GT Advanced said it has more than $1 billion in debt and $85 million in cash when it announced the filing. The company said it would try to secure debtor-in-possession financing to obtain more funds.
Corning competes with GT Advanced in making glass covers for mobile devices. GT Advanced supplies Apple (AAPL - Get Report) with sapphire glass used in the upcoming Apple Watch, and Corning's Gorilla Glass is used on a variety of smartphones and tablets.
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TheStreet Ratings team rates CORNING INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate CORNING INC (GLW) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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, good cash flow from operations, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 5.8%. Since the same quarter one year prior, revenues rose by 25.2%. 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 0.17 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 3.46, which clearly demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has significantly increased by 88.10% to $743.00 million when compared to the same quarter last year. In addition, CORNING INC has also vastly surpassed the industry average cash flow growth rate of -22.84%.
- Compared to its closing price of one year ago, GLW's share price has jumped by 28.69%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- CORNING INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CORNING INC increased its bottom line by earning $1.34 versus $1.07 in the prior year. This year, the market expects an improvement in earnings ($1.46 versus $1.34).
- You can view the full analysis from the report here: GLW Ratings Report