Corning (GLW) AI Stock Analysis

• Market Cap: $38.37B
• Dividend Yield: 2.52%
• Average Volume (3M): 7.10M
• Price to Earnings (P/E): 85.9
• Beta (1Y): 1.20
• Revenue Growth: 9.77%
• EPS Growth: -26.50%
• Country: US
• Employees: 56,300
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.52
• Shares Outstanding: 856,777,040
• 10 Day Avg. Volume: 6,147,095
• 30 Day Avg. Volume: 7,095,277
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 10.74
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $51.29
• Price Target Upside: 14.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

Corning's overall stock score reflects stable financial health with strengths in earnings growth and future guidance. However, technical analysis indicates bearish momentum, and high valuation concerns weigh on the overall score. The positive sentiment from the earnings call and strategic plans provide a favorable outlook, but improvements in profitability and valuation metrics are needed to enhance investor appeal.

Positive Factors

Earnings

Corning reported strong results with revenue of $3.68bn and EPS of $0.54, exceeding expectations.

Growth Opportunities

Polysilicon emerges as key growth driver, with Corning's Hemlock being the only major U.S. polysilicon producer.

Guidance

Corning raised its MarQ25 core EPS guidance to the high end of $0.48-$0.52, reflecting higher confidence.

Negative Factors

Automotive Sales

Automotive sales were down 10% year-over-year due to softness in European markets and North America Class 8 lagging.

Consumer Spending

Meaningful exposure to consumer spending, which is around 40-50% of revenue, limits re-rating potential until confidence on consumer spending trajectory is established.

Program Risk

The biggest risk for Corning is if the BEAD program is overhauled entirely, shifting funding from fiber to satellite providers, which could impact optical revenues.

Corning Business Overview & Revenue Model

Company Description

Corning Incorporated (GLW) is a leading American multinational technology company specializing in the development and manufacturing of specialty glass, ceramics, and related materials and technologies. The company operates across several major sectors, including Display Technologies, Optical Communications, Environmental Technologies, Specialty Materials, and Life Sciences. Corning's core products range from glass substrates for LCD displays to fiber optic cables and pollution control products, serving a diverse array of industries such as consumer electronics, telecommunications, automotive, and life sciences.

How the Company Makes Money

Corning Incorporated generates revenue through a diversified portfolio of business segments. Its Display Technologies segment is a significant revenue driver, primarily selling glass substrates for flat panel displays used in televisions, laptops, and smartphones. The Optical Communications segment provides fiber optic cables and connectivity solutions, benefiting from the growing demand for high-speed data transmission and network infrastructure. The Specialty Materials segment includes products like Gorilla Glass, which is widely used in consumer electronics for its durability and strength. The Environmental Technologies segment offers ceramic substrates and filters for emissions control in vehicles, aligning with global regulatory standards for pollution reduction. Lastly, the Life Sciences division supplies laboratory products and equipment to the healthcare and pharmaceutical industries. Corning's earnings are further supported by strategic partnerships and collaborations with leading technology companies, enabling innovation and access to new markets.

Corning Financial Statement Overview

Summary

Corning's financial statements reflect a stable yet challenging financial environment. Profitability metrics indicate operational efficiency, but the company faces headwinds in maintaining high net profit margins and generating robust returns on equity. The balance sheet is strong, with a healthy leverage position, but cash flow metrics suggest potential liquidity challenges.

Income Statement

Corning's income statement shows a mixed financial performance. The TTM gross profit margin stands at 32.25%, indicating solid profitability, though it has declined from previous years. The net profit margin for the TTM is 3.86%, a decrease from 4.61% in the prior year, suggesting challenges in controlling costs. Revenue growth is modest at 4.21% from the previous year, indicating moderate expansion but lower than historical growth rates. The EBIT and EBITDA margins for the TTM are 9.92% and 14.54% respectively, reflecting operational efficiency but also highlighting areas for improvement in profitability.

Balance Sheet

Corning's balance sheet exhibits a stable financial position. The debt-to-equity ratio is 0.68, showing a reasonable level of leverage. The return on equity for the TTM is low at 4.73%, reflecting challenges in generating returns for shareholders. The equity ratio stands at 38.52%, indicating a strong capital base and financial stability. Overall, the balance sheet suggests a balanced approach to debt and equity, though increased profitability could enhance shareholder value.

Cash Flow

The cash flow statement reveals some concerns regarding cash generation. The free cash flow growth rate is 58.37%, a significant improvement from the previous year, but largely due to lower capital expenditures. The operating cash flow to net income ratio is strong at 3.83, indicating efficient cash conversion. However, the free cash flow to net income ratio is 1.92, suggesting limited free cash flow relative to net income. This highlights potential constraints on cash available for expansion or debt reduction.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
13.12B	12.59B	14.19B	14.08B	11.30B
	Gross Profit
4.28B	3.93B	4.51B	5.06B	3.53B
	EBIT
1.14B	890.00M	1.44B	2.11B	509.00M
	EBITDA
2.49B	2.51B	3.36B	3.77B	2.87B
	Net Income Common Stockholders
506.00M	581.00M	1.32B	1.91B	512.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.77B	1.78B	1.67B	2.15B	2.67B
	Total Assets
27.73B	28.50B	29.50B	30.14B	30.77B
	Total Debt
8.09B	8.48B	7.82B	7.04B	8.00B
	Net Debt
6.32B	6.71B	6.15B	4.90B	5.32B
	Total Liabilities
16.66B	16.63B	17.22B	17.60B	17.33B
	Stockholders Equity
10.69B	11.55B	12.01B	12.33B	13.26B
Cash Flow		Free Cash Flow
974.00M	615.00M	1.01B	1.77B	803.00M
	Operating Cash Flow
1.94B	2.00B	2.62B	3.41B	2.18B
	Investing Cash Flow
-744.00M	-1.00B	-1.35B	-1.42B	-1.31B
	Financing Cash Flow
-1.16B	-883.00M	-1.65B	-2.45B	-729.00M

Corning Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 44.78
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLW, the sentiment is Neutral. The current price of 44.78 is above the 20-day moving average (MA) of 42.19, below the 50-day MA of 45.44, and below the 200-day MA of 45.63, indicating a neutral trend. The MACD of -0.28 indicates Negative momentum. The RSI at 54.59 is Neutral, neither overbought nor oversold. The STOCH value of 84.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GLW.

Corning Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TDY	77 Outperform	$21.77B	26.98	8.61%	―	2.98%	-5.64%
TEL	77 Outperform	$38.17B	20.42	11.33%	1.78%	1.23%	-58.22%
GRMN	76 Outperform	$36.00B	25.59	19.00%	1.60%	20.44%	9.05%
KEYS	71 Outperform	$25.13B	41.64	12.22%	―	-6.07%	-35.80%
FTV	71 Outperform	$22.70B	28.29	8.12%	0.46%	2.75%	-2.90%
GLW	66 Neutral	$38.37B	85.90	4.14%	2.52%	9.77%	-26.50%
Sector *	49 Neutral	$1.93B	-1.47	-21.02%	3.74%	0.80%	-29.57%

Corning Corporate Events

Corning Announces Executive Leadership Changes April 2025

On April 30, 2025, Corning announced several executive changes, including the retirement of Eric S. Musser, the President and Chief Operating Officer, in mid-2025 after 39 years of service. Avery H. Nelson III was appointed as Executive Vice President and will become Chief Operating Officer upon Musser’s retirement. Lewis A. Steverson was appointed Vice Chairman while maintaining his roles as Executive Vice President and Chief Legal and Administrative Officer. John Z. Zhang was named Executive Vice President and Chief Corporate Development Officer, and Wendell P. Weeks will reassume the role of President, in addition to his current roles, upon Musser’s retirement. These changes are aimed at strengthening the company’s leadership and aligning with its strategic objectives.

Spark’s Take on GLW Stock

According to Spark, TipRanks’ AI Analyst, GLW is a Neutral.

Corning’s overall stock score reflects stable financial health with strengths in earnings growth and future guidance. However, technical analysis indicates bearish momentum, and high valuation concerns weigh on the overall score. The positive sentiment from the earnings call and strategic plans provide a favorable outlook, but improvements in profitability and valuation metrics are needed to enhance investor appeal.

To see Spark’s full report on GLW stock, click here.

Corning Reports Strong Q1 2025 Financial Results

Corning announced its first-quarter 2025 financial results, highlighting a 13% year-over-year increase in core sales to $3.7 billion and a 42% rise in core EPS to $0.54. The company reported strong demand for its new Gen AI products and U.S.-made solar products, contributing to a 106% growth in enterprise sales within the Optical Communications segment. Corning is accelerating its U.S. manufacturing to meet this demand and expects continued growth in the second quarter, with projected core sales of approximately $3.85 billion and core EPS growth outpacing sales.

Spark’s Take on GLW Stock

According to Spark, TipRanks’ AI Analyst, GLW is a Neutral.

Corning’s overall stock score reflects a stable but challenging financial environment, with strengths in earnings growth and strategic plans offset by technical weaknesses and high valuation concerns. The strong earnings call sentiment and future guidance contribute positively, but liquidity concerns and overvaluation weigh on the score.

To see Spark’s full report on GLW stock, click here.

Corning to Host Investor Event at NYSE

On March 18, 2025, Corning Incorporated will host an Investor Event at the New York Stock Exchange to update stakeholders on its Springboard plan and financial performance. CEO Wendell Weeks will also appear on CNBC to discuss these topics. The event aims to reinforce Corning’s leadership in key markets and provide strategic business updates, with a live webcast available for those unable to attend.