CORNING INC (GLW) Stock Fundamental Analysis
USA - NYSE:GLW - US2193501051 - Common Stock
90.29 USD
+3.86 (+4.47%)
90.67 USD
+0.38 (+0.42%)
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. While GLW is still in line with the averages on profitability rating, there are concerns on its financial health. GLW is quite expensive at the moment. It does show 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.
GLW had a positive operating cash flow in each of the past 5 years.
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 60.98% of the companies in the same industry.
The Return On Equity of GLW (7.37%) is better than 64.23% of its industry peers.
GLW has a Return On Invested Capital of 5.60%. This is in the better half of the industry: GLW outperforms 60.98% of its industry peers.
GLW had an Average Return On Invested Capital over the past 3 years of 3.70%. This is significantly below the industry average of 9.37%.
The last Return On Invested Capital (5.60%) for GLW is above the 3 year average (3.70%), which is a sign of increasing profitability.
| 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 70.73% of the companies in the same industry.
GLW's Profit Margin has declined in the last couple of years.
GLW's Operating Margin of 12.06% is fine compared to the rest of the industry. GLW outperforms 79.67% of its industry peers.
In the last couple of years the Operating Margin of GLW has declined.
GLW's Gross Margin of 34.77% 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 | 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.
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.
GLW has a better debt/assets ratio than last year.
2.2 Solvency
GLW has an Altman-Z score of 4.09. This indicates that GLW is financially healthy and has little risk of bankruptcy at the moment.
GLW has a better Altman-Z score (4.09) than 60.16% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 6.28, GLW is in line with its industry, outperforming 56.10% of the companies in the same industry.
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 78.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 6.28 | ||
| Altman-Z | 4.09 |
ROIC/WACC0.63
WACC8.96%
2.3 Liquidity
A Current Ratio of 1.50 indicates that GLW should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.50, GLW is doing worse than 74.80% of the companies in the same industry.
GLW has a Quick Ratio of 1.50. This is a bad value and indicates that GLW is not financially healthy enough and could expect problems in meeting its short term obligations.
GLW's Quick ratio of 0.93 is on the low side compared to the rest of the industry. GLW is outperformed by 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 33.71%, 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 small growth in Revenue. The Revenue has grown by 4.21% 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)33.71%
EPS 3Y-1.96%
EPS 5Y2.29%
EPS Q2Q%24.07%
Revenue 1Y (TTM)4.21%
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 14.51% on average over the next years. This is quite good.
GLW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.18% yearly.
EPS Next Y28.09%
EPS Next 2Y22.14%
EPS Next 3Y19.42%
EPS Next 5Y14.51%
Revenue Next Year12.9%
Revenue Next 2Y10.76%
Revenue Next 3Y10.18%
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.
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 37.94, the valuation of GLW can be described as expensive.
GLW's Price/Earnings ratio is a bit cheaper when compared to the industry. GLW is cheaper than 60.98% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.76. GLW is valued slightly more expensive when compared to this.
GLW is valuated quite expensively with a Price/Forward Earnings ratio of 30.88.
GLW's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.63, GLW is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.94 | ||
| Fwd PE | 30.88 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as GLW.
GLW's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.78 | ||
| EV/EBITDA | 26.26 |
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.
A more expensive valuation may be justified as GLW's earnings are expected to grow with 19.42% in the coming years.
PEG (NY)1.35
PEG (5Y)16.55
EPS Next 2Y22.14%
EPS Next 3Y19.42%
5. Dividend
5.1 Amount
GLW has a Yearly Dividend Yield of 1.25%. 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 1.94. GLW pays more dividend than 89.43% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, GLW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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 121.37% 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.
DP121.37%
EPS Next 2Y22.14%
EPS Next 3Y19.42%
90.29
+3.86 (+4.47%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners74.27%
Inst Owner Change0.45%
Ins Owners0.18%
Ins Owner Change-0.45%
Market Cap77.34B
Revenue(TTM)13.12B
Net Income(TTM)819.00M
Analysts82.11
Price Target79.83 (-11.58%)
Short Float %1.61%
Short Ratio1.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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)8.41%
EPS NY rev (1m)0.21%
EPS NY rev (3m)5.05%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)5.46%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)3.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.94 | ||
| Fwd PE | 30.88 | ||
| P/S | 5.44 | ||
| P/FCF | 64.78 | ||
| P/OCF | 35.46 | ||
| P/B | 6.96 | ||
| P/tB | 9.77 | ||
| EV/EBITDA | 26.26 |
EPS(TTM)2.38
EY2.64%
EPS(NY)2.92
Fwd EY3.24%
FCF(TTM)1.39
FCFY1.54%
OCF(TTM)2.55
OCFY2.82%
SpS16.58
BVpS12.98
TBVpS9.24
PEG (NY)1.35
PEG (5Y)16.55
Graham Number26.36
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 | 4.09 |
F-Score8
WACC8.96%
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)33.71%
EPS 3Y-1.96%
EPS 5Y2.29%
EPS Q2Q%24.07%
EPS Next Y28.09%
EPS Next 2Y22.14%
EPS Next 3Y19.42%
EPS Next 5Y14.51%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y-2.34%
Revenue growth 5Y2.66%
Sales Q2Q%14.44%
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%
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.
Can you provide the valuation status for CORNING INC?
ChartMill assigns a valuation rating of 3 / 10 to CORNING INC (GLW). This can be considered as Overvalued.
How profitable is CORNING INC (GLW) stock?
CORNING INC (GLW) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for GLW stock?
The Price/Earnings (PE) ratio for CORNING INC (GLW) is 37.94 and the Price/Book (PB) ratio is 6.96.
Is the dividend of CORNING INC sustainable?
The dividend rating of CORNING INC (GLW) is 5 / 10 and the dividend payout ratio is 121.37%.