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Owens Corning (OC) Valuation After Dividend Hike and New Alabama Shingle Plant Investment

Simply Wall St · 1d ago

Owens Corning (OC) just gave income focused investors something to chew on, lifting its quarterly dividend by 15% while doubling down on growth with a new shingle plant in Alabama.

See our latest analysis for Owens Corning.

Those moves come after a volatile stretch, with the share price down sharply this year but recently stabilising, including a 12.5 percent 1 month share price return and a still respectable 3 year total shareholder return. At a current share price of $116.0, the market seems to be reassessing Owens Corning as a slower growth but still cash generative building products play, rather than a pure cyclical rebound story.

If this kind of mix between income and recovery potential appeals, it may also be worth exploring fast growing stocks with high insider ownership as you look for the market’s next under appreciated compounders.

With earnings pressure, slower revenue growth, and the shares still trading at a discount to analyst targets and some intrinsic metrics, the key question now is whether Owens Corning is genuinely undervalued or if the market is already pricing in its next leg of growth.

Most Popular Narrative Narrative: 17.5% Undervalued

With Owens Corning last closing at $116 and the most followed narrative pointing to fair value near $140.63, the story hinges on how cash rich growth translates into long term upside.

Strategic realization of cost synergies and operational efficiencies through ongoing integration (e.g., Doors/Masonite acquisition) and supply chain optimization is expected to drive continued margin expansion and improved free cash flow, enhancing future earnings power.

Read the complete narrative.

To see how flat revenues can still support a much higher valuation multiple, and how margins and buybacks may quietly reshape the earnings base, explore the full narrative to review the numbers behind that conviction.

Result: Fair Value of $140.63 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, that upside depends on residential demand and pricing holding up, with oversupplied roofing and insulation markets threatening margins if competitive pressure intensifies.

Find out about the key risks to this Owens Corning narrative.

Build Your Own Owens Corning Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a personalised view in just a few minutes: Do it your way.

A great starting point for your Owens Corning research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.