Corning Incorporated
Corning Incorporated Fundamental Analysis
Corning Incorporated (GLW) shows moderate financial fundamentals with a PE ratio of 74.62, profit margin of 10.21%, and ROE of 14.13%. The company generates $15.6B in annual revenue with moderate year-over-year growth of 4.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 47.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze GLW's fundamental strength across five key dimensions:
Efficiency Score
WeakGLW struggles to generate sufficient returns from assets.
Valuation Score
WeakGLW trades at a premium to fair value.
Growth Score
WeakGLW faces weak or negative growth trends.
Financial Health Score
ExcellentGLW maintains a strong and stable balance sheet.
Profitability Score
WeakGLW struggles to sustain strong margins.
Key Financial Metrics
Is GLW Expensive or Cheap?
P/E Ratio
GLW trades at 74.62 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GLW's PEG of 4.21 indicates potential overvaluation.
Price to Book
The market values Corning Incorporated at 10.09 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 29.56 times EBITDA. This signals the market has high growth expectations.
How Well Does GLW Make Money?
Net Profit Margin
For every $100 in sales, Corning Incorporated keeps $10.21 as profit after all expenses.
Operating Margin
Core operations generate 14.75 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.13 in profit for every $100 of shareholder equity.
ROA
Corning Incorporated generates $5.15 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Corning Incorporated produces operating cash flow of $2.69B, showing steady but balanced cash generation.
Free Cash Flow
Corning Incorporated produces free cash flow of $1.41B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.64 in free cash annually.
FCF Yield
GLW converts 1.19% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
74.62
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.21
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.60
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.87
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.59
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How GLW Stacks Against Its Sector Peers
| Metric | GLW Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 74.62 | 35.19 | Worse (Expensive) |
| ROE | 14.13% | 1155.00% | Weak |
| Net Margin | 10.21% | -127067.00% (disorted) | Strong |
| Debt/Equity | 0.87 | 0.41 | Weak (High Leverage) |
| Current Ratio | 1.59 | 4.71 | Neutral |
| ROA | 5.15% | -314918.00% (disorted) | Weak |
GLW outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Corning Incorporated's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
3.75%
Industry Style: Growth, Innovation, High Beta
GrowingEPS CAGR
-52.05%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-13.15%
Industry Style: Growth, Innovation, High Beta
Declining