How Smart Investors Look at Corning (GLW).

Corning logged a -0.7% change during today's afternoon session, and is now trading at a price of $30.41 per share.

Over the last year, Corning logged a -4.1% change, with its stock price reaching a high of $37.1 and a low of $25.26. Over the same period, the stock underperformed the S&P 500 index by -28.7%. As of April 2023, the company's 50-day average price was $28.42. 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 Industrials company has 57,500 full time employees. Corning has offered a 3.6% dividend yield over the last 12 months.

The Company Has Lacking Information on Debt Levels:

2018 2019 2020 2021 2022 2023
Revenue (MM) $11,290 $11,503 $11,303 $14,082 $14,189 $13,000
Revenue Growth n/a 1.89% -1.74% 24.59% 0.76% -8.38%
Operating Margins 14% 11% 6% 17% 13% 7%
Net Margins 10% 9% 5% 14% 10% 10%
Net Income (MM) $1,090 $979 $523 $1,906 $1,386 $1,316
Net Interest Expense (MM) $205 $248 $298 $300 $292 $315
Depreciation & Amort. (MM) $1,199 $1,390 $1,399 $1,352 $1,329 $1,247
Earnings Per Share $1.13 $1.07 $0.54 $1.28 $1.54 $0.6799999999999999
EPS Growth n/a -5.31% -49.53% 137.04% 20.31% -55.84%
Diluted Shares (MM) 941 899 772 844 857 864
Current Ratio 2.12 2.12 2.12 0.23 0.27 0.33

Corning Has an Attractive P/B Ratio but a Worrisome P/E Ratio:

Corning has a trailing twelve month P/E ratio of 41.8, compared to an average of 22.19 for the Industrials sector. Based on its EPS guidance of $1.98, the company has a forward P/E ratio of 14.4. The 8.3% compound average growth rate of Corning's historical and projected earnings per share yields a PEG ratio of 5.01. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing Corning in terms of its equity because its P/B ratio is 2.18 while the sector average is 4.06.

Analysts Give Corning an Average Rating of Buy:

The 11 analysts following Corning have set target prices ranging from $28.0 to $40.0 per share, for an average of $32.27 with a buy rating. As of April 2023, the company is trading -11.9% away from its average target price, indicating that there is an analyst consensus of some upside potential.

Corning has a very low short interest because 1.0% of the company's shares are sold short. Institutions own 69.4% of the company's shares, and the insider ownership rate stands at 9.7%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 12% stake in the company is worth $2,987,835,779.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.