Corning Inc., FCFE calculation

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income attributable to Corning Incorporated	581)	1,316)	1,906)	512)	960)
Net income attributable to non-controlling interest	67)	70)	29)	11)	19)
Net noncash charges	1,657)	1,355)	1,219)	1,516)	1,245)
Changes in assets and liabilities	(300)	(126)	258)	141)	(193)
Net cash provided by operating activities	2,005)	2,615)	3,412)	2,180)	2,031)
Capital expenditures	(1,390)	(1,604)	(1,637)	(1,377)	(1,978)
Repayments of debt	(284)	(87)	(860)	(221)	(300)
Proceeds from issuance of debt	82)	127)	22)	243)	1,831)
Proceeds from issuance of euro bonds	918)	—)	—)	—)	—)
Proceeds from other financing arrangements	54)	—)	—)	—)	—)
Repayment of other financing arrangements	(54)	—)	—)	—)	—)
Free cash flow to equity (FCFE)	1,331)	1,051)	937)	825)	1,584)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Net cash provided by operating activities: This item shows an overall fluctuating trend over the five-year period. Beginning at 2,031 million USD in 2019, it increased slightly to 2,180 million USD in 2020. A significant peak is observed in 2021, rising sharply to 3,412 million USD. However, in the subsequent years, the net cash decreased to 2,615 million USD in 2022 and further declined to 2,005 million USD in 2023. This indicates a strong operational cash generation in 2021, followed by a gradual reduction in later years.
Free cash flow to equity (FCFE): The FCFE displays a different pattern compared to operating cash flows. Starting at 1,584 million USD in 2019, it dropped significantly in 2020 to 825 million USD. After this decline, the FCFE showed a steady recovery, increasing to 937 million USD in 2021, 1,051 million USD in 2022, and further rising to 1,331 million USD in 2023. This steady improvement suggests enhanced efficiency in generating shareholder cash flows or reduced capital expenditure or debt repayments after the previous dip.

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Corning Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	856,619,222
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	1,331)
FCFE per share	1.55
Current share price (P)	33.57
Valuation Ratio
P/FCFE	21.61
Benchmarks
P/FCFE, Competitors¹
Apple Inc.	30.31
Arista Networks Inc.	37.02
Cisco Systems Inc.	9.09
Dell Technologies Inc.	153.16
Super Micro Computer Inc.	—
P/FCFE, Sector
Technology Hardware & Equipment	32.13
P/FCFE, Industry
Information Technology	57.55

Based on: 10-K (reporting date: 2023-12-31).

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Corning Inc., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
No. shares of common stock outstanding¹	853,474,317	846,563,422	845,849,498	768,367,889	763,628,266
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	1,331)	1,051)	937)	825)	1,584)
FCFE per share³	1.56	1.24	1.11	1.07	2.07
Share price^1, 4	32.18	35.67	41.29	36.88	27.97
Valuation Ratio
P/FCFE⁵	20.63	28.73	37.27	34.35	13.48
Benchmarks
P/FCFE, Competitors⁶
Apple Inc.	30.63	22.26	23.27	24.40	21.64
Arista Networks Inc.	41.51	96.72	42.05	32.99	—
Cisco Systems Inc.	12.84	17.18	21.02	38.82	14.85
Dell Technologies Inc.	9.06	33.54	14.15	5.64	—
Super Micro Computer Inc.	41.38	139.27	13.81	—	7.83
P/FCFE, Sector
Technology Hardware & Equipment	27.42	22.22	22.84	24.15	—
P/FCFE, Industry
Information Technology	33.16	26.84	27.24	23.37	—

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,331,000,000 ÷ 853,474,317 = 1.56

⁴ Closing price as at the filing date of Corning Inc. Annual Report.

⁵ 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 32.18 ÷ 1.56 = 20.63

⁶ Click competitor name to see calculations.

Share Price Trend: The share price exhibited an overall upward trajectory from 2019 to 2021, increasing from $27.97 to a peak of $41.29. However, after this peak, a decline was observed over the next two years, with the share price dropping to $35.67 in 2022 and further to $32.18 in 2023.
FCFE Per Share Trend: Free Cash Flow to Equity (FCFE) per share showed a decrease from $2.07 in 2019 to $1.07 in 2020, indicating a significant reduction in cash available to equity holders during that period. From 2020 onwards, FCFE per share demonstrated a gradual recovery, increasing to $1.11 in 2021, $1.24 in 2022, and reaching $1.56 in 2023.
P/FCFE Ratio Trend: The Price to FCFE ratio experienced a strong increase from 13.48 in 2019 to 37.27 in 2021, suggesting that the share price grew much faster than the underlying free cash flow generation. This may indicate elevated market expectations or overvaluation during this period. Subsequently, the ratio decreased steadily to 28.73 in 2022 and further to 20.63 in 2023, moving closer to the levels observed prior to 2020.
Overall Analysis: The data shows a period of market exuberance between 2019 and 2021, with share prices rising substantially despite a cut in FCFE per share in 2020, leading to high P/FCFE ratios. The gradual increase in FCFE per share since 2020 reflects an improving cash flow position, potentially underpinning more sustainable financial performance. The decline in share price and P/FCFE ratio from 2021 to 2023 suggests a market correction or reassessment of growth expectations towards more moderate levels, aligning price more closely with cash flow fundamentals.

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Corning Inc. (NYSE:GLW)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical