Company Overview
O-I Glass, Inc. operates as a manufacturer and seller of glass containers primarily serving food and beverage manufacturers across the Americas, Europe, and international markets. The company focuses on producing glass packaging specifically for alcoholic beverages, including beer, flavored malt beverages, spirits, and wine. This operational scope places the firm within the Consumer Cyclical sector, specifically the Packaging & Containers industry, positioning it as a supplier essential to the broader consumer goods supply chain. With a market capitalization of $1.57B and annual revenue of $6.43B, the company employs 19,000 individuals to support its global production network. These valuation and revenue figures indicate that while the firm maintains a significant operational footprint, its market cap reflects a smaller valuation relative to its substantial revenue base, suggesting a capital-light or cyclical business model common in the packaging industry.
Financial Health
The company reported revenue of $6.43B over the trailing twelve months, yet recorded a net income of -$129,000,000, while generating an EBITDA of $1.02B. The substantial gap between the positive EBITDA and the negative net income reveals a significant impact from non-operating expenses or interest costs on the bottom line, indicating that operating profitability does not fully translate to realized earnings. Despite the reported net loss, the company generated free cash flow of $323.62M, which provides essential financial flexibility to service debt obligations or fund operations without relying on external equity financing. The gross margin stands at 17.3%, reflecting the manufacturing costs inherent in glass production, while the operating margin of 5.6% demonstrates the efficiency of the company's core business operations before interest and taxes. However, the profit margin is negative at -2.0%, confirming that the company is currently unprofitable on a net basis. On the balance sheet, cash holdings of $759.00M contrast sharply with total debt of $5.19B, resulting in a debt-to-equity ratio of 359.52 which indicates a highly leveraged position. The current ratio of 1.25 suggests the company possesses sufficient current assets to cover short-term liabilities, though the margin of safety is relatively narrow given the high leverage. Return on Equity is -7.8% and Return on Assets is 4.2%, metrics that collectively reveal that management is currently destroying shareholder value through equity but maintaining a positive return on the asset base, likely due to the leverage structure affecting the equity denominator.
Valuation Assessment
The valuation metrics show a trailing P/E ratio of N/A due to the lack of positive net income, while the forward P/E is 4.78, implying that the market prices the stock based on expected future earnings rather than current performance. The price-to-book ratio is 1.21, indicating that the market values the company at a slight premium over its book value, despite the current net losses. Alternative valuation metrics such as the price-to-sales ratio of 0.24 and the EV/EBITDA of 5.99 suggest the stock is trading at a discount relative to its sales and earnings before interest, taxes, depreciation, and amortization. The 52-week high is $16.91 and the 52-week low is $9.23; without the current specific price point provided in the input data, the exact percentage deviation cannot be calculated, but the range defines the recent volatility envelope for the security. The beta value of 0.75 indicates that the stock is less volatile than the broader market, moving with 25% less intensity than the overall market index.
Growth & Income
Revenue growth year-over-year is -1.9%, while earnings growth is N/A due to the current negative net income position. The decline in revenue growth is slightly outpaced by the erosion of earnings, which are already negative, implying that the company is facing headwinds that affect both top-line sales and the ability to generate bottom-line profit. Since the company does not pay a dividend, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, it does not distribute earnings to shareholders but instead retains capital for operations or debt reduction. The overall growth and income profile for O-I Glass is characterized by a contraction in revenue and a complete absence of dividend income, reflecting a cyclical business environment where capital preservation and operational efficiency are prioritized over shareholder distributions during periods of financial stress.