O-I Glass (OI) AI Stock Analysis

• Market Cap: $2.02B
• Dividend Yield: N/A
• Average Volume (3M): 1.42M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: -3.36%
• EPS Growth: 11.88%
• Country: US
• Employees: 21,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 0.53
• Shares Outstanding: 154,073,260
• 10 Day Avg. Volume: 1,388,717
• 30 Day Avg. Volume: 1,418,831
• PEG Ratio: -5.30
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 0.26
• P/FCF Ratio: -13.09
• Enterprise Value/Market Cap: 3.48
• Enterprise Value/Revenue: 1.09
• Enterprise Value/Gross Profit: 7.04
• Enterprise Value/Ebitda: 10.73
• 1Y Price Target: $16.81
• Price Target Upside: 26.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 57 Neutral
• Price Target: $13.50 ▲(1.20% Upside)

O-I Glass's overall stock score is primarily influenced by its financial performance challenges, including declining revenues and net losses. However, the positive sentiment from the earnings call, with raised guidance and cost-saving achievements, provides a counterbalance. Technical indicators suggest a neutral trend, while valuation concerns persist due to negative earnings.

Positive Factors

Cost Savings Initiatives

The Fit to Win program's success in achieving substantial cost savings enhances O-I Glass's operational efficiency and profitability, supporting sustainable growth.

Americas Segment Growth

Growth in the Americas, driven by a rebound in key categories, indicates strong market demand and potential for revenue expansion in this region.

Raised Full-Year Guidance

Raising full-year guidance reflects management's confidence in future performance and strategic initiatives, suggesting robust long-term growth prospects.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth and weather economic downturns.

European Market Challenges

Declining shipments in Europe due to macroeconomic uncertainties and supplier delays could hinder revenue growth and market position in this key region.

Halted MAGMA Development

Halting MAGMA development suggests challenges in innovation and potential missed opportunities in advancing manufacturing technology, affecting long-term competitiveness.

O-I Glass Business Overview & Revenue Model

Company Description

O-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 Money

O-I Glass generates revenue primarily through the sale of glass containers to clients in the food, beverage, and pharmaceutical sectors. The company operates under a business-to-business (B2B) model, where it enters into contracts with customers for the supply of customized glass packaging solutions. Key revenue streams include direct sales of glass containers, as well as related services such as design and engineering support. Additionally, O-I Glass benefits from long-term partnerships with major global brands, which provide a stable demand for its products. The company also emphasizes sustainability, which enhances its brand value and can lead to increased sales as consumers and businesses increasingly prioritize eco-friendly packaging options. Factors contributing to earnings include operational efficiency, cost management, and innovations in glass manufacturing technology that reduce production costs and improve product quality.

O-I Glass Financial Statement Overview

Summary

O-I Glass faces significant challenges with declining revenues and persistent net losses impacting profitability. The balance sheet shows high leverage, although there are signs of strengthening equity. Cash flow from operations remains a strong point, but overall financial performance requires careful management to improve profitability and reduce debt levels.

Income Statement

O-I Glass has experienced a decline in revenue from the previous year, with the TTM showing a negative revenue growth rate of -0.77%. The gross profit margin stands at 15.46%, which is relatively modest and indicates challenges in maintaining high profitability. Both EBIT and EBITDA margins have decreased, with TTM EBIT and EBITDA margins at 7.65% and 2.62%, respectively. The net profit margin is negative due to a net loss, reflecting ongoing profitability issues.

Balance Sheet

The company's debt-to-equity ratio stands at 2.36, indicating a high level of leverage. However, there has been an improvement in stockholders' equity, which now makes up 23.75% of total assets, suggesting some strengthening of the balance sheet. The return on equity is negative, reflecting the net income losses and indicating challenges in generating returns for shareholders.

Cash Flow

O-I Glass has shown some improvement in cash flow metrics, with positive free cash flow in the TTM, translating to a free cash flow growth rate from the previous year. The operating cash flow to net income ratio is positive, reflecting effective cash conversion despite net losses. However, the free cash flow to net income ratio is negative due to ongoing net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.48B	6.53B	7.11B	6.86B	6.36B	6.09B
Gross Profit	1.00B	1.04B	1.50B	1.21B	1.09B	972.00M
EBITDA	657.00M	859.00M	892.00M	1.44B	949.00M	1.03B
Net Income	-255.00M	-106.00M	-103.00M	584.00M	149.00M	249.00M
Balance Sheet
Total Assets	9.18B	8.65B	9.67B	9.06B	8.83B	8.88B
Cash, Cash Equivalents and Short-Term Investments	487.00M	734.00M	913.00M	773.00M	725.00M	563.00M
Total Debt	5.13B	5.18B	5.17B	4.72B	4.83B	5.14B
Total Liabilities	7.00B	7.45B	7.92B	7.53B	8.01B	8.48B
Stockholders Equity	2.18B	1.08B	1.61B	1.53B	827.00M	401.00M
Cash Flow
Free Cash Flow	114.00M	-128.00M	130.00M	-385.00M	289.00M	146.00M
Operating Cash Flow	493.00M	489.00M	818.00M	154.00M	687.00M	457.00M
Investing Cash Flow	-461.00M	-620.00M	-683.00M	-97.00M	-220.00M	93.00M
Financing Cash Flow	-235.00M	-8.00M	-27.00M	35.00M	-273.00M	-557.00M

O-I Glass Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 13.34 is above the 20-day moving average (MA) of 12.91, below the 50-day MA of 13.36, and above the 200-day MA of 12.46, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 55.23 is Neutral, neither overbought nor oversold. The STOCH value of 84.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OI.

O-I Glass Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRS	72 Outperform	1.62B	43.61	5.22%	0.40%	6.72%	-6.68%
MYE	68 Neutral	621.38M	62.96	3.49%	3.24%	1.11%	-74.94%
SON	66 Neutral	4.53B	-64.20	17.18%	4.60%	0.90%	-118.86%
GEF	63 Neutral	2.91B	21.92	8.66%	3.65%	-2.55%	-40.81%
SLGN	61 Neutral	4.55B	15.10	13.59%	1.88%	5.49%	-1.01%
OI	57 Neutral	$2.02B	―	-18.69%	―	-3.36%	11.88%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%