CORNING INC (GLW) Stock Fundamental Analysis
NYSE:GLW - New York Stock Exchange, Inc. - US2193501051 - Common Stock - Currency: USD
Overall GLW gets a fundamental rating of 5 out of 10. We evaluated GLW against 125 industry peers in the Electronic Equipment, Instruments & Components industry. GLW has an average financial health and profitability rating. GLW has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year GLW was profitable.
GLW had a positive operating cash flow in the past year.
GLW had positive earnings in each of the past 5 years.
GLW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GLW's Return On Assets of 1.66% is in line compared to the rest of the industry. GLW outperforms 57.60% of its industry peers.
The Return On Equity of GLW (4.24%) is better than 60.80% of its industry peers.
With a decent Return On Invested Capital value of 4.41%, GLW is doing good in the industry, outperforming 60.80% of the companies in the same industry.
GLW had an Average Return On Invested Capital over the past 3 years of 3.70%. This is significantly below the industry average of 9.16%.
The 3 year average ROIC (3.70%) for GLW is below the current ROIC(4.41%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.66% | ||
| ROE | 4.24% | ||
| ROIC | 4.41% |
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
GLW has a Profit Margin of 3.34%. This is in the better half of the industry: GLW outperforms 68.00% of its industry peers.
GLW's Profit Margin has declined in the last couple of years.
GLW has a better Operating Margin (9.75%) than 79.20% of its industry peers.
GLW's Operating Margin has declined in the last couple of years.
GLW has a Gross Margin of 33.08%. This is comparable to the rest of the industry: GLW outperforms 53.60% of 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 | 9.75% | ||
| PM (TTM) | 3.34% | ||
| GM | 33.08% |
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%
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.
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 3.21 indicates that GLW is not in any danger for bankruptcy at the moment.
GLW has a Altman-Z score of 3.21. This is comparable to the rest of the industry: GLW outperforms 53.60% of its industry peers.
GLW has a debt to FCF ratio of 6.74. This is a slightly negative value and a sign of low solvency as GLW would need 6.74 years to pay back of all of its debts.
GLW has a Debt to FCF ratio (6.74) which is in line with its industry peers.
GLW has a Debt/Equity ratio of 0.65. This is a neutral value indicating GLW is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.65, GLW is doing worse than 80.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 6.74 | ||
| Altman-Z | 3.21 |
ROIC/WACC0.49
WACC9.04%
2.3 Liquidity
GLW has a Current Ratio of 1.69. 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 Current ratio value of 1.69, GLW is not doing good in the industry: 70.40% of the companies in the same industry are doing better.
A Quick Ratio of 1.05 indicates that GLW should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.05, GLW is not doing good in the industry: 78.40% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| 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 26.95%, which is quite impressive.
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.
Looking at the last year, GLW shows a quite strong growth in Revenue. The Revenue has grown by 9.77% in the last year.
The Revenue has been growing slightly by 2.66% on average over the past years.
EPS 1Y (TTM)26.95%
EPS 3Y-1.96%
EPS 5Y2.29%
EPS Q2Q%42.11%
Revenue 1Y (TTM)9.77%
Revenue growth 3Y-2.34%
Revenue growth 5Y2.66%
Sales Q2Q%12.92%
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 14.92% yearly.
GLW is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.71% yearly.
EPS Next Y21.89%
EPS Next 2Y18.16%
EPS Next 3Y15.64%
EPS Next 5Y14.92%
Revenue Next Year8.63%
Revenue Next 2Y8.1%
Revenue Next 3Y7.71%
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
A Price/Earnings ratio of 24.34 indicates a rather expensive valuation of GLW.
GLW's Price/Earnings ratio is a bit cheaper when compared to the industry. GLW is cheaper than 70.40% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. GLW is around the same levels.
With a Price/Forward Earnings ratio of 18.86, GLW is valued on the expensive side.
71.20% of the companies in the same industry are more expensive than GLW, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.76. GLW is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.34 | ||
| Fwd PE | 18.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GLW is valued a bit cheaper than the industry average as 61.60% of the companies are valued more expensively.
GLW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GLW is cheaper than 61.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.19 | ||
| EV/EBITDA | 19.05 |
4.3 Compensation for Growth
GLW's 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.
GLW's earnings are expected to grow with 15.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.11
PEG (5Y)10.62
EPS Next 2Y18.16%
EPS Next 3Y15.64%
5. Dividend
5.1 Amount
GLW has a Yearly Dividend Yield of 2.11%.
Compared to an average industry Dividend Yield of 1.76, GLW pays a better dividend. On top of this GLW pays more dividend than 94.40% of the companies listed in the same industry.
GLW's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
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
GLW pays out 216.96% of its income as dividend. This is not a sustainable payout ratio.
GLW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP216.96%
EPS Next 2Y18.16%
EPS Next 3Y15.64%
51.6
-0.66 (-1.26%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners73.93%
Inst Owner Change0.01%
Ins Owners0.22%
Ins Owner Change0.13%
Market Cap44.19B
Analysts80
Price Target54.51 (5.64%)
Short Float %1.67%
Short Ratio2.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
Yearly Dividend1.21
Dividend Growth(5Y)4.75%
DP216.96%
Div Incr Years0
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.3%
Min EPS beat(2)0.96%
Max EPS beat(2)5.64%
EPS beat(4)4
Avg EPS beat(4)2.27%
Min EPS beat(4)0.56%
Max EPS beat(4)5.64%
EPS beat(8)5
Avg EPS beat(8)0.85%
EPS beat(12)7
Avg EPS beat(12)1.26%
EPS beat(16)10
Avg EPS beat(16)1.52%
Revenue beat(2)1
Avg Revenue beat(2)0.95%
Min Revenue beat(2)-0.03%
Max Revenue beat(2)1.92%
Revenue beat(4)2
Avg Revenue beat(4)0.51%
Min Revenue beat(4)-0.51%
Max Revenue beat(4)1.92%
Revenue beat(8)3
Avg Revenue beat(8)0.24%
Revenue beat(12)3
Avg Revenue beat(12)-1.66%
Revenue beat(16)6
Avg Revenue beat(16)-0.98%
PT rev (1m)0.69%
PT rev (3m)-4.56%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)0.63%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.34 | ||
| Fwd PE | 18.86 | ||
| P/S | 3.25 | ||
| P/FCF | 41.19 | ||
| P/OCF | 22.16 | ||
| P/B | 4.12 | ||
| P/tB | 5.81 | ||
| EV/EBITDA | 19.05 |
EPS(TTM)2.12
EY4.11%
EPS(NY)2.74
Fwd EY5.3%
FCF(TTM)1.25
FCFY2.43%
OCF(TTM)2.33
OCFY4.51%
SpS15.87
BVpS12.51
TBVpS8.89
PEG (NY)1.11
PEG (5Y)10.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.66% | ||
| ROE | 4.24% | ||
| ROCE | 5.8% | ||
| ROIC | 4.41% | ||
| ROICexc | 4.69% | ||
| ROICexgc | 5.48% | ||
| OM | 9.75% | ||
| PM (TTM) | 3.34% | ||
| GM | 33.08% | ||
| FCFM | 7.89% |
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 Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 6.74 | ||
| Debt/EBITDA | 2.62 | ||
| Cap/Depr | 69.14% | ||
| Cap/Sales | 6.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.02% | ||
| Profit Quality | 236.34% | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 3.21 |
F-Score8
WACC9.04%
ROIC/WACC0.49
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)26.95%
EPS 3Y-1.96%
EPS 5Y2.29%
EPS Q2Q%42.11%
EPS Next Y21.89%
EPS Next 2Y18.16%
EPS Next 3Y15.64%
EPS Next 5Y14.92%
Revenue 1Y (TTM)9.77%
Revenue growth 3Y-2.34%
Revenue growth 5Y2.66%
Sales Q2Q%12.92%
Revenue Next Year8.63%
Revenue Next 2Y8.1%
Revenue Next 3Y7.71%
Revenue Next 5YN/A
EBIT growth 1Y56.55%
EBIT growth 3Y-18.7%
EBIT growth 5Y-2.77%
EBIT Next Year81.1%
EBIT Next 3Y30.68%
EBIT Next 5Y23.17%
FCF growth 1Y150.12%
FCF growth 3Y-18.13%
FCF growth 5Y85.79%
OCF growth 1Y-1.87%
OCF growth 3Y-17.17%
OCF growth 5Y-0.92%