CORNING INC (GLW) Stock Fundamental Analysis
USA - NYSE:GLW - US2193501051 - Common Stock
78.7 USD
+0.72 (+0.92%)
78.8 USD
+0.1 (+0.13%)
Taking everything into account, GLW scores 5 out of 10 in our fundamental rating. GLW was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. GLW has a medium profitability rating, but doesn't score so well on its financial health evaluation. GLW is valied quite expensively at the moment, while it does show a decent 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.
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
GLW has a better Return On Assets (2.85%) than 62.40% of its industry peers.
The Return On Equity of GLW (7.37%) is better than 64.80% of its industry peers.
GLW has a Return On Invested Capital of 5.60%. This is in the better half of the industry: GLW outperforms 61.60% of its industry peers.
GLW had an Average Return On Invested Capital over the past 3 years of 3.70%. This is significantly below the industry average of 9.48%.
The last Return On Invested Capital (5.60%) for GLW is above the 3 year average (3.70%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.85% | ||
| ROE | 7.37% | ||
| ROIC | 5.6% |
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
Looking at the Profit Margin, with a value of 5.77%, GLW is in the better half of the industry, outperforming 72.00% 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 (12.06%) than 80.00% of its industry peers.
In the last couple of years the Operating Margin of GLW has declined.
The Gross Margin of GLW (34.77%) 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 | 12.06% | ||
| PM (TTM) | 5.77% | ||
| GM | 34.77% |
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.
The number of shares outstanding for GLW has been reduced compared to 1 year ago.
Compared to 5 years ago, GLW has more shares outstanding
Compared to 1 year ago, GLW has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.87 indicates that GLW is not in any danger for bankruptcy at the moment.
The Altman-Z score of GLW (3.87) is comparable to the rest of the industry.
The Debt to FCF ratio of GLW is 6.28, which is on the high side as it means it would take GLW, 6.28 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.28, GLW is in line with its industry, outperforming 57.60% of the companies in the same industry.
A Debt/Equity ratio of 0.60 indicates that GLW is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.60, GLW is not doing good in the industry: 76.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 6.28 | ||
| Altman-Z | 3.87 |
ROIC/WACC0.62
WACC9.08%
2.3 Liquidity
GLW has a Current Ratio of 1.50. 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 1.50, GLW is doing worse than 74.40% of the companies in the same industry.
GLW has a Quick Ratio of 1.50. This is a bad value and indicates that GLW is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.93, GLW is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
GLW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.14%, 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 14.63% in the last year.
The Revenue has been growing slightly by 2.66% on average over the past years.
EPS 1Y (TTM)33.14%
EPS 3Y-1.96%
EPS 5Y2.29%
EPS Q2Q%27.66%
Revenue 1Y (TTM)14.63%
Revenue growth 3Y-2.34%
Revenue growth 5Y2.66%
Sales Q2Q%12.24%
3.2 Future
The Earnings Per Share is expected to grow by 14.51% on average over the next years. This is quite good.
GLW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.08% yearly.
EPS Next Y27.49%
EPS Next 2Y21.4%
EPS Next 3Y18.03%
EPS Next 5Y14.51%
Revenue Next Year12.78%
Revenue Next 2Y10.67%
Revenue Next 3Y10.08%
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 34.98, GLW can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of GLW is on the same level as its industry peers.
When comparing the Price/Earnings ratio of GLW to the average of the S&P500 Index (27.20), we can say GLW is valued slightly more expensively.
A Price/Forward Earnings ratio of 27.24 indicates a quite expensive valuation of GLW.
GLW's Price/Forward Earnings ratio is in line with the industry average.
GLW's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.98 | ||
| Fwd PE | 27.24 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.46 | ||
| EV/EBITDA | 24.09 |
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.
GLW's earnings are expected to grow with 18.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.27
PEG (5Y)15.26
EPS Next 2Y21.4%
EPS Next 3Y18.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.48%, GLW has a reasonable but not impressive dividend return.
GLW's Dividend Yield is rather good when compared to the industry average which is at 1.39. GLW pays more dividend than 92.80% of the companies in the same industry.
GLW's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
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
121.37% 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.
DP121.37%
EPS Next 2Y21.4%
EPS Next 3Y18.03%
78.7
+0.72 (+0.92%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners78.63%
Inst Owner Change-1.06%
Ins Owners0.21%
Ins Owner Change0.03%
Market Cap67.42B
Analysts81.05
Price Target71.43 (-9.24%)
Short Float %1.42%
Short Ratio1.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
Yearly Dividend1.21
Dividend Growth(5Y)4.75%
DP121.37%
Div Incr Years0
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.98%
Min EPS beat(2)4.32%
Max EPS beat(2)5.64%
EPS beat(4)4
Avg EPS beat(4)3.21%
Min EPS beat(4)0.96%
Max EPS beat(4)5.64%
EPS beat(8)6
Avg EPS beat(8)1.67%
EPS beat(12)8
Avg EPS beat(12)1.62%
EPS beat(16)10
Avg EPS beat(16)1.64%
Revenue beat(2)1
Avg Revenue beat(2)1.93%
Min Revenue beat(2)-0.03%
Max Revenue beat(2)3.88%
Revenue beat(4)2
Avg Revenue beat(4)1.32%
Min Revenue beat(4)-0.51%
Max Revenue beat(4)3.88%
Revenue beat(8)4
Avg Revenue beat(8)0.84%
Revenue beat(12)4
Avg Revenue beat(12)-0.9%
Revenue beat(16)6
Avg Revenue beat(16)-0.85%
PT rev (1m)5.39%
PT rev (3m)31.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.73%
EPS NY rev (1m)4.57%
EPS NY rev (3m)4.37%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)5.23%
Revenue NY rev (1m)3.69%
Revenue NY rev (3m)4.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.98 | ||
| Fwd PE | 27.24 | ||
| P/S | 4.75 | ||
| P/FCF | 56.46 | ||
| P/OCF | 30.91 | ||
| P/B | 6.06 | ||
| P/tB | 8.52 | ||
| EV/EBITDA | 24.09 |
EPS(TTM)2.25
EY2.86%
EPS(NY)2.89
Fwd EY3.67%
FCF(TTM)1.39
FCFY1.77%
OCF(TTM)2.55
OCFY3.24%
SpS16.58
BVpS12.98
TBVpS9.24
PEG (NY)1.27
PEG (5Y)15.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.85% | ||
| ROE | 7.37% | ||
| ROCE | 7.36% | ||
| ROIC | 5.6% | ||
| ROICexc | 5.99% | ||
| ROICexgc | 7.02% | ||
| OM | 12.06% | ||
| PM (TTM) | 5.77% | ||
| GM | 34.77% | ||
| FCFM | 8.4% |
ROA(3y)2.77%
ROA(5y)2.65%
ROE(3y)6.91%
ROE(5y)6.52%
ROIC(3y)3.7%
ROIC(5y)3.77%
ROICexc(3y)3.99%
ROICexc(5y)4.1%
ROICexgc(3y)4.68%
ROICexgc(5y)4.83%
ROCE(3y)4.86%
ROCE(5y)4.96%
ROICexcg growth 3Y-16.21%
ROICexcg growth 5Y-0.8%
ROICexc growth 3Y-16.02%
ROICexc growth 5Y-1.08%
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%
F-Score8
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 6.28 | ||
| Debt/EBITDA | 2.2 | ||
| Cap/Depr | 73.93% | ||
| Cap/Sales | 6.95% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.56% | ||
| Profit Quality | 145.79% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 3.87 |
F-Score8
WACC9.08%
ROIC/WACC0.62
Cap/Depr(3y)94.49%
Cap/Depr(5y)96.92%
Cap/Sales(3y)9.9%
Cap/Sales(5y)10.7%
Profit Quality(3y)125.06%
Profit Quality(5y)146.73%
High Growth Momentum
Growth
EPS 1Y (TTM)33.14%
EPS 3Y-1.96%
EPS 5Y2.29%
EPS Q2Q%27.66%
EPS Next Y27.49%
EPS Next 2Y21.4%
EPS Next 3Y18.03%
EPS Next 5Y14.51%
Revenue 1Y (TTM)14.63%
Revenue growth 3Y-2.34%
Revenue growth 5Y2.66%
Sales Q2Q%12.24%
Revenue Next Year12.78%
Revenue Next 2Y10.67%
Revenue Next 3Y10.08%
Revenue Next 5YN/A
EBIT growth 1Y127.19%
EBIT growth 3Y-18.7%
EBIT growth 5Y-2.77%
EBIT Next Year88.34%
EBIT Next 3Y30.59%
EBIT Next 5Y23.7%
FCF growth 1Y368.24%
FCF growth 3Y-18.13%
FCF growth 5Y85.79%
OCF growth 1Y15.21%
OCF growth 3Y-17.17%
OCF growth 5Y-0.92%