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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Corning Incorporated (XNYS:GLW) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
GLW
Name:
CORNING INCORPORATED (XNYS:GLW)
Sector:
151.00M
Industry:
Electronic Components
CEO:
Mr. Wendell Weeks
Total Employees:
61,200
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -87.67% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF CORNING INCORPORATED(GLW) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND ELECTRONIC COMPONENTS INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
33.15
One Month Price Target:
$33.34
Six Month Price Target :
$34.27
Likely Price in One Year's Time:
Ticker:
$35.38
Likely Trading Range Today Under (Normal Volatility)
$33.03
Price Upper limit ($) :
$33.3
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$31.52
This week:
$29.5
This month :
$25.85
Other Primary facts
Market Cap:
27.72B
Market Cap Classification:
Large Cap
Number of Shares
IPO Date:
845.32M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
13.12%
-16.4%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$40.72
$37.24
$25.58
$29.06
Medium risk (<10%) entry points
Buy Call
Sell Call
$36.11
Buy Put:
Sell Put:
$35.36
$30.18
$30.94
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
GLW
Sharpe Ratio:
1.86%
Comparison:
GLW, is amongst the top 40% stocks with highest risk-adjusted returns
Sharpe ratio is -8.40% lower than the industry
& is -18.48% lower than the market/S&P 500 average
Average Returns/Yield of
GLW
Daily returns:
0.05%
Weekly returns:
0.27%
Monthly returns:
1.08%
Yearly returns:
15.78%
Comparison of returns:
Average annual returns/yield (last 3 years) is -18.02% below industry average
Classification:
GLW, is amongst the top 60% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.28
Statistical test of Returns:
GLW has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.42%
Weekly Volatility:
5.42%
Monthly Volatility:
10.84%
Yearly Volatility:
37.55%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
1.10%
Volatility in last five trading days has been -54.56% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-4.92%
Weekly VaR:
-11.01%
Monthly VaR:
-22.02%
How Much Can the price of
GLW
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-19%
Worst case (decline):
-76.28%
This translates to price declining to:
$26.90
This translates to price declining to:
$7.86
Severe Crash Probability
Risk of crash in next 6/12 months: Medium (<50%)
What is Value at Risk (VaR)?
Risk Fundamentals
GLW is a 55.42% riskier investment compared to the market/S&P 500 & is 33.14% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -8.81% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
GLW
Beta in relation to market/S&P 500--1.00
Expected beta in 1 year's time:
0.678
Expected beta in 3 year's time:
0.959
Unlevered (debt free) Beta:
0.672
Beta in relation to Nasdaq (XNAS):
0.928
Beta in relation to all global stocks::
0.928
Beta Comparison & Analysis
Beta of competitors/peers::
1.423
Beta is -29.55% lower than peers
Average Industry Beta:
1.174
Beta is -14.60% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
8.76%
Sustainable growth rate is -42.47% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.029
Alpha is -36.40% below industry average alpha yield
Alpha is 186% higher than market/& is unsustainably high
Analysis of Cost of Capital of
GLW
Equity cost of capital:
0.100
Equity cost of capital is -10.49% below industry mean WACC
Unlevered (without debt) cost of capital:
6.72%
Before-tax cost of debt:
3.80%
After-tax cost of debt:
3.01%
Overall debt rating:
Lower BB medium grade (Fifth highest grade)
Weighted average cost of capital (WACC):
3.01%
WACC is -11.06% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$17.12
Revenue growth rate per share of (3Y):
2.22
Annual revenue growth rate is -15.78% below industry average
EPS:
$1.25
Expected Annual growth rate of EPS (3Y):
4.86%
Expected future EPS growth rate is -75.43% lower than the Electronic Components industry
Free cash flow (FCF) per share:
$1.75
Balance sheet equity growth per share: 22.21%
Equity growth rate per share is -547.57% lower than the industry
Debt per share
$8.89
EBITDA per share
$4.87
Valuation Analysis Today of
GLW
P/E Ratio:
14.23
P/E Ratio of Competitors/Peers:
21.65
P/E ratio is -34.26% lower than main peers & is -40.65% lower than the industry
Stock price/value with industry average P/E ratio: $29.98
GLW is 10.58% overvalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $29.78
Present value of the expected future dividends only: $15.35
P/S (Price to Sales ratio):
1.94
Price to sales ratio is -26.42% below the industry mean
P/B (Price to book value ratio):
2.22
Price to free cash flow: 18.97
Price to free cash flow ratio is -65.89% lower than the industry
Net income growth rate (3Y):
71.85%
Net income growth rate is -61.84% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: 12.08%
Dividend yeild: 3.08%
Previous Dividend: $0.27
Previous adjusted dividend: $0.27
Previous Dividend: $1.02
Expected next dividend best case: $0.29
Expected next dividend worst case: $0.25
Average dividend payment (long-term): $0.23
Average dividend increase/decrease (growth rate) % per period: 3.16%
Expected next dividend payment date: 27/09/2022
Expected next dividend record date: 29/08/2022
Expected next dividend declaration date: 27/07/2022
Previous dividend payment date: 29/06/2022
Previous dividend record date: 31/05/2022
Previous dividend declaration date: 28/04/2022
Dividend History:
2022-05-27--$0.27
2021-11-10--$0.24
2021-05-27--$0.24
2022-02-25--$0.27
2021-08-30--$0.24
2021-02-25--$0.24
Dividend growth rate is -130.31% lower than the industry average
In-depth Debt & Leverage Analysis
Debt to equity ratio:
60.63%
Net debt to equity ratio:
46.08%
Debt to assets ratio:
24.84%
Net debt to assets ratio:
18.88%
Debt-to-asset ratio is -53.70% below industry average
Ability to repay debt:
Interest coverage ratio:
14.01
Interest coverage ratio is 1.11% more than industry average
Looking forward:
Debt growth rate:
-19.04%
Annual debt growth is 2957% higher than industry average debt growth rate
Debt repayment rate in last quarter: 0.15%
Analysis of Key Statistics
Correlation of price movement with the market:
0.793
Statistical significance of correlation:
GLW has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.614
Stock price is 29.06% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.614
Correlation of price movement with Nasdaq (^IXIC):
0.002
Covariance of price movement with the market:
0.003
Kurtosis
7.903
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
-0.01
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
GLW
Gross Profit Margin Ratio:
144%
Operating Profit Margin Ratio:
15.06%
Operating profit margin is 73.99% higher than the industry
Net Profit Margin Ratio:
144%
Effective Tax Rate:
19.07%
Effective tax rate is 28.02% higher than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
15.23%
Return on equity (ROE) is -11.80% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
6.24%
Return on assets (ROA) is -10.83% lower than the industry
Financial Leverage:
1.3x
Current Ratio:
1.55
Current ratio is -39.35% below industry average
Cash Conversion Cycle (days):
11.5
Cash conversion cycle is -84.02% below industry average
The remaining useful life of property plant & equipment is: 1.7 years
Stock based compensation to net income ratio:
2.22%
In-depth Efficiency Analysis
Revenue generated per employee:
236.5K
Each employee generates 32% more revenue than industry average revenue per employee
EBITDA generated per employee:
67.3K
Each employee generates 138% more EBITDA than industry average revenue per employee
Profit generated per employee:
30.8K
Each employee generates 88% more net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
2.5K
Each employee generates -189% less free cash flow than industry average revenue per employee
Assets/Capital per employee
365.9K
Each employee generates -189% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- -13.78%
Growth rate in R&D investment/expenditure is 177.65% higher than the industry
Competitors/Peer firms of
GLW
PALANTIR TECHNOLOGIES INC. (XNYS:PLTR)
EPAM SYSTEMS, INC. (XNYS:EPAM)
KEYSIGHT TECHNOLOGIES, INC. (XNYS:KEYS)
Nokia Corporation (XNYS:NOK)
Unity Software Inc (XNYS:U)
UNITED MICROELECTRONICS CORP. (XNYS:UMC)
WORK
FTV-PA
FORTIVE CORPORATION (XNYS:FTV)
Current Analyst Ratings
Strong buy�13%
Buy�13%
Hold�33%
Sell�8%
Strong sell�0%
Overall analyst sentiment is: Hold
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
14.47B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
9.28B
5.19B
1.02B
-
1.86B
-
128.00M
3.01B
11.00M
294.00M
1.49B
4.12B
2.18B
1.89B
2.33B
445.00M
1.89B
Statement of Cash Flow
Date:
Period:
373.00M
Differed Income Tax :
24.00M
Stock Based Compensation :
42.00M
Change in Working Capital :
- 190000.00K
Accounts Receivables:
7.00M
Other Working Capital:
- 34000.00K
Other Non-Cash Items:
- 296000.00K
Net Cash Provided by Operating Activities:
534.00M
Investments in PP&E:
-
Net Acquisitions:
74.00M
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
2.02B
-
2.02B
1.91B
2.62B
1.32B
7.86B
15.78B
2.41B
1.12B
-
1.03B
2.06B
22.40B
-
30.26B
1.85B
213.00M
238.00M
372.00M
2.63B
5.06B
7.52B
3.07B
12.57B
-
17.63B
908.00M
16.74B
- 1362000.0K
-
March 31, 2022 at 6:00:00 AM
12.29B
12.40B
30.02B
-
7.73B
5.7B
40.00M
- 392000.00K
- 278000.00K
- 11000.00K
-
- 149000.00K
- 228000.00K
13.00M
- 375000.00K
- 13000.00K
- 132000.00K
2.02B
2.15B
534.00M
- 383000.00K
151.00M
Our Proprietary Portfolio Rating
Our Rating:
D
Price Forecast/Expected Price in Next 5 Years of
GLW
2023
2024
2025
2026
2027
$33.87
$36.15
$38.59
$41.19
$43.96