CORNING INC (GLW) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GLW - US2193501051 - Common Stock
94.95 USD
+1.65 (+1.77%)
94.91 USD
-0.04 (-0.04%)
We assign a fundamental rating of 5 out of 10 to GLW. GLW was compared to 123 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 not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
- In the past year GLW was profitable.
- 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
- GLW has a Return On Assets of 4.57%. This is in the better half of the industry: GLW outperforms 69.92% of its industry peers.
- GLW has a Return On Equity of 11.84%. This is in the better half of the industry: GLW outperforms 78.05% of its industry peers.
- GLW's Return On Invested Capital of 6.25% is fine compared to the rest of the industry. GLW outperforms 65.85% 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 8.87%.
- 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
- GLW's Profit Margin of 9.16% is fine compared to the rest of the industry. GLW outperforms 79.67% of its industry peers.
- In the last couple of years the Profit Margin of GLW has declined.
- GLW has a better Operating Margin (13.41%) than 83.74% of its industry peers.
- In the last couple of years the Operating Margin of GLW has declined.
- GLW's Gross Margin of 35.69% is in line compared to the rest of the industry. GLW outperforms 56.91% of its industry peers.
- 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
- GLW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for GLW has been reduced compared to 1 year ago.
- The number of shares outstanding for GLW has been increased compared to 5 years ago.
- The debt/assets ratio for GLW has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 4.22 indicates that GLW is not in any danger for bankruptcy at the moment.
- GLW has a Altman-Z score of 4.22. This is in the better half of the industry: GLW outperforms 62.60% 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.
- The Debt to FCF ratio of GLW (7.07) is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.64 indicates that GLW is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.64, GLW is doing worse than 78.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 7.07 | ||
| Altman-Z | 4.22 |
ROIC/WACC0.74
WACC8.41%
2.3 Liquidity
- A Current Ratio of 1.56 indicates that GLW should not have too much problems paying its short term obligations.
- GLW has a Current ratio of 1.56. This is in the lower half of the industry: GLW underperforms 73.98% 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.
- The Quick ratio of GLW (1.00) is worse than 78.05% of 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.
- 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.
- GLW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.27%.
- 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)33.71%
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
- The Earnings Per Share is expected to grow by 20.01% on average over the next years. This is a very strong growth
- Based on estimates for the next years, GLW will show a quite strong growth in Revenue. The Revenue will grow by 12.23% on average per year.
EPS Next Y29.94%
EPS Next 2Y25.93%
EPS Next 3Y23.14%
EPS Next 5Y20.01%
Revenue Next Year13.94%
Revenue Next 2Y13.1%
Revenue Next 3Y12.23%
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
- A Price/Earnings ratio of 39.89 indicates a quite expensive valuation of GLW.
- The rest of the industry has a similar Price/Earnings ratio as GLW.
- The average S&P500 Price/Earnings ratio is at 27.25. GLW is valued slightly more expensive when compared to this.
- With a Price/Forward Earnings ratio of 30.55, GLW can be considered very expensive at the moment.
- GLW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GLW is cheaper than 60.16% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of GLW to the average of the S&P500 Index (25.98), we can say GLW is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.89 | ||
| Fwd PE | 30.55 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GLW is on the same level as its industry peers.
- GLW's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 70.06 | ||
| EV/EBITDA | 25.99 |
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.
- GLW's earnings are expected to grow with 23.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.33
PEG (5Y)17.4
EPS Next 2Y25.93%
EPS Next 3Y23.14%
5. Dividend
5.1 Amount
- GLW has a Yearly Dividend Yield of 1.19%.
- Compared to an average industry Dividend Yield of 0.46, GLW pays a better dividend. On top of this GLW pays more dividend than 88.62% of the companies listed in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.82, GLW is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
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.
- The dividend of GLW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP72.69%
EPS Next 2Y25.93%
EPS Next 3Y23.14%
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 4 / 10 to CORNING INC (GLW). This can be considered as Fairly Valued.
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 29.94% 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%.