CORNING INC (GLW) Stock Fundamental Analysis
NYSE:GLW - New York Stock Exchange, Inc. - US2193501051 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to GLW. GLW was compared to 124 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
GLW had positive earnings in the past year.
In the past year GLW had a positive cash flow from operations.
GLW had positive earnings in each of the past 5 years.
In the past 5 years GLW always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 2.85%, GLW is doing good in the industry, outperforming 64.52% of the companies in the same industry.
GLW has a better Return On Equity (7.37%) than 66.94% of its industry peers.
With a decent Return On Invested Capital value of 5.60%, GLW is doing good in the industry, outperforming 62.90% 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 9.65%.
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
GLW has a Profit Margin of 5.77%. This is in the better half of the industry: GLW outperforms 73.39% of its industry peers.
GLW's Profit Margin has declined in the last couple of years.
GLW has a better Operating Margin (12.06%) than 81.45% of its industry peers.
In the last couple of years the Operating Margin of GLW has declined.
GLW has a Gross Margin of 34.77%. This is comparable to the rest of the industry: GLW outperforms 58.06% 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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 3.39 indicates that GLW is not in any danger for bankruptcy at the moment.
GLW has a Altman-Z score (3.39) which is in line with its industry peers.
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 58.06% of the companies in the same industry.
A Debt/Equity ratio of 0.60 indicates that GLW is somewhat dependend on debt financing.
GLW's Debt to Equity ratio of 0.60 is on the low side compared to the rest of the industry. GLW is outperformed by 76.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 6.28 | ||
| Altman-Z | 3.39 |
ROIC/WACC0.62
WACC9.05%
2.3 Liquidity
A Current Ratio of 1.50 indicates that GLW should not have too much problems paying its short term obligations.
GLW has a worse Current ratio (1.50) than 72.58% of its industry peers.
A Quick Ratio of 0.93 indicates that GLW may have some problems paying its short term obligations.
GLW has a Quick ratio of 0.93. This is amonst the worse of the industry: GLW underperforms 81.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 33.14% over the past year.
The Earnings Per Share has been growing slightly by 2.29% on average over the past years.
GLW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.63%.
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)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 14.92% on average over the next years. This is quite good.
Based on estimates for the next years, GLW will show a small growth in Revenue. The Revenue will grow by 7.73% on average per year.
EPS Next Y21.93%
EPS Next 2Y18.16%
EPS Next 3Y15.64%
EPS Next 5Y14.92%
Revenue Next Year8.76%
Revenue Next 2Y8.3%
Revenue Next 3Y7.73%
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
The Price/Earnings ratio is 29.08, which means the current valuation is very expensive for GLW.
Based on the Price/Earnings ratio, GLW is valued a bit cheaper than the industry average as 63.71% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.87. GLW is around the same levels.
The Price/Forward Earnings ratio is 23.91, which indicates a rather expensive current valuation of GLW.
Based on the Price/Forward Earnings ratio, GLW is valued a bit cheaper than 62.10% of the companies in the same industry.
GLW's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.08 | ||
| Fwd PE | 23.91 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GLW is valued a bit cheaper than 60.48% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GLW is valued a bit cheaper than 61.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.34 | ||
| EV/EBITDA | 19.43 |
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.
A more expensive valuation may be justified as GLW's earnings are expected to grow with 15.64% in the coming years.
PEG (NY)1.33
PEG (5Y)12.69
EPS Next 2Y18.16%
EPS Next 3Y15.64%
5. Dividend
5.1 Amount
GLW has a Yearly Dividend Yield of 1.73%.
Compared to an average industry Dividend Yield of 1.63, GLW pays a better dividend. On top of this GLW pays more dividend than 92.74% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.39, GLW is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
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 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
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 2Y18.16%
EPS Next 3Y15.64%
65.44
-0.32 (-0.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners78.63%
Inst Owner Change0.31%
Ins Owners0.21%
Ins Owner Change-0.08%
Market Cap52.94B
Analysts81
Price Target67.77 (3.56%)
Short Float %1.62%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
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)24.33%
PT rev (3m)25.18%
EPS NQ rev (1m)7.84%
EPS NQ rev (3m)6.04%
EPS NY rev (1m)0%
EPS NY rev (3m)1.19%
Revenue NQ rev (1m)4.6%
Revenue NQ rev (3m)7.06%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.08 | ||
| Fwd PE | 23.91 | ||
| P/S | 3.73 | ||
| P/FCF | 44.34 | ||
| P/OCF | 24.27 | ||
| P/B | 4.76 | ||
| P/tB | 6.69 | ||
| EV/EBITDA | 19.43 |
EPS(TTM)2.25
EY3.44%
EPS(NY)2.74
Fwd EY4.18%
FCF(TTM)1.48
FCFY2.26%
OCF(TTM)2.7
OCFY4.12%
SpS17.56
BVpS13.74
TBVpS9.78
PEG (NY)1.33
PEG (5Y)12.69
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 | 3.39 |
F-Score8
WACC9.05%
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 Y21.93%
EPS Next 2Y18.16%
EPS Next 3Y15.64%
EPS Next 5Y14.92%
Revenue 1Y (TTM)14.63%
Revenue growth 3Y-2.34%
Revenue growth 5Y2.66%
Sales Q2Q%12.24%
Revenue Next Year8.76%
Revenue Next 2Y8.3%
Revenue Next 3Y7.73%
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 5Y23.17%
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%