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. Both the profitability and the financial health of GLW get a neutral evaluation. Nothing too spectacular is happening here. GLW is not valued too expensively and it also shows a decent 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.
Each year in the past 5 years GLW has been profitable.
In the past 5 years GLW always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of GLW (1.66%) is comparable to the rest of the industry.
GLW has a Return On Equity (4.24%) which is comparable to the rest of the industry.
GLW has a better Return On Invested Capital (4.41%) 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 9.29%.
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
GLW's Profit Margin of 3.34% is fine compared to the rest of the industry. GLW outperforms 67.20% of its industry peers.
GLW's Profit Margin has declined in the last couple of years.
GLW has a better Operating Margin (9.75%) than 80.00% of its industry peers.
GLW's Operating Margin has declined in the last couple of years.
The Gross Margin of GLW (33.08%) 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 | 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
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
GLW has an Altman-Z score of 3.00. This indicates that GLW is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.00, GLW perfoms like the industry average, outperforming 52.00% of the companies in the same industry.
GLW has a debt to FCF ratio of 6.74. This is a slightly negative value and a sign of low solvency as GLW would need 6.74 years to pay back of all of its debts.
GLW's Debt to FCF ratio of 6.74 is in line compared to the rest of the industry. GLW outperforms 54.40% of 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 Debt to Equity ratio of 0.65. This is in the lower half of the industry: GLW underperforms 79.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.65 | ||
| Debt/FCF | 6.74 | ||
| Altman-Z | 3 |
ROIC/WACC0.49
WACC8.95%
2.3 Liquidity
A Current Ratio of 1.69 indicates that GLW should not have too much problems paying its short term obligations.
GLW has a worse Current ratio (1.69) than 65.60% of its industry peers.
A Quick Ratio of 1.05 indicates that GLW should not have too much problems paying its short term obligations.
GLW has a Quick ratio of 1.05. This is in the lower half of the industry: GLW underperforms 75.20% 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.
The Earnings Per Share has been growing slightly by 2.29% on average over the past years.
Looking at the last year, GLW shows a quite strong growth in Revenue. The Revenue has grown by 9.77% in the last year.
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
GLW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.33% yearly.
The Revenue is expected to grow by 7.20% on average over the next years.
EPS Next Y22.15%
EPS Next 2Y18.02%
EPS Next 3Y15.27%
EPS Next 5Y15.33%
Revenue Next Year8.41%
Revenue Next 2Y7.82%
Revenue Next 3Y7.2%
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 22.73 indicates a rather expensive valuation of GLW.
Compared to the rest of the industry, the Price/Earnings ratio of GLW indicates a somewhat cheap valuation: GLW is cheaper than 67.20% of the companies listed in the same industry.
GLW's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.03.
With a Price/Forward Earnings ratio of 17.65, GLW is valued on the expensive side.
Based on the Price/Forward Earnings ratio, GLW is valued a bit cheaper than the industry average as 72.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.94, GLW is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.73 | ||
| Fwd PE | 17.65 |
4.2 Price Multiples
GLW's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GLW is cheaper than 60.80% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GLW is valued a bit cheaper than the industry average as 63.20% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.37 | ||
| EV/EBITDA | 16.83 |
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's earnings are expected to grow with 15.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.03
PEG (5Y)9.91
EPS Next 2Y18.02%
EPS Next 3Y15.27%
5. Dividend
5.1 Amount
GLW has a Yearly Dividend Yield of 2.35%. 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 2.09. 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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 Years13
Div Non Decr Years17
5.3 Sustainability
GLW pays out 216.96% of its income as dividend. This is not a sustainable payout ratio.
The dividend of GLW is growing, but earnings are growing more, so the dividend growth is sustainable.
DP216.96%
EPS Next 2Y18.02%
EPS Next 3Y15.27%
48.18
+0.2 (+0.42%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners72.88%
Inst Owner Change1.16%
Ins Owners0.22%
Ins Owner Change0.23%
Market Cap39.03B
Analysts80
Price Target54.14 (12.37%)
Short Float %1.45%
Short Ratio1.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
Yearly Dividend1.21
Dividend Growth(5Y)4.75%
DP216.96%
Div Incr Years13
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)-5.21%
PT rev (3m)-2.53%
EPS NQ rev (1m)0.42%
EPS NQ rev (3m)0.25%
EPS NY rev (1m)1.38%
EPS NY rev (3m)1.25%
Revenue NQ rev (1m)0.75%
Revenue NQ rev (3m)1.2%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.73 | ||
| Fwd PE | 17.65 | ||
| P/S | 2.87 | ||
| P/FCF | 36.37 | ||
| P/OCF | 19.57 | ||
| P/B | 3.64 | ||
| P/tB | 5.13 | ||
| EV/EBITDA | 16.83 |
EPS(TTM)2.12
EY4.4%
EPS(NY)2.73
Fwd EY5.67%
FCF(TTM)1.32
FCFY2.75%
OCF(TTM)2.46
OCFY5.11%
SpS16.78
BVpS13.23
TBVpS9.4
PEG (NY)1.03
PEG (5Y)9.91
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 |
F-Score8
WACC8.95%
ROIC/WACC0.49
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 Y22.15%
EPS Next 2Y18.02%
EPS Next 3Y15.27%
EPS Next 5Y15.33%
Revenue 1Y (TTM)9.77%
Revenue growth 3Y-2.34%
Revenue growth 5Y2.66%
Sales Q2Q%12.92%
Revenue Next Year8.41%
Revenue Next 2Y7.82%
Revenue Next 3Y7.2%
Revenue Next 5YN/A
EBIT growth 1Y56.55%
EBIT growth 3Y-18.7%
EBIT growth 5Y-2.77%
EBIT Next Year82.65%
EBIT Next 3Y28.59%
EBIT Next 5Y23.65%
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%