CORNING INC (GLW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GLW - US2193501051 - Common Stock
87.88 USD
+2.65 (+3.11%)
87.4 USD
-0.48 (-0.55%)
We assign a fundamental rating of 5 out of 10 to GLW. GLW was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. There are concerns on the financial health of GLW while its profitability can be described as average. GLW is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year GLW was profitable.
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's Return On Assets of 4.57% is fine compared to the rest of the industry. GLW outperforms 70.40% of its industry peers.
GLW's Return On Equity of 11.84% is fine compared to the rest of the industry. GLW outperforms 78.40% of its industry peers.
GLW has a better Return On Invested Capital (6.25%) than 66.40% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GLW is significantly below the industry average of 8.82%.
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
The Profit Margin of GLW (9.16%) is better than 79.20% of its industry peers.
GLW's Profit Margin has declined in the last couple of years.
GLW has a better Operating Margin (13.41%) than 83.20% of its industry peers.
GLW's Operating Margin has declined in the last couple of years.
GLW has a Gross Margin (35.69%) 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 | 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%
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
Compared to 5 years ago, GLW has more shares outstanding
The debt/assets ratio for GLW has been reduced compared to a year ago.
2.2 Solvency
GLW has an Altman-Z score of 4.06. This indicates that GLW is financially healthy and has little risk of bankruptcy at the moment.
GLW's Altman-Z score of 4.06 is fine compared to the rest of the industry. GLW outperforms 60.80% of its industry peers.
The Debt to FCF ratio of GLW is 7.07, which is on the high side as it means it would take GLW, 7.07 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 7.07, GLW perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
A Debt/Equity ratio of 0.64 indicates that GLW is somewhat dependend on debt financing.
The Debt to Equity ratio of GLW (0.64) is worse than 79.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 7.07 | ||
| Altman-Z | 4.06 |
ROIC/WACC0.68
WACC9.22%
2.3 Liquidity
A Current Ratio of 1.56 indicates that GLW should not have too much problems paying its short term obligations.
GLW's Current ratio of 1.56 is on the low side compared to the rest of the industry. GLW is outperformed by 73.60% 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.
GLW's Quick ratio of 1.00 is on the low side compared to the rest of the industry. GLW is outperformed by 77.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
GLW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.71%, 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.
GLW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.27%.
The Revenue has been growing slightly by 2.66% on average over the past years.
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
Based on estimates for the next years, GLW will show a very strong growth in Earnings Per Share. The EPS will grow by 20.01% on average per year.
GLW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.98% yearly.
EPS Next Y29.85%
EPS Next 2Y25.62%
EPS Next 3Y22.89%
EPS Next 5Y20.01%
Revenue Next Year13.9%
Revenue Next 2Y12.92%
Revenue Next 3Y11.98%
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.
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 36.92, GLW can be considered very expensive at the moment.
GLW's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.25, GLW is valued a bit more expensive.
GLW is valuated quite expensively with a Price/Forward Earnings ratio of 28.41.
The rest of the industry has a similar Price/Forward Earnings ratio as GLW.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.98, GLW is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.92 | ||
| Fwd PE | 28.41 |
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 | 64.84 | ||
| EV/EBITDA | 24.59 |
4.3 Compensation for Growth
The 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 22.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.24
PEG (5Y)16.11
EPS Next 2Y25.62%
EPS Next 3Y22.89%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.31%, GLW has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.47, GLW pays a better dividend. On top of this GLW pays more dividend than 90.40% of the companies listed in the same industry.
GLW's Dividend Yield is slightly below the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
The dividend of GLW has a limited annual growth rate of 4.75%.
GLW has been paying a dividend for at least 10 years, so it has a reliable track record.
GLW has not decreased their dividend for at least 10 years, which is a reliable track record.
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 2Y25.62%
EPS Next 3Y22.89%
87.88
+2.65 (+3.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners75.9%
Inst Owner Change-0.02%
Ins Owners0.16%
Ins Owner Change-0.53%
Market Cap75.34B
Revenue(TTM)14.91B
Net Income(TTM)1.37B
Analysts82
Price Target96.99 (10.37%)
Short Float %1.9%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
Yearly Dividend1.21
Dividend Growth(5Y)4.75%
DP72.69%
Div Incr Years0
Div Non Decr Years17
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.14%
Min EPS beat(2)-0.04%
Max EPS beat(2)4.32%
EPS beat(4)3
Avg EPS beat(4)2.72%
Min EPS beat(4)-0.04%
Max EPS beat(4)5.64%
EPS beat(8)6
Avg EPS beat(8)2.26%
EPS beat(12)8
Avg EPS beat(12)1.72%
EPS beat(16)10
Avg EPS beat(16)1.88%
Revenue beat(2)2
Avg Revenue beat(2)1.97%
Min Revenue beat(2)0.07%
Max Revenue beat(2)3.88%
Revenue beat(4)3
Avg Revenue beat(4)1.46%
Min Revenue beat(4)-0.03%
Max Revenue beat(4)3.88%
Revenue beat(8)5
Avg Revenue beat(8)1.13%
Revenue beat(12)5
Avg Revenue beat(12)-0.42%
Revenue beat(16)7
Avg Revenue beat(16)-0.75%
PT rev (1m)1.22%
PT rev (3m)26.19%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.25%
EPS NY rev (1m)0%
EPS NY rev (3m)1.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.05%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.92 | ||
| Fwd PE | 28.41 | ||
| P/S | 5.05 | ||
| P/FCF | 64.84 | ||
| P/OCF | 33.25 | ||
| P/B | 6.53 | ||
| P/tB | 9.01 | ||
| EV/EBITDA | 24.59 |
EPS(TTM)2.38
EY2.71%
EPS(NY)3.09
Fwd EY3.52%
FCF(TTM)1.36
FCFY1.54%
OCF(TTM)2.64
OCFY3.01%
SpS17.4
BVpS13.46
TBVpS9.75
PEG (NY)1.24
PEG (5Y)16.11
Graham Number26.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.57% | ||
| ROE | 11.84% | ||
| ROCE | 8.22% | ||
| ROIC | 6.25% | ||
| ROICexc | 6.71% | ||
| ROICexgc | 7.8% | ||
| OM | 13.41% | ||
| PM (TTM) | 9.16% | ||
| GM | 35.69% | ||
| FCFM | 7.79% |
ROA(3y)2.77%
ROA(5y)2.65%
ROE(3y)6.91%
ROE(5y)6.52%
ROIC(3y)3.7%
ROIC(5y)3.77%
ROICexc(3y)3.99%
ROICexc(5y)4.1%
ROICexgc(3y)4.68%
ROICexgc(5y)4.83%
ROCE(3y)4.86%
ROCE(5y)4.96%
ROICexgc growth 3Y-16.21%
ROICexgc 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 | 0.64 | ||
| Debt/FCF | 7.07 | ||
| Debt/EBITDA | 2.22 | ||
| Cap/Depr | 82.95% | ||
| Cap/Sales | 7.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.03% | ||
| Profit Quality | 85.07% | ||
| Current Ratio | 1.56 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 4.06 |
F-Score8
WACC9.22%
ROIC/WACC0.68
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)33.71%
EPS 3Y-1.96%
EPS 5Y2.29%
EPS Q2Q%24.07%
EPS Next Y29.85%
EPS Next 2Y25.62%
EPS Next 3Y22.89%
EPS Next 5Y20.01%
Revenue 1Y (TTM)18.27%
Revenue growth 3Y-2.34%
Revenue growth 5Y2.66%
Sales Q2Q%14.44%
Revenue Next Year13.9%
Revenue Next 2Y12.92%
Revenue Next 3Y11.98%
Revenue Next 5YN/A
EBIT growth 1Y143.9%
EBIT growth 3Y-18.7%
EBIT growth 5Y-2.77%
EBIT Next Year88.29%
EBIT Next 3Y37.8%
EBIT Next 5Y27.56%
FCF growth 1Y194.18%
FCF growth 3Y-18.13%
FCF growth 5Y85.79%
OCF growth 1Y18.7%
OCF growth 3Y-17.17%
OCF growth 5Y-0.92%
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 3 / 10 to CORNING INC (GLW). This can be considered as Overvalued.
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 29.85% 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%.