CORNING INC (GLW.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GLW - US2193501051 - Common Stock
80.13 EUR
-0.13 (-0.16%)
Overall GLW gets a fundamental rating of 5 out of 10. We evaluated GLW 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 is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
- GLW had positive earnings in the past year.
- GLW had a positive operating cash flow in the past year.
- 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
- GLW has a Return On Assets of 4.57%. This is in the better half of the industry: GLW outperforms 73.08% of its industry peers.
- 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.
- GLW has a Return On Invested Capital of 6.25%. This is in the better half of the industry: GLW outperforms 71.15% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for GLW is below the industry average of 7.60%.
- 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
- The Profit Margin of GLW (9.16%) is better than 86.54% of its industry peers.
- GLW's Profit Margin has declined in the last couple of years.
- GLW has a Operating Margin of 13.41%. This is amongst the best in the industry. GLW outperforms 86.54% of its industry peers.
- GLW's Operating Margin has declined in the last couple of years.
- GLW's Gross Margin of 35.69% is in line compared to the rest of the industry. GLW outperforms 40.38% of its industry peers.
- In the last couple of years the Gross Margin of GLW has remained more or less at the same level.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GLW is destroying value.
- Compared to 1 year ago, GLW has less shares outstanding
- 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
- An Altman-Z score of 4.23 indicates that GLW is not in any danger for 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.
- The Debt to FCF ratio of GLW is 7.07, which is on the high side as it means it would take GLW, 7.07 years of fcf income to pay off 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.
- GLW has a Debt/Equity ratio of 0.64. This is a neutral value indicating GLW is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.64, GLW is not doing good in the industry: 73.08% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 7.07 | ||
| Altman-Z | 4.23 |
ROIC/WACC0.43
WACC14.63%
2.3 Liquidity
- A Current Ratio of 1.56 indicates that GLW should not have too much problems paying its short term obligations.
- GLW's Current ratio of 1.56 is in line compared to the rest of the industry. GLW outperforms 40.38% of 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 has a Quick ratio of 1.00. This is comparable 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.
- Looking at the last year, GLW shows a quite strong growth in Revenue. The Revenue has grown by 18.27% in the last year.
- 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
- The Earnings Per Share is expected to grow by 20.01% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 11.98% on average over the next years. This is quite good.
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
- 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.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 39.47, GLW can be considered very expensive at the moment.
- 63.46% of the companies in the same industry are more expensive than GLW, based on the Price/Earnings ratio.
- GLW is valuated rather expensively when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- GLW is valuated quite expensively with a Price/Forward Earnings ratio of 30.33.
- 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.
- When comparing the Price/Forward Earnings ratio of GLW to the average of the S&P500 Index (24.26), we can say GLW is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.47 | ||
| Fwd PE | 30.33 |
4.2 Price Multiples
- GLW's Enterprise Value to EBITDA 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.
- Based on the Price/Free Cash Flow ratio, GLW is valued a bit more expensive than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 69.21 | ||
| EV/EBITDA | 26.12 |
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 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
- With a Yearly Dividend Yield of 1.20%, GLW has a reasonable but not impressive dividend return.
- 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%.