| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 22.09 | 71 |
| Intrinsic value (DCF) | 1.17 | -91 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
O-I Glass, Inc. (NYSE: OI) is a global leader in glass container manufacturing, serving food and beverage producers across the Americas, Europe, and Asia Pacific. Founded in 1903 and headquartered in Perrysburg, Ohio, O-I Glass specializes in producing high-quality glass containers for alcoholic beverages (beer, spirits, wine), soft drinks, juices, tea, pharmaceuticals, and food products. The company offers a diverse portfolio of glass packaging solutions in various sizes, shapes, and colors, catering to brand differentiation needs. O-I Glass operates under long-term supply agreements with major manufacturers, ensuring stable revenue streams. Despite challenges in the packaging industry, including competition from alternative materials like plastic and aluminum, O-I Glass maintains a strong market presence due to its sustainability focus—glass being 100% recyclable—and its ability to innovate in lightweighting and design. The company’s global footprint and customer-centric approach position it as a key player in the $60B+ glass packaging market.
O-I Glass presents a mixed investment case. On the positive side, the company benefits from long-term customer contracts, a strong position in sustainable packaging (glass is infinitely recyclable), and a diversified geographic footprint. However, its financials reveal challenges: FY2023 saw a net loss of $106M, high leverage (total debt of $4.97B vs. market cap of ~$2B), and no dividend payout. The stock’s beta of 0.938 suggests moderate volatility relative to the market. While the shift toward eco-friendly packaging could drive demand for glass, O-I faces stiff competition from cheaper alternatives (plastic, aluminum) and rising energy costs, a key expense in glass production. Investors should weigh its cyclical exposure to consumer beverages against its cost-cutting initiatives and debt-reduction progress.
O-I Glass competes in the fragmented global packaging industry, where its primary advantage lies in its scale as one of the world’s largest glass container producers. Its key competitive strengths include: (1) long-standing relationships with major beverage brands (e.g., beer and spirits producers), (2) technological expertise in glass lightweighting and customization, and (3) a sustainability edge—glass is preferred by environmentally conscious consumers and regulators. However, O-I’s high fixed costs (energy-intensive production) and debt load (~5x net debt/EBITDA) limit flexibility compared to rivals. The company also faces substitution risks, as plastic and aluminum manufacturers (like Ball Corporation) aggressively market their materials as cheaper and lighter. In Europe, Ardagh Glass Packaging (private) is a formidable competitor with a similar focus on premium glass solutions. O-I’s vertical integration (owning raw material sources) helps mitigate cost pressures, but its profitability lags peers due to operational inefficiencies. To maintain positioning, O-I is investing in modular furnaces and automation, though execution risks remain.