CORNING INC (GLW) Stock Fundamental Analysis
NYSE:GLW - New York Stock Exchange, Inc. - US2193501051 - Common Stock - Currency: USD
Overall GLW gets a fundamental rating of 5 out of 10. We evaluated GLW against 125 industry peers in the Electronic Equipment, Instruments & Components industry. GLW has an average financial health and profitability rating. GLW has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year GLW was profitable.
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 Return On Assets (1.66%) which is in line with its industry peers.
With a decent Return On Equity value of 4.24%, GLW is doing good in the industry, outperforming 60.80% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.41%, GLW is doing good in the industry, outperforming 60.80% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GLW is significantly below the industry average of 9.16%.
The last Return On Invested Capital (4.41%) for GLW is above the 3 year average (3.70%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.66% | ||
| ROE | 4.24% | ||
| ROIC | 4.41% |
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
The Profit Margin of GLW (3.34%) is better than 68.00% of its industry peers.
GLW's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 9.75%, GLW is doing good in the industry, outperforming 79.20% of the companies in the same industry.
In the last couple of years the Operating Margin of GLW has declined.
The Gross Margin of GLW (33.08%) is comparable to the rest of the industry.
GLW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.75% | ||
| PM (TTM) | 3.34% | ||
| GM | 33.08% |
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%
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.
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 3.27 indicates that GLW is not in any danger for bankruptcy at the moment.
GLW has a Altman-Z score (3.27) which is comparable to the rest of the industry.
The Debt to FCF ratio of GLW is 6.74, which is on the high side as it means it would take GLW, 6.74 years of fcf income to pay off all of its debts.
GLW has a Debt to FCF ratio (6.74) which is in line with its industry peers.
GLW has a Debt/Equity ratio of 0.65. This is a neutral value indicating GLW is somewhat dependend on debt financing.
GLW has a worse Debt to Equity ratio (0.65) than 80.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 6.74 | ||
| Altman-Z | 3.27 |
ROIC/WACC0.48
WACC9.23%
2.3 Liquidity
GLW has a Current Ratio of 1.69. This is a normal value and indicates that GLW is financially healthy and should not expect problems in meeting its short term obligations.
GLW has a worse Current ratio (1.69) than 70.40% of its industry peers.
A Quick Ratio of 1.05 indicates that GLW should not have too much problems paying its short term obligations.
The Quick ratio of GLW (1.05) is worse than 78.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
GLW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.95%, which is quite impressive.
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 9.77%.
GLW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.66% yearly.
EPS 1Y (TTM)26.95%
EPS 3Y-1.96%
EPS 5Y2.29%
EPS Q2Q%42.11%
Revenue 1Y (TTM)9.77%
Revenue growth 3Y-2.34%
Revenue growth 5Y2.66%
Sales Q2Q%12.92%
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 14.92% on average per year.
Based on estimates for the next years, GLW will show a small growth in Revenue. The Revenue will grow by 7.59% on average per year.
EPS Next Y21.93%
EPS Next 2Y18.16%
EPS Next 3Y15.64%
EPS Next 5Y14.92%
Revenue Next Year8.66%
Revenue Next 2Y8.2%
Revenue Next 3Y7.59%
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
A Price/Earnings ratio of 26.32 indicates a quite expensive valuation of GLW.
67.20% of the companies in the same industry are more expensive than GLW, based on the Price/Earnings ratio.
GLW's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.69.
With a Price/Forward Earnings ratio of 20.39, GLW is valued on the expensive side.
GLW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GLW is cheaper than 72.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.36. GLW is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.32 | ||
| Fwd PE | 20.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GLW is valued a bit cheaper than the industry average as 61.60% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GLW is valued a bit cheaper than 60.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.54 | ||
| EV/EBITDA | 19.62 |
4.3 Compensation for Growth
The 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 15.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.2
PEG (5Y)11.48
EPS Next 2Y18.16%
EPS Next 3Y15.64%
5. Dividend
5.1 Amount
GLW has a Yearly Dividend Yield of 2.07%. Purely for dividend investing, there may be better candidates out there.
GLW's Dividend Yield is rather good when compared to the industry average which is at 1.83. GLW pays more dividend than 94.40% of the companies in the same industry.
GLW's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
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
GLW pays out 216.96% of its income as dividend. This is not a sustainable payout ratio.
GLW's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP216.96%
EPS Next 2Y18.16%
EPS Next 3Y15.64%
55.8
+1.78 (+3.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners73.93%
Inst Owner Change0.13%
Ins Owners0.22%
Ins Owner Change0.11%
Market Cap47.79B
Analysts80
Price Target56.91 (1.99%)
Short Float %1.7%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.07% |
Yearly Dividend1.21
Dividend Growth(5Y)4.75%
DP216.96%
Div Incr Years0
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.3%
Min EPS beat(2)0.96%
Max EPS beat(2)5.64%
EPS beat(4)4
Avg EPS beat(4)2.27%
Min EPS beat(4)0.56%
Max EPS beat(4)5.64%
EPS beat(8)5
Avg EPS beat(8)0.85%
EPS beat(12)7
Avg EPS beat(12)1.26%
EPS beat(16)10
Avg EPS beat(16)1.52%
Revenue beat(2)1
Avg Revenue beat(2)0.95%
Min Revenue beat(2)-0.03%
Max Revenue beat(2)1.92%
Revenue beat(4)2
Avg Revenue beat(4)0.51%
Min Revenue beat(4)-0.51%
Max Revenue beat(4)1.92%
Revenue beat(8)3
Avg Revenue beat(8)0.24%
Revenue beat(12)3
Avg Revenue beat(12)-1.66%
Revenue beat(16)6
Avg Revenue beat(16)-0.98%
PT rev (1m)4.73%
PT rev (3m)-0.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.47%
EPS NY rev (1m)0.03%
EPS NY rev (3m)1.19%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)0.8%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.32 | ||
| Fwd PE | 20.39 | ||
| P/S | 3.52 | ||
| P/FCF | 44.54 | ||
| P/OCF | 23.97 | ||
| P/B | 4.46 | ||
| P/tB | 6.28 | ||
| EV/EBITDA | 19.62 |
EPS(TTM)2.12
EY3.8%
EPS(NY)2.74
Fwd EY4.9%
FCF(TTM)1.25
FCFY2.25%
OCF(TTM)2.33
OCFY4.17%
SpS15.87
BVpS12.51
TBVpS8.89
PEG (NY)1.2
PEG (5Y)11.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.66% | ||
| ROE | 4.24% | ||
| ROCE | 5.8% | ||
| ROIC | 4.41% | ||
| ROICexc | 4.69% | ||
| ROICexgc | 5.48% | ||
| OM | 9.75% | ||
| PM (TTM) | 3.34% | ||
| GM | 33.08% | ||
| FCFM | 7.89% |
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 Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 6.74 | ||
| Debt/EBITDA | 2.62 | ||
| Cap/Depr | 69.14% | ||
| Cap/Sales | 6.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75.02% | ||
| Profit Quality | 236.34% | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 3.27 |
F-Score8
WACC9.23%
ROIC/WACC0.48
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)26.95%
EPS 3Y-1.96%
EPS 5Y2.29%
EPS Q2Q%42.11%
EPS Next Y21.93%
EPS Next 2Y18.16%
EPS Next 3Y15.64%
EPS Next 5Y14.92%
Revenue 1Y (TTM)9.77%
Revenue growth 3Y-2.34%
Revenue growth 5Y2.66%
Sales Q2Q%12.92%
Revenue Next Year8.66%
Revenue Next 2Y8.2%
Revenue Next 3Y7.59%
Revenue Next 5YN/A
EBIT growth 1Y56.55%
EBIT growth 3Y-18.7%
EBIT growth 5Y-2.77%
EBIT Next Year81.1%
EBIT Next 3Y30.68%
EBIT Next 5Y23.17%
FCF growth 1Y150.12%
FCF growth 3Y-18.13%
FCF growth 5Y85.79%
OCF growth 1Y-1.87%
OCF growth 3Y-17.17%
OCF growth 5Y-0.92%