CORNING INC (GLW) Stock Fundamental Analysis
USA - NYSE:GLW - US2193501051 - Common Stock
79.35 USD
+0.22 (+0.28%)
79.3 USD
-0.05 (-0.06%)
Taking everything into account, GLW scores 5 out of 10 in our fundamental rating. 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 is valied quite expensively at the moment, while 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
With a decent Return On Assets value of 2.85%, GLW is doing good in the industry, outperforming 62.10% of the companies in the same industry.
The Return On Equity of GLW (7.37%) is better than 64.52% of its industry peers.
GLW has a better Return On Invested Capital (5.60%) than 61.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GLW is significantly below the industry average of 9.48%.
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 71.77% of its industry peers.
GLW's Profit Margin has declined in the last couple of years.
GLW has a Operating Margin of 12.06%. This is in the better half of the industry: GLW outperforms 79.84% of its industry peers.
GLW's Operating Margin has declined in the last couple of years.
GLW has a Gross Margin (34.77%) which is comparable to the rest of the industry.
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.
GLW has more shares outstanding than it did 5 years ago.
GLW has a better debt/assets ratio than last year.
2.2 Solvency
GLW has an Altman-Z score of 3.88. This indicates that GLW is financially healthy and has little risk of bankruptcy at the moment.
GLW has a Altman-Z score (3.88) which is comparable to the rest of the industry.
GLW has a debt to FCF ratio of 6.28. This is a slightly negative value and a sign of low solvency as GLW would need 6.28 years to pay back of all of its debts.
GLW has a Debt to FCF ratio of 6.28. This is comparable to the rest of the industry: GLW outperforms 57.26% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that GLW is somewhat dependend on debt financing.
GLW has a worse Debt to Equity ratio (0.60) than 76.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 6.28 | ||
| Altman-Z | 3.88 |
ROIC/WACC0.61
WACC9.22%
2.3 Liquidity
A Current Ratio of 1.50 indicates that GLW should not have too much problems paying its short term obligations.
The Current ratio of GLW (1.50) is worse than 75.00% of its industry peers.
GLW has a Quick Ratio of 1.50. This is a bad value and indicates that GLW is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of GLW (0.93) is worse than 80.65% 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.
The Revenue has grown by 14.63% in the past year. This is quite good.
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
Based on estimates for the next years, GLW will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.51% on average per year.
The Revenue is expected to grow by 10.08% on average over the next years. This is quite good.
EPS Next Y27.49%
EPS Next 2Y21.4%
EPS Next 3Y18.03%
EPS Next 5Y14.51%
Revenue Next Year12.78%
Revenue Next 2Y10.67%
Revenue Next 3Y10.08%
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
The Price/Earnings ratio is 35.27, which means the current valuation is very expensive for GLW.
Compared to the rest of the industry, the Price/Earnings ratio of GLW is on the same level as its industry peers.
When comparing the Price/Earnings ratio of GLW to the average of the S&P500 Index (27.32), we can say GLW is valued slightly more expensively.
A Price/Forward Earnings ratio of 27.47 indicates a quite expensive valuation of GLW.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GLW is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.89. GLW is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.27 | ||
| Fwd PE | 27.47 |
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 | 56.93 | ||
| EV/EBITDA | 24.21 |
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.
A more expensive valuation may be justified as GLW's earnings are expected to grow with 18.03% in the coming years.
PEG (NY)1.28
PEG (5Y)15.38
EPS Next 2Y21.4%
EPS Next 3Y18.03%
5. Dividend
5.1 Amount
GLW has a Yearly Dividend Yield of 1.40%.
Compared to an average industry Dividend Yield of 2.14, GLW pays a better dividend. On top of this GLW pays more dividend than 91.13% of the companies listed in the same industry.
With a Dividend Yield of 1.40, GLW pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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
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 2Y21.4%
EPS Next 3Y18.03%
79.35
+0.22 (+0.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners74.27%
Inst Owner Change-1.06%
Ins Owners0.18%
Ins Owner Change-0.03%
Market Cap67.97B
Analysts81.05
Price Target71.43 (-9.98%)
Short Float %1.42%
Short Ratio1.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
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)5.39%
PT rev (3m)31.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.73%
EPS NY rev (1m)0%
EPS NY rev (3m)4.6%
Revenue NQ rev (1m)0.28%
Revenue NQ rev (3m)5.23%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)3.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.27 | ||
| Fwd PE | 27.47 | ||
| P/S | 4.78 | ||
| P/FCF | 56.93 | ||
| P/OCF | 31.17 | ||
| P/B | 6.11 | ||
| P/tB | 8.59 | ||
| EV/EBITDA | 24.21 |
EPS(TTM)2.25
EY2.84%
EPS(NY)2.89
Fwd EY3.64%
FCF(TTM)1.39
FCFY1.76%
OCF(TTM)2.55
OCFY3.21%
SpS16.58
BVpS12.98
TBVpS9.24
PEG (NY)1.28
PEG (5Y)15.38
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 | 3.88 |
F-Score8
WACC9.22%
ROIC/WACC0.61
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 Y27.49%
EPS Next 2Y21.4%
EPS Next 3Y18.03%
EPS Next 5Y14.51%
Revenue 1Y (TTM)14.63%
Revenue growth 3Y-2.34%
Revenue growth 5Y2.66%
Sales Q2Q%12.24%
Revenue Next Year12.78%
Revenue Next 2Y10.67%
Revenue Next 3Y10.08%
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 5Y23.7%
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%