CORNING INC (GLW) Stock Fundamental Analysis
NYSE:GLW - US2193501051 - Common Stock
71.19 USD
+1.47 (+2.11%)
71.4 USD
+0.21 (+0.29%)
GLW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 125 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. GLW is not valued too expensively and it also shows 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.
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
Looking at the Return On Assets, with a value of 2.85%, GLW is in the better half of the industry, outperforming 62.40% of the companies in the same industry.
GLW's Return On Equity of 7.37% is fine compared to the rest of the industry. GLW outperforms 64.80% of its industry peers.
The Return On Invested Capital of GLW (5.60%) is better than 61.60% 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 9.48%.
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
Looking at the Profit Margin, with a value of 5.77%, GLW is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
GLW's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 12.06%, GLW is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
GLW's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 34.77%, GLW perfoms like the industry average, outperforming 56.80% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GLW is destroying value.
Compared to 1 year ago, GLW has less shares outstanding
Compared to 5 years ago, GLW has more shares outstanding
GLW has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.61 indicates that GLW is not in any danger for bankruptcy at the moment.
GLW has a Altman-Z score (3.61) 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's Debt to FCF ratio of 6.28 is in line compared to the rest of the industry. GLW outperforms 57.60% of its industry peers.
GLW has a Debt/Equity ratio of 0.60. This is a neutral value indicating GLW is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.60, GLW is not doing good in the industry: 76.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 6.28 | ||
| Altman-Z | 3.61 |
ROIC/WACC0.62
WACC9.02%
2.3 Liquidity
GLW has a Current Ratio of 1.50. 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 Current ratio of 1.50. This is in the lower half of the industry: GLW underperforms 74.40% of its industry peers.
A Quick Ratio of 0.93 indicates that GLW may have some problems paying its short term obligations.
With a Quick ratio value of 0.93, GLW is not doing good in the industry: 80.80% of the companies in the same industry are doing better.
| 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.
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.
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
The Earnings Per Share is expected to grow by 14.51% on average over the next years. This is quite good.
Based on estimates for the next years, GLW will show a quite strong growth in Revenue. The Revenue will grow by 9.62% on average per year.
EPS Next Y27.49%
EPS Next 2Y21.4%
EPS Next 3Y18.03%
EPS Next 5Y14.51%
Revenue Next Year12.58%
Revenue Next 2Y10.5%
Revenue Next 3Y9.62%
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 31.64, which means the current valuation is very expensive for GLW.
Based on the Price/Earnings ratio, GLW is valued a bit cheaper than 62.40% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.06. GLW is around the same levels.
A Price/Forward Earnings ratio of 24.64 indicates a rather expensive valuation of GLW.
GLW's Price/Forward Earnings is on the same level as the industry average.
GLW is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.64 | ||
| Fwd PE | 24.64 |
4.2 Price Multiples
GLW's Enterprise Value to EBITDA ratio is in line with the industry average.
61.60% of the companies in the same industry are more expensive than GLW, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.07 | ||
| EV/EBITDA | 21.57 |
4.3 Compensation for Growth
GLW's 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.
GLW's earnings are expected to grow with 18.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.15
PEG (5Y)13.8
EPS Next 2Y21.4%
EPS Next 3Y18.03%
5. Dividend
5.1 Amount
GLW has a Yearly Dividend Yield of 1.61%.
GLW's Dividend Yield is rather good when compared to the industry average which is at 1.49. GLW pays more dividend than 93.60% of the companies in the same industry.
GLW's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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 2Y21.4%
EPS Next 3Y18.03%
71.19
+1.47 (+2.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners78.63%
Inst Owner Change-1.06%
Ins Owners0.21%
Ins Owner Change0.06%
Market Cap60.98B
Analysts81.05
Price Target69.81 (-1.94%)
Short Float %1.45%
Short Ratio2.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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)22.67%
PT rev (3m)28.95%
EPS NQ rev (1m)1.67%
EPS NQ rev (3m)6.24%
EPS NY rev (1m)4.57%
EPS NY rev (3m)4.37%
Revenue NQ rev (1m)0.81%
Revenue NQ rev (3m)7.54%
Revenue NY rev (1m)3.51%
Revenue NY rev (3m)3.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.64 | ||
| Fwd PE | 24.64 | ||
| P/S | 4.29 | ||
| P/FCF | 51.07 | ||
| P/OCF | 27.96 | ||
| P/B | 5.49 | ||
| P/tB | 7.71 | ||
| EV/EBITDA | 21.57 |
EPS(TTM)2.25
EY3.16%
EPS(NY)2.89
Fwd EY4.06%
FCF(TTM)1.39
FCFY1.96%
OCF(TTM)2.55
OCFY3.58%
SpS16.58
BVpS12.98
TBVpS9.24
PEG (NY)1.15
PEG (5Y)13.8
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 | 3.61 |
F-Score8
WACC9.02%
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 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 Year12.58%
Revenue Next 2Y10.5%
Revenue Next 3Y9.62%
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%