UNIVERSAL DISPLAY CORP (OLED) Stock Fundamental Analysis
NASDAQ:OLED - Nasdaq - US91347P1057 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to OLED. OLED was compared to 108 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year OLED was profitable.
OLED had a positive operating cash flow in the past year.
Of the past 5 years OLED 4 years were profitable.
Of the past 5 years OLED 4 years had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 16.23%, OLED belongs to the best of the industry, outperforming 89.81% of the companies in the same industry.
Looking at the Return On Equity, with a value of 18.53%, OLED belongs to the top of the industry, outperforming 83.33% 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 87.04% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for OLED is above the industry average of 11.67%.
The 3 year average ROIC (13.67%) for OLED is below the current ROIC(15.05%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 36.34%, OLED belongs to the best of the industry, outperforming 95.37% of the companies in the same industry.
OLED's Profit Margin has improved in the last couple of years.
OLED has a better Operating Margin (38.81%) than 96.30% of its industry peers.
In the last couple of years the Operating Margin of OLED has grown nicely.
The Gross Margin of OLED (76.77%) is better than 95.37% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so OLED is still creating some value.
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 20.98 indicates that OLED is not in any danger for bankruptcy at the moment.
OLED has a better Altman-Z score (20.98) than 87.96% of its industry peers.
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 | 20.98 |
ROIC/WACC1.27
WACC11.82%
2.3 Liquidity
A Current Ratio of 7.18 indicates that OLED has no problem at all paying its short term obligations.
OLED has a better Current ratio (7.18) than 90.74% of its industry peers.
OLED has a Quick Ratio of 5.84. This indicates that OLED is financially healthy and has no problem in meeting its short term obligations.
OLED has a better Quick ratio (5.84) than 90.74% of its industry peers.
| 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 15.80% over the past year.
Measured over the past years, OLED shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.95% on average per year.
EPS 1Y (TTM)15.8%
EPS 3Y8.35%
EPS 5Y10.95%
EPS Q2Q%-5.43%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%2.51%
3.2 Future
The Earnings Per Share is expected to grow by 19.25% on average over the next years. This is quite good.
Based on estimates for the next years, OLED will show a quite strong growth in Revenue. The Revenue will grow by 17.10% on average per year.
EPS Next Y9.07%
EPS Next 2Y16.41%
EPS Next 3Y26.05%
EPS Next 5Y19.25%
Revenue Next Year10.98%
Revenue Next 2Y14.51%
Revenue Next 3Y21.67%
Revenue Next 5Y17.1%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 32.04, which means the current valuation is very expensive for OLED.
68.52% of the companies in the same industry are more expensive than OLED, based on the Price/Earnings ratio.
OLED is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 29.37, the valuation of OLED can be described as expensive.
OLED's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. OLED is cheaper than 65.74% of the companies in the same industry.
OLED is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.04 | ||
| Fwd PE | 29.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OLED indicates a somewhat cheap valuation: OLED is cheaper than 75.93% of the companies listed in the same industry.
OLED's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. OLED is cheaper than 79.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.15 | ||
| EV/EBITDA | 16.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
OLED has an outstanding profitability rating, which may justify a higher PE ratio.
OLED's earnings are expected to grow with 26.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.53
PEG (5Y)2.92
EPS Next 2Y16.41%
EPS Next 3Y26.05%
5. Dividend
5.1 Amount
OLED has a Yearly Dividend Yield of 1.09%.
Compared to an average industry Dividend Yield of 2.34, OLED pays a better dividend. On top of this OLED pays more dividend than 81.48% of the companies listed in the same industry.
With a Dividend Yield of 1.09, OLED pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
5.2 History
The dividend of OLED is nicely growing with an annual growth rate of 42.42%!
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 2Y16.41%
EPS Next 3Y26.05%
157.3
+9.96 (+6.76%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners80.98%
Inst Owner Change-2.29%
Ins Owners6.88%
Ins Owner Change0.19%
Market Cap7.47B
Analysts81.11
Price Target205.69 (30.76%)
Short Float %3.95%
Short Ratio2.6
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)-2.72%
PT rev (3m)-8.68%
EPS NQ rev (1m)-1.62%
EPS NQ rev (3m)-1.62%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)-0.2%
Revenue NQ rev (1m)-0.84%
Revenue NQ rev (3m)-0.84%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.04 | ||
| Fwd PE | 29.37 | ||
| P/S | 9.23 | ||
| P/FCF | 34.15 | ||
| P/OCF | 29.15 | ||
| P/B | 4.7 | ||
| P/tB | 5.02 | ||
| EV/EBITDA | 16.63 |
EPS(TTM)4.91
EY3.12%
EPS(NY)5.36
Fwd EY3.4%
FCF(TTM)4.61
FCFY2.93%
OCF(TTM)5.4
OCFY3.43%
SpS17.05
BVpS33.43
TBVpS31.35
PEG (NY)3.53
PEG (5Y)2.92
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 | 20.98 |
F-Score6
WACC11.82%
ROIC/WACC1.27
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)15.8%
EPS 3Y8.35%
EPS 5Y10.95%
EPS Q2Q%-5.43%
EPS Next Y9.07%
EPS Next 2Y16.41%
EPS Next 3Y26.05%
EPS Next 5Y19.25%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%2.51%
Revenue Next Year10.98%
Revenue Next 2Y14.51%
Revenue Next 3Y21.67%
Revenue Next 5Y17.1%
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%