CORNING INC (GLW.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:GLW - US2193501051 - Common Stock
79.04 EUR
-1.09 (-1.36%)
We assign a fundamental rating of 5 out of 10 to GLW. GLW was compared to 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's Return On Assets of 4.57% is fine compared to the rest 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 better Return On Invested Capital (6.25%) than 71.15% of its industry peers.
- GLW had an Average Return On Invested Capital over the past 3 years of 3.70%. This is below the industry average of 7.60%.
- The 3 year average ROIC (3.70%) for GLW is below the current ROIC(6.25%), indicating increased profibility in the last year.
| 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.
- In the last couple of years the Profit Margin of GLW has declined.
- With an excellent Operating Margin value of 13.41%, 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 Operating Margin of GLW has declined.
- GLW has a Gross Margin (35.69%) which is comparable to the rest of the industry.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
- Compared to 1 year ago, GLW has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 4.23 indicates that GLW is not in any danger for bankruptcy at the moment.
- GLW has a better Altman-Z score (4.23) than 78.85% of its industry peers.
- 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 has a Debt to FCF ratio (7.07) which is in line with 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.
- The Debt to Equity ratio of GLW (0.64) is worse 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
WACC14.6%
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.
- Looking at the Current ratio, with a value of 1.56, GLW is in line with its industry, outperforming 40.38% of the companies in the same industry.
- 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
- The Earnings Per Share has grown by an impressive 33.71% over the past year.
- Measured over the past 5 years, GLW shows a small growth in Earnings Per Share. The EPS has been growing by 2.29% on average per year.
- 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
- The Earnings Per Share is expected to grow by 20.01% on average over the next years. This is a very strong growth
- 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 38.94, GLW can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of GLW indicates a somewhat cheap valuation: GLW is cheaper than 63.46% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of GLW to the average of the S&P500 Index (27.21), we can say GLW is valued slightly more expensively.
- The Price/Forward Earnings ratio is 29.91, which means the current valuation is very expensive for GLW.
- 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.
- GLW's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.94 | ||
| Fwd PE | 29.91 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GLW is valued a bit more expensive than 61.54% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of GLW indicates a slightly more expensive valuation: GLW is more expensive than 69.23% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 68.27 | ||
| 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.
- 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)1.3
PEG (5Y)16.98
EPS Next 2Y25.62%
EPS Next 3Y22.89%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.19%, GLW has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.54, GLW has a dividend in line with its industry peers.
- 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 2Y25.62%
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%.