Operating Margin - Owens Corning (NYSE:OC)

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Price: 113.7 USD -1.14%

Market Cap: 9.3B USD

16.5%

Current

18%

Average

5.6%

Industry

Operating Margin represents how efficiently a company is able to generate profit through its core operations.

Higher ratios are generally better, illustrating the company is efficient in its operations and is good at turning sales into profits.

Operating Margin

16.5%

Operating Profit

1.8B

Revenue

10.8B

Operating Margin Across Competitors

Country		Company	Market Cap	Operating Margin
US		Owens Corning NYSE:OC	9.3B USD	16%
US	F	Fortune Brands Home & Security Inc LSE:0IRN	713.2B USD	16%
IE		Trane Technologies PLC NYSE:TT	87.9B USD	19%
IE		Johnson Controls International PLC NYSE:JCI	72.6B USD	12%
FR		Compagnie de Saint Gobain SA PAR:SGO	44.2B EUR	11%
US		Carrier Global Corp NYSE:CARR	45.1B USD	11%
SE		Assa Abloy AB STO:ASSA B	398.1B SEK	15%
JP		Daikin Industries Ltd TSE:6367	5.8T JPY	9%
CH		Geberit AG SIX:GEBN	20.5B CHF	24%
US		Lennox International Inc NYSE:LII	17.3B USD	20%
IE	K	Kingspan Group PLC ISEQ:KRX	13.7B EUR	10%

Owens Corning
Glance View

Economic Moat

None

Market Cap

9.3B USD

Industry

Building

In the industrial heart of Toledo, Ohio, Owens Corning stands as a testament to American ingenuity and resilience, carving a niche in the building materials arena. Founded in 1938, the company emerged from the merger of two giants – Corning Glass Works and Owens-Illinois – with a pioneering spirit focused on fiber glass technology. This innovation laid the groundwork for Owens Corning to become a leader in insulation, roofing, and composites, effectively setting the stage for its growth trajectory. These three business segments form the backbone of the company, each channeling the unique properties of fiberglass to cater to diverse needs across residential, commercial, and industrial markets. By leveraging its proprietary technologies and vast distribution networks, Owens Corning ensures it remains at the forefront of sustainable building solutions, meeting the evolving demands of energy efficiency and durability. Central to Owens Corning’s business model is its strategy of vertical integration, which enables the company to streamline production and cost management while maintaining high-quality standards. In the insulation segment, they produce a variety of products aimed at enhancing energy efficiency in buildings, offering a range of solutions from residential to large-scale industrial applications. Meanwhile, their roofing business capitalizes on high-demand asphalt shingles, fortified by strong brand equity and widespread distribution channels. The composites business diversifies its portfolio further, engaging with industries like automotive, wind energy, and marine, showcasing the versatility of glass fiber materials. By investing in sustainable practices and continuous innovation, Owens Corning not only generates revenue from sales across these segments but also positions itself as an advocate for environmental responsibility, all while navigating the intricacies of a highly competitive marketplace.

View OC Analysis

OC Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

US	Johnson & Johnson NYSE:JNJ	Pharmaceuticals
US	Berkshire Hathaway Inc NYSE:BRK.A	Financial Services
US	Bank of America Corp NYSE:BAC	Banking
US	Mastercard Inc NYSE:MA	Technology
US	UnitedHealth Group Inc NYSE:UNH	Health Care
US	Exxon Mobil Corp NYSE:XOM	Energy
US	Pfizer Inc NYSE:PFE	Pharmaceuticals
US	Palantir Technologies Inc NYSE:PLTR	Technology
US	Nike Inc NYSE:NKE	Textiles, Apparel & Luxury Goods
US	Visa Inc NYSE:V	Technology
CN	Alibaba Group Holding Ltd NYSE:BABA	Retail
US	JPMorgan Chase & Co NYSE:JPM	Banking
US	Coca-Cola Co NYSE:KO	Beverages
US	Walmart Inc NYSE:WMT	Retail
US	Verizon Communications Inc NYSE:VZ	Telecommunication
US	Chevron Corp NYSE:CVX	Energy

	Johnson & Johnson NYSE:JNJ	US
	Berkshire Hathaway Inc NYSE:BRK.A	US
	Bank of America Corp NYSE:BAC	US
	Mastercard Inc NYSE:MA	US
	UnitedHealth Group Inc NYSE:UNH	US
	Exxon Mobil Corp NYSE:XOM	US
	Pfizer Inc NYSE:PFE	US
	Palantir Technologies Inc NYSE:PLTR	US
	Nike Inc NYSE:NKE	US
	Visa Inc NYSE:V	US
	Alibaba Group Holding Ltd NYSE:BABA	CN
	JPMorgan Chase & Co NYSE:JPM	US
	Coca-Cola Co NYSE:KO	US
	Walmart Inc NYSE:WMT	US
	Verizon Communications Inc NYSE:VZ	US
	Chevron Corp NYSE:CVX	US

	Johnson & Johnson NYSE:JNJ	209.3 USD -2.27%
	Berkshire Hathaway Inc NYSE:BRK.A	749 120 USD -1.29%
	Bank of America Corp NYSE:BAC	54.81 USD -0.94%
	Mastercard Inc NYSE:MA	566.02 USD -0.55%
	UnitedHealth Group Inc NYSE:UNH	334.2 USD -2.02%
	Exxon Mobil Corp NYSE:XOM	114.68 USD -2.62%

	Franklin Covey Co NYSE:FC	16.31 USD 0.55%
	Mohawk Industries Inc NYSE:MHK	110.3 USD -1.07%
	Ardmore Shipping Corp NYSE:ASC	11.16 USD -0.98%
	ASGN Inc NYSE:ASGN	47.75 USD -0.42%
	Skyworks Solutions Inc NASDAQ:SWKS	66.02 USD -0.53%
	Weatherford International PLC NASDAQ:WFRD	76.23 USD -3.49%

	Johnson & Johnson NYSE:JNJ	209.3 USD -2.27%
	Bank of America Corp NYSE:BAC	54.81 USD -0.94%
	Mastercard Inc NYSE:MA	566.02 USD -0.55%
	Salesforce Inc NYSE:CRM	254.91 USD 0.13%
	Abbvie Inc NYSE:ABBV	223.67 USD -1.66%
	Home Depot Inc NYSE:HD	352.68 USD -1.21%

Owens Corning
NYSE:OC