Owens Corning (OC - Free Report) has provided three-year financial targets and discussed strategic priorities during the 2021 virtual Investor Day.
Long-Term Financial Targets
The company expects to achieve annual revenues of $10 billion and operating margins in mid-teens by 2024. Also, it anticipates maintaining the already-reduced capital intensity level at 4-5% of revenues. The company expects to generate a free cash flow conversion rate of approximately 100% of adjusted net income and return nearly 50% of free cash flow to shareholders by 2024.
Owens Corning has been focusing on the expansion of its current addressable markets by capitalizing on key secular trends to create new opportunities. These strategies are expected to help it strengthen its position in core building and construction products, expand to provide more multimaterial solutions, and develop prefabricated building solutions that are more energy efficient, sustainable as well as cost effective.
The company makes the most of the strength in each business and leverages enterprise capabilities, unique material science expertise as well as leading market positions to achieve these goals.
Strategies to Drive Performance
Owens Corning has implemented strategic initiatives to drive overall performance. Segment-wise, in the Insulation unit, technical and other building insulation businesses look strong on the back of geographic and product expansion through acquisitions. In the North American residential fiberglass business, the company is utilizing automation and additional investments in process technology to improve manufacturing efficiencies as well as reduce costs.
The Composites segment has been generating higher volumes backed by its efforts toward higher-value applications for glass non-wovens and specific markets like India. It focuses on improving its low-cost manufacturing position through strategic supply agreements, accomplished large-scale furnace investments and additional productivity.
In the Roofing segment, Owens Corning is leveraging vertical integration, material science capabilities, and commercial strength to design and market unique roofing shingles as well as components that attract contractors, homeowners, and distributors.
On Jul 13, it announced the acquisition of vliepa GmbH. The acquisition broadened Owens Corning’s global nonwovens portfolio. All these initiatives are expected to aid the company to gain further.
The Zacks Rank #3 (Hold) stock has gained more than 25.6% so far this year, outperforming the Zacks Building Products - Miscellaneous industry’s 15.9% rally. The uptrend can be attributed to the above-mentioned tailwinds and a strong surprise history, having topped analysts’ expectations in the trailing 10 quarters.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Picks
Some better-ranked stocks in the same space include Construction Partners, Inc. (ROAD - Free Report) , Installed Building Products, Inc. (IBP - Free Report) and PGT Innovations, Inc. , each carrying a Zacks Rank #2 (Buy).
Construction Partners’ three-five year earnings are likely to grow 14.1%.
Installed Building and PGT Innovations’ earnings are likely to increase 33.6% and 6.2%, respectively, in 2021.
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From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
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Owens Corning (OC - Free Report) has provided three-year financial targets and discussed strategic priorities during the 2021 virtual Investor Day.
Long-Term Financial Targets
The company expects to achieve annual revenues of $10 billion and operating margins in mid-teens by 2024. Also, it anticipates maintaining the already-reduced capital intensity level at 4-5% of revenues. The company expects to generate a free cash flow conversion rate of approximately 100% of adjusted net income and return nearly 50% of free cash flow to shareholders by 2024.
Owens Corning has been focusing on the expansion of its current addressable markets by capitalizing on key secular trends to create new opportunities. These strategies are expected to help it strengthen its position in core building and construction products, expand to provide more multimaterial solutions, and develop prefabricated building solutions that are more energy efficient, sustainable as well as cost effective.
The company makes the most of the strength in each business and leverages enterprise capabilities, unique material science expertise as well as leading market positions to achieve these goals.
Strategies to Drive Performance
Owens Corning has implemented strategic initiatives to drive overall performance. Segment-wise, in the Insulation unit, technical and other building insulation businesses look strong on the back of geographic and product expansion through acquisitions. In the North American residential fiberglass business, the company is utilizing automation and additional investments in process technology to improve manufacturing efficiencies as well as reduce costs.
The Composites segment has been generating higher volumes backed by its efforts toward higher-value applications for glass non-wovens and specific markets like India. It focuses on improving its low-cost manufacturing position through strategic supply agreements, accomplished large-scale furnace investments and additional productivity.
In the Roofing segment, Owens Corning is leveraging vertical integration, material science capabilities, and commercial strength to design and market unique roofing shingles as well as components that attract contractors, homeowners, and distributors.
On Jul 13, it announced the acquisition of vliepa GmbH. The acquisition broadened Owens Corning’s global nonwovens portfolio. All these initiatives are expected to aid the company to gain further.
The Zacks Rank #3 (Hold) stock has gained more than 25.6% so far this year, outperforming the Zacks Building Products - Miscellaneous industry’s 15.9% rally. The uptrend can be attributed to the above-mentioned tailwinds and a strong surprise history, having topped analysts’ expectations in the trailing 10 quarters.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Picks
Some better-ranked stocks in the same space include Construction Partners, Inc. (ROAD - Free Report) , Installed Building Products, Inc. (IBP - Free Report) and PGT Innovations, Inc. , each carrying a Zacks Rank #2 (Buy).
Construction Partners’ three-five year earnings are likely to grow 14.1%.
Installed Building and PGT Innovations’ earnings are likely to increase 33.6% and 6.2%, respectively, in 2021.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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