CORNING INC (GLW)
US2193501051 - Common Stock
We assign a fundamental rating of 4 out of 10 to GLW. GLW was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. While GLW is still in line with the averages on profitability rating, there are concerns on its financial health. GLW has a correct valuation and a medium growth rate.
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
With a Return On Assets value of 0.55%, GLW perfoms like the industry average, outperforming 53.66% of the companies in the same industry.
With a Return On Equity value of 1.41%, GLW perfoms like the industry average, outperforming 54.47% of the companies in the same industry.
With a Return On Invested Capital value of 2.71%, GLW perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
GLW had an Average Return On Invested Capital over the past 3 years of 4.68%. This is below the industry average of 8.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.55% | ||
| ROE | 1.41% | ||
| ROIC | 2.71% |
ROA(3y)3.36%
ROA(5y)2.88%
ROE(3y)8.25%
ROE(5y)6.91%
ROIC(3y)4.68%
ROIC(5y)3.91%
1.3 Margins
GLW has a Profit Margin (1.24%) which is in line with its industry peers.
GLW's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 6.50%, GLW is in the better half of the industry, outperforming 72.36% of the companies in the same industry.
GLW's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 31.64%, GLW perfoms like the industry average, outperforming 48.78% of the companies in the same industry.
In the last couple of years the Gross Margin of GLW has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.5% | ||
| PM (TTM) | 1.24% | ||
| GM | 31.64% |
OM growth 3Y16.23%
OM growth 5Y-12.91%
PM growth 3Y8.01%
PM growth 5Y-11.65%
GM growth 3Y-0.01%
GM growth 5Y-4.6%
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.
The number of shares outstanding for GLW has been increased compared to 5 years ago.
Compared to 1 year ago, GLW has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.88 indicates that GLW is not a great score, but indicates only limited risk for bankruptcy at the moment.
GLW has a Altman-Z score (2.88) which is comparable to the rest of the industry.
The Debt to FCF ratio of GLW is 7.13, which is on the high side as it means it would take GLW, 7.13 years of fcf income to pay off all of its debts.
GLW has a Debt to FCF ratio (7.13) which is comparable to the rest of the industry.
GLW has a Debt/Equity ratio of 0.64. This is a neutral value indicating GLW is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.64, GLW is doing worse than 84.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 7.13 | ||
| Altman-Z | 2.88 |
ROIC/WACC0.28
WACC9.65%
2.3 Liquidity
A Current Ratio of 1.66 indicates that GLW should not have too much problems paying its short term obligations.
GLW has a Current ratio of 1.66. This is in the lower half of the industry: GLW underperforms 73.98% of its industry peers.
GLW has a Quick Ratio of 1.05. 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 Quick ratio of 1.05. This is amonst the worse of the industry: GLW underperforms 80.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
GLW shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.00%.
GLW shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.03% yearly.
The Revenue has decreased by -2.99% in the past year.
GLW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.20% yearly.
EPS 1Y (TTM)0%
EPS 3Y6.69%
EPS 5Y-1.03%
EPS Q2Q%20%
Revenue 1Y (TTM)-2.99%
Revenue growth 3Y3.65%
Revenue growth 5Y2.2%
Sales Q2Q%7.92%
3.2 Future
GLW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.20% yearly.
The Revenue is expected to grow by 6.78% on average over the next years.
EPS Next Y15.95%
EPS Next 2Y17.04%
EPS Next 3Y16.24%
EPS Next 5Y14.2%
Revenue Next Year6.37%
Revenue Next 2Y6.49%
Revenue Next 3Y6.78%
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
A Price/Earnings ratio of 26.88 indicates a quite expensive valuation of GLW.
GLW's Price/Earnings ratio is a bit cheaper when compared to the industry. GLW is cheaper than 68.29% of the companies in the same industry.
GLW is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 20.54, the valuation of GLW can be described as rather expensive.
Based on the Price/Forward Earnings ratio, GLW is valued a bit cheaper than the industry average as 69.92% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.82. GLW is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.88 | ||
| Fwd PE | 20.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GLW is valued a bit cheaper than the industry average as 60.98% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GLW is valued a bit cheaper than the industry average as 60.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.42 | ||
| EV/EBITDA | 21.45 |
4.3 Compensation for Growth
GLW's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as GLW's earnings are expected to grow with 16.24% in the coming years.
PEG (NY)1.68
PEG (5Y)N/A
EPS Next 2Y17.04%
EPS Next 3Y16.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.38%, GLW has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.95, GLW pays a better dividend. On top of this GLW pays more dividend than 95.12% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, GLW has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
5.2 History
On average, the dividend of GLW grows each year by 7.66%, which is quite nice.
GLW has paid a dividend for at least 10 years, which is a reliable track record.
GLW has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.66%
Div Incr Years13
Div Non Decr Years16
5.3 Sustainability
631.41% of the earnings are spent on dividend by GLW. This is not a sustainable payout ratio.
The dividend of GLW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP631.41%
EPS Next 2Y17.04%
EPS Next 3Y16.24%
CORNING INC
NYSE:GLW (11/21/2024, 8:04:01 PM)
After market: 47.8799 +0.04 (+0.08%)47.84
+0.49 (+1.03%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap40.96B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.88 | ||
| Fwd PE | 20.54 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.68
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.55% | ||
| ROE | 1.41% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.5% | ||
| PM (TTM) | 1.24% | ||
| GM | 31.64% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)0%
EPS 3Y6.69%
EPS 5Y
EPS Q2Q%
EPS Next Y15.95%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.99%
Revenue growth 3Y3.65%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y