Overview:
Corning Incorporated is a world leader in specialty glass and ceramics. They design, manufacture , and sell components that enable high-technology systems for consumer electronics, mobile emissions control, telecommunications, and life sciences.
Corning operates in five vital market segments:
- Display Technologies – glass substrates for LCD flat panel televisions, computer monitors, laptops, and other consumer electronics
- Environmental Technologies – ceramic substrates and diesel filters for emission control systems
- Telecommunications – optical fiber, cable, and hardware and equipment for telephone and Internet communication networks
- Life Sciences – glass and plastic labware, as well as label-free technology, media, and reagents for cell culture, genomics, and bioprocessing applications
- Specialty Materials – cover glass for consumer electronics, advanced optics, and specialty glass solutions for a number of industries
CEO: W.P. Weeks
HQ: New York
Founded: 1851
Employees: 28,800
Financial
| TICKER | GLW |
| QUOTE | $ 12.24 |
| YLD | 2.96% |
| 7 YR PE | 7.45 |
| 3 YR PE | 6.93 |
| P/B | 0.83 |
| A/L | 3.88 |
| SALES GROWTH | 8.81% |
| LTD OF CAP | 10.00% |
| PAYOUT RATIO | 13.00% |
| NET INC / REV | 35.60% |
| ROEQ | 13.90% |
| EARNINGS CALL | 2/8/2013 |
| OUTST. SHARES | 1,515,000,000 |
| NET INC | $ 2,805,000,000.00 |
| DEPR. + AMOR. | $ 942,000,000.00 |
| CAP EX | $ 2,432,000,000.00 |
| MARKET VALUE | $ 18,543,600,000.00 |
| 52 WK HIGH | 14.58 |
| % OF 52 WK HIGH | 84.0% |
| EPS 5 YR GROWTH RATE | 8.77% |
Overall, GLW warrants consideration given a relatively strong financial position and the fact that it is currently trading at less than book value.
The three and seven year PE ratios are also low, both in general and when compared to the PE ratios of it's industry peers. Long term debt is at a comfortable level and has been for at least the last seven years. However, we should consider its ten year track record. The earnings and other data look reasonable for the last seven years, but it should be noted that negative annual earnings and cash flow were recorded in 2004 and 2002. Therefore, the consistency and reliability of earnings are not as solid as one may hope for. Return on equity was low in these years (2002,2003, 2004) and improved greatly thereafter but has been very volatile. Despite this, the current financial position is strong and tangible book value has increased every year looking back to 2002.
Given the brief analysis and data above, although Corning may not meet the strictest guidelines for a conservative investment, it still possesses a relatively strong financial position and is worth consideration currently trading under book value.
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