CORNING INC (GLW.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GLW - US2193501051 - Common Stock
91.32 EUR
+11.37 (+14.22%)
Overall GLW gets a fundamental rating of 5 out of 10. We evaluated GLW against 51 industry peers in the Electronic Equipment, Instruments & Components industry. GLW has only an average score on both its financial health and profitability. GLW is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
- In the past year GLW was profitable.
- In the past year GLW had a positive cash flow from operations.
- GLW had positive earnings in each of the past 5 years.
- In the past 5 years GLW always reported a positive cash flow from operatings.
1.2 Ratios
- GLW's Return On Assets of 4.57% is fine compared to the rest of the industry. GLW outperforms 74.51% of its industry peers.
- Looking at the Return On Equity, with a value of 11.84%, GLW is in the better half of the industry, outperforming 78.43% of the companies in the same industry.
- GLW's Return On Invested Capital of 6.25% is fine compared to the rest of the industry. GLW outperforms 70.59% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for GLW is below the industry average of 7.51%.
- The last Return On Invested Capital (6.25%) for GLW is above the 3 year average (3.70%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.57% | ||
| ROE | 11.84% | ||
| ROIC | 6.25% |
ROA(3y)2.77%
ROA(5y)2.65%
ROE(3y)6.91%
ROE(5y)6.52%
ROIC(3y)3.7%
ROIC(5y)3.77%
1.3 Margins
- The Profit Margin of GLW (9.16%) is better than 88.24% of its industry peers.
- In the last couple of years the Profit Margin of GLW has declined.
- Looking at the Operating Margin, with a value of 13.41%, GLW belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
- In the last couple of years the Operating Margin of GLW has declined.
- GLW has a Gross Margin (35.69%) which is comparable to the rest of the industry.
- GLW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.41% | ||
| PM (TTM) | 9.16% | ||
| GM | 35.69% |
OM growth 3Y-16.75%
OM growth 5Y-5.29%
PM growth 3Y-20.45%
PM growth 5Y-12.44%
GM growth 3Y-3.21%
GM growth 5Y-1.46%
2. Health
2.1 Basic Checks
- GLW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for GLW has been reduced compared to 1 year ago.
- GLW has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for GLW has been reduced compared to a year ago.
2.2 Solvency
- GLW has an Altman-Z score of 4.65. This indicates that GLW is financially healthy and has little risk of bankruptcy at the moment.
- GLW has a Altman-Z score of 4.65. This is amongst the best in the industry. GLW outperforms 82.35% of its industry peers.
- GLW has a debt to FCF ratio of 7.07. This is a slightly negative value and a sign of low solvency as GLW would need 7.07 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 7.07, GLW perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
- GLW has a Debt/Equity ratio of 0.64. This is a neutral value indicating GLW is somewhat dependend on debt financing.
- GLW has a worse Debt to Equity ratio (0.64) than 72.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 7.07 | ||
| Altman-Z | 4.65 |
ROIC/WACC0.75
WACC8.37%
2.3 Liquidity
- GLW has a Current Ratio of 1.56. This is a normal value and indicates that GLW is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of GLW (1.56) is comparable to the rest of the industry.
- A Quick Ratio of 1.00 indicates that GLW may have some problems paying its short term obligations.
- GLW has a Quick ratio (1.00) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
- GLW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.71%, which is quite impressive.
- GLW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.29% yearly.
- GLW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.27%.
- Measured over the past years, GLW shows a small growth in Revenue. The Revenue has been growing by 2.66% on average per year.
EPS 1Y (TTM)33.71%
EPS 3Y-1.96%
EPS 5Y2.29%
EPS Q2Q%24.07%
Revenue 1Y (TTM)18.27%
Revenue growth 3Y-2.34%
Revenue growth 5Y2.66%
Sales Q2Q%14.44%
3.2 Future
- Based on estimates for the next years, GLW will show a very strong growth in Earnings Per Share. The EPS will grow by 20.01% on average per year.
- The Revenue is expected to grow by 12.23% on average over the next years. This is quite good.
EPS Next Y29.94%
EPS Next 2Y25.93%
EPS Next 3Y23.14%
EPS Next 5Y20.01%
Revenue Next Year13.94%
Revenue Next 2Y13.1%
Revenue Next 3Y12.23%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- GLW is valuated quite expensively with a Price/Earnings ratio of 45.66.
- Based on the Price/Earnings ratio, GLW is valued a bit cheaper than 60.78% of the companies in the same industry.
- GLW is valuated expensively when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 35.05, GLW can be considered very expensive at the moment.
- Based on the Price/Forward Earnings ratio, GLW is valued a bit more expensive than 64.71% of the companies in the same industry.
- GLW's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.66 | ||
| Fwd PE | 35.05 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GLW indicates a slightly more expensive valuation: GLW is more expensive than 64.71% of the companies listed in the same industry.
- 70.59% of the companies in the same industry are cheaper than GLW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 80.38 | ||
| EV/EBITDA | 30.01 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- GLW has a very decent profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as GLW's earnings are expected to grow with 23.14% in the coming years.
PEG (NY)1.53
PEG (5Y)19.92
EPS Next 2Y25.93%
EPS Next 3Y23.14%
5. Dividend
5.1 Amount
- GLW has a Yearly Dividend Yield of 1.19%. Purely for dividend investing, there may be better candidates out there.
- GLW's Dividend Yield is comparable with the industry average which is at 1.56.
- GLW's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
5.2 History
- The dividend of GLW has a limited annual growth rate of 4.75%.
Dividend Growth(5Y)4.75%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
- 72.69% of the earnings are spent on dividend by GLW. This is not a sustainable payout ratio.
- GLW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP72.69%
EPS Next 2Y25.93%
EPS Next 3Y23.14%
CORNING INC / GLW.DE FAQ
What is the ChartMill fundamental rating of CORNING INC (GLW.DE) stock?
ChartMill assigns a fundamental rating of 5 / 10 to GLW.DE.
What is the valuation status of CORNING INC (GLW.DE) stock?
ChartMill assigns a valuation rating of 2 / 10 to CORNING INC (GLW.DE). This can be considered as Overvalued.
How profitable is CORNING INC (GLW.DE) stock?
CORNING INC (GLW.DE) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for GLW stock?
The Earnings per Share (EPS) of CORNING INC (GLW.DE) is expected to grow by 29.94% in the next year.
Can you provide the dividend sustainability for GLW stock?
The dividend rating of CORNING INC (GLW.DE) is 3 / 10 and the dividend payout ratio is 72.69%.