Title – "O-I Glass (OI) Steadies Despite Mixed Analyst Sentiment

Today, O-I Glass, Inc. has released its 10-K report. O-I Glass, through its subsidiaries, engages in the manufacture and sale of glass containers to food and beverage manufacturers primarily in the Americas, Europe, and internationally. 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.

Following the release of the 10-K report, the company's shares have moved 0.4% on the market, and are now trading at a price of $16.32.

O-I Glass's annual report for the year ended December 31, 2022, reveals the following financial metrics:

  • Net sales for 2023 were $7,105 million, compared to $6,856 million in 2022, marking an increase of $249 million, or 4%.
  • Net earnings (loss) attributable to the Company were ($103) million in 2023, compared to $584 million in 2022.
  • Segment operating profit for reportable segments in 2023 was $1,193 million, compared to $960 million in 2022, an increase of $233 million, or approximately 24%.

The company reported an increase in net sales in 2023, driven by higher selling prices and favorable effects of changes in foreign currency exchange rates, partially offset by lower shipments than the prior year. However, earnings before income taxes were $738 million lower in 2023 compared to the prior year, primarily due to a goodwill impairment charge, higher restructuring and asset impairment charges, and higher interest expense.

O-I Glass recorded a net loss attributable to the Company of $103 million in 2023, compared to net earnings attributable to the Company of $584 million in 2022. This decrease was attributed to items not representative of ongoing operations and other adjustments.

For more information, read the company's full 10-K submission here.

2018 2019 2020 2021 2022 2023
Revenue (MM) $6,877 $6,691 $6,091 $6,357 $6,856 $7,157
Revenue Growth n/a -2.7% -8.97% 4.37% 7.85% 4.39%
Gross Margins 19% 18% 16% 17% 18% 21%
Operating Margins 4% -4% 6% 5% 12% 7%
Net Margins 4% -6% 4% 2% 9% 5%
Net Income (MM) $257 -$400 $249 $149 $584 $380
Net Interest Expense (MM) $261 $311 $265 $216 $239 $328
Depreciation & Amort. (MM) $388 $390 $122 $356 $352 $476
Earnings Per Share $1.59 -$2.58 $1.57 $0.93 $3.67 $2.38
EPS Growth n/a -262.26% 160.85% -40.76% 294.62% -35.15%
Diluted Shares (MM) 162 155 159 160 159 159
Free Cash Flow (MM) $255 -$21 $146 $289 -$385 $157
Capital Expenditures (MM) $536 $426 $311 $398 $539 $658
Current Ratio 1.07 1.25 1.21 1.36 1.1 1.4
Total Debt (MM) $5,341 $5,559 $5,142 $4,825 $4,716 $4,937
Net Debt / EBITDA 7.26 38.82 9.64 5.96 3.41 4.1

The company's financial analysis reveals weak revenue growth and increasing reinvestment in the business, positive EPS growth, and positive cash flows. However, O-I Glass has slimmer gross margins than its peers, weak operating margins with an unknown rate of growth, and a highly leveraged balance sheet. It's important to note that O-I Glass has just enough current assets to cover current liabilities, as shown by its current ratio of 1.4.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.