CORNING INC (GLW) Stock Fundamental Analysis
NYSE:GLW - New York Stock Exchange, Inc. - US2193501051 - Common Stock - Currency: USD
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 is quite expensive at the moment. 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.
GLW had positive earnings in each of the past 5 years.
Each year in the past 5 years GLW had a positive operating cash flow.
1.2 Ratios
GLW has a Return On Assets of 1.82%. This is comparable to the rest of the industry: GLW outperforms 55.00% of its industry peers.
GLW's Return On Equity of 4.74% is in line compared to the rest of the industry. GLW outperforms 60.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.79%, GLW is in line with its industry, outperforming 58.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GLW is significantly below the industry average of 8.76%.
The 3 year average ROIC (3.70%) for GLW is below the current ROIC(3.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.82% | ||
| ROE | 4.74% | ||
| ROIC | 3.79% |
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 better Profit Margin (3.86%) than 65.83% of its industry peers.
In the last couple of years the Profit Margin of GLW has declined.
Looking at the Operating Margin, with a value of 8.65%, GLW is in the better half of the industry, outperforming 77.50% of the companies in the same industry.
GLW's Operating Margin has declined in the last couple of years.
GLW has a Gross Margin (32.60%) which is comparable to the rest of the industry.
GLW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.65% | ||
| PM (TTM) | 3.86% | ||
| GM | 32.6% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GLW is destroying value.
Compared to 1 year ago, GLW has less shares outstanding
GLW has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, GLW has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.98 indicates that GLW is not a great score, but indicates only limited risk for bankruptcy at the moment.
GLW has a Altman-Z score (2.98) which is comparable to the rest of the industry.
GLW has a debt to FCF ratio of 7.40. This is a slightly negative value and a sign of low solvency as GLW would need 7.40 years to pay back of all of its debts.
With a Debt to FCF ratio value of 7.40, GLW perfoms like the industry average, outperforming 51.67% 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 worse Debt to Equity ratio (0.64) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 7.4 | ||
| Altman-Z | 2.98 |
ROIC/WACC0.45
WACC8.37%
2.3 Liquidity
A Current Ratio of 1.62 indicates that GLW should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.62, GLW is doing worse than 70.83% of the companies in the same industry.
GLW has a Quick Ratio of 1.07. 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 Quick ratio, with a value of 1.07, GLW is doing worse than 76.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.07 |
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.
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.
The Revenue has been growing slightly by 4.21% in the past year.
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)15.29%
EPS 3Y-1.96%
EPS 5Y2.29%
EPS Q2Q%46.15%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y-2.34%
Revenue growth 5Y2.66%
Sales Q2Q%18.4%
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 15.47% yearly.
The Revenue is expected to grow by 6.92% on average over the next years.
EPS Next Y20.64%
EPS Next 2Y17.73%
EPS Next 3Y14.43%
EPS Next 5Y15.47%
Revenue Next Year7.61%
Revenue Next 2Y7.26%
Revenue Next 3Y6.92%
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
With a Price/Earnings ratio of 25.59, GLW can be considered very expensive at the moment.
Based on the Price/Earnings ratio, GLW is valued a bit cheaper than the industry average as 64.17% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of GLW to the average of the S&P500 Index (29.98), we can say GLW is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 21.21, the valuation of GLW can be described as rather expensive.
65.83% of the companies in the same industry are more expensive than GLW, based on the Price/Forward Earnings ratio.
GLW's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.66.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.59 | ||
| Fwd PE | 21.21 |
4.2 Price Multiples
GLW's Enterprise Value to EBITDA ratio is in line with the industry average.
GLW's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.86 | ||
| EV/EBITDA | 18.6 |
4.3 Compensation for Growth
The 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 14.43% in the coming years.
PEG (NY)1.24
PEG (5Y)11.16
EPS Next 2Y17.73%
EPS Next 3Y14.43%
5. Dividend
5.1 Amount
GLW has a Yearly Dividend Yield of 2.29%.
Compared to an average industry Dividend Yield of 1.98, GLW pays a better dividend. On top of this GLW pays more dividend than 95.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, GLW has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
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 Years13
Div Non Decr Years17
5.3 Sustainability
GLW pays out 194.86% 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.
DP194.86%
EPS Next 2Y17.73%
EPS Next 3Y14.43%
50.15
+1.15 (+2.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners72.88%
Inst Owner Change0.41%
Ins Owners0.22%
Ins Owner Change-0.19%
Market Cap40.77B
Analysts79
Price Target56.64 (12.94%)
Short Float %1.3%
Short Ratio1.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
Yearly Dividend1.21
Dividend Growth(5Y)4.75%
DP194.86%
Div Incr Years13
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.43%
Min EPS beat(2)0.96%
Max EPS beat(2)1.9%
EPS beat(4)4
Avg EPS beat(4)2.55%
Min EPS beat(4)0.56%
Max EPS beat(4)6.78%
EPS beat(8)5
Avg EPS beat(8)0.67%
EPS beat(12)7
Avg EPS beat(12)1.43%
EPS beat(16)10
Avg EPS beat(16)1.42%
Revenue beat(2)1
Avg Revenue beat(2)0.71%
Min Revenue beat(2)-0.51%
Max Revenue beat(2)1.92%
Revenue beat(4)3
Avg Revenue beat(4)1.4%
Min Revenue beat(4)-0.51%
Max Revenue beat(4)3.53%
Revenue beat(8)3
Avg Revenue beat(8)-0.5%
Revenue beat(12)4
Avg Revenue beat(12)-1.44%
Revenue beat(16)7
Avg Revenue beat(16)-0.73%
PT rev (1m)1.98%
PT rev (3m)2.98%
EPS NQ rev (1m)3.93%
EPS NQ rev (3m)3.65%
EPS NY rev (1m)1.48%
EPS NY rev (3m)1.53%
Revenue NQ rev (1m)1.74%
Revenue NQ rev (3m)1.68%
Revenue NY rev (1m)0.72%
Revenue NY rev (3m)0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.59 | ||
| Fwd PE | 21.21 | ||
| P/S | 3.11 | ||
| P/FCF | 41.86 | ||
| P/OCF | 21.03 | ||
| P/B | 3.82 | ||
| P/tB | 5.39 | ||
| EV/EBITDA | 18.6 |
EPS(TTM)1.96
EY3.91%
EPS(NY)2.36
Fwd EY4.71%
FCF(TTM)1.2
FCFY2.39%
OCF(TTM)2.38
OCFY4.76%
SpS16.14
BVpS13.14
TBVpS9.31
PEG (NY)1.24
PEG (5Y)11.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.82% | ||
| ROE | 4.74% | ||
| ROCE | 4.97% | ||
| ROIC | 3.79% | ||
| ROICexc | 4.1% | ||
| ROICexgc | 4.82% | ||
| OM | 8.65% | ||
| PM (TTM) | 3.86% | ||
| GM | 32.6% | ||
| FCFM | 7.42% |
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-Score7
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 7.4 | ||
| Debt/EBITDA | 2.77 | ||
| Cap/Depr | 71.48% | ||
| Cap/Sales | 7.36% | ||
| Interest Coverage | 3.66 | ||
| Cash Conversion | 78.03% | ||
| Profit Quality | 192.49% | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 2.98 |
F-Score7
WACC8.37%
ROIC/WACC0.45
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)15.29%
EPS 3Y-1.96%
EPS 5Y2.29%
EPS Q2Q%46.15%
EPS Next Y20.64%
EPS Next 2Y17.73%
EPS Next 3Y14.43%
EPS Next 5Y15.47%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y-2.34%
Revenue growth 5Y2.66%
Sales Q2Q%18.4%
Revenue Next Year7.61%
Revenue Next 2Y7.26%
Revenue Next 3Y6.92%
Revenue Next 5YN/A
EBIT growth 1Y27.53%
EBIT growth 3Y-18.7%
EBIT growth 5Y-2.77%
EBIT Next Year80.02%
EBIT Next 3Y29.33%
EBIT Next 5Y26.48%
FCF growth 1Y58.37%
FCF growth 3Y-18.13%
FCF growth 5Y85.79%
OCF growth 1Y-3.29%
OCF growth 3Y-17.17%
OCF growth 5Y-0.92%