📊 OC Key Takeaways
Is Owens Corning (OC) a Good Investment?
Owens Corning faces severe financial distress with a $105M net loss on $2.3B revenue, negative operating cash flow of -$154M, and free cash flow hemorrhaging of -$387M annually. The company's $5.1B debt load combined with weak interest coverage of 1.8x and deteriorating cash position creates an unsustainable structure requiring urgent operational restructuring or capital injection.
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.
Owens Corning Key Strengths (OC)
- Revenue growth of 2.6% YoY demonstrates residual market demand
- Gross margin of 22.5% shows reasonable production efficiency despite profitability issues
- Asset base of $13.1B provides some equity cushion above liabilities
- 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
- Fundamental unprofitability with -$4.6% net margin indicates structural business challenges
- Negative operating cash flow of -$154M signals deteriorating operational performance and inability to self-fund
- Unsustainable free cash flow of -$387M annually would deplete $272M cash reserves in under 12 months at current burn rate
- High leverage (1.41x debt-to-equity) combined with weak 1.8x interest coverage creates acute refinancing risk
- Quick ratio of 0.74x indicates insufficient liquid assets to cover short-term obligations
- 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
- Path to operating cash flow positivity and breakeven profitability
- Quarterly free cash flow trends and total cash balance depletion timeline
- Debt restructuring or refinancing activities and covenant compliance
- Operating margin expansion and cost structure reduction initiatives
- Working capital management and capital expenditure reduction plans
- 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 |
|---|---|---|---|
| Q1 2026 | $2.3B | -$93.0M | $-1.08 |
| 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 |
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 |
|---|---|---|---|
| May 29, 2026 | 4 | xslF345X06/wk-form4_1780085561.xml | View → |
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778616659.xml | View → |
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778616653.xml | View → |
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778616644.xml | View → |
| May 12, 2026 | 4 | xslF345X06/wk-form4_1778616639.xml | View → |
❓ Frequently Asked Questions about OC
What is the AI rating for OC?
Owens Corning (OC) has a Combined AI Grade of C from Claude (D) and ChatGPT (B) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are OC's key strengths?
Claude: Revenue growth of 2.6% YoY demonstrates residual market demand. Gross margin of 22.5% shows reasonable production efficiency despite profitability issues. 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: Fundamental unprofitability with -$4.6% net margin indicates structural business challenges. Negative operating cash flow of -$154M signals deteriorating operational performance and inability to self-fund. 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 $2.3B.
Does OC pay dividends?
Owens Corning pays dividends, with $63.0M 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 $-1.29.
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 grade reflects both perspectives for balanced insights.
What is OC's fundamental grade?
Based on our AI fundamental analysis in June 2026, Owens Corning has a C grade with 76% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is OC stock overvalued or undervalued?
Valuation metrics for OC: ROE of -2.9% (sector avg: 14%), net margin of -4.6% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is OC's AI grade for 2026?
Our dual AI analysis gives Owens Corning a combined C grade 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 $-154.0M, with capital expenditures of $233.0M. FCF margin is -17.1%.
How does OC compare to other Materials stocks?
Vs Materials sector averages: Net margin -4.6% (avg: 10%), ROE -2.9% (avg: 14%), current ratio 1.24 (avg: 1.6).