Corning (GLW) AI Stock Analysis

• Market Cap: $73.16B
• Dividend Yield: 1.25%
• Average Volume (3M): 5.15M
• Price to Earnings (P/E): 54.1
• Beta (1Y): 1.16
• Revenue Growth: 18.27%
• EPS Growth: 771.78%
• Country: US
• Employees: 56,300
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 857,360,400
• 10 Day Avg. Volume: 2,411,466
• 30 Day Avg. Volume: 5,148,613
• PEG Ratio: -5.53
• Price to Book (P/B): 3.79
• Price to Sales (P/S): 3.09
• P/FCF Ratio: 41.62
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 5.31
• Enterprise Value/Gross Profit: 14.88
• Enterprise Value/Ebitda: 22.93
• 1Y Price Target: $99.00
• Price Target Upside: 16.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $99.00 ▲(16.02% Upside)

Corning's overall stock score reflects strong financial performance and positive technical indicators, supported by robust earnings growth and strategic initiatives. However, the high P/E ratio suggests overvaluation, and challenges in cash flow management and rising operating expenses pose risks. The company's strategic partnerships and board appointment are positive, but careful monitoring of leverage and cash flow efficiency is advised.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Strategic Partnership

The partnership with Apple strengthens Corning's position in mobile electronics, ensuring stable demand and potential for innovation.

Board Appointment

The appointment of a director with AI expertise supports Corning's innovation and market expansion, aligning with future growth initiatives.

Negative Factors

Cash Flow Challenges

Negative free cash flow growth may limit Corning's ability to reinvest in growth opportunities or reduce debt, impacting long-term financial flexibility.

Operating Expenses

Rising operating expenses can pressure margins, reducing profitability and affecting Corning's ability to invest in strategic initiatives.

Automotive Segment Challenges

Weakness in the automotive segment may hinder revenue growth and diversification efforts, impacting Corning's overall market performance.

Corning Business Overview & Revenue Model

Company Description

Corning Incorporated engages in display technologies, optical communications, environmental technologies, specialty materials, and life sciences businesses worldwide. The company's Display Technologies segment offers glass substrates for liquid crystal displays and organic light-emitting diodes used in televisions, notebook computers, desktop monitors, tablets, and handheld devices. Its Optical Communications segment provides optical fibers and cables; and hardware and equipment products, including cable assemblies, fiber optic hardware and connectors, optical components and couplers, closures, network interface devices, and other accessories. This segment also offers its products to businesses, governments, and individuals. Its Specialty Materials segment manufactures products that provide material formulations for glass, glass ceramics, crystals, precision metrology instruments, software; as well as ultra-thin and ultra-flat glass wafers, substrates, tinted sunglasses, and radiation shielding products. This segment serves various industries, including mobile consumer electronics, semiconductor equipment optics and consumables; aerospace and defense optics; radiation shielding products, sunglasses, and telecommunications components. The company's Environmental Technologies segment offers ceramic substrates and filter products for emissions control in mobile, gasoline, and diesel applications. The company's Life Sciences segment offers laboratory products comprising consumables, such as plastic vessels, liquid handling plastics, specialty surfaces, cell culture media, and serum, as well as general labware and equipment under the Corning, Falcon, Pyrex, and Axygen brands. The company was formerly known as Corning Glass Works and changed its name to Corning Incorporated in April 1989. Corning Incorporated was founded in 1851 and is headquartered in Corning, New York.

How the Company Makes Money

Corning generates revenue through several key streams, primarily from the sale of its technologies and products across its various business segments. The Display Technologies segment is a significant contributor, providing glass substrates for LCD and OLED displays, catering to consumer electronics and television manufacturers. The Optical Communications segment offers optical fibers, cable, and connectivity solutions, which are essential for telecommunications infrastructure. Environmental Technologies focuses on products like catalytic converters for automotive applications, while the Life Sciences segment provides laboratory glassware and other products for research and medical use. Corning also engages in strategic partnerships with major technology firms, enhancing its market reach and revenue potential. Factors such as innovation, strong customer relationships, and an expanding global market for high-tech glass solutions further bolster its earnings.

Corning Financial Statement Overview

Summary

Corning demonstrates solid financial health with strong revenue growth and profitability improvements. The balance sheet is stable, though leverage should be monitored. Cash flow management presents some challenges, particularly in free cash flow generation, which could impact future investments.

Income Statement

Corning's income statement shows a strong performance with a consistent increase in revenue, highlighted by a 4.99% growth in the TTM period. The gross profit margin has improved to 35.69% in the TTM, indicating efficient cost management. The net profit margin also increased to 9.16%, reflecting enhanced profitability. However, the EBIT and EBITDA margins, while healthy, show room for improvement compared to historical highs.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.71 in the TTM, indicating manageable leverage. The return on equity has improved to 16.74%, showcasing effective use of equity to generate profits. However, the equity ratio has slightly decreased, suggesting a need for cautious monitoring of asset financing.

Cash Flow

Cash flow analysis reveals a mixed picture. Operating cash flow remains strong, but free cash flow growth is negative at -2.68% in the TTM, indicating potential challenges in cash generation. The operating cash flow to net income ratio is healthy at 0.41, but the free cash flow to net income ratio suggests limited cash availability for reinvestment or debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.91B	13.12B	12.59B	14.19B	14.08B	11.30B
Gross Profit	5.32B	4.28B	3.93B	4.51B	5.06B	3.53B
EBITDA	3.45B	2.49B	2.51B	3.54B	4.21B	2.42B
Net Income	1.37B	506.00M	581.00M	1.32B	1.91B	512.00M
Balance Sheet
Total Assets	29.92B	27.73B	28.50B	29.50B	30.15B	30.77B
Cash, Cash Equivalents and Short-Term Investments	1.65B	1.77B	1.78B	1.67B	2.15B	2.67B
Total Debt	9.19B	8.09B	8.48B	7.82B	7.83B	8.70B
Total Liabilities	17.91B	16.66B	16.63B	17.22B	17.61B	17.33B
Stockholders Equity	11.54B	10.69B	11.55B	12.01B	12.33B	13.26B
Cash Flow
Free Cash Flow	1.16B	974.00M	615.00M	1.01B	1.77B	803.00M
Operating Cash Flow	2.27B	1.94B	2.00B	2.62B	3.41B	2.18B
Investing Cash Flow	-972.00M	-744.00M	-1.00B	-1.35B	-1.42B	-1.31B
Financing Cash Flow	-1.24B	-1.16B	-883.00M	-1.65B	-2.45B	-729.00M

Corning Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 85.33
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 85.33 is below the 20-day moving average (MA) of 88.87, below the 50-day MA of 86.55, and above the 200-day MA of 66.02, indicating a neutral trend. The MACD of 0.45 indicates Positive momentum. The RSI at 43.94 is Neutral, neither overbought nor oversold. The STOCH value of 35.71 is Neutral, 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
TEL	80 Outperform	$67.08B	37.59	14.78%	1.21%	8.94%	-39.90%
APH	76 Outperform	$166.78B	46.72	34.78%	0.54%	47.37%	72.30%
GLW	74 Outperform	$73.16B	54.05	12.07%	1.25%	18.27%	771.78%
GRMN	74 Outperform	$41.06B	26.16	19.66%	1.70%	16.56%	3.19%
CGNX	70 Outperform	$6.33B	60.25	7.21%	0.89%	10.23%	25.53%
COHR	66 Neutral	$27.21B	249.53	3.08%	―	20.80%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%