Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of B . The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 7.2%. Since the same quarter one year prior, revenues rose by 13.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- GLW's debt-to-equity ratio is very low at 0.16 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.81, which clearly demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has slightly increased to $1,240.00 million or 7.17% when compared to the same quarter last year. Despite an increase in cash flow, CORNING INC's average is still marginally south of the industry average growth rate of 12.71%.
- The gross profit margin for CORNING INC is rather high; currently it is at 54.40%. Regardless of GLW's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, GLW's net profit margin of 13.18% compares favorably to the industry average.
Corning Incorporated produces and sells specialty glasses, ceramics, and related materials worldwide. It operates through five segments: Display Technologies, Telecommunications, Environmental Technologies, Specialty Materials, and Life Sciences. Corning has a market cap of $19.22 billion and is part of the technology sector and electronics industry. The company has a P/E ratio of 11.3, below the S&P 500 P/E ratio of 17.7. Shares are up 3.1% year to date as of the close of trading on Monday.
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--Written by a member of TheStreet Ratings Staff.
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