UNIVERSAL DISPLAY CORP (OLED) Stock Fundamental Analysis
NASDAQ:OLED - Nasdaq - US91347P1057 - Common Stock
OLED gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 109 industry peers in the Semiconductors & Semiconductor Equipment industry. OLED gets an excellent profitability rating and is at the same time showing great financial health properties. OLED is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make OLED suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year OLED was profitable.
In the past year OLED had a positive cash flow from operations.
In the past 5 years OLED has always been profitable.
OLED had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 16.23%, OLED belongs to the best of the industry, outperforming 87.96% of the companies in the same industry.
With an excellent Return On Equity value of 18.53%, OLED belongs to the best of the industry, outperforming 82.41% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 15.05%, OLED belongs to the top of the industry, outperforming 86.11% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for OLED is in line with the industry average of 11.96%.
The last Return On Invested Capital (15.05%) for OLED is above the 3 year average (13.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.23% | ||
| ROE | 18.53% | ||
| ROIC | 15.05% |
ROA(3y)12.74%
ROA(5y)12.18%
ROE(3y)15.66%
ROE(5y)15.68%
ROIC(3y)13.67%
ROIC(5y)13.16%
1.3 Margins
OLED's Profit Margin of 36.34% is amongst the best of the industry. OLED outperforms 95.37% of its industry peers.
OLED's Profit Margin has improved in the last couple of years.
OLED has a Operating Margin of 38.81%. This is amongst the best in the industry. OLED outperforms 96.30% of its industry peers.
OLED's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 76.77%, OLED belongs to the best of the industry, outperforming 95.37% of the companies in the same industry.
In the last couple of years the Gross Margin of OLED has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.81% | ||
| PM (TTM) | 36.34% | ||
| GM | 76.77% |
OM growth 3Y0.86%
OM growth 5Y10.45%
PM growth 3Y4.32%
PM growth 5Y8.3%
GM growth 3Y-0.46%
GM growth 5Y0.23%
2. Health
2.1 Basic Checks
OLED has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for OLED has been reduced compared to 1 year ago.
OLED has about the same amout of shares outstanding than it did 5 years ago.
There is no outstanding debt for OLED. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 21.33 indicates that OLED is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 21.33, OLED belongs to the best of the industry, outperforming 87.96% of the companies in the same industry.
There is no outstanding debt for OLED. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 21.33 |
ROIC/WACC1.02
WACC14.74%
2.3 Liquidity
OLED has a Current Ratio of 7.18. This indicates that OLED is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of OLED (7.18) is better than 89.81% of its industry peers.
A Quick Ratio of 5.84 indicates that OLED has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 5.84, OLED belongs to the best of the industry, outperforming 89.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.18 | ||
| Quick Ratio | 5.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.55% over the past year.
OLED shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.88% yearly.
Looking at the last year, OLED shows a very strong growth in Revenue. The Revenue has grown by 37.77%.
OLED shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.43% yearly.
EPS 1Y (TTM)15.55%
EPS 3Y14.83%
EPS 5Y27.88%
EPS Q2Q%29.63%
Revenue 1Y (TTM)37.77%
Revenue growth 3Y10.36%
Revenue growth 5Y18.43%
Sales Q2Q%14.57%
3.2 Future
Based on estimates for the next years, OLED will show a very strong growth in Earnings Per Share. The EPS will grow by 20.82% on average per year.
Based on estimates for the next years, OLED will show a quite strong growth in Revenue. The Revenue will grow by 17.44% on average per year.
EPS Next Y15.01%
EPS Next 2Y13.39%
EPS Next 3Y18.92%
EPS Next 5Y20.82%
Revenue Next Year9.84%
Revenue Next 2Y10.65%
Revenue Next 3Y13.41%
Revenue Next 5Y17.44%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 30.14, which means the current valuation is very expensive for OLED.
OLED's Price/Earnings ratio is a bit cheaper when compared to the industry. OLED is cheaper than 71.30% of the companies in the same industry.
OLED's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.29.
Based on the Price/Forward Earnings ratio of 27.53, the valuation of OLED can be described as expensive.
65.74% of the companies in the same industry are more expensive than OLED, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 24.44. OLED is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.14 | ||
| Fwd PE | 27.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OLED is valued a bit cheaper than 75.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, OLED is valued a bit cheaper than the industry average as 76.85% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.59 | ||
| EV/EBITDA | 16.99 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates OLED does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of OLED may justify a higher PE ratio.
OLED's earnings are expected to grow with 18.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.01
PEG (5Y)1.08
EPS Next 2Y13.39%
EPS Next 3Y18.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.09%, OLED has a reasonable but not impressive dividend return.
In the last 3 months the price of OLED has falen by -25.75%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.28, OLED pays a better dividend. On top of this OLED pays more dividend than 80.56% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, OLED's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
5.2 History
On average, the dividend of OLED grows each year by 42.42%, which is quite nice.
OLED has been paying a dividend for over 5 years, so it has already some track record.
As OLED did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)42.42%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
OLED pays out 25.33% of its income as dividend. This is a sustainable payout ratio.
The dividend of OLED is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP25.33%
EPS Next 2Y13.39%
EPS Next 3Y18.92%
UNIVERSAL DISPLAY CORP
NASDAQ:OLED (1/21/2025, 8:18:32 PM)
After market: 150.09 0 (0%)150.09
+0.85 (+0.57%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners80.98%
Inst Owner Change0.32%
Ins Owners6.88%
Ins Owner Change0.19%
Market Cap7.12B
Analysts81.11
Price Target218.02 (45.26%)
Short Float %3.73%
Short Ratio2.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
Yearly Dividend1.4
Dividend Growth(5Y)42.42%
DP25.33%
Div Incr Years7
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.26%
Min EPS beat(2)-5.07%
Max EPS beat(2)15.59%
EPS beat(4)3
Avg EPS beat(4)6.8%
Min EPS beat(4)-5.07%
Max EPS beat(4)15.59%
EPS beat(8)6
Avg EPS beat(8)13.72%
EPS beat(12)8
Avg EPS beat(12)8.56%
EPS beat(16)10
Avg EPS beat(16)12.1%
Revenue beat(2)0
Avg Revenue beat(2)-3.27%
Min Revenue beat(2)-4%
Max Revenue beat(2)-2.55%
Revenue beat(4)1
Avg Revenue beat(4)-0.7%
Min Revenue beat(4)-4%
Max Revenue beat(4)7.48%
Revenue beat(8)3
Avg Revenue beat(8)0.9%
Revenue beat(12)5
Avg Revenue beat(12)0.29%
Revenue beat(16)7
Avg Revenue beat(16)2.26%
PT rev (1m)0%
PT rev (3m)-5.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.41%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-12.47%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-3.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.14 | ||
| Fwd PE | 27.53 | ||
| P/S | 8.81 | ||
| P/FCF | 32.59 | ||
| P/OCF | 27.81 | ||
| P/B | 4.49 | ||
| P/tB | 4.79 | ||
| EV/EBITDA | 16.99 |
EPS(TTM)4.98
EY3.32%
EPS(NY)5.45
Fwd EY3.63%
FCF(TTM)4.61
FCFY3.07%
OCF(TTM)5.4
OCFY3.6%
SpS17.05
BVpS33.43
TBVpS31.35
PEG (NY)2.01
PEG (5Y)1.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.23% | ||
| ROE | 18.53% | ||
| ROCE | 18.69% | ||
| ROIC | 15.05% | ||
| ROICexc | 22.42% | ||
| ROICexgc | 24.57% | ||
| OM | 38.81% | ||
| PM (TTM) | 36.34% | ||
| GM | 76.77% | ||
| FCFM | 27.02% |
ROA(3y)12.74%
ROA(5y)12.18%
ROE(3y)15.66%
ROE(5y)15.68%
ROIC(3y)13.67%
ROIC(5y)13.16%
ROICexc(3y)24.31%
ROICexc(5y)29.52%
ROICexgc(3y)27.08%
ROICexgc(5y)38.51%
ROCE(3y)16.97%
ROCE(5y)16.34%
ROICexcg growth 3Y-25.41%
ROICexcg growth 5Y-9.66%
ROICexc growth 3Y-20.73%
ROICexc growth 5Y1.05%
OM growth 3Y0.86%
OM growth 5Y10.45%
PM growth 3Y4.32%
PM growth 5Y8.3%
GM growth 3Y-0.46%
GM growth 5Y0.23%
F-Score6
Asset Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 83.3% | ||
| Cap/Sales | 4.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 71.34% | ||
| Profit Quality | 74.36% | ||
| Current Ratio | 7.18 | ||
| Quick Ratio | 5.84 | ||
| Altman-Z | 21.33 |
F-Score6
WACC14.74%
ROIC/WACC1.02
Cap/Depr(3y)168.84%
Cap/Depr(5y)134.09%
Cap/Sales(3y)12.48%
Cap/Sales(5y)10.31%
Profit Quality(3y)44.25%
Profit Quality(5y)68.6%
High Growth Momentum
Growth
EPS 1Y (TTM)15.55%
EPS 3Y14.83%
EPS 5Y27.88%
EPS Q2Q%29.63%
EPS Next Y15.01%
EPS Next 2Y13.39%
EPS Next 3Y18.92%
EPS Next 5Y20.82%
Revenue 1Y (TTM)37.77%
Revenue growth 3Y10.36%
Revenue growth 5Y18.43%
Sales Q2Q%14.57%
Revenue Next Year9.84%
Revenue Next 2Y10.65%
Revenue Next 3Y13.41%
Revenue Next 5Y17.44%
EBIT growth 1Y33.3%
EBIT growth 3Y11.31%
EBIT growth 5Y30.81%
EBIT Next Year30.57%
EBIT Next 3Y26.92%
EBIT Next 5YN/A
FCF growth 1Y66.35%
FCF growth 3Y-38.25%
FCF growth 5Y-21.67%
OCF growth 1Y41.49%
OCF growth 3Y1.32%
OCF growth 5Y4.91%