Corning logged a 3.4% change during today's afternoon session, and is now trading at a price of $85.76 per share.
Corning returned gains of 77.2% last year, with its stock price reaching a high of $87.78 and a low of $37.31. Over the same period, the stock outperformed the S&P 500 index by 65.4%. More recently, the company's 50-day average price was $73.09. Corning Incorporated operates in optical communications, display technologies, environmental technologies, specialty materials, and life sciences businesses. Based in Corning, NY, the Large-Cap Industrials company has 56,300 full time employees. Corning has offered a 1.3% dividend yield over the last 12 months.
The Company's Revenues Are Declining:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $11,503 | $11,303 | $14,082 | $14,189 | $12,588 | $13,118 |
| Gross Margins | 35% | 31% | 36% | 32% | 31% | 33% |
| Net Margins | 8% | 5% | 14% | 9% | 5% | 4% |
| Net Income (M) | $960 | $512 | $1,906 | $1,316 | $581 | $506 |
| Net Interest Expense (M) | $221 | $276 | $300 | $292 | $329 | $310 |
| Depreciation & Amort. (M) | $1,390 | $1,399 | $129 | $123 | $122 | $1,229 |
| Diluted Shares (M) | 899 | 772 | 844 | 857 | 859 | 869 |
| Earnings Per Share | $1.07 | $0.54 | $1.28 | $1.54 | $0.68 | $0.58 |
| EPS Growth | n/a | -49.53% | 137.04% | 20.31% | -55.84% | -14.71% |
| Avg. Price | $27.5 | $26.49 | $37.55 | $35.09 | $30.45 | $82.98 |
| P/E Ratio | 24.77 | 49.06 | 28.88 | 22.49 | 44.13 | 140.64 |
| Free Cash Flow (M) | $53 | $803 | $1,775 | $1,011 | $615 | $974 |
| CAPEX (M) | $1,978 | $1,377 | $1,637 | $1,604 | $1,390 | $965 |
| EV / EBITDA | 9.99 | 13.38 | 15.06 | 22.37 | 31.15 | 32.26 |
| Total Debt (M) | $7,740 | $7,972 | $7,044 | $6,911 | $7,526 | $7,211 |
| Net Debt / EBITDA | 1.97 | 2.78 | 2.18 | 3.36 | 5.68 | 2.3 |
| Current Ratio | 2.12 | 2.12 | 1.59 | 1.44 | 1.67 | 1.62 |
Corning has generally positive cash flows, a decent current ratio of 1.62, and healthy leverage levels. However, Corning has slight revenue growth and decreasing reinvestment in the business, slimmer gross margins than its peers, and declining EPS growth.
Corning's Valuation Is in Line With Its Sector Averages:
Corning has a trailing twelve month P/E ratio of 77.8, compared to an average of 24.03 for the Industrials sector. Based on its EPS guidance of $2.31, the company has a forward P/E ratio of 31.6. The 11.6% compound average growth rate of Corning's historical and projected earnings per share yields a PEG ratio of 6.69. This suggests that these shares are overvalued. Furthermore, Corning is likely overvalued compared to the book value of its equity, since its P/B ratio of 6.24 is higher than the sector average of 2.89. The company's shares are currently trading 576.9% below their Graham number. Ultimately, Corning's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.
Corning Has an Average Rating of Buy:
The 12 analysts following Corning have set target prices ranging from $47.0 to $93.0 per share, for an average of $77.75 with a buy rating. The company is trading 10.3% away from its average target price, indicating that there is an analyst belief that shares are overpriced.
Corning has a very low short interest because 1.8% of the company's shares are sold short. Institutions own 74.9% of the company's shares, and the insider ownership rate stands at 8.24%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 11% stake in the company is worth $8,400,373,077.
