CORNING INC (GLW.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GLW - US2193501051 - Common Stock
80.13 EUR
-0.13 (-0.16%)
GLW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 52 industry peers in the Electronic Equipment, Instruments & Components industry. Both the profitability and the financial health of GLW get a neutral evaluation. Nothing too spectacular is happening here. GLW shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
- GLW had positive earnings in the past year.
- In the past year GLW had a positive cash flow from operations.
- Each year in the past 5 years GLW has been profitable.
- Each year in the past 5 years GLW had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.57%, GLW is in the better half of the industry, outperforming 73.08% of the companies in the same industry.
- GLW's Return On Equity of 11.84% is fine compared to the rest of the industry. GLW outperforms 76.92% of its industry peers.
- With a decent Return On Invested Capital value of 6.25%, GLW is doing good in the industry, outperforming 71.15% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for GLW is below the industry average of 7.60%.
- 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
- With an excellent Profit Margin value of 9.16%, GLW belongs to the best of the industry, outperforming 86.54% of the companies in the same industry.
- 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 86.54% of the companies in the same industry.
- In the last couple of years the Operating Margin of GLW has declined.
- With a Gross Margin value of 35.69%, GLW perfoms like the industry average, outperforming 40.38% of the companies in the same 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.
- Compared to 1 year ago, GLW has less shares outstanding
- The number of shares outstanding for GLW has been increased compared to 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 4.23. This indicates that GLW is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.23, GLW is in the better half of the industry, outperforming 78.85% of the companies in the same industry.
- 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.
- GLW's Debt to FCF ratio of 7.07 is in line compared to the rest of the industry. GLW outperforms 46.15% of its industry peers.
- A Debt/Equity ratio of 0.64 indicates that GLW is somewhat dependend on debt financing.
- GLW has a worse Debt to Equity ratio (0.64) than 73.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 7.07 | ||
| Altman-Z | 4.23 |
ROIC/WACC0.43
WACC14.63%
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.
- GLW has a Current ratio (1.56) which is in line with its industry peers.
- GLW has a Quick Ratio of 1.56. This is a bad value and indicates that GLW is not financially healthy enough and could expect problems in meeting its short term obligations.
- GLW's Quick ratio of 1.00 is in line compared to the rest of the industry. GLW outperforms 51.92% of its industry peers.
| 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%.
- GLW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.66% yearly.
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
- GLW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.01% yearly.
- Based on estimates for the next years, GLW will show a quite strong growth in Revenue. The Revenue will grow by 11.98% on average per year.
EPS Next Y29.85%
EPS Next 2Y25.62%
EPS Next 3Y22.89%
EPS Next 5Y20.01%
Revenue Next Year13.9%
Revenue Next 2Y12.92%
Revenue Next 3Y11.98%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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
- With a Price/Earnings ratio of 39.47, GLW can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, GLW is valued a bit cheaper than the industry average as 63.46% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, GLW is valued a bit more expensive.
- Based on the Price/Forward Earnings ratio of 30.33, the valuation of GLW can be described as expensive.
- GLW's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. GLW is more expensive than 61.54% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, GLW is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.47 | ||
| Fwd PE | 30.33 |
4.2 Price Multiples
- 61.54% of the companies in the same industry are cheaper than GLW, based on the Enterprise Value to EBITDA ratio.
- 69.23% 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 | 69.21 | ||
| EV/EBITDA | 26.12 |
4.3 Compensation for Growth
- GLW's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of GLW may justify a higher PE ratio.
- A more expensive valuation may be justified as GLW's earnings are expected to grow with 22.89% in the coming years.
PEG (NY)1.32
PEG (5Y)17.22
EPS Next 2Y25.62%
EPS Next 3Y22.89%
5. Dividend
5.1 Amount
- GLW has a Yearly Dividend Yield of 1.20%. Purely for dividend investing, there may be better candidates out there.
- GLW's Dividend Yield is comparable with the industry average which is at 1.54.
- GLW's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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
- GLW pays out 72.69% of its income as dividend. 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 2Y25.62%
EPS Next 3Y22.89%
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 29.85% 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%.