Corning logged a 0.1% change during today's afternoon session, and is now trading at a price of $29.71 per share.
Over the last year, Corning logged a -1.0% change, with its stock price reaching a high of $37.1 and a low of $29.16. Over the same period, the stock underperformed the S&P 500 index by -21.0%. As of April 2023, the company's 50-day average price was $31.94. Corning Incorporated engages in the display technologies, optical communications, environmental technologies, specialty materials, and life sciences businesses worldwide. Based in Corning, NY, the large-cap Technology company has 57,500 full time employees. Corning has offered a 3.7% dividend yield over the last 12 months.
Overview of the Company's Finances:
| 2018-02-15 | 2019-02-12 | 2020-02-18 | 2021-02-12 | 2022-02-14 | 2023-02-13 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $10,116 | $11,290 | $11,503 | $11,303 | $14,082 | $14,189 |
| Gross Margins | 40.0% | 40.0% | 35.0% | 31.0% | 36.0% | 32.0% |
| Operating Margins | 16% | 14% | 11% | 5% | 15% | 10% |
| Net Margins | -5.0% | 9.0% | 8.0% | 5.0% | 14.0% | 9.0% |
| Net Income (MM) | -$497 | $1,066 | $960 | $512 | $1,906 | $1,316 |
| Net Interest Expense (MM) | -$110 | -$153 | -$200 | -$261 | -$289 | -$277 |
| Depreciation & Amort. (MM) | -$1,158 | -$1,293 | -$1,503 | -$1,520 | -$1,481 | -$1,452 |
| Earnings Per Share | -$0.56 | $1.13 | $0.96 | $0.66 | $2.21 | $1.56 |
| EPS Growth | n/a | 301.79% | -15.04% | -31.25% | 234.85% | -29.41% |
| Diluted Shares (MM) | 895 | 941 | 899 | 772 | 864 | 844 |
| Free Cash Flow (MM) | $3,808 | $5,210 | $3,931 | $3,520 | $5,032 | $4,219 |
| Capital Expenditures (MM) | -$1,804 | -$2,291 | -$1,900 | -$1,340 | -$1,620 | -$1,604 |
| Net Current Assets (MM) | -$2,897 | -$6,585 | -$8,438 | -$9,323 | -$9,950 | -$9,771 |
| Long Term Debt (MM) | $4,749 | $5,994 | $7,729 | $7,816 | $6,989 | $6,687 |
| Net Debt / EBITDA | 0.29 | 1.27 | 1.89 | 2.61 | 1.36 | 1.81 |
Corning has weak revenue growth and a flat capital expenditure trend, average net margins with a negative growth trend, and irregular cash flows. In addition, we note just enough current assets to cover current liabilities. We also note that the company benefits from a strong EPS growth trend and healthy leverage. However, the firm has slimmer gross margins than its peers.
A Lower P/B Ratio Than Its Sector Average but Trades Above Its Graham Number:
Corning has a trailing twelve month P/E ratio of 43.2, compared to an average of 27.16 for the Technology sector. Based on its EPS guidance of $2.33, the company has a forward P/E ratio of 13.7. Corning's PEG ratio is 4.49 on the basis of the 9.6% weighted average of the company and the broader market's EPS compound average growth rates. This suggests that the company's shares are overvalued. In contrast, the market is likely undervaluing Corning in terms of its equity because its P/B ratio is 2.13 while the sector average is 6.23. The company's shares are currently trading 31.5% above their Graham number.
Corning Has an Average Rating of Buy:
The 10 analysts following Corning have set target prices ranging from $33.0 to $43.0 per share, for an average of $38.0 with a buy rating. As of April 2023, the company is trading -15.9% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Corning has a very low short interest because 0.9% of the company's shares are sold short. Institutions own 70.2% of the company's shares, and the insider ownership rate stands at 0.33%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 12% stake in the company is worth $2,919,821,909.
