O-I Glass (NYSE: OI) continues to show promising fundamentals, making it an attractive investment option. Despite already experiencing significant gains, the stock still appears undervalued, which suggests there is room for further growth. As an investor, deciding when to sell can be challenging, especially when a company’s shares remain fundamentally appealing.

O-I Glass is primarily engaged in the production of glass containers for various purposes, including beverages, food items, and pharmaceutical offerings. Over the past few years, the company has delivered impressive performance, effectively passing on higher costs to customers and generating increased profits.

Although O-I Glass’s management has provided conservative guidance for the current year, projecting a slight decline in revenue and earnings compared to the previous year, the company’s financials remain robust. In 2022, O-I Glass achieved $6.86 billion in revenue, a 7.8% increase over the prior year. The projected earnings per share for 2023 range from $3.05 to $3.25, representing profits of $501 million at the midpoint. While this is a decrease from the previous year’s $584 million, it still reflects significant improvement compared to 2021’s $149 million.

Interestingly, despite an 8% year-over-year decline in glass container shipments, O-I Glass managed to increase its revenue during the first quarter of 2023. The growth was driven by a 9.2% rise in packaging revenue for alcoholic beverages, such as beer, wine, and spirits. Price increases implemented by the company helped offset the impact of higher costs, resulting in substantial profits of $206 million, a significant jump from the $88 million reported in the same period of the previous year.

Although operating cash flow showed a negative trend, it improved when adjusted for changes in working capital. EBITDA also increased from $294 million to $453 million, indicating the company’s ability to manage costs effectively.

Management’s cautious outlook for the second half of 2023, citing the potential for a recession, should not overshadow O-I Glass’s attractive valuation. Even with a potential economic downturn, the company’s stock remains reasonably priced compared to similar firms in the market. Forward trading multiples indicate that O-I Glass is trading at a forward price-to-earnings multiple of 6.8, a forward price-to-adjusted operating cash flow multiple of 3.9, and a forward EV-to-EBITDA multiple of 7.6.

In comparison to five similar companies, O-I Glass emerges as the cheapest option based on price-to-earnings and price-to-operating cash flow ratios. While one company is cheaper when considering the EV-to-EBITDA ratio, O-I Glass still presents an attractive investment opportunity.

In conclusion, O-I Glass shares remain fundamentally cheap, and the company’s financial health is solid.