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O-I Glass (OI)
NYSE:OI
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O-I Glass
(NYSE:OI)
60Neutral
Positive Factors
Operational Efficiency
The Fit to Win (FTW) program is expected to significantly improve O-I Glass's operational efficiency and reduce costs, potentially yielding substantial benefits in the coming years.
Self-help Initiatives
OI management successfully pitched its self-help story, which is seen as a catalyst to keep shares moving.
Negative Factors
Market Fundamentals
Challenging fundamentals include a current cost disadvantage to cans, declining trends in at-home alcohol consumption, and trade policy impacts that could affect key customer products.
Volume Trends
OI's declining volumes and negative sentiment around glass are causing challenges for profit, cash flow, and net debt progress.
O-I Glass (OI) vs. S&P 500 (SPY)
Market Cap
$1.85B
Dividend YieldN/A
Average Volume (3M)1.57M
Price to Earnings (P/E)―
Beta (1Y)1.03
Revenue Growth-8.09%
EPS Growth-1.97%
CountryUS
Employees21,000
SectorConsumer Cyclical
Sector Strength66
IndustryPackaging & Containers
Share Statistics
EPS (TTM)-0.71
Shares Outstanding154,668,850
10 Day Avg. Volume1,308,229
30 Day Avg. Volume1,572,607
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.28
Price to Cash Flow (P/CF)1.50
P/FCF Ratio1.50
Enterprise Value/Market Cap3.38
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit5.97
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$14.00Price Target Upside17.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
O-I Glass Business Overview & Revenue Model
Company DescriptionO-I Glass, Inc., through its subsidiaries, manufactures and sells glass containers to food and beverage manufacturers primarily in the Americas, Europe, and the Asia Pacific. The company produces glass containers for alcoholic beverages, including beer, flavored malt beverages, spirits, and wine. It is also involved in the production of glass packaging for various food items, soft drinks, tea, juices, and pharmaceuticals. In addition, the company offers glass containers in a range of sizes, shapes, and colors. It sells its products directly to customers under annual or multi-year supply agreements, as well as through distributors. The company was founded in 1903 and is headquartered in Perrysburg, Ohio.
How the Company Makes MoneyO-I Glass generates revenue primarily through the production and sale of glass containers. The company's key revenue streams include the manufacturing of glass packaging for the food and beverage industries, which represent a significant portion of its earnings. O-I Glass also engages in long-term supply agreements with major beverage and consumer goods companies, ensuring a stable and recurring revenue base. Additionally, the company benefits from its extensive global manufacturing network, allowing it to serve a wide customer base across different regions efficiently. These strategic partnerships and an emphasis on sustainability and innovation contribute to O-I Glass's financial performance, positioning it as a leader in the glass packaging sector.
O-I Glass Financial Statement Overview
Summary
O-I Glass faces challenges with declining revenues and profitability pressures, as evidenced by inconsistent margins and net losses. High leverage and a low equity base introduce financial risk. However, improvements in free cash flow and operating cash flow provide some stability, although careful financial management is required to mitigate risks.Income Statement
O-I Glass shows fluctuating revenue with a decline in the most recent year. Margins have been inconsistent, with a negative net income in 2023. The gross profit margin declined from 21.06% in 2023 to 16.00% in 2024, indicating cost pressures. EBIT and EBITDA margins are also under pressure due to reduced revenue.53
Neutral
Balance Sheet
The company has high debt levels with a debt-to-equity ratio of 2.38 in 2024. Return on Equity (ROE) was 65.08% in 2024 due to a low equity base, but it may not be sustainable given the net loss in 2023. The equity ratio is low at 5.45% in 2024, indicating high leverage and potential financial risk.47
Neutral
Cash Flow
Free cash flow has grown significantly in 2024, improving from previous negative levels, benefiting from strong operating cash flow. The free cash flow to net income ratio is positive due to the operating cash flow strength, although net income was negative in 2023, reflecting potential sustainability risks.61
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 6.53B | 7.11B | 6.86B | 6.36B | 6.09B | Gross Profit |
| 1.04B | 1.50B | 1.21B | 1.09B | 972.00M | EBIT |
| 520.00M | 839.00M | 1.04B | 548.00M | 618.00M | EBITDA |
| 859.00M | 892.00M | 1.44B | 949.00M | 1.03B | Net Income Common Stockholders |
| -106.00M | -103.00M | 584.00M | 149.00M | 249.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 734.00M | 913.00M | 773.00M | 725.00M | 563.00M | Total Assets |
| 8.65B | 9.67B | 9.06B | 8.83B | 8.88B | Total Debt |
| 4.97B | 5.17B | 4.72B | 4.83B | 5.14B | Net Debt |
| 4.24B | 4.26B | 3.94B | 4.10B | 4.58B | Total Liabilities |
| 7.45B | 7.92B | 7.53B | 8.01B | 8.48B | Stockholders Equity |
| 252.00M | 1.61B | 1.53B | 827.00M | 401.00M |
| Cash Flow | Free Cash Flow | |||
| 489.00M | 130.00M | -385.00M | 289.00M | 146.00M | Operating Cash Flow |
| 489.00M | 818.00M | 154.00M | 687.00M | 457.00M | Investing Cash Flow |
| -620.00M | -683.00M | -97.00M | -220.00M | 93.00M | Financing Cash Flow |
| -8.00M | -27.00M | 35.00M | -273.00M | -557.00M |
O-I Glass Technical Analysis
Positive
11.93
Price Trends
11.38
Positive
11.26
Positive
11.80
Positive
Market Momentum
0.02
Negative
59.30
Neutral
84.71
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OI, the sentiment is Positive. The current price of 11.93 is above the 20-day moving average (MA) of 11.01, above the 50-day MA of 11.38, and above the 200-day MA of 11.80, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 59.30 is Neutral, neither overbought nor oversold. The STOCH value of 84.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OI.
O-I Glass Risk Analysis
O-I Glass disclosed 29 risk factors in its most recent earnings report. O-I Glass reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
O-I Glass Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $5.49B | 19.94 | 14.25% | 1.50% | -2.23% | -13.56% | |
69 Neutral | $7.55B | 11.60 | 22.72% | 1.64% | -6.59% | -7.81% | |
65 Neutral | $4.06B | 14.97 | 45.91% | 2.89% | -1.75% | -21.15% | |
64 Neutral | $10.45B | 25.16 | 16.41% | 1.13% | -1.53% | -5.16% | |
62 Neutral | $4.35B | 26.73 | 6.42% | 4.50% | -6.93% | -65.66% | |
60 Neutral | $1.85B | ― | -7.89% | ― | -8.09% | -1.97% | |
60 Neutral | $6.85B | 11.71 | 3.16% | 4.15% | 2.39% | -21.87% |
* Consumer Cyclical Sector Average
Performance Comparison
OI
O-I Glass
11.93
-3.73
-23.82%
CCK
Crown Holdings
89.31
9.16
11.43%
GPK
Graphic Packaging
25.01
-2.41
-8.79%
SEE
Sealed Air
27.64
-3.44
-11.07%
SLGN
Silgan Holdings
51.44
4.86
10.43%
SON
Sonoco Products
46.19
-8.78
-15.97%
O-I Glass Earnings Call Summary
Earnings Call Date:Feb 04, 2025
(Q4-2024)
| % Change Since: 1.71%|
Next Earnings Date:Apr 29, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a challenging year for O-I Glass, Inc. with declines in earnings and sales volumes. However, the company has taken significant steps to stabilize demand and improve performance through cost-saving initiatives. The positive outlook for 2025 with substantial expected growth in EPS and free cash flow indicates a cautiously optimistic future.Q4-2024 Updates
Positive Updates
Stabilization and Improved Performance
Despite challenging market conditions, demand has stabilized in recent months, and fourth quarter costs and operating performance were better than anticipated.
Significant Cost Savings Initiatives
The 'Fit to Win' program is expected to generate savings of $300 million over the next three years, with $25 million already achieved in Q4 2024.
Positive Outlook for 2025
Adjusted EPS is projected to increase by 50% to 85% in 2025, driven by strategic initiatives with expected improvements in free cash flow to $150 million to $200 million.
Growth in Americas Segment
Segment operating profit in the Americas increased to $96 million, with a 5% growth in sales volume.
Inventory Reduction Success
Inventory was reduced by $108 million in 2024, with further reductions expected in 2025.
Negative Updates
Decline in Earnings
Full year adjusted earnings were $0.81 per share, down from historically high performance in 2023. Fourth quarter reported an adjusted loss of $0.05 per share.
Sales and Revenue Challenges
Net sales were down due to a 2% decline in selling prices and 4% lower sales volume. European segment operating profit declined to $40 million, down from $75 million in Q4 2023.
Increased Leverage Ratio
Leverage ratio increased to 3.9 times due to lower adjusted EBITDA.
Overcapacity and Pricing Pressure in Europe
Europe experienced a 5% decrease in sales volume with pricing pressure, particularly in Southwest Europe due to overcapacity.
Company Guidance
During the O-I Glass, Inc. earnings call for the fiscal year 2024, the guidance for 2025 was presented with a focus on strategic initiatives aimed at improving financial performance despite challenging market conditions. The company anticipates adjusted EPS in the range of $1.20 to $1.50 per share, reflecting a 50% to 85% increase from 2024 levels, driven by strategic cost reduction efforts. Additionally, they expect free cash flow between $150 million and $200 million, marking a significant improvement from the prior year. These projections are underpinned by a targeted adjusted EBITDA of $1.15 billion to $1.2 billion, with sales volume expected to be flat or slightly down. The company plans to implement two phases of their Fit to Win program, which includes streamlining organizational structures and optimizing the supply chain, aiming for savings of $175 million to $200 million in 2025 alone.O-I Glass Corporate Events
Business Operations and Strategy
O-I Glass Unveils Strategic Initiatives for Growth
Positive
Mar 13, 2025
On March 13, 2025, O-I Glass announced its strategic initiatives to enhance market position and shareholder value during its Investor Day at the NYSE on March 14, 2025. The company plans to implement a three-horizon roadmap focusing on cost reduction, profitable growth, and strategic expansion, aiming for significant savings and improved financial performance by 2027. These efforts are expected to strengthen O-I Glass’s competitive position and expand its market reach, benefiting stakeholders and aligning with its long-term financial targets.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.