Business Analysis of Owens Corning

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Owens Corning

OWENS CORNING

Business Overview

Owens Corning, together with its subsidiaries, produces and sells glass fiber reinforcements and other materials for composites; and residential and commercial building materials worldwide. It operates in three segments: Composites, Insulation, and Roofing. The Composites segment manufactures, fabricates, and sells glass reinforcements in the form of fiber; and manufactures and sells glass fiber products in the form of fabrics, non-wovens, and other specialized products. Its products are used in pipe, roofing shingles, sporting goods, consumer electronics, telecommunications cables, boats, aviation, defense, automotive, industrial containers, and wind-energy applications in the building and construction, transportation, consumer, industrial, and power and energy markets. The Insulation segment manufactures and sells fiberglass insulation into residential, commercial, industrial, and other markets for thermal and acoustical applications; and manufactures and sells glass fiber pipe insulation, flexible duct media, bonded and granulated mineral fiber insulation, and foam insulation used in above- and below-grade construction applications. This segment sells its products primarily to the insulation installers, home centers, lumberyards, retailers, and distributors. The Roofing segment manufactures and sells residential roofing shingles, oxidized asphalt materials, and roofing components used in residential and commercial construction, and specialty applications, as well as synthetic packaging materials. This segment sells its products through home centers, lumberyards, retailers, distributors, and contractors, as well as to roofing contractors for built-up roofing asphalt systems and to manufacturers in automotive, chemical, rubber, and construction industries. Owens Corning was founded in 1938 and is headquartered in Toledo, Ohio.

Owens Corning

Owens Corning


R&P Rank: 466
Sector: Construction and Building Products
Industry:Building Materials & Fixtures
H.Q Location:Ohio
Website: www.owenscorning.com
Company Address:
ONE OWENS CORNING PARKWAY, TOLEDO OH 43659
Ph:419-248-8000

Business Analysis of Owens Corning

The Construction and Building Products Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Owens Corning compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Owens Corning to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Owens Corning with an interactive chart.

  1. Revenue Growth: Owens Corning reported a revenue growth of 6.1% year-on-year during 2016. Building Materials & Fixtures Industry grew at 10.7% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Owens Corning spent 75.7% of its total revenues on COGS. Building Materials & Fixtures industry average (COGS share of revenue) in the same period was 72.8%
  3. R&D share of Revenues: As a percentage of revenue, Owens Corning spent 1.4% of its total revenues on R&D. Building Materials & Fixtures industry average R&D spending in the same period was 0.1%
  4. SG&A share of Revenues: As a percentage of revenue, Owens Corning spent 10.3% of its total revenues on Sales, Marketing, and General Administration (SG&A). Building Materials & Fixtures industry average SG&A spending in the same period was 16.5%
  5. Inventory share of Revenues: As a percentage of revenue, Owens Corning spent 12.5% of its total revenues on Inventories. Building Materials & Fixtures industry average Inventory spending in the same period was 11.3%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Owens Corning invested 16.9% of its total revenues on Accounts Payable (A/P) Building Materials & Fixtures industry average Accounts Payable investment in the same period was 7.6%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Owens Corning invested 11.9% of its total revenues on Accounts Receivable (A/R). Building Materials & Fixtures industry average Accounts Receivable investment in the same period was 11.6%
  8. PP&E share of Revenues: As a percentage of revenue, Owens Corning invested 54.8% of its total revenues on Property, Plants, and Equipments (PP&E). Building Materials & Fixtures industry average PPE investment in the same period was 26.2%
  9. Intangibles share of Revenues: As a percentage of revenue, Owens Corning invested 43.6% of its total revenues on Intangibles. Building Materials & Fixtures industry average Intangibles investment in the same period was 27.0%
  10. Net Margins: Owens Corning Net Margins in the year 2016 were 6.9%. Building Materials & Fixtures industry average Net Margins in the same period were 6.8%

Sector and Industry Association of Owens Corning

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Owens Corning is associated with Industrials Sector Group, Construction and Building Products Sector, and Building Materials & Fixtures Industry.

Construction and Building Products sector is comprised of the following industries: Building Materials & Fixtures; Heavy Construction. The definitions for each of the industries is as follows:

  • Building Materials & Fixtures industry includes producers of materials used in the construction and refurbishment of buildings and structures, including cement and other aggregates, wooden beams and frames, paint, glass, roofing and flooring materials other than carpets. Building Materials & Fixtures companies also offer bathroom and kitchen fixtures, plumbing supplies and central air-conditioning and heating equipment.
  • Heavy Construction industry includes companies engaged in the construction of commercial buildings, infrastructure such as roads and bridges, residential apartment buildings, and providers of services to construction companies, such as architects, masons, plumbers and electrical contractors. Heavy Construction companies also offer construction equipment.

Industry Ranking of Owens Corning

With $5.7 billion revenues, Owens Corning ranked number 4 of all the companies in the US Building Materials & Fixtures industry. There were a total of 60 public companies in the US Building Materials & Fixtures industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Building Materials & Fixtures industry by revenues during 2016 were:

  1. Masco ($7.4 billion)
  2. HD Supply Holdings ($7.1 billion)
  3. Builders FirstSource ($6.4 billion)
  4. Owens Corning ($5.7 billion)
  5. Fortune Brands Home & Security ($5 billion)
  6. Watsco ($4.2 billion)
  7. Beacon Roofing Supply ($4.1 billion)
  8. Fastenal ($4 billion)
  9. Boise Cascade ($3.9 billion)
  10. Martin Marietta Materials ($3.8 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Owens Corningand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of owens-corning

Masco (MAS) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Masco Corp with $7 billion revenues in the year 2016 was the number 1 Building Materials & Fixtures company. Read this report to know the top competitors of Masco and identify growth and cost optimization opportunities of Masco

HD Supply Holdings (HDS) Business Analysis – Analyze Historical Performance, Strategic...

HD Supply Holdings, Inc. with $7 billion revenues in the year 2016 was the number 2 Building Materials & Fixtures company. Read this report to know the top competitors of HD Supply Holdings and identify growth and cost optimization opportunities of HD Supply Holdings

Builders FirstSource (BLDR) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Builders FirstSource, Inc. with $6 billion revenues in the year 2016 was the number 3 Building Materials & Fixtures company. Read this report to know the top competitors of Builders FirstSource and identify growth and cost optimization opportunities of Builders FirstSource

Fortune Brands Home & Security (FBHS) Business Analysis – Analyze Historical...

Fortune Brands Home & Security, Inc. with $5 billion revenues in the year 2016 was the number 5 Building Materials & Fixtures company. Read this report to know the top competitors of Fortune Brands Home & Security and identify growth and cost optimization opportunities of Fortune Brands Home & Security

Watsco (WSO) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Watsco Inc with $4 billion revenues in the year 2016 was the number 6 Building Materials & Fixtures company. Read this report to know the top competitors of Watsco and identify growth and cost optimization opportunities of Watsco

Beacon Roofing Supply (BECN) Business Analysis – Analyze Historical Performance, Strategic...

Beacon Roofing Supply Inc with $4 billion revenues in the year 2016 was the number 7 Building Materials & Fixtures company. Read this report to know the top competitors of Beacon Roofing Supply and identify growth and cost optimization opportunities of Beacon Roofing Supply

Revenues Analysis

Owens Corning (OC) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Owens Corning (OC) from 2012 to 2016. Owens Corning generated a total of $5.7 billion revenues during 2016. Owens Corning reported a revenue growth of 6.1% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Owens Corning (OC) Revenues And Revenue Growth From 2003 To 2016

This report provides the last fourteen years revenues and revenue growth of Owens Corning (OC) from 2003 to 2016. Owens Corning generated a total of $5.7 billion revenues during 2016. Owens Corning reported a revenue growth of 6.1% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Owens Corning (OC) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Owens Corning (OC) revenue growth with Building Materials & Fixtures industry growth during the last five years from 2012 to 2016. Owens Corning reported a revenue growth of 6.1% year-over-year during 2016. The Building Materials & Fixtures industry growth was 10.7% year-over-year during 2016. Owens Corning growth was slower than the industry during 2016.