Investment Thesis
O-I Glass faces severe financial distress with negative profitability deteriorating YoY, unsustainable debt leverage (3.35x Debt/Equity) on a flat-revenue base, and critically negative operating cash flow indicating the company cannot service its 4.8B debt burden from operations. The inability to generate positive cash flow while maintaining capital expenditures signals potential liquidity crisis ahead.
Strengths
- Current ratio of 1.26x provides near-term liquidity cushion above critical threshold
- Cash position of 317M provides temporary buffer for near-term obligations
- Established market position in glass containers industry with 1.5B in revenue base
Risks
- Operating cash flow of -294M indicates business cannot generate cash to service 4.8B debt obligation
- Interest coverage ratio of -0.7x shows complete inability to cover debt service from operations
- Net income deteriorating -25.2% YoY with negative operating margins of -3.4% suggest structural business problems
- Debt/Equity of 3.35x with negative free cash flow creates imminent refinancing and solvency risk
- Zero revenue growth (+0.0% YoY) with only 12.9% gross margins leaves no room for debt support
- Free cash flow of -436M at -28.3% FCF margin indicates capital structure is unsustainable
Key Metrics to Watch
- Operating cash flow trend and path to positive FCF generation
- Debt refinancing capabilities and access to capital markets
- Revenue growth trajectory and gross margin expansion initiatives
- Cash burn rate and runway on existing 317M cash balance
- Interest coverage ratio movement toward solvency threshold
Financial Metrics
Revenue
1.5B
Net Income
-73.0M
EPS (Diluted)
$-0.48
Free Cash Flow
-436.0M
Total Assets
9.0B
Cash
317.0M
Profitability Ratios
Gross Margin
12.9%
Operating Margin
-3.4%
Net Margin
-4.7%
ROE
-5.1%
ROA
-0.8%
FCF Margin
-28.3%
Balance Sheet & Liquidity
Current Ratio
1.26x
Quick Ratio
0.73x
Debt/Equity
3.35x
Debt/Assets
0.0%
Interest Coverage
-0.67x
Long-term Debt
4.8B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-06T13:33:26.032153 |
Data as of: 2026-03-31 |
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