Owens-Illinois: Sell, Buy or Hold?

The Positives

• How can selling glass bottles and glass packaging be a $7 billion dollar business? It has to do with volume. Although OI doesn’t produce all of the glass products in the world, they do specialize in glass packaging. OI falls under the consumer goods industry, so their business tends to be cyclical. However, they have been known to produce one out of every two bottles in the world. They have over 10,000 product offerings, so they produce tons of glass products every year.
• "Unsexy" business that still generates profit and has done so for quite a while.

The Negatives

• They have a lot of future liability they must keep their cash for. This means that they have burdens from the past.
• Long term debt is over 17 multiples the cash on hand. Some might view this as a positive in a low interest rate environment, but it does increase the company's risk if it doesn't manage the debt well.

Full article: Owens-Illinois: Sell, Buy or Hold.

Submitted May 31, 2017 at 11:01AM by fintekneeks http://ift.tt/2qATi5T