UNIVERSAL DISPLAY CORP (OLED) Stock Fundamental Analysis
NASDAQ:OLED - Nasdaq - US91347P1057 - Common Stock - Currency: USD
We assign a fundamental rating of 8 out of 10 to OLED. OLED was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. OLED scores excellent points on both the profitability and health parts. This is a solid base for a good stock. OLED is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make OLED a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year OLED was profitable.
OLED had a positive operating cash flow in the past year.
OLED had positive earnings in each of the past 5 years.
In the past 5 years OLED always reported a positive cash flow from operatings.
1.2 Ratios
OLED has a better Return On Assets (15.33%) than 88.18% of its industry peers.
Looking at the Return On Equity, with a value of 17.23%, OLED is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
OLED has a better Return On Invested Capital (14.48%) than 87.27% of its industry peers.
OLED had an Average Return On Invested Capital over the past 3 years of 12.91%. This is above the industry average of 10.58%.
The last Return On Invested Capital (14.48%) for OLED is above the 3 year average (12.91%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.33% | ||
| ROE | 17.23% | ||
| ROIC | 14.48% |
ROA(3y)12.61%
ROA(5y)12.15%
ROE(3y)14.68%
ROE(5y)15.04%
ROIC(3y)12.91%
ROIC(5y)13.02%
1.3 Margins
Looking at the Profit Margin, with a value of 35.13%, OLED belongs to the top of the industry, outperforming 94.55% of the companies in the same industry.
OLED's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 37.90%, OLED belongs to the best of the industry, outperforming 96.36% of the companies in the same industry.
OLED's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 76.81%, OLED belongs to the best of the industry, outperforming 96.36% of the companies in the same industry.
OLED's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.9% | ||
| PM (TTM) | 35.13% | ||
| GM | 76.81% |
OM growth 3Y-3.57%
OM growth 5Y-1.15%
PM growth 3Y1.12%
PM growth 5Y0.2%
GM growth 3Y-0.99%
GM growth 5Y-0.44%
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.
Compared to 1 year ago, OLED has more shares outstanding
The number of shares outstanding for OLED remains at a similar level compared to 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
OLED has an Altman-Z score of 24.24. This indicates that OLED is financially healthy and has little risk of bankruptcy at the moment.
OLED has a better Altman-Z score (24.24) than 91.82% 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 | 24.24 |
ROIC/WACC1.26
WACC11.53%
2.3 Liquidity
A Current Ratio of 9.00 indicates that OLED has no problem at all paying its short term obligations.
With an excellent Current ratio value of 9.00, OLED belongs to the best of the industry, outperforming 93.64% of the companies in the same industry.
A Quick Ratio of 7.26 indicates that OLED has no problem at all paying its short term obligations.
The Quick ratio of OLED (7.26) is better than 91.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 9 | ||
| Quick Ratio | 7.26 |
3. Growth
3.1 Past
OLED shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.57%.
The Earnings Per Share has been growing by 9.75% on average over the past years. This is quite good.
Looking at the last year, OLED shows a very strong growth in Revenue. The Revenue has grown by 33.16%.
Measured over the past years, OLED shows a quite strong growth in Revenue. The Revenue has been growing by 9.83% on average per year.
EPS 1Y (TTM)4.57%
EPS 3Y6.4%
EPS 5Y9.75%
EPS Q2Q%13.45%
Revenue 1Y (TTM)33.16%
Revenue growth 3Y5.38%
Revenue growth 5Y9.83%
Sales Q2Q%0.62%
3.2 Future
OLED is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.56% yearly.
The Revenue is expected to grow by 17.10% on average over the next years. This is quite good.
EPS Next Y9.27%
EPS Next 2Y10.51%
EPS Next 3Y16.51%
EPS Next 5Y20.56%
Revenue Next Year5.61%
Revenue Next 2Y8.15%
Revenue Next 3Y11.49%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 32.33, which means the current valuation is very expensive for OLED.
63.64% of the companies in the same industry are more expensive than OLED, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.30, OLED is valued at the same level.
A Price/Forward Earnings ratio of 27.38 indicates a quite expensive valuation of OLED.
OLED's Price/Forward Earnings is on the same level as the industry average.
OLED is valuated rather expensively when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.33 | ||
| Fwd PE | 27.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OLED is valued a bit cheaper than the industry average as 71.82% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, OLED is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.2 | ||
| EV/EBITDA | 18.48 |
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.
OLED has an outstanding profitability rating, which may justify a higher PE ratio.
OLED's earnings are expected to grow with 16.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.49
PEG (5Y)3.31
EPS Next 2Y10.51%
EPS Next 3Y16.51%
5. Dividend
5.1 Amount
OLED has a Yearly Dividend Yield of 1.12%. Purely for dividend investing, there may be better candidates out there.
OLED's Dividend Yield is rather good when compared to the industry average which is at 2.18. OLED pays more dividend than 82.73% of the companies in the same industry.
With a Dividend Yield of 1.12, OLED pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
5.2 History
The dividend of OLED is nicely growing with an annual growth rate of 32.14%!
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)32.14%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
27.30% of the earnings are spent on dividend by OLED. This is a low number and sustainable payout ratio.
The dividend of OLED is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP27.3%
EPS Next 2Y10.51%
EPS Next 3Y16.51%
155.49
-2.19 (-1.39%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners86.78%
Inst Owner Change0%
Ins Owners6.94%
Ins Owner Change1.35%
Market Cap7.40B
Analysts78.82
Price Target179.69 (15.56%)
Short Float %4.08%
Short Ratio2.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.12% |
Yearly Dividend1.61
Dividend Growth(5Y)32.14%
DP27.3%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.96%
Min EPS beat(2)-11.27%
Max EPS beat(2)21.2%
EPS beat(4)2
Avg EPS beat(4)5.11%
Min EPS beat(4)-11.27%
Max EPS beat(4)21.2%
EPS beat(8)6
Avg EPS beat(8)9.88%
EPS beat(12)8
Avg EPS beat(12)9.55%
EPS beat(16)9
Avg EPS beat(16)6.03%
Revenue beat(2)2
Avg Revenue beat(2)5.25%
Min Revenue beat(2)4.45%
Max Revenue beat(2)6.06%
Revenue beat(4)2
Avg Revenue beat(4)0.99%
Min Revenue beat(4)-4%
Max Revenue beat(4)6.06%
Revenue beat(8)4
Avg Revenue beat(8)1.54%
Revenue beat(12)6
Avg Revenue beat(12)1.06%
Revenue beat(16)7
Avg Revenue beat(16)0.64%
PT rev (1m)0%
PT rev (3m)-4.97%
EPS NQ rev (1m)-0.73%
EPS NQ rev (3m)7.83%
EPS NY rev (1m)0%
EPS NY rev (3m)2.2%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)2.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.33 | ||
| Fwd PE | 27.38 | ||
| P/S | 9.09 | ||
| P/FCF | 45.2 | ||
| P/OCF | 34.87 | ||
| P/B | 4.46 | ||
| P/tB | 4.71 | ||
| EV/EBITDA | 18.48 |
EPS(TTM)4.81
EY3.09%
EPS(NY)5.68
Fwd EY3.65%
FCF(TTM)3.44
FCFY2.21%
OCF(TTM)4.46
OCFY2.87%
SpS17.11
BVpS34.88
TBVpS32.99
PEG (NY)3.49
PEG (5Y)3.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.33% | ||
| ROE | 17.23% | ||
| ROCE | 17.61% | ||
| ROIC | 14.48% | ||
| ROICexc | 21.49% | ||
| ROICexgc | 23.26% | ||
| OM | 37.9% | ||
| PM (TTM) | 35.13% | ||
| GM | 76.81% | ||
| FCFM | 20.11% |
ROA(3y)12.61%
ROA(5y)12.15%
ROE(3y)14.68%
ROE(5y)15.04%
ROIC(3y)12.91%
ROIC(5y)13.02%
ROICexc(3y)20.07%
ROICexc(5y)25.04%
ROICexgc(3y)21.95%
ROICexgc(5y)29.41%
ROCE(3y)15.71%
ROCE(5y)15.84%
ROICexcg growth 3Y-20.27%
ROICexcg growth 5Y-23.51%
ROICexc growth 3Y-18.97%
ROICexc growth 5Y-17.23%
OM growth 3Y-3.57%
OM growth 5Y-1.15%
PM growth 3Y1.12%
PM growth 5Y0.2%
GM growth 3Y-0.99%
GM growth 5Y-0.44%
F-Score5
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 110.03% | ||
| Cap/Sales | 5.96% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.18% | ||
| Profit Quality | 57.24% | ||
| Current Ratio | 9 | ||
| Quick Ratio | 7.26 | ||
| Altman-Z | 24.24 |
F-Score5
WACC11.53%
ROIC/WACC1.26
Cap/Depr(3y)166.44%
Cap/Depr(5y)135.73%
Cap/Sales(3y)12.05%
Cap/Sales(5y)10.12%
Profit Quality(3y)49.16%
Profit Quality(5y)63.84%
High Growth Momentum
Growth
EPS 1Y (TTM)4.57%
EPS 3Y6.4%
EPS 5Y9.75%
EPS Q2Q%13.45%
EPS Next Y9.27%
EPS Next 2Y10.51%
EPS Next 3Y16.51%
EPS Next 5Y20.56%
Revenue 1Y (TTM)33.16%
Revenue growth 3Y5.38%
Revenue growth 5Y9.83%
Sales Q2Q%0.62%
Revenue Next Year5.61%
Revenue Next 2Y8.15%
Revenue Next 3Y11.49%
Revenue Next 5Y17.1%
EBIT growth 1Y31.48%
EBIT growth 3Y1.61%
EBIT growth 5Y8.57%
EBIT Next Year24.87%
EBIT Next 3Y20.07%
EBIT Next 5YN/A
FCF growth 1Y114.49%
FCF growth 3Y12.69%
FCF growth 5Y5.26%
OCF growth 1Y74.18%
OCF growth 3Y9.91%
OCF growth 5Y5.53%