NYSE:GLW

Stock Analysis Report

Executive Summary

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

Rewards

PE ratio (20.4x) is below the Electronic industry average (21.2x)

Earnings are forecast to grow 10.86% per year

Became profitable this year

Pays a high and reliable dividend of 2.74%

Risk Analysis

Has a high level of debt



Snowflake Analysis

Established dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

How has Corning's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GLW has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.6%

GLW

3.3%

US Electronic

1.3%

US Market


1 Year Return

-8.5%

GLW

27.9%

US Electronic

19.4%

US Market

Return vs Industry: GLW underperformed the US Electronic industry which returned 27.9% over the past year.

Return vs Market: GLW underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

GLWIndustryMarket
7 Day5.6%3.3%1.3%
30 Day-1.2%3.3%2.6%
90 Day-3.0%8.0%5.0%
1 Year-6.0%-8.5%29.3%27.9%22.0%19.4%
3 Year29.7%20.7%49.6%45.4%46.8%37.3%
5 Year49.0%31.9%82.6%73.6%66.3%48.0%

Price Volatility Vs. Market

How volatile is Corning's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Corning undervalued compared to its fair value and its price relative to the market?

20.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GLW ($29.25) is trading above our estimate of fair value ($21.32)

Significantly Below Fair Value: GLW is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GLW is good value based on its PE Ratio (20.4x) compared to the Electronic industry average (21.2x).

PE vs Market: GLW is poor value based on its PE Ratio (20.4x) compared to the US market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: GLW is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: GLW is overvalued based on its PB Ratio (2.1x) compared to the US Electronic industry average (2.1x).


Next Steps

Future Growth

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

10.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GLW's forecast earnings growth (10.9% per year) is above the savings rate (1.7%).

Earnings vs Market: GLW's earnings (10.9% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: GLW's revenue (4.3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: GLW's revenue (4.3% 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 (14.7%).


Next Steps

Past Performance

How has Corning performed over the past 5 years?

-21.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GLW has high quality earnings.

Growing Profit Margin: GLW became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GLW's earnings have declined by -21.2% per year over the past 5 years.

Accelerating Growth: GLW has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GLW has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electronic industry (53.7%).


Return on Equity

High ROE: GLW's Return on Equity (9.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Corning's financial position?


Financial Position Analysis

Short Term Liabilities: GLW's short term assets ($6.2B) exceed its short term liabilities ($3.6B).

Long Term Liabilities: GLW's short term assets ($6.2B) do not cover its long term liabilities ($10.6B).


Debt to Equity History and Analysis

Debt Level: GLW's debt to equity ratio (47.6%) is considered high.

Reducing Debt: GLW's debt to equity ratio has increased from 16.9% to 47.6% over the past 5 years.

Debt Coverage: GLW's debt is well covered by operating cash flow (31.2%).

Interest Coverage: GLW's interest payments on its debt are well covered by EBIT (7.8x coverage).


Balance Sheet

Inventory Level: GLW has a high level of physical assets or inventory.

Debt Coverage by Assets: GLW's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

2.74%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years3.0%

Current dividend yield vs market & industry

Notable Dividend: GLW's dividend (2.74%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: GLW's dividend (2.74%) is low compared to the top 25% of dividend payers in the US market (3.68%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.4%), GLW's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GLW's dividends in 3 years are forecast to be well covered by earnings (46.2% payout ratio).


Next Steps

Management

What is the CEO of Corning's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Wendell Weeks (59yo)

14.7yrs

Tenure

US$14,921,071

Compensation

Mr. Wendell P. Weeks has been the Chief Executive Officer and President of Corning Incorporated since April 26, 2005 and December 2010 respectively and has been its Chairman since April 26, 2007. Mr. Weeks ...


CEO Compensation Analysis

Compensation vs Market: Wendell's total compensation ($USD14.92M) is above average for companies of similar size in the US market ($USD10.94M).

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


Management Age and Tenure

4.3yrs

Average Tenure

60yo

Average Age

Experienced Management: GLW's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

11.8yrs

Average Tenure

69yo

Average Age

Experienced Board: GLW's board of directors are seasoned and experienced ( 11.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$88,21106 Nov 19
Robert France
EntityIndividual
Shares2,934
Max PriceUS$30.07

Ownership Breakdown

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


Management Team

  • Wendell Weeks (59yo)

    Chairman

    • Tenure: 14.7yrs
    • Compensation: US$14.92m
  • Lawrence McRae (60yo)

    Vice Chairman & Corporate Development Officer

    • Tenure: 4.3yrs
    • Compensation: US$4.51m
  • James Clappin (62yo)

    Executive Vice President of Corning Glass Technologies

    • Tenure: 2.2yrs
    • Compensation: US$4.50m
  • R. Tripeny (60yo)

    Executive VP & CFO

    • Tenure: 4.3yrs
    • Compensation: US$4.48m
  • Lewis Steverson (55yo)

    Executive VP & General Counsel

    • Tenure: 6.5yrs
    • Compensation: US$5.24m
  • David Morse (67yo)

    Executive VP & CTO

    • Tenure: 7.6yrs
    • Compensation: US$4.55m
  • Ann H. Nicholson

    Division Vice President of Investor Relations

    • Tenure: 6.4yrs
  • Anne Mullins

    Senior VP and Chief Digital & Information Officer

    • Tenure: 0.3yrs
  • Edward Schlesinger (51yo)

    Senior VP

    • Tenure: 4yrs
  • Charles Craig

    Senior Vice President of Science & Technology

    • Tenure: 0yrs

Board Members

  • John Canning (74yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$312.49k
  • Wendell Weeks (59yo)

    Chairman

    • Tenure: 14.7yrs
    • Compensation: US$14.92m
  • Hansel Tookes (71yo)

    Independent Director

    • Tenure: 18.9yrs
    • Compensation: US$321.99k
  • Dick Clark (73yo)

    Lead Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$349.49k
  • Kurt Landgraf (72yo)

    Independent Director

    • Tenure: 12.9yrs
    • Compensation: US$342.49k
  • Deb Rieman (69yo)

    Independent Director

    • Tenure: 20.9yrs
    • Compensation: US$324.99k
  • Mark Wrighton (69yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$302.99k
  • Bob Cummings (68yo)

    Independent Director

    • Tenure: 13.2yrs
    • Compensation: US$319.99k
  • Stephanie Burns (64yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$317.99k
  • Kevin Martin (52yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$301.99k

Company Information

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


Key Information

  • Name: Corning Incorporated
  • Ticker: GLW
  • Exchange: NYSE
  • Founded: 1851
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: US$22.496b
  • Shares outstanding: 769.11m
  • Website: https://www.corning.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GLWNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
GLWSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1968
GLWDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
GLWXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1968
GLW *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1968
GLW-UETLX (Eurotlx)YesCommon StockITEURJan 1968
0R2XLSE (London Stock Exchange)YesCommon StockGBUSDJan 1968

Biography

Corning Incorporated engages in display technologies, optical communications, environmental technologies, specialty materials, and life sciences businesses worldwide. The company’s Display Technologies seg ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 23:35
End of Day Share Price2019/12/12 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.