GLW Corning Incorporated - Fundamental Analysis
NEUTRAL
GLW Stock | Fundamental Analysis & Investment Insights
NYSE
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Technology
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Electronic Components
Current Price
$82.06
Analyst Target
$92.75
+13.0% Upside
52W High
$92.57
52W Low
$37.31
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
72%
Analysis Accuracy
Corning Incorporated (GLW) trades at a premium valuation with strong recent price momentum—up 78.8% over the past year and 154.6% over five years—reflecting solid execution and cyclical tailwinds in display and optical communications. The company has delivered consistent earnings beats over the last four quarters, with accelerating YoY EPS growth of 24.1% and robust 20.9% revenue growth, outpacing the sector average. However, elevated valuation metrics, including a P/E of 52.60 and forward P/E of 35.52, imply significant optimism already priced in, while insider selling activity over the past six months raises caution. Relative to peers like TE Connectivity and Synopsys, GLW exhibits stronger growth than some but lags in profitability and return metrics, creating a mixed fundamental picture despite healthy balance sheet leverage and dividend stability.
Key Strengths
Revenue growth of 20.9% YoY outpaces the Technology sector average of 19.36% and peer group, indicating strong demand across key end markets.
Consistent earnings beat streak: 3 out of the last 4 quarters beat estimates, with an average surprise of 3.79% and accelerating YoY EPS growth of 24.1%.
Solid financial leverage profile with Debt/Equity of 0.77, in line with sector average of 0.78, suggesting prudent capital structure management.
Attractive dividend yield of 1.36% supported by a sustainable 71.79% payout ratio, offering modest income appeal in a growth-oriented tech context.
Superior long-term price performance: +154.6% over 5 years and +161.6% over 3 years, reflecting strong investor confidence and operational execution.
Key Risks
Elevated valuation with P/E of 52.60 and Price/Book of 5.75, significantly above historical norms and implying limited margin of safety despite growth.
Weak profitability relative to peers: profit margin of 9.16% lags sector average of 18.03%, and ROE of 12.74% trails peer median, indicating lower capital efficiency.
Insider selling pressure: $18.17M in net insider sales over the last 6 months, including CFO and CTO transactions, signaling potential lack of confidence at the top.
Low liquidity cushion: Quick Ratio of 0.74 suggests constrained short-term liquidity, below the ideal threshold of 1.0, increasing vulnerability to demand shocks.
Forward P/E of 35.52 remains high even for a growth stock, leaving the stock exposed to multiple contraction if growth slows or macro conditions deteriorate.
AI Fair Value Estimate
Based on comprehensive analysis
$88.5
+7.8% above current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare GLW against industry averages and similar companies
Insider Trading & Analyst Ratings
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