company background image
GLW

Corning NYSE:GLW Stock Report

Last Price

US$35.80

Market Cap

US$30.3b

7D

-2.6%

1Y

-12.5%

Updated

06 Aug, 2022

Data

Company Financials +
GLW fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance5/6
Financial Health3/6
Dividends5/6

GLW Stock Overview

Corning Incorporated engages in display technologies, optical communications, environmental technologies, specialty materials, and life sciences businesses worldwide.

Corning Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Corning
Historical stock prices
Current Share PriceUS$35.80
52 Week HighUS$43.47
52 Week LowUS$30.63
Beta1.0
1 Month Change9.61%
3 Month Change-2.88%
1 Year Change-12.51%
3 Year Change26.59%
5 Year Change23.53%
Change since IPO385.42%

Recent News & Updates

Aug 01

Corning: Value? Look No Further

In each of its segments, Corning is an industry leader. For example, when looking at the specialty materials segment, almost any flagship phone uses Corning's Gorilla Glass panel. Corning is the largest worldwide manufacturer of fiber-optic cables. A market expected to grow beyond 10% CAGR until 2030. Corning expands its capabilities in metrology and semiconductors with the acquisition of HSC, which is the largest producer of polysilicon in the US, a necessary ingredient for Solar Panels. Corning has a wide margin of safety for investors and the potential to generate its historical returns by a wide margin. Its dividend is another bolster for the conservative investor. Corning experiences secular tailwinds in many of its business segments from which it will benefit over the next decade. Corning Inc (GLW) is a company whose products pretty much anyone in the developed and even emerging economies uses without knowing they're using it. Corning manufactures glass covers for phones, laptops, and tablets, glass substrates for TVs, lenses for Metrology, AR/VR applications, laser optics, vessels for medical use, and much more. Introduction Corning is a value company with a wide moat in many industries in which it participates. It owns large shares of markets projected to grow rapidly over the next few years and, as it's close to the commodity supply chain, can easily increase its prices to compensate for price hikes. Due to a lack of competitors that have sufficient scale in the industries in which Corning acts, it has adequate pricing power to achieve the price increases without the danger of losing customers. In the last few weeks, the market realized what a gem Corning is and raised its valuation appropriately. To accumulate faster, I'd like Corning to become a tad cheaper. Well, it's part of my portfolio in which I invest bi-monthly. Corning Valuation (fastgraphs) When looking at Corning's historical operating cash flow chart, we see that price follows its operating cash flow metric closely and is based on the growth projection in its markets. I'm bullish on Corning for a projected time horizon of 3-5 years as the company experiences many tailwinds catapulting its business forward. Business Segmentation & Overview I created a little overview of Corning's business segmentation, the industries in which it operates, the products it manufacturers, and each segment's contribution to Corning's revenue. Corning business segments and percentage of Revenue (Keyanoush - TVB Investment Research) In each of these segments, Corning is one of the leaders within the industry. When looking at the specialty materials segment, almost any flagship phone uses Corning's Gorilla Glass panel. Corning and Apple (AAPL) recently collaborated on a ceramic glass shield for Apple's latest iPhone models. The risk of Apple switching to Sapphire glass anytime soon seems to have evaporated as it and its suppliers fought with scaling issues manufacturing sufficient quantities of sapphire glass. Corning is the largest worldwide manufacturer of fiber-optic cables. Demand for high-speed networking, data transfer, video consumption, and communication leads to a steady expansion of fiber-optic networks worldwide. Corning's optical communications segment is continuously growing in long-haul fiber optics and fiber cables needed within data centers. Corning provides high-density pre-connectorized cabling solutions for data center applications within and between data center racks. Data center connections are driving optics volume (Finisar Presentation) I talked a lot about the fiber-optics market in my Lumentum article (LITE). I recommend reading that article to better understand this market's intricacies and why this could be a major growth driver for Corning. 20% of Corning's revenue comes from environmental and life science products. Over the medium term, I don't expect much change in the environmental segment. Corning manufactures the filters for Diesel and heavy-duty combustion engines. Corning's filters are an intermediate product used by the final manufacturers of the catalysts and car filter system builders. Corning Revenue & Segmentation (Keyanoush - TVB Investment Research) In 2021, each of Corning's business segments experienced considerable growth. 2021 was a strong year for the economy, especially considering a weak 2020, where many turned down their manufacturing due to the ongoing pandemic. In 2021, revenue grew 23%, and margins remained stable over the last 5 years. GLW data by YCharts Corning's Growth Markets Few of Corning's business segments are experiencing and will continue to experience strong growth over the next few years. In the optical communications segment, the rising demand for fiber optic cables worldwide leads to a surge for Corning's cables. The demand for Video streaming, video call, and much more is soaring. Global shortage of fiber-optic cable threatens digital growth (ars technica) The situation evolved to the point where we're experiencing a global shortage of fiber-optic cables. According to the Cru Group, prices per fiber km increased by 70% since the record low in 2021, from $3.70 to $6.30. Platforms like YouTube, TikTok, Instagram, or Facebook are being used around the clock. As the camera quality of phones around the world improves, the picture and video sizes increase. The pandemic led to a surge in data demand, and service providers are pushing hard to offer more bandwidth. The demand will not recede. The trend will continue well into 2026. Average Mobile wireless data usage per smartphone by region (Statista) It goes so far that we could soon see the first service providers hike their phone plan prices. The reason is the increase in data consumption and the rise in energy costs. There are internal discussions of European service providers not just to decrease the price per GB but eventually keep the prices steady or even increase them due to the changing economic landscape. Corning is the world's largest fiber optic cable supplier, with a market share of 16.3%. A whopping 4% more than its next largest competitor. Rank Company Return on Asset Country Revenue Market Share 1 Corning 20.56% USA $10,116M 16.3% 2 YOFC 17.49% China $1,550M 12.7% 3 Furukawa Electric 12.05% Japan $1,338M 11.1% 4 HTGD 30.60% China $1,200M 9.3% 5 Fiberhome 11.94% China $2,520M 6.9% Source: Thomasnet.com What's the expected CAGR of the fiber optic market, you ask? Recent (1-2 years old) reports expect a CAGR of 10.7%. Others revise their projections further upwards. Corning is expanding its investments in the metrology and semiconductor market. Corning offers metrology systems for low-resolution chips but, more importantly, the lenses and glasses used in many other metrology systems in the market. The global semiconductor is expected to grow with a CAGR of ~11% until 2029 (source 1, source 2). Lenses are an indispensable part of the manufacturing and quality assurance of wafers. Corning participates in the growth of these markets in a few of its business segments like specialty materials and the "All Other" segment in which Corning's recent acquisition Hemlock Semiconductor Corporation, or HSC, reports its revenue and earnings. HSC is the largest producer of polysilicon in the US, a necessary ingredient for Solar Panels and Wafers. The world is dependent on China for Solar Panel supply. With ongoing and maybe even rising tensions between the superpowers, reducing the reliance on external sources for energy-critical systems might lead to future subsidies for this segment. The solar panel market is expected to have at least a CAGR of 7.2% from 2021 until 2030. I anticipate even more growth for the superpowers to reach their ESG mandates. Corning is one of the few manufacturers that can provide glass substrates large enough for the high-end TV market. That puts Corning display segment in a growing segment with a large moat. Consumers tend to buy larger and larger displays and TVs. In the largest TV segment, very few companies can manufacture the glass substrates for 65" displays and larger. Advanced TV Shipments by Size and Display Technology, 2019 to 2022 (DSCC Quarterly Advanced TV Shipment and Forecast Report)

Jul 26

Corning Non-GAAP EPS of $0.57 beats by $0.01, expects Q3 EPS below consensus

Corning press release (NYSE:GLW): Q2 Non-GAAP EPS of $0.57 beats by $0.01. Revenue of $3.76B (+7.4% Y/Y) misses by $30M. Sales growth was driven primarily by Optical Communications as well as solar sales in Hemlock and Emerging Growth Businesses. Display Technologies sales declined 8% sequentially as volume declined in line with the market and lower panel maker utilization; glass price was up slightly sequentially. For the third quarter, Corning expects $3.65 billion to $3.85 billion vs. $3.79B consensus in core sales with core EPS of $0.51 to $0.55 vs. $0.56 consensus. Management expects Display Technologies volume to be down sequentially by a mid-teen percentage, in line with the market and lower panel maker utilization. Management now expects full-year core sales to slightly exceed $15 billion vs. $15.35B consensus, growing in a range of 6% to 8% (8.71% consensus), with core EPS growing in line with sales vs. 12.58% EPS growth consensus. Shares +0.6% PM.

Jul 23
An Intrinsic Calculation For Corning Incorporated (NYSE:GLW) Suggests It's 45% Undervalued

An Intrinsic Calculation For Corning Incorporated (NYSE:GLW) Suggests It's 45% Undervalued

In this article we are going to estimate the intrinsic value of Corning Incorporated ( NYSE:GLW ) by taking the...

Shareholder Returns

GLWUS ElectronicUS Market
7D-2.6%-0.5%1.0%
1Y-12.5%-14.1%-12.9%

Return vs Industry: GLW exceeded the US Electronic industry which returned -14.1% over the past year.

Return vs Market: GLW matched the US Market which returned -12.8% over the past year.

Price Volatility

Is GLW's price volatile compared to industry and market?
GLW volatility
GLW Average Weekly Movement4.8%
Electronic Industry Average Movement7.6%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

Stable Share Price: GLW is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: GLW's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
185161,200Wendell Weekshttps://www.corning.com

Corning Incorporated engages in display technologies, optical communications, environmental technologies, specialty materials, and life sciences businesses worldwide. The company’s Display Technologies segment offers glass substrates for liquid crystal displays and organic light-emitting diodes used in televisions, notebook computers, desktop monitors, tablets, and handheld devices. Its Optical Communications segment provides optical fibers and cables; and hardware and equipment products, including cable assemblies, fiber optic hardware and connectors, optical components and couplers, closures, network interface devices, and other accessories.

Corning Fundamentals Summary

How do Corning's earnings and revenue compare to its market cap?
GLW fundamental statistics
Market CapUS$30.26b
Earnings (TTM)US$2.00b
Revenue (TTM)US$14.59b

15.1x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GLW income statement (TTM)
RevenueUS$14.59b
Cost of RevenueUS$9.39b
Gross ProfitUS$5.20b
Other ExpensesUS$3.20b
EarningsUS$2.00b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.37
Gross Margin35.66%
Net Profit Margin13.73%
Debt/Equity Ratio56.7%

How did GLW perform over the long term?

See historical performance and comparison

Dividends

3.0%

Current Dividend Yield

43%

Payout Ratio

Does GLW pay a reliable dividends?

See GLW dividend history and benchmarks
When do you need to buy GLW by to receive an upcoming dividend?
Corning dividend dates
Ex Dividend DateAug 30 2022
Dividend Pay DateSep 29 2022
Days until Ex dividend22 days
Days until Dividend pay date52 days

Does GLW pay a reliable dividends?

See GLW dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is GLW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GLW?

Other financial metrics that can be useful for relative valuation.

GLW key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.5x
Enterprise Value/EBITDA9.7x
PEG Ratio5.5x

Price to Earnings Ratio vs Peers

How does GLW's PE Ratio compare to its peers?

GLW PE Ratio vs Peers
The above table shows the PE ratio for GLW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average34.7x
APH Amphenol
26x6.3%US$46.1b
LFUS Littelfuse
18x-6.1%US$6.3b
ROG Rogers
61.2xn/aUS$5.1b
IIVI II-VI
33.4x48.7%US$6.9b
GLW Corning
15.1x2.7%US$30.3b

Price-To-Earnings vs Peers: GLW is good value based on its Price-To-Earnings Ratio (15.1x) compared to the peer average (34.7x).


Price to Earnings Ratio vs Industry

How does GLW's PE Ratio compare vs other companies in the US Electronic Industry?

Price-To-Earnings vs Industry: GLW is good value based on its Price-To-Earnings Ratio (15.1x) compared to the US Electronic industry average (16x)


Price to Earnings Ratio vs Fair Ratio

What is GLW's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GLW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.1x
Fair PE Ratio19.8x

Price-To-Earnings vs Fair Ratio: GLW is good value based on its Price-To-Earnings Ratio (15.1x) compared to the estimated Fair Price-To-Earnings Ratio (19.8x).


Share Price vs Fair Value

What is the Fair Price of GLW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GLW ($35.8) is trading below our estimate of fair value ($54.42)

Significantly Below Fair Value: GLW is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies

Future Growth

How is Corning forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


2.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GLW's forecast earnings growth (2.7% per year) is above the savings rate (1.9%).

Earnings vs Market: GLW's earnings (2.7% per year) are forecast to grow slower than the US market (12.8% per year).

High Growth Earnings: GLW's earnings are forecast to grow, but not significantly.

Revenue vs Market: GLW's revenue (5.7% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: GLW's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GLW's Return on Equity is forecast to be low in 3 years time (19.3%).


Discover growth companies

Past Performance

How has Corning performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


10.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GLW has high quality earnings.

Growing Profit Margin: GLW's current net profit margins (13.7%) are higher than last year (6.5%).


Past Earnings Growth Analysis

Earnings Trend: GLW's earnings have grown by 10.8% per year over the past 5 years.

Accelerating Growth: GLW's earnings growth over the past year (135.3%) exceeds its 5-year average (10.8% per year).

Earnings vs Industry: GLW earnings growth over the past year (135.3%) exceeded the Electronic industry 26.1%.


Return on Equity

High ROE: GLW's Return on Equity (17%) is considered low.


Discover strong past performing companies

Financial Health

How is Corning's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: GLW's short term assets ($7.9B) exceed its short term liabilities ($5.5B).

Long Term Liabilities: GLW's short term assets ($7.9B) do not cover its long term liabilities ($12.2B).


Debt to Equity History and Analysis

Debt Level: GLW's net debt to equity ratio (43.1%) is considered high.

Reducing Debt: GLW's debt to equity ratio has increased from 21.8% to 56.7% over the past 5 years.

Debt Coverage: GLW's debt is well covered by operating cash flow (47.2%).

Interest Coverage: GLW's interest payments on its debt are well covered by EBIT (8.2x coverage).


Balance Sheet


Discover healthy companies

Dividend

What is Corning current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.02%

Current Dividend Yield

Upcoming Dividend Payment

TodayAug 07 2022Ex Dividend DateAug 30 2022Dividend Pay DateSep 29 202230 days from Ex DividendBuy in the next 22 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: GLW's dividend (3.02%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: GLW's dividend (3.02%) is low compared to the top 25% of dividend payers in the US market (4.09%).


Stability and Growth of Payments

Stable Dividend: GLW's dividends per share have been stable in the past 10 years.

Growing Dividend: GLW's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (43.2%), GLW's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (63%), GLW's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

Wendell Weeks (62 yo)

17.33yrs

Tenure

US$20,766,032

Compensation

Mr. Wendell P. Weeks has been the Chief Executive Officer of Corning Incorporated at Corning Optical Communications LLC since April 26, 2005 and has been its Chairman since April 26, 2007. Mr. Weeks has be...


CEO Compensation Analysis

Compensation vs Market: Wendell's total compensation ($USD20.77M) is above average for companies of similar size in the US market ($USD13.00M).

Compensation vs Earnings: Wendell's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: GLW's management team is considered experienced (3.6 years average tenure).


Board Members

Experienced Board: GLW's board of directors are seasoned and experienced ( 12.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GLW insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Corning Incorporated's employee growth, exchange listings and data sources


Key Information

  • Name: Corning Incorporated
  • Ticker: GLW
  • Exchange: NYSE
  • Founded: 1851
  • Industry: Electronic Components
  • Sector: Tech
  • Implied Market Cap: US$30.262b
  • Shares outstanding: 845.32m
  • Website: https://www.corning.com

Number of Employees


Location

  • Corning Incorporated
  • One Riverfront Plaza
  • Corning
  • New York
  • 14831
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/06 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.