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GLW

Corning NYSE:GLW Stock Report

Last Price

US$36.86

Market Cap

US$31.2b

7D

-0.8%

1Y

-9.9%

Updated

18 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 Incorporated Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Corning
Historical stock prices
Current Share PriceUS$36.86
52 Week HighUS$43.47
52 Week LowUS$30.63
Beta1.0
1 Month Change7.81%
3 Month Change11.26%
1 Year Change-9.86%
3 Year Change30.80%
5 Year Change29.06%
Change since IPO399.80%

Recent News & Updates

Aug 16
What Does Corning Incorporated's (NYSE:GLW) Share Price Indicate?

What Does Corning Incorporated's (NYSE:GLW) Share Price Indicate?

Corning Incorporated ( NYSE:GLW ) saw a decent share price growth in the teens level on the NYSE over the last few...

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)

Shareholder Returns

GLWUS ElectronicUS Market
7D-0.8%2.9%1.4%
1Y-9.9%-9.7%-8.4%

Return vs Industry: GLW exceeded the US Electronic industry which returned -11.6% over the past year.

Return vs Market: GLW matched the US Market which returned -9% over the past year.

Price Volatility

Is GLW's price volatile compared to industry and market?
GLW volatility
GLW Average Weekly Movement4.5%
Electronic Industry Average Movement7.5%
Market Average Movement7.6%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.1%

Stable Share Price: GLW is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: GLW's weekly volatility (4%) 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 Incorporated Fundamentals Summary

How do Corning's earnings and revenue compare to its market cap?
GLW fundamental statistics
Market CapUS$31.16b
Earnings (TTM)US$2.00b
Revenue (TTM)US$14.59b

15.6x

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

2.9%

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 dividend10 days
Days until Dividend pay date40 days

Does GLW pay a reliable dividends?

See GLW dividend history and benchmarks