CORNING INC (GLW) Stock Fundamental Analysis
USA - NYSE:GLW - US2193501051 - Common Stock
85.84 USD
+1.7 (+2.02%)
85.5 USD
-0.34 (-0.4%)
Overall GLW gets a fundamental rating of 5 out of 10. We evaluated GLW against 123 industry peers in the Electronic Equipment, Instruments & Components industry. While GLW is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, GLW is valued expensive at the moment.
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.
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 has a better Return On Assets (2.85%) than 60.98% of its industry peers.
With a decent Return On Equity value of 7.37%, GLW is doing good in the industry, outperforming 64.23% of the companies in the same industry.
GLW has a better Return On Invested Capital (5.60%) than 60.98% 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 9.33%.
The 3 year average ROIC (3.70%) for GLW is below the current ROIC(5.60%), indicating increased profibility in the last year.
| 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's Profit Margin of 5.77% is fine compared to the rest of the industry. GLW outperforms 70.73% of its industry peers.
GLW's Profit Margin has declined in the last couple of years.
The Operating Margin of GLW (12.06%) is better than 79.67% of its industry peers.
GLW's Operating Margin has declined in the last couple of years.
GLW's Gross Margin of 34.77% is in line compared to the rest of the industry. GLW outperforms 57.72% of its industry peers.
GLW's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, GLW has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.08 indicates that GLW is not in any danger for bankruptcy at the moment.
The Altman-Z score of GLW (4.08) is comparable to the rest of the industry.
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.
GLW has a Debt to FCF ratio of 6.28. This is comparable to the rest of the industry: GLW outperforms 56.10% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that GLW is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.60, GLW is doing worse than 77.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 6.28 | ||
| Altman-Z | 4.08 |
ROIC/WACC0.63
WACC8.89%
2.3 Liquidity
A Current Ratio of 1.50 indicates that GLW should not have too much problems paying its short term obligations.
With a Current ratio value of 1.50, GLW is not doing good in the industry: 74.80% of the companies in the same industry are doing better.
A Quick Ratio of 0.93 indicates that GLW may have some problems paying its short term obligations.
The Quick ratio of GLW (0.93) is worse than 79.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
GLW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.14%, 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.
The Revenue has grown by 14.63% in the past year. This is quite good.
The Revenue has been growing slightly by 2.66% on average over the past years.
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
GLW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.51% yearly.
Based on estimates for the next years, GLW will show a quite strong growth in Revenue. The Revenue will grow by 10.18% on average per year.
EPS Next Y27.81%
EPS Next 2Y21.67%
EPS Next 3Y18.68%
EPS Next 5Y14.51%
Revenue Next Year12.9%
Revenue Next 2Y10.76%
Revenue Next 3Y10.18%
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.
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
Based on the Price/Earnings ratio of 38.15, the valuation of GLW can be described as expensive.
GLW's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of GLW to the average of the S&P500 Index (27.67), we can say GLW is valued slightly more expensively.
GLW is valuated quite expensively with a Price/Forward Earnings ratio of 29.59.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GLW is on the same level as its industry peers.
GLW's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.15 | ||
| Fwd PE | 29.59 |
4.2 Price Multiples
GLW's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as GLW.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 61.58 | ||
| EV/EBITDA | 26.1 |
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 18.68% in the coming years.
PEG (NY)1.37
PEG (5Y)16.64
EPS Next 2Y21.67%
EPS Next 3Y18.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.29%, GLW has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.05, GLW pays a better dividend. On top of this GLW pays more dividend than 89.43% of the companies listed in the same industry.
With a Dividend Yield of 1.29, GLW pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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
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 2Y21.67%
EPS Next 3Y18.68%
85.84
+1.7 (+2.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners74.27%
Inst Owner Change0.4%
Ins Owners0.18%
Ins Owner Change-0.45%
Market Cap73.53B
Revenue(TTM)14.21B
Net Income(TTM)819.00M
Analysts82.11
Price Target76.86 (-10.46%)
Short Float %2.23%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.29% |
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)7.61%
PT rev (3m)35.06%
EPS NQ rev (1m)0.43%
EPS NQ rev (3m)8.51%
EPS NY rev (1m)0.25%
EPS NY rev (3m)4.83%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)5.44%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)3.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.15 | ||
| Fwd PE | 29.59 | ||
| P/S | 5.18 | ||
| P/FCF | 61.58 | ||
| P/OCF | 33.71 | ||
| P/B | 6.61 | ||
| P/tB | 9.29 | ||
| EV/EBITDA | 26.1 |
EPS(TTM)2.25
EY2.62%
EPS(NY)2.9
Fwd EY3.38%
FCF(TTM)1.39
FCFY1.62%
OCF(TTM)2.55
OCFY2.97%
SpS16.58
BVpS12.98
TBVpS9.24
PEG (NY)1.37
PEG (5Y)16.64
Graham Number25.63
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%
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 Turnover0.49
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 | 4.08 |
F-Score8
WACC8.89%
ROIC/WACC0.63
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 Y27.81%
EPS Next 2Y21.67%
EPS Next 3Y18.68%
EPS Next 5Y14.51%
Revenue 1Y (TTM)14.63%
Revenue growth 3Y-2.34%
Revenue growth 5Y2.66%
Sales Q2Q%12.24%
Revenue Next Year12.9%
Revenue Next 2Y10.76%
Revenue Next 3Y10.18%
Revenue Next 5YN/A
EBIT growth 1Y127.19%
EBIT growth 3Y-18.7%
EBIT growth 5Y-2.77%
EBIT Next Year88.17%
EBIT Next 3Y32%
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%