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

Fundamentals

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


Market Performance


7 Day Return

6.1%

GLW

4.0%

US Electronic

2.3%

US Market


1 Year Return

-8.9%

GLW

9.8%

US Electronic

5.6%

US Market

Return vs Industry: GLW underperformed the US Electronic industry which returned 9.8% over the past year.

Return vs Market: GLW underperformed the US Market which returned 5.6% over the past year.


Shareholder returns

GLWIndustryMarket
7 Day6.1%4.0%2.3%
30 Day-1.8%-0.4%-1.0%
90 Day-11.0%3.3%-0.7%
1 Year-6.5%-8.9%10.9%9.8%7.9%5.6%
3 Year33.4%24.2%53.3%49.1%45.6%36.3%
5 Year80.8%60.3%90.9%81.7%65.8%47.6%

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?

0.03%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: GLW ($29.52) is trading below our estimate of fair value ($29.53)

Significantly Undervalued: GLW is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GLW is good value based on its PE Ratio (16.6x) compared to the Electronic industry average (19x).

PE vs Market: GLW is good value based on its PE Ratio (16.6x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: GLW is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: GLW is overvalued based on its PB Ratio (2.1x) compared to the US Electronic industry average (2x).


Next Steps

Future Growth

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

14.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GLW's forecast earnings growth (14.3% per year) is above the savings rate (2.7%).

Earnings vs Market: GLW's earnings (14.3% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: GLW's revenue (5.6% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: GLW's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: GLW's Return on Equity is forecast to be low in 3 years time (16.3%).


Next Steps

Past Performance

How has Corning performed over the past 5 years?

-19.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GLW's earnings have declined by -19.2% 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 (58.6%).


Return on Equity

High ROE: GLW's Return on Equity (11.2%) is considered low.


Return on Assets

ROA vs Industry: GLW's Return on Assets is below or equal to the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: GLW has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Corning's financial position?


Financial Position Analysis

Short Term Liabilities: GLW's short term assets ($6.3B) exceeds its short term liabilities ($3.4B)

Long Term Liabilities: GLW's short term assets (6.3B) do not cover its long term liabilities (10.6B)


Debt to Equity History and Analysis

Debt Level: GLW's debt to equity ratio (46.9%) is considered high

Reducing Debt: GLW's debt to equity ratio has increased from 17% to 46.9% over the past 5 years.

Debt Coverage: GLW's debt is well covered by operating cash flow (31.7%).

Interest Coverage: GLW's interest payments on its debt are well covered by EBIT (9.3x 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?

2.71%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Corning before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.7%marketbottom25%1.5%markettop25%3.8%industryaverage1.6%forecastin3Years3.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GLW's dividend (2.71%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: GLW's dividend (2.71%) is low compared to the top 25% of dividend payers in the US market (3.76%).

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 reasonably low payout ratio (42.6%), GLW's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GLW's dividends in 3 years are forecast to be well covered by earnings (41.8% 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?

4.2yrs

Average management tenure


CEO

Wendell Weeks (59yo)

14.5yrs

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 ($USD14.92M) is about average for companies of similar size in the US market ($USD11.23M).

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


Management Age and Tenure

4.2yrs

Average Tenure

60yo

Average Age

Experienced Management: GLW's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

11.6yrs

Average Tenure

69yo

Average Age

Experienced Board: GLW's board of directors are seasoned and experienced ( 11.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$395,85128 Nov 18
Lewis Steverson
EntityIndividual
Role
Chief Legal Officer
Executive VP & General Counsel
Shares12,577
Max PriceUS$31.47

Ownership Breakdown


Management Team

  • Wendell Weeks (59yo)

    Chairman

    • Tenure: 14.5yrs
    • Compensation: US$14.92m
  • Lawrence McRae (60yo)

    Vice Chairman & Corporate Development Officer

    • Tenure: 4.2yrs
    • Compensation: US$4.51m
  • James Clappin (62yo)

    Executive Vice President of Corning Glass Technologies

    • Tenure: 2yrs
    • Compensation: US$4.50m
  • R. Tripeny (60yo)

    Executive VP & CFO

    • Tenure: 4.1yrs
    • Compensation: US$4.48m
  • Lewis Steverson (55yo)

    Executive VP & General Counsel

    • Tenure: 6.3yrs
    • Compensation: US$5.24m
  • David Morse (67yo)

    Executive VP & CTO

    • Tenure: 7.4yrs
    • Compensation: US$4.55m
  • Ann H. Nicholson

    Division Vice President of Investor Relations

    • Tenure: 6.3yrs
  • Anne Mullins

    Senior VP and Chief Digital & Information Officer

    • Tenure: 0.2yrs
  • Edward Schlesinger (51yo)

    Senior VP

    • Tenure: 3.8yrs
  • Charles Craig

    Senior Vice President of Science & Technology

    • Tenure: 0yrs

Board Members

  • John Canning (74yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$312.49k
  • Wendell Weeks (59yo)

    Chairman

    • Tenure: 14.5yrs
    • Compensation: US$14.92m
  • Hansel Tookes (71yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$321.99k
  • Dick Clark (73yo)

    Lead Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$349.49k
  • Kurt Landgraf (72yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$342.49k
  • Deb Rieman (69yo)

    Independent Director

    • Tenure: 20.8yrs
    • Compensation: US$324.99k
  • Mark Wrighton (69yo)

    Independent Director

    • Tenure: 10.7yrs
    • Compensation: US$302.99k
  • Bob Cummings (68yo)

    Independent Director

    • Tenure: 13yrs
    • Compensation: US$319.99k
  • Stephanie Burns (64yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$317.99k
  • Kevin Martin (52yo)

    Independent Director

    • Tenure: 6.7yrs
    • 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$23.051b
  • Shares outstanding: 780.87m
  • 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
GLW *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 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 Analysis2019/10/16 23:33
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
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.