CORNING INC (GLW) Stock Fundamental Analysis
NYSE:GLW - New York Stock Exchange, Inc. - US2193501051 - Common Stock - Currency: USD
GLW gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 124 industry peers in the Electronic Equipment, Instruments & Components industry. Both the profitability and financial health of GLW have multiple concerns. GLW is valued correctly, but it does not seem to be growing.
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.
Of the past 5 years GLW 4 years were profitable.
Of the past 5 years GLW 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GLW (0.55%) is comparable to the rest of the industry.
GLW's Return On Equity of 1.41% is in line compared to the rest of the industry. GLW outperforms 51.67% of its industry peers.
With a Return On Invested Capital value of 2.71%, GLW perfoms like the industry average, outperforming 55.00% 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 8.99%.
| 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
With a Profit Margin value of 1.24%, GLW perfoms like the industry average, outperforming 52.50% of the companies in the same industry.
GLW's Profit Margin has declined in the last couple of years.
GLW has a better Operating Margin (6.50%) than 71.67% of its industry peers.
In the last couple of years the Operating Margin of GLW has declined.
The Gross Margin of GLW (31.64%) is comparable to the rest of the industry.
GLW's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GLW is destroying value.
GLW has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
GLW has an Altman-Z score of 2.94. This is not the best score and indicates that GLW is in the grey zone with still only limited risk for bankruptcy at the moment.
GLW's Altman-Z score of 2.94 is in line compared to the rest of the industry. GLW outperforms 45.83% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 7.13, GLW is in line with its industry, outperforming 52.50% of the companies in the same industry.
A Debt/Equity ratio of 0.64 indicates that GLW is somewhat dependend on debt financing.
GLW has a Debt to Equity ratio of 0.64. This is amonst the worse of the industry: GLW underperforms 80.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 7.13 | ||
| Altman-Z | 2.94 |
ROIC/WACC0.27
WACC9.96%
2.3 Liquidity
A Current Ratio of 1.66 indicates that GLW should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.66, GLW is doing worse than 70.83% of the companies in the same industry.
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.
With a Quick ratio value of 1.05, GLW is not doing good in the industry: 78.33% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
GLW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.29%, which is quite good.
The Earnings Per Share has been growing slightly by 2.29% on average over the past years.
EPS 1Y (TTM)15.29%
EPS 3Y-1.96%
EPS 5Y2.29%
EPS Q2Q%46.15%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%18.4%
3.2 Future
Based on estimates for the next years, GLW will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.47% on average per year.
GLW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.11% yearly.
EPS Next Y18.88%
EPS Next 2Y17.14%
EPS Next 3Y14.85%
EPS Next 5Y15.47%
Revenue Next Year6.87%
Revenue Next 2Y7.11%
Revenue Next 3YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.51, GLW can be considered very expensive at the moment.
GLW's Price/Earnings ratio is a bit cheaper when compared to the industry. GLW is cheaper than 68.33% 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 28.51, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 21.45, GLW is valued on the expensive side.
Based on the Price/Forward Earnings ratio, GLW is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 93.88, GLW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.51 | ||
| Fwd PE | 21.45 |
4.2 Price Multiples
GLW's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GLW is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.2 | ||
| EV/EBITDA | 22.22 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GLW's earnings are expected to grow with 14.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.35
PEG (5Y)11.13
EPS Next 2Y17.14%
EPS Next 3Y14.85%
5. Dividend
5.1 Amount
GLW has a Yearly Dividend Yield of 2.19%. Purely for dividend investing, there may be better candidates out there.
GLW's Dividend Yield is rather good when compared to the industry average which is at 1.82. GLW pays more dividend than 95.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, GLW has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
5.2 History
On average, the dividend of GLW grows each year by 7.66%, which is quite nice.
GLW has been paying a dividend for at least 10 years, so it has a reliable track record.
GLW has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.66%
Div Incr Years13
Div Non Decr Years17
5.3 Sustainability
631.41% 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.
DP631.41%
EPS Next 2Y17.14%
EPS Next 3Y14.85%
CORNING INC
NYSE:GLW (1/30/2025, 8:04:01 PM)
After market: 49.9 -0.09 (-0.18%)49.99
+0.19 (+0.38%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners73.98%
Inst Owner Change0%
Ins Owners0.24%
Ins Owner Change-0.26%
Market Cap42.80B
Analysts78
Price Target55.54 (11.1%)
Short Float %1.39%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
Yearly Dividend1.2
Dividend Growth(5Y)7.66%
DP631.41%
Div Incr Years13
Div Non Decr Years17
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.23%
Min EPS beat(2)0.56%
Max EPS beat(2)1.9%
EPS beat(4)3
Avg EPS beat(4)1.81%
Min EPS beat(4)-2.02%
Max EPS beat(4)6.78%
EPS beat(8)5
Avg EPS beat(8)1.22%
EPS beat(12)7
Avg EPS beat(12)1.6%
EPS beat(16)10
Avg EPS beat(16)1.74%
Revenue beat(2)1
Avg Revenue beat(2)0.08%
Min Revenue beat(2)-0.51%
Max Revenue beat(2)0.67%
Revenue beat(4)2
Avg Revenue beat(4)0.79%
Min Revenue beat(4)-0.52%
Max Revenue beat(4)3.53%
Revenue beat(8)2
Avg Revenue beat(8)-1.35%
Revenue beat(12)4
Avg Revenue beat(12)-1.49%
Revenue beat(16)7
Avg Revenue beat(16)-0.59%
PT rev (1m)1.19%
PT rev (3m)18.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.94%
EPS NY rev (1m)0%
EPS NY rev (3m)2.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.04%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.51 | ||
| Fwd PE | 21.45 | ||
| P/S | 3.39 | ||
| P/FCF | 41.2 | ||
| P/OCF | 21.1 | ||
| P/B | 3.85 | ||
| P/tB | 5.42 | ||
| EV/EBITDA | 22.22 |
EPS(TTM)1.96
EY3.92%
EPS(NY)2.33
Fwd EY4.66%
FCF(TTM)1.21
FCFY2.43%
OCF(TTM)2.37
OCFY4.74%
SpS14.73
BVpS12.97
TBVpS9.23
PEG (NY)1.35
PEG (5Y)11.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.55% | ||
| ROE | 1.41% | ||
| ROCE | 3.46% | ||
| ROIC | 2.71% | ||
| ROICexc | 2.91% | ||
| ROICexgc | 3.4% | ||
| OM | 6.5% | ||
| PM (TTM) | 1.24% | ||
| GM | 31.64% | ||
| FCFM | 8.24% |
ROA(3y)3.36%
ROA(5y)2.88%
ROE(3y)8.25%
ROE(5y)6.91%
ROIC(3y)4.68%
ROIC(5y)3.91%
ROICexc(3y)5.07%
ROICexc(5y)4.26%
ROICexgc(3y)5.97%
ROICexgc(5y)5%
ROCE(3y)5.97%
ROCE(5y)4.99%
ROICexcg growth 3Y23.45%
ROICexcg growth 5Y-11.47%
ROICexc growth 3Y23.84%
ROICexc growth 5Y-11.44%
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%
F-Score6
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 7.13 | ||
| Debt/EBITDA | 3.24 | ||
| Cap/Depr | 72.79% | ||
| Cap/Sales | 7.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 93.07% | ||
| Profit Quality | 666.03% | ||
| Current Ratio | 1.66 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 2.94 |
F-Score6
WACC9.96%
ROIC/WACC0.27
Cap/Depr(3y)107.51%
Cap/Depr(5y)109.07%
Cap/Sales(3y)11.32%
Cap/Sales(5y)12.69%
Profit Quality(3y)115.73%
Profit Quality(5y)109.25%
High Growth Momentum
Growth
EPS 1Y (TTM)15.29%
EPS 3Y-1.96%
EPS 5Y2.29%
EPS Q2Q%46.15%
EPS Next Y18.88%
EPS Next 2Y17.14%
EPS Next 3Y14.85%
EPS Next 5Y15.47%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%18.4%
Revenue Next Year6.87%
Revenue Next 2Y7.11%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-8.69%
EBIT growth 3Y20.47%
EBIT growth 5Y-10.99%
EBIT Next Year76.31%
EBIT Next 3Y29.43%
EBIT Next 5Y22.96%
FCF growth 1Y-13.2%
FCF growth 3Y-8.51%
FCF growth 5Y0.2%
OCF growth 1Y-32.84%
OCF growth 3Y-2.75%
OCF growth 5Y-7.24%