GLW  Corning Incorporated

Exchange

NYSE

Sector

Basic Industries

Industry

Telecommunications Equipment

Market Cap.

25.74B

Vuru Grade

70.49/100

Current Price

$27.73
+0.32 (+1.19%)

Growth Price

$29.97
Undervalued by 8.09%

Stability Price

$5.05
Overvalued by 81.80%

Company Metrics

  • P/E 8.59
  • P/S 2.71
  • P/B 1.63
  • EPS 3.23
  • Cash ROIC 9.19%
  • Cash Ratio 1.92
  • Dividend 0.62 / 2.24%
  • Avg. Vol. 7.29M
  • Shares 1.14B
  • Market Cap. 25.74B

Company Description

Corning Incorporated manufactures and processes specialty glass and ceramics products worldwide. It operates in five segments: Display Technologies, Telecommunications, Environmental Technologies, Specialty Materials, and Life Sciences. The Display Technologies segment manufactures glass substrates for active matrix liquid crystal displays (LCDs) that are used primarily in notebook computers, flat... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Corning Incorporated (GLW) Ex-Dividend Date Scheduled for February 24, 2017
Nasdaq - Feb 23, 2017
Corning Incorporated ( GLW ) will begin trading ex-dividend on February 24, 2017. A cash dividend payment of $0.155 per share is scheduled to be paid on March 31, 2017.
Drilling Down Into Corning Incorporated (GLW) - StockNewsJournal
Forward Earnings Estimate of Corning Incorporated(GLW) - Highland Mirror
Corning Incorporated Expands Facilities In Newton And Midland, North Carolina
Area Development Online - Feb 22, 2017
“Corning is a global leader with a longstanding commitment to North Carolina,” said Governor Roy Cooper. “Companies that continue to innovate and invest in research and development are the kinds of high-tech job creators we want working with North ...
Corning to add 410 tech jobs in NC - North State Journal (subscription)
Corning Incorporated: Is GLW a Great Stock for Value Investors?
Zacks.com - Jan 30, 2017
Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn't want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when ...
Wealthtrust Axiom Cuts Position in Corning Incorporated (GLW) by $6598551 - Highland Mirror
Corning Inc.: Corning Announces Quarterly Dividend Increase of 14.8% - The Wall Street Transcript
Corning Inc. accountant writes historical novels
Steuben Courier - Jan 28, 2017
Author Christy Nicholas holds a copy of her third novel at her desk. Provided/The Leader. Friday. Posted Jan 27, 2017 at 11:05 PM Updated Jan 27, 2017 at 11:05 PM.
Corning to expand - 200 new jobs in Midland, 210 in Catawba
Independent Tribune - Feb 20, 2017
Corning Incorporated received the Cabarrus Regional Chamber of Commerce Environmental Excellence & Sustainability Award which recognizes Cabarrus County leaders who are solving operational challenges by using innovative environmentally ...
Corning to create 410 jobs in North Carolina - WECT-TV6
More Than 200 New Jobs Coming To Catawba County - WHKY
Corning Inc. Recognizes Blood Donors
My Twin Tiers.com - Feb 16, 2017
McGovern says she has been personally impacted by the work of the Red Cross and seen how important donations like Corning Inc.'s are first hand. "Red Cross did help my husband stay alive when he was getting very aggressive chemotherapy treatments," ...
Impact on lives highlights donor recognition breakfast - Elmira Star-Gazette
Traders Secrets on Corning Incorporated (GLW), Boston Scientific Corporation (BSX)
StockNewsJournal - Feb 23, 2017
Investors who are keeping close eye on the stock of Corning Incorporated (NYSE:GLW) established that the company was able to keep return on investment at 14.57 in the trailing twelve month while Reuters data showed that industry's average stands at 6 ...
Corning Incorporated (NYSE:GLW) EPS Forecast Given As $0.514
Transcript Daily - 1 hour ago
Research groups on Wall Street measuring impending earnings growth for Corning Incorporated (NYSE:GLW) are anticipating it to reach EPS of $0.514 for the quarter ending 2017-03-31.
Minneapolis Portfolio Management Group Cuts Position in Corning Incorporated ...
Highland Mirror - Feb 7, 2017
Minneapolis Portfolio Management Group reduced its stake in Corning Incorporated by 6.2% during the most recent quarter end.
Corning Incorporated (GLW) VP Sells $954000.00 in Stock - The Cerbat Gem
Corning Incorporated (GLW) Moves Lower on Volume Spike for January 26
Equities.com - Jan 26, 2017
Corning Incorporated (GLW) traded on unusually high volume on Jan. 26, as the stock lost 0.49% to close at $26.55. On the day, Corning Incorporated saw 12.56 million shares trade hands on 65,501 trades. Considering that the stock averages only a daily ...
Corning Incorporated (GLW) VP Sells $991754.46 in Stock - The Cerbat Gem
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for GLW to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate GLW's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$27.73 Current Price

$29.97 Growth Price (DCF)

Undervalued by 8.09%


Growth Rate Assumed by Market: 10.86%


Future Free Cash Flow Growth Rate: 15.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$5.05 Stability Price (EPV)

Overvalued by 81.80%


Discount Rate: 15.0%

$24.88 Book Price

Overvalued by 10.29%


Poor Cash Return on Invested Capital over the past 5 years

GLW has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

GLW has only created $9.19 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 1.41B 1.77B 3.63B 1.56B 1.39B
divided by
Invested Capital 21.28B 21.50B 21.67B 21.13B 19.86B
Cash ROIC 6.60% 8.22% 16.76% 7.38% 7.01%

Growing Return on Equity over the past 5 years

GLW has been growing returns with capital that shareholders have invested. This is a positive sign and demonstrates that both the business and management performance are improving over time.

GLW has generated $11.31 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 1.73B 1.96B 2.47B 1.34B 3.70B
divided by
Stockholders' Equity 21.49B 21.16B 21.58B 18.79B 17.89B
Return on Equity 8.04% 9.27% 11.46% 7.13% 20.65%

Excellent Business Performance over the past 10 years

GLW has been able to maintain profitability in good times and bad. This could mean GLW has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

GLW has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 810.00M 207.00M 1.19B 2.83B 757.00M 1.41B 1.77B 3.63B 1.56B 1.39B

Strong Balance Sheet

GLW is financially strong with Current Assets covering Total Liabilities. It's in a fairly liquid position and dependent on the amount and saleability of any inventory; it may have the financial security to survive an economic downturn.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 3.52B 2.82B 3.58B 6.35B 5.83B 6.14B 5.24B 6.07B 4.60B 5.29B
Current Assets 5.29B 4.62B 5.52B 8.86B 8.68B 9.70B 8.89B 10.24B 8.27B 9.05B
Total Assets 15.22B 19.26B 21.30B 25.83B 27.85B 29.38B 28.48B 30.06B 28.55B 27.90B
Current Liabilities 2.51B 2.05B 1.54B 1.99B 2.10B 1.96B 1.75B 2.32B 2.81B 2.75B
Total Liabilities 5.72B 5.81B 5.75B 6.46B 6.77B 7.89B 7.32B 8.48B 9.76B 10.01B
Stockholder' Equity 9.50B 13.44B 15.54B 19.38B 21.08B 21.49B 21.16B 21.58B 18.79B 17.89B
Current Ratio 2.11 2.25 3.59 4.46 4.14 4.96 5.09 4.41 2.94 3.29
TL-to-TA 0.38 0.30 0.27 0.25 0.24 0.27 0.26 0.28 0.34 0.36

Consistent Reinvestment of Profits over the past 10 years

GLW has consistently retained profits. This may put GLW in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, GLW can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings -3.00B 1.94B 3.64B 6.88B 9.33B 10.59B 11.32B 13.02B 13.83B 16.88B
Retained Earnings Growth - 164.62% 87.42% 89.25% 35.62% 13.46% 6.91% 15.03% 6.23% 22.04%

Varying Competitive Advantage over the past 10 years

GLW likely has a competitive advantage which prevents other companies from entering or competing in their industry. However, there is a substantial variation in their Net Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$37.76 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 2.15B 5.26B 2.01B 3.56B 2.81B 1.73B 1.96B 2.47B 1.34B 3.70B
divided by
Revenue 5.86B 5.95B 5.40B 6.63B 7.89B 8.01B 7.82B 9.72B 9.11B 9.39B
Net Profit Margin 36.69% 88.38% 37.22% 53.65% 35.55% 21.57% 25.08% 25.45% 14.70% 39.35%

Strong Pricing Power over the past 10 years

GLW has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$42.95 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 2.75B 2.74B 2.09B 3.05B 3.57B 3.40B 3.32B 4.05B 3.65B 3.75B
divided by
Revenue 5.86B 5.95B 5.40B 6.63B 7.89B 8.01B 7.82B 9.72B 9.11B 9.39B
Gross Margin 46.91% 46.03% 38.80% 45.97% 45.20% 42.40% 42.51% 41.71% 40.09% 39.89%

High Capital Intensity over the past 10 years

GLW spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

57.84% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 1.27B 1.92B 890.00M 1.01B 2.43B 1.80B 1.02B 1.08B 1.25B 1.13B
divided by
Net Income 2.15B 5.26B 2.01B 3.56B 2.81B 1.73B 1.96B 2.47B 1.34B 3.70B
Capital Expenditure Ratio 58.93% 36.54% 44.32% 28.30% 86.70% 104.22% 51.96% 43.53% 93.35% 30.58%

Very Strong Dividend History over the past 10 years

GLW has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests GLW is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid 159.00M 313.00M 312.00M 313.00M 354.00M 472.00M 613.00M 591.00M 679.00M 645.00M
divided by
Shares Outstanding 1.60B 1.58B 1.57B 1.58B 1.58B 1.51B 1.46B 1.43B 1.34B 1.14B
Dividend Paid Per Share 0.10 0.20 0.20 0.20 0.22 0.31 0.42 0.41 0.51 0.56
Price at Year End 22.78 8.62 18.76 18.99 12.91 12.47 17.78 23.19 18.49 24.27
Dividend Yield 0.44% 2.29% 1.06% 1.04% 1.73% 2.51% 2.36% 1.79% 2.73% 2.32%

Strong History of Stock Buybacks over the past 10 years

GLW has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 1.60B 1.58B 1.57B 1.58B 1.58B 1.51B 1.46B 1.43B 1.34B 1.14B
Stock Bought Back - 1.29% 1.02% -0.82% -0.13% 5.11% 3.01% 2.45% 6.25% 17.40%
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Discussion
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1
Posted by sniksder  (on May 31, 2012)
I placed an order to buy at $12.50...think I'll get it?
1
Posted by AEh3  (on May 31, 2012)
I am valuing it around 12.90 taking into account only the tangibles and also removing equity coming from common stock sales. Even at 12.50 the margin of safety is virtually nonexistent. Here is why I think this will continue the downward trend.

Look at their latest quarter cash-flows:
If you remove the issuance of new debt, they have only $12M in OCF.

QOQ and YOY EPS is trending down (This is even with common share buyback!)

"Net income will be negatively impacted by lower equity earnings from our equity affiliate Dow Corning, driven by lower demand and price declines in both silicone products and ... high purity polycrystalline silicon for the semiconductor and solar industries." -Taken from recent 10-Q. Solar is practically hanging on by a thread because of current German demand. If Eurozone troubles lead to less solar spending, watch the EPS fall even harder.

TLDR; This price level is far from underpinned.

Disclosure: This is just an opinion and not intended to guide or steer any trading behavior other than my own
-I am short GLW-
1
Posted by AEh3  (on May 31, 2012)
Looking to cover close to 10.95; we shall see where the floor is within the next quarter.
1
Posted by AEh3  (on December 8, 2012)
Called it.
1
Posted by TheGeneralist  (on March 30, 2012)
While they had to invest a large amount to expand capacity for Gorilla Glass (its flagship product), they still delivered positive free cash flow.

Good margins, solid product and I think we can reason that FCF will revert back to normal levels. On that basis, I see this easily trading in the $18-20 range.