Morningstar Rating

Stock Research and Analysis

by Todd Wenning

Bulls Say

Despite some of the operational missteps and a weak economic backdrop in recent years, O-I has remained free cash flow positive.
O-I has a leading position in the growing South American market, which should help fuel growth in the coming years.
The returnable glass model in emerging markets supports strong operating margins as O-I builds more durable containers and doesn't need to install as much capacity. Read more 

Bears Say

The company's asbestos liabilities and wide pension deficit will prevent it from making the investments it needs to defend its market-leading position.
O-I's frequent need to restructure is a sign that the company often struggles to match regional supply with demand.
The threat of substitution is high. Glass has been losing market share to plastic and metal packaging in a number of regions and across a number of products. If this trend continues, O-I's top and bottom lines are likely to suffer. Read more 

Management

Al Stroucken has been chairman and CEO since December 2006. Before joining O-I, Stroucken was CEO of H.B. Fuller, a global industrial adhesives company. We think Stroucken's incentive package is aligned with shareholder interests as just 13% of his   Read more 

Profile

Owens-Illinois is the world's largest manufacturer of glass bottles; 70% of its revenue comes from outside the United States. O-I has a market-leading position in key markets   Read more 

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