CORNING INC (1GLW.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1GLW - US2193501051 - Common Stock
70.89 EUR
-3.8 (-5.09%)
Overall 1GLW gets a fundamental rating of 5 out of 10. We evaluated 1GLW against 51 industry peers in the Electronic Equipment, Instruments & Components industry. 1GLW has an average financial health and profitability rating. 1GLW shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
- 1GLW had positive earnings in the past year.
- 1GLW had a positive operating cash flow in the past year.
- 1GLW had positive earnings in each of the past 5 years.
- Each year in the past 5 years 1GLW had a positive operating cash flow.
1.2 Ratios
- 1GLW has a better Return On Assets (4.57%) than 71.70% of its industry peers.
- Looking at the Return On Equity, with a value of 11.84%, 1GLW is in the better half of the industry, outperforming 75.47% of the companies in the same industry.
- 1GLW has a Return On Invested Capital of 6.25%. This is in the better half of the industry: 1GLW outperforms 67.92% of its industry peers.
- 1GLW had an Average Return On Invested Capital over the past 3 years of 3.70%. This is below the industry average of 7.51%.
- The last Return On Invested Capital (6.25%) for 1GLW 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
- 1GLW's Profit Margin of 9.16% is amongst the best of the industry. 1GLW outperforms 84.91% of its industry peers.
- 1GLW's Profit Margin has declined in the last couple of years.
- The Operating Margin of 1GLW (13.41%) is better than 88.68% of its industry peers.
- 1GLW's Operating Margin has declined in the last couple of years.
- 1GLW's Gross Margin of 35.69% is in line compared to the rest of the industry. 1GLW outperforms 43.40% of its industry peers.
- In the last couple of years the Gross Margin of 1GLW 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%
2. Health
2.1 Basic Checks
- 1GLW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, 1GLW has less shares outstanding
- 1GLW has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, 1GLW has an improved debt to assets ratio.
2.2 Solvency
- 1GLW has an Altman-Z score of 3.91. This indicates that 1GLW is financially healthy and has little risk of bankruptcy at the moment.
- 1GLW has a Altman-Z score of 3.91. This is in the better half of the industry: 1GLW outperforms 73.58% of its industry peers.
- 1GLW has a debt to FCF ratio of 7.07. This is a slightly negative value and a sign of low solvency as 1GLW 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, 1GLW is in line with its industry, outperforming 41.51% of the companies in the same industry.
- 1GLW has a Debt/Equity ratio of 0.64. This is a neutral value indicating 1GLW is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.64, 1GLW is doing worse than 71.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 7.07 | ||
| Altman-Z | 3.91 |
ROIC/WACC0.72
WACC8.7%
2.3 Liquidity
- 1GLW has a Current Ratio of 1.56. This is a normal value and indicates that 1GLW is financially healthy and should not expect problems in meeting its short term obligations.
- 1GLW has a Current ratio of 1.56. This is comparable to the rest of the industry: 1GLW outperforms 43.40% of its industry peers.
- 1GLW has a Quick Ratio of 1.56. This is a bad value and indicates that 1GLW is not financially healthy enough and could expect problems in meeting its short term obligations.
- 1GLW has a Quick ratio (1.00) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.56 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 33.71% over the past year.
- The Earnings Per Share has been growing slightly by 2.29% on average over the past years.
- 1GLW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.27%.
- 1GLW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.66% yearly.
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, 1GLW will show a very strong growth in Earnings Per Share. The EPS will grow by 20.01% on average per year.
- Based on estimates for the next years, 1GLW will show a quite strong growth in Revenue. The Revenue will grow by 11.98% on average per year.
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
- The Price/Earnings ratio is 34.75, which means the current valuation is very expensive for 1GLW.
- The rest of the industry has a similar Price/Earnings ratio as 1GLW.
- 1GLW's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.82.
- A Price/Forward Earnings ratio of 26.69 indicates a quite expensive valuation of 1GLW.
- Based on the Price/Forward Earnings ratio, 1GLW is valued a bit more expensive than 60.38% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of 1GLW to the average of the S&P500 Index (25.95), we can say 1GLW is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.75 | ||
| Fwd PE | 26.69 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1GLW is valued a bit more expensive than 60.38% of the companies in the same industry.
- 66.04% of the companies in the same industry are cheaper than 1GLW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.91 | ||
| EV/EBITDA | 23.22 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- 1GLW has a very decent profitability rating, which may justify a higher PE ratio.
- 1GLW's earnings are expected to grow with 22.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.16
PEG (5Y)15.16
EPS Next 2Y25.62%
EPS Next 3Y22.89%
5. Dividend
5.1 Amount
- 1GLW has a Yearly Dividend Yield of 1.31%.
- Compared to an average industry Dividend Yield of 1.56, 1GLW has a dividend in line with its industry peers.
- 1GLW's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
- The dividend of 1GLW has a limited annual growth rate of 4.75%.
Dividend Growth(5Y)4.75%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
- 72.69% of the earnings are spent on dividend by 1GLW. This is not a sustainable payout ratio.
- 1GLW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP72.69%
EPS Next 2Y25.62%
EPS Next 3Y22.89%
CORNING INC / 1GLW.MI FAQ
What is the ChartMill fundamental rating of CORNING INC (1GLW.MI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to 1GLW.MI.
What is the valuation status of CORNING INC (1GLW.MI) stock?
ChartMill assigns a valuation rating of 2 / 10 to CORNING INC (1GLW.MI). This can be considered as Overvalued.
What is the profitability of 1GLW stock?
CORNING INC (1GLW.MI) has a profitability rating of 6 / 10.
How financially healthy is CORNING INC?
The financial health rating of CORNING INC (1GLW.MI) is 4 / 10.
Is the dividend of CORNING INC sustainable?
The dividend rating of CORNING INC (1GLW.MI) is 3 / 10 and the dividend payout ratio is 72.69%.