Corning (GLW) AI Stock Analysis

• Market Cap: $37.06B
• Dividend Yield: 2.59%
• Average Volume (3M): 7.08M
• Price to Earnings (P/E): 74.3
• Beta (1Y): 1.22
• Revenue Growth: 4.21%
• EPS Growth: -13.56%
• Country: US
• Employees: 56,300
• Sector: Basic Materials
• Sector Strength: 52
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.58
• Shares Outstanding: 856,777,040
• 10 Day Avg. Volume: 7,581,410
• 30 Day Avg. Volume: 7,075,714
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.17
• Price to Cash Flow (P/CF): 16.70
• P/FCF Ratio: 16.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $56.89
• Price Target Upside: 36.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

Corning's overall stock score reflects a stable but challenging financial environment, with operational efficiency and strategic growth plans bolstering confidence. However, high valuation and mixed technical indicators suggest caution. The positive earnings call sentiment and strategic outlook offer a promising longer-term view, albeit with some near-term risks.

Positive Factors

Guidance Upgrade

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

Revenue Growth

Corning's management raised revenue expectations for its Springboard Plan to an incremental $4 billion annualized run rate, driven by robust demand in Optical and a ramping Solar platform.

Share Buyback

Corning announced $100M in share buybacks, indicating higher shareholder returns.

Negative Factors

Macroeconomic Environment

The macroeconomic environment remains uncertain, with high exposure to consumer segments affecting confidence.

Valuation Concerns

Volatility in other businesses combined with valuation concerns contribute to a cautious outlook.

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 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. While profitability metrics indicate operational efficiency, 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. Continued focus on cost management and strategic investments could improve financial performance in the future.

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: Negative
• Last Price: 41.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GLW, the sentiment is Negative. The current price of 41.69 is below the 20-day moving average (MA) of 45.41, below the 50-day MA of 48.05, and below the 200-day MA of 45.48, indicating a bearish trend. The MACD of -0.69 indicates Positive momentum. The RSI at 38.53 is Neutral, neither overbought nor oversold. The STOCH value of 19.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GLW.

Corning Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRMN	81 Outperform	$37.08B	26.39	19.00%	1.56%	20.44%	9.05%
TDY	76 Outperform	$21.95B	26.64	8.73%	―	0.53%	-7.18%
FTV	73 Outperform	$23.06B	28.70	8.12%	0.47%	2.75%	-2.90%
TEL	71 Outperform	$39.94B	21.37	15.02%	1.94%	-1.09%	-40.55%
KEYS	66 Neutral	$24.63B	38.20	12.22%	―	-6.07%	-35.80%
GLW	63 Neutral	$37.06B	74.29	4.55%	2.59%	4.21%	-13.56%
Sector *	47 Neutral	$2.44B	-2.84	-22.09%	3.51%	4.02%	-28.91%

Corning Corporate Events

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.