Owens-Illinois manufactures and sells glass container products to food and beverage manufacturers primarily in Europe, North America, South America, and the Asia Pacific. The company was founded in 1903 and is based in Perrysburg, Ohio.
OI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for O-I Glass Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that O-I Glass Inc ranked in the 34th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of O-I Glass Inc, consider:
18% of the company's capital comes from equity, which is greater than merely 7.87% of stocks in our cash flow based forecasting set.
O-I Glass Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.05. This coverage rate is greater than that of only 23.08% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, O-I Glass Inc experienced a tax rate of about 114% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than 98.3% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as OI, try WEYS, MTN, MGM, NTZ, and RACE.
O-I Glass (OI) says volume trends have gradually improved in recent weeks after shipments during the quarter were consistently lower through mid-May."The actions we have taken under our turnaround initiatives have enabled high operating efficiency levels across most of our manufacturing footprint and helped accelerate cost reduction," the company says. "As...
O-I Glass, Inc. (the “Company”) announced that Owens-Brockway Glass Container Inc. (“OB Glass”), an indirect wholly owned subsidiary of the Company, intends to offer, subject to market and other conditions, $500 million aggregate principal amount of senior notes due 2027 in a private offering to eligible purchasers under Rule 144A and Regulation S of the U.S. Securities Act of 1933, as amended (the “Securities Act”). OB Glass’s obligations under the senior notes will be guaranteed on a joint and several basis by Owens-Illinois Group, Inc. (“OI Group”) and certain U.S. domestic subsidiaries of OI Group that are guarantors under OI Group’s credit agreement.
The same is true for the O-I team of 27,000 employees who are hard at work every day to help make sure we all have the food and beverage products essential during these challenging times. The health and safety of our employees is our top priority.