10Y annualized return is
positive but below market average
at 7.8% per year
GLW has met or exceeded earnings expectations in
some
recent quarters (6/10)
Moderate Price to Sales Ratio
Healthy Gross Profit Margin
Decent Operating Profit Margin
Strong Liquidity Ratios
Manageable Debt Levels
📈 Strong Financial Performance
🏆 Competitive Moat in Optical Communications
🚀 Ambitious Growth Plans
🧠 Innovation in GenAI Products
High Price to Earnings Ratio
Elevated EV to EBITDA
Low Net Profit Margin
Low Return on Equity
Low Cash Ratio
High Debt to Assets Ratio
⚠️ Exposure to Market Cyclicality
⏳ Uncertain Timing for BEAD Program
Corning Incorporated demonstrates strong business quality through its robust financial performance and competitive advantages, particularly in the Optical Communications segment. Future prospects look promising with ambitious growth plans and innovative product offerings, although market cyclicality and uncertainties related to government programs remain concerns.
Analysis Date: January 29, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Corning Incorporated is a company that makes important materials and products used in everyday technology. They create glass for screens on TVs, smartphones, and tablets, helping us see better images. Corning also produces optical fibers and cables that allow for fast internet and communication. Additionally, they make various lab equipment and materials used in scientific research, as well as filters that help reduce pollution from cars. Overall, Corning plays a key role in many industries by providing essential tools and materials.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Latest News
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Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$22.09
Current Market Price: $37.95
IV/P Ratio: 0.58x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
-72.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for GLW
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (68.10)
P/B ratio ≤ 1.5 (3.22)
Current ratio ≥ 2.0 (1.62x)
Long-term debt < Net current assets (2.50x)
Margin of safety (-72.0%)
GLW does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
4.64%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-25)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
32.25%
Higher values indicate better efficiency in production
TTM (as of 2025-04-25)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
3.86%
Higher values indicate better overall profitability
TTM (as of 2025-04-25)
The gross profit margin of 32.25% shows strong pricing power and effective cost management, indicating that the company retains a good portion of revenue after direct costs.
An operating profit margin of 9.93% reflects the company's ability to manage operational costs effectively, contributing to overall profitability.
The net profit margin of only 3.86% suggests that after all expenses, the company is left with a small portion of revenue as profit, indicating potential inefficiencies.
A return on equity of 4.64% indicates that the company is not generating substantial returns for shareholders, which could deter investment.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.73x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
1.62x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q4 2024
Current ratio of 1.62 and quick ratio of 1.07 indicate that the company is well-positioned to cover its short-term obligations, reflecting good liquidity.
A debt to equity ratio of 0.76 suggests that the company has a moderate level of debt, which is manageable and does not pose a significant risk.
A cash ratio of 0.36 indicates that the company may not have sufficient cash reserves to cover its current liabilities, which could be a liquidity concern.
A debt to assets ratio of 29.17% indicates that a significant portion of the company's assets are financed through debt, which could lead to financial strain.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Corning reported a record fourth quarter sales growth of 18% year-over-year to $3.9 billion, and EPS growth of 46% to $0.57. The operating margin expanded by 220 basis points to 18.5%, reflecting efficient management and strong profitability. Additionally, return on invested capital (ROIC) increased by 390 basis points to 12.7%.
Corning's Optical Communications segment demonstrated strong growth, particularly in the Enterprise business, which saw a 93% year-over-year increase. The introduction of new GenAI products has positioned Corning to capitalize on the increasing demand for data center solutions, indicating a strong competitive advantage.
Corning acknowledged the cyclical nature of the Optical Communications business, which has historically experienced significant fluctuations. While current visibility remains strong, there is a risk of future downturns that could affect profitability.
Corning aims to achieve an $8 billion annualized sales run rate by the end of 2028, with a target of adding $5 billion by the end of 2026. The company’s Springboard plan accounts for upward cyclical and secular trends, indicating confidence in future growth opportunities.
The introduction of GenAI products has positioned Corning to leverage the growing demand for AI-related infrastructure in data centers. The company reported that demand for these products is expected to continue to grow, suggesting strong innovation potential.
Despite the allocation of significant funds under the BEAD program, Corning's management expressed caution regarding the impact and timing of government programs, indicating a level of uncertainty that could affect future revenue streams.