GLW

GLW Stock Analysis – Key Insights for Investors

Now trading at a price of $36.85, Corning has moved 3.7% so far today.

Corning returned gains of 15.2% last year, with its stock price reaching a high of $37.28 and a low of $25.26. Over the same period, the stock underperformed the S&P 500 index by -9.6%. The company's 50-day average price was $33.2. Corning Incorporated engages in the display technologies, optical communications, environmental technologies, specialty materials, and life sciences businesses in the United States and internationally. Based in Corning, NY, the Large-Cap Industrials company has 49,800 full time employees. Corning has offered a 3.2% dividend yield over the last 12 months.

The Company's Revenues Are Declining:

2018 2019 2020 2021 2022 2023
Revenue (M) $11,290 $11,503 $11,303 $14,082 $14,189 $12,588
Gross Margins 40% 35% 31% 36% 32% 31%
Net Margins 9% 8% 5% 14% 9% 5%
Net Income (M) $1,066 $960 $512 $1,906 $1,316 $581
Net Interest Expense (M) $191 $221 $276 $300 $292 $329
Depreciation & Amort. (M) $1,199 $1,390 $1,399 $129 $123 $122
Diluted Shares (M) 941 899 772 844 857 859
Earnings Per Share $1.13 $1.07 $0.54 $1.28 $1.54 $0.68
EPS Growth n/a -5.31% -49.53% 137.04% 20.31% -55.84%
Avg. Price $26.65 $27.5 $26.49 $37.55 $35.09 $36.775
P/E Ratio 22.39 24.77 49.06 28.88 22.49 53.3
Free Cash Flow (M) $677 $53 $803 $1,775 $1,011 $615
CAPEX (M) $2,242 $1,978 $1,377 $1,637 $1,604 $1,390
EV / EBITDA 9.55 9.99 13.38 15.06 22.37 36.44
Total Debt (M) $5,998 $7,740 $7,972 $7,044 $6,911 $7,526
Net Debt / EBITDA 1.31 1.97 2.78 2.18 3.36 5.68
Current Ratio 2.12 2.12 2.12 1.59 1.44 1.67

Corning's financial statements include several red flags such as slight revenue growth and decreasing reinvestment in the business, slimmer gross margins than its peers, and declining EPS growth. Additionally, the firm has a highly leveraged balance sheet. On the other hand, the company benefits from generally positive cash flows and a decent current ratio of 1.67.

a Lower P/B Ratio Than Its Sector Average but Priced at a Premium:

Corning has a trailing twelve month P/E ratio of 46.1, compared to an average of 22.19 for the Industrials sector. Based on its EPS guidance of $2.18, the company has a forward P/E ratio of 15.2. The 9.8% compound average growth rate of Corning's historical and projected earnings per share yields a PEG ratio of 4.68. 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 2.69 while the sector average is 4.06. The company's shares are currently trading 157.0% below their Graham number.

Corning Has an Analyst Consensus of Little Upside Potential:

The 12 analysts following Corning have set target prices ranging from $29.0 to $40.0 per share, for an average of $35.67 with a buy rating. The company is trading 3.3% away from its average target price, indicating that there is an analyst consensus of little upside potential.

Corning has a very low short interest because 1.6% of the company's shares are sold short. Institutions own 72.1% of the company's shares, and the insider ownership rate stands at 9.66%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 11% stake in the company is worth $3,591,484,361.

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.

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