Stock Research and Analysis

by Rick Tauber, CFA, CPA

Bulls Say

As the construction markets recover, USG's high incremental margins should drive profitability sharply higher.
USG benefits from being one of the key players in the oligopolistic wallboard industry, which provides the firm with some pricing power as the industry recovers.
With more than $800 million in liquidity and the potential to revert to positive free cash flow, USG should be able to manage its upcoming debt obligations and $2.3 billion of gross debt. Read more 

Bears Say

A tepid economic recovery in USG's core domestic market could stall improvements in the housing market and lead to choppy operating results.
Servicing a sizable $2.3 billion debt brings notable incremental financial risk to USG, which is already exposed to macroeconomic headwinds.
USG's negative retained earnings have ballooned during the past several years, highlighting the difficulties in operating in a weak housing environment. Read more 

Management

USG's management team has undergone some changes. On March 26, 2012, the company announced the hiring of former senior vice president and CFO of Exelon Corporation, Matthew F. Hilzinger, to succeed current CFO Rick Fleming, on May 1 of that year. After   Read more 

Profile

USG Corporation is a global manufacturer and distributor of buildings materials. From gypsum wallboard and ceilings to tile and flooring, the company produces products for   Read more 

First Name
Last Name
Email Address
Zip Code
Create Password
Verify Password
(6-15 characters; case sensitive)

Google Keeps Investing Prudently  
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.