112438.xml | View → |
| Apr 13, 2026 | 4 | xslF345X06/wk-form4_1776112430.xml | View → |
❓ Frequently Asked Questions about OC
What is the AI rating for OC?
Owens Corning (OC) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are OC's key strengths?
Claude: Positive free cash flow of $962M with 9.5% FCF margin shows underlying business cash generation despite net losses. Operating cash flow of $1.8B demonstrates core operational cash generation capability. ChatGPT: Robust operating cash flow and positive FCF after heavy capex. Healthy gross margin of 28.1%.
What are the risks of investing in OC?
Claude: Significant net loss of -$522M with -5.2% net margin indicates fundamental unprofitability and negative ROE/ROA. Interest coverage ratio of 1.4x is critically weak, leaving minimal cushion for debt service with $5.1B long-term debt outstanding. ChatGPT: Negative net income and sharply lower EPS. Low interest coverage (1.4x) with higher leverage (D/E 1.33x).
What is OC's revenue and growth?
Owens Corning reported revenue of $10.1B.
Does OC pay dividends?
Owens Corning pays dividends, with $232.0M distributed to shareholders in the trailing twelve months.
Where can I find OC SEC filings?
Official SEC filings for Owens Corning (CIK: 0001370946) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is OC's EPS?
Owens Corning has a diluted EPS of $-6.22.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is OC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Owens Corning has a SELL rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is OC stock overvalued or undervalued?
Valuation metrics for OC: ROE of -13.5% (sector avg: 14%), net margin of -5.2% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy OC stock in 2026?
Our dual AI analysis gives Owens Corning a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is OC's free cash flow?
Owens Corning's operating cash flow is $1.8B, with capital expenditures of $824.0M. FCF margin is 9.5%.
How does OC compare to other Materials stocks?
Vs Materials sector averages: Net margin -5.2% (avg: 10%), ROE -13.5% (avg: 14%), current ratio 1.26 (avg: 1.6).