We assign a fundamental rating of 5 out of 10 to GLW. GLW was compared to 123 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 is growing strongly while it is still valued neutral. This is a good combination!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
In the past 5 years GLW has always 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 69.92% of the companies in the same industry.
GLW has a better Return On Equity (11.84%) than 78.05% of its industry peers.
GLW's Return On Invested Capital of 6.25% is fine compared to the rest of the industry. GLW outperforms 65.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GLW is significantly below the industry average of 8.87%.
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 a decent Profit Margin value of 9.16%, GLW is doing good in the industry, outperforming 79.67% of the companies in the same industry.
GLW's Profit Margin has declined in the last couple of years.
The Operating Margin of GLW (13.41%) is better than 83.74% of its industry peers.
In the last couple of years the Operating Margin of GLW has declined.
GLW has a Gross Margin (35.69%) which is in line with 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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 an improved debt to assets ratio.

2.2 Solvency

An Altman-Z score of 4.22 indicates that GLW is not in any danger for bankruptcy at the moment.
GLW's Altman-Z score of 4.22 is fine compared to the rest of the industry. GLW outperforms 62.60% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 7.07, GLW is in line with its industry, outperforming 56.10% of the companies in the same 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 78.86% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.64
Debt/FCF	7.07
Altman-Z	4.22

ROIC/WACC0.74

WACC8.4%

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 of 1.56. This is in the lower half of the industry: GLW underperforms 73.98% 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.
Looking at the Quick ratio, with a value of 1.00, GLW is doing worse than 78.05% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.56
Quick Ratio	1

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 33.71% over the past year.
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%.
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

GLW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.01% yearly.
The Revenue is expected to grow by 12.23% on average over the next years. This is quite good.

EPS Next Y29.94%

EPS Next 2Y25.93%

EPS Next 3Y23.14%

EPS Next 5Y20.01%

Revenue Next Year13.94%

Revenue Next 2Y13.1%

Revenue Next 3Y12.23%

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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 39.20, which means the current valuation is very expensive for GLW.
Compared to the rest of the industry, the Price/Earnings ratio of GLW is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.21. GLW is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 30.02, the valuation of GLW can be described as expensive.
Based on the Price/Forward Earnings ratio, GLW is valued a bit cheaper than 60.16% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.98. GLW is around the same levels.

		Industry Rank	Sector Rank
PE	39.2
Fwd PE	30.02

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as GLW.
GLW's Price/Free Cash Flow ratio is in line with the industry average.

		Industry Rank	Sector Rank
P/FCF	68.84
EV/EBITDA	25.99

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 23.14% in the coming years.

PEG (NY)1.31

PEG (5Y)17.1

EPS Next 2Y25.93%

EPS Next 3Y23.14%

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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 0.46, GLW pays a better dividend. On top of this GLW pays more dividend than 88.62% of the companies listed in the same industry.
GLW's Dividend Yield is slightly below the S&P500 average, which is at 1.81.

		Industry Rank	Sector Rank
Dividend Yield	1.19%

5.2 History

The dividend of GLW has a limited annual growth rate of 4.75%.
GLW has paid a dividend for at least 10 years, which is 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)4.75%

Div Incr Years0

Div Non Decr Years17

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 2Y25.93%

EPS Next 3Y23.14%

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CORNING INC / GLW FAQ

What is the ChartMill fundamental rating of CORNING INC (GLW) stock?

ChartMill assigns a fundamental rating of 5 / 10 to GLW.

What is the valuation status of CORNING INC (GLW) stock?

ChartMill assigns a valuation rating of 4 / 10 to CORNING INC (GLW). This can be considered as Fairly Valued.

How profitable is CORNING INC (GLW) stock?

CORNING INC (GLW) 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) is expected to grow by 29.94% in the next year.

Can you provide the dividend sustainability for GLW stock?

The dividend rating of CORNING INC (GLW) is 6 / 10 and the dividend payout ratio is 72.69%.