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O-I Glass Inc (OI)
:OI
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O-I Glass
(NYSE:OI)
65Neutral
Positive Factors
Earnings
OI management successfully pitched its self-help story, which is seen as a catalyst to keep shares moving.
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.
Profitability
Operating income in the Americas improved to $96M due to lower operating costs and higher sales volume.
Negative Factors
Cost Disadvantage
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.
Market Challenges
OI has faced declining volumes and negative sentiment around glass, impacting the company's profitability and cash flow.
Volume Trends
Volume trends likely remain weak in Europe, which poses a challenge for OI's growth strategy.
O-I Glass (OI) vs. S&P 500 (SPY)
Market Cap
$2.04B
Dividend YieldN/A
Average Volume (3M)1.57M
Price to Earnings (P/E)―
Beta (1Y)1.07
Revenue Growth-5.29%
EPS Growth18.22%
CountryUS
Employees21,000
SectorConsumer Cyclical
Sector Strength59
IndustryPackaging & Containers
Share Statistics
EPS (TTM)-1.26
Shares Outstanding154,683,070
10 Day Avg. Volume1,543,630
30 Day Avg. Volume1,570,941
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap3.17
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit6.21
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$14.29Price Target Upside8.09% 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 profitability and high leverage, affecting its income statement and balance sheet performance. The income statement shows declining revenue and negative net income, while the balance sheet reflects high debt levels. However, strong cash flow generation supports operational stability, suggesting resilience in cash management despite fluctuations.Income Statement
O-I Glass shows a declining trend in revenue and profitability metrics, with significant drops in gross profit and EBIT margins over the years. The TTM data reflects a negative net income, impacting net profit margins adversely. Despite past revenue growth, recent figures indicate challenges in maintaining profitability.―
Balance Sheet
The company's balance sheet shows moderate leverage with a debt-to-equity ratio indicating a high level of debt compared to equity. ROE has been negative recently due to net losses. The equity ratio is relatively stable, suggesting some level of financial stability amidst high liabilities.60
Cash Flow
O-I Glass demonstrates strong cash flow generation capabilities, with positive free cash flow in the TTM. The operating cash flow to net income ratio is favorable, reflecting operating efficiency. However, fluctuations in capital expenditures and free cash flow in prior years highlight potential volatility in cash management.―
| 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 |
| 1.08B | 1.61B | 1.53B | 827.00M | 401.00M |
| Cash Flow | Free Cash Flow | |||
| -128.00M | 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
13.22
Price Trends
11.47
Positive
11.27
Positive
11.84
Positive
Market Momentum
0.39
Negative
71.14
Negative
90.30
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 13.22 is above the 20-day moving average (MA) of 11.27, above the 50-day MA of 11.47, and above the 200-day MA of 11.84, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 71.14 is Negative, neither overbought nor oversold. The STOCH value of 90.30 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $5.87B | 20.35 | 14.52% | 1.40% | 1.99% | -5.28% | |
73 Outperform | $11.34B | 20.83 | 21.30% | 1.04% | 0.87% | 34.41% | |
65 Neutral | $2.04B | ― | -13.85% | ― | -5.29% | 18.22% | |
65 Neutral | $4.11B | 15.17 | 45.91% | 2.86% | -1.75% | -21.15% | |
64 Neutral | $6.58B | 10.69 | 20.62% | 1.88% | -6.28% | -7.43% | |
64 Neutral | $4.35B | 26.73 | 5.52% | 4.65% | -4.57% | ― | |
61 Neutral | $6.65B | 11.64 | 3.00% | 3.98% | 2.61% | -21.41% |
* Consumer Cyclical Sector Average
Performance Comparison
OI
O-I Glass
13.22
-0.14
-1.05%
CCK
Crown Holdings
96.94
14.63
17.77%
GPK
Graphic Packaging
21.81
-4.99
-18.62%
SEE
Sealed Air
28.00
-6.96
-19.91%
SLGN
Silgan Holdings
54.85
8.91
19.39%
SON
Sonoco Products
44.71
-10.12
-18.46%
O-I Glass Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: 8.81%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
The earnings call highlights a strong start to 2025 with better-than-expected earnings and significant savings from the Fit to Win program. Growth in the Americas and successful inventory reduction are positive indicators. However, challenges in Europe, the potential impact of global trade policies, and recent volume declines pose concerns. Overall, the positive aspects slightly outweigh the negatives, but caution remains due to external uncertainties.Q1-2025 Updates
Positive Updates
Strong Start to 2025
O-I Glass reported first quarter adjusted earnings of $0.40 per share, which exceeded management's expectations due to stronger than anticipated sales volume growth and $61 million in savings from the Fit to Win program.
Growth in the Americas
Segment operating profit improved significantly in the Americas, driven by strong demand, stable net price amid tight capacity, and $27 million in Fit to Win benefits. Shipments were up more than 4% in the Americas.
Fit to Win Program Success
The Fit to Win program generated $61 million in savings during the first quarter, exceeding initial plans. The program aims to achieve $250 million in savings in 2025 and $650 million cumulatively by 2027.
Inventory Reduction Achievements
Inventory levels were reduced by $225 million from the same time last year, with the aim to be below 50 days IDS by the end of 2025.
Reaffirmed 2025 Guidance
O-I reaffirmed its full year 2025 guidance, expecting adjusted earnings to improve by 50% to 85% from fiscal year 2024, ranging between $1.20 and $1.50 per share.
Negative Updates
Challenges in Europe
Results in Europe trended down due to lower net prices and temporary production downtime, which led to $58 million of unabsorbed fixed costs. This was partially offset by $20 million in Fit to Win benefits.
Impact of Global Trade Policies
Uncertainty related to new global trade policies, such as tariffs, poses potential challenges. About 4.5% of global sales volume is currently exposed to new tariffs, primarily related to imports from Europe.
Slight Volume Decline in April
Adjusted for Easter, April volumes were down about 1% to 2%, with a decline observed in Europe, particularly in segments exposed to exports such as wines and spirits.
Company Guidance
In the O-I Glass First Quarter 2025 Earnings Conference Call, the company provided several key metrics and guidance on their performance and future outlook. The first quarter of 2025 saw adjusted earnings of $0.40 per share, which, although lower than the previous year, surpassed management's expectations thanks to a more than 4% increase in shipments and $61 million in savings from the Fit to Win program. The company is reaffirming its full-year 2025 guidance, expecting adjusted earnings to improve by 50% to 85% compared to 2024, with an expected range of $1.20 to $1.50 per share. Segment operating profit increased significantly in the Americas due to strategic initiatives, while Europe faced challenges with lower net prices and temporary production downtime. O-I Glass aims to achieve $250 million in savings for 2025 and $650 million by 2027 through its Fit to Win program, which focuses on cost reduction and network optimization. Additionally, the company is cautiously optimistic due to potential impacts from changing global trade policies and tariffs, with 14% of global sales volume crossing the U.S. border and 4.5% exposed to new tariffs. The company remains confident in achieving its financial goals despite these uncertainties.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.