NYSE:GLW

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Established dividend payer and fair value.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

16.8%

GLW

10.0%

US Electronic

12.5%

US Market


1 Year Return

-38.9%

GLW

-21.6%

US Electronic

-12.7%

US Market

Return vs Industry: GLW underperformed the US Electronic industry which returned -21.6% over the past year.

Return vs Market: GLW underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

GLWIndustryMarket
7 Day16.8%10.0%12.5%
30 Day-13.1%-18.7%-14.7%
90 Day-28.8%-29.8%-21.5%
1 Year-37.0%-38.9%-20.8%-21.6%-10.9%-12.7%
3 Year-16.7%-22.7%-0.8%-3.6%12.6%5.4%
5 Year5.1%-7.3%22.2%16.1%31.9%17.5%

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?

28.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GLW ($20.74) is trading below our estimate of fair value ($29.14)

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


Price To Earnings Ratio

PE vs Industry: GLW is poor value based on its PE Ratio (18.7x) compared to the Electronic industry average (14.4x).

PE vs Market: GLW is poor value based on its PE Ratio (18.7x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: GLW is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: GLW is overvalued based on its PB Ratio (1.5x) compared to the US Electronic industry average (1.5x).


Next Steps

Future Growth

How is Corning forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

19.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GLW's forecast earnings growth (19.9% per year) is above the savings rate (1.7%).

Earnings vs Market: GLW's earnings (19.9% per year) are forecast to grow faster than the US market (12.3% per year).

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

Revenue vs Market: GLW's revenue (2.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: GLW's revenue (2.8% 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 (17.4%).


Next Steps

Past Performance

How has Corning performed over the past 5 years?

-22.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GLW has high quality earnings.

Growing Profit Margin: GLW's current net profit margins (7.5%) are lower than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: GLW's earnings have declined by -22.6% per year over the past 5 years.

Accelerating Growth: GLW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GLW had negative earnings growth (-11%) over the past year, making it difficult to compare to the Electronic industry average (3.2%).


Return on Equity

High ROE: GLW's Return on Equity (7.4%) is considered low.


Next Steps

Financial Health

How is Corning's financial position?


Financial Position Analysis

Short Term Liabilities: GLW's short term assets ($7.5B) exceed its short term liabilities ($3.5B).

Long Term Liabilities: GLW's short term assets ($7.5B) do not cover its long term liabilities ($12.4B).


Debt to Equity History and Analysis

Debt Level: GLW's debt to equity ratio (57.4%) is considered high.

Reducing Debt: GLW's debt to equity ratio has increased from 15.1% to 57.4% over the past 5 years.

Debt Coverage: GLW's debt is well covered by operating cash flow (27.2%).

Interest Coverage: GLW's interest payments on its debt are well covered by EBIT (6.5x coverage).


Balance Sheet

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

Debt Coverage by Assets: GLW's debt is covered by short term assets (assets are 1x debt).


Next Steps

Dividend

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

4.24%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GLW's dividend (4.24%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: GLW's dividend (4.24%) is low compared to the top 25% of dividend payers in the US market (5.49%).


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 (72%), 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 (46.3% payout ratio).


Next Steps

Management

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

5.6yrs

Average management tenure


CEO

Wendell Weeks (59yo)

14.92s

Tenure

US$14,283,654

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 ($USD14.28M) is about average for companies of similar size in the US market ($USD11.74M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Wendell Weeks
Chairman14.92yrsUS$14.28m0.11% $17.9m
R. Tripeny
Executive VP & CFO4.5yrsUS$4.54m0.0075% $1.2m
David Morse
Executive VP & CTO7.83yrsUS$4.55m0.0064% $1.0m
Lawrence McRae
Vice Chairman & Corporate Development Officer4.58yrsUS$4.80m0.020% $3.1m
James Clappin
Executive Vice President of Corning Glass Technologies2.42yrsUS$4.47m0.014% $2.1m
Charles Craig
Senior Vice President of Science & Technologyno datano datano data
Anne Mullins
Senior VP and Chief Digital & Information Officer0.58yrno datano data
Ann H. Nicholson
Vice President of Investor Relations6.67yrsno datano data
Lewis Steverson
Executive VP & General Counsel6.75yrsUS$5.24m0.0012% $196.1k
Kevin Corliss
VP of Global Employee Relations & Chief Compliance Officerno datano datano data

5.6yrs

Average Tenure

60yo

Average Age

Experienced Management: GLW's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wendell Weeks
Chairman14.92yrsUS$14.28m0.11% $17.9m
John Canning
Independent Director9.75yrsUS$322.50k0.018% $2.9m
Hansel Tookes
Independent Director19.17yrsUS$332.00k0.013% $2.0m
Richard Clark
Lead Independent Director7yrsUS$359.50k0.0055% $869.9k
Kurt Landgraf
Independent Director13.17yrsUS$357.50k0.0083% $1.3m
Deborah Rieman
Independent Director21.17yrsUS$335.00k0.013% $2.1m
Mark Wrighton
Independent Director11yrsUS$320.50k0.0087% $1.4m
Robert Cummings
Independent Director13.42yrsUS$330.00k0.020% $3.1m
Stephanie Burns
Independent Director8.17yrsUS$328.00k0.0075% $1.2m
Kevin Martin
Independent Director7yrsUS$312.50k0.0041% $653.2k

12.0yrs

Average Tenure

69yo

Average Age

Experienced Board: GLW's board of directors are seasoned and experienced ( 12 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 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$15.817b
  • Shares outstanding: 762.62m
  • 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
G1LW34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

Biography

Corning Incorporated engages in display technologies, optical communications, environmental technologies, specialty materials, and life sciences businesses worldwide. The company’s Display Technologies segment manufactures glass substrates for organic light-emitting diodes and liquid crystal displays used in televisions, notebook computers, and flat panel desktop monitors. Its Optical Communications segment manufactures 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 for various carrier network applications. This segment also offers operator-grade distributed antenna systems; optical network evolution wireless platform; subscriber demarcation, connection and protection devices, various digital subscriber line passive solutions, and outside plant enclosures; and coaxial RF interconnects for the cable television industry and microwave applications. The company’s Environmental Technologies segment manufactures ceramic substrates and filter products for emissions control in mobile, gasoline, and diesel applications. Its Specialty Materials segment manufactures products that provide material formulations for glass, glass ceramics, and fluoride crystals. The company’s Life Sciences segment offers laboratory products comprising consumables, such as plastic vessels, specialty surfaces, cell culture media, and serum, as well as general labware and equipment under the Corning, Falcon, Pyrex, and Axygen brands. It also offers pharmaceutical glass tubing and packages. Corning Incorporated has a strategic collaboration with Intel Corporation to accelerate the availability of 5G in buildings. The company was formerly known as Corning Glass Works and changed its name to Corning Incorporated in April 1989. Corning Incorporated was founded in 1851 and is headquartered in Corning, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 00:43
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.