UNIVERSAL DISPLAY CORP (OLED) Stock Fundamental Analysis
NASDAQ:OLED - Nasdaq - US91347P1057 - Common Stock - Currency: USD
Taking everything into account, OLED scores 8 out of 10 in our fundamental rating. OLED was compared to 110 industry peers in the Semiconductors & Semiconductor Equipment industry. OLED has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. OLED is not priced too expensively while it is growing strongly. 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.
In the past year OLED had a positive cash flow from operations.
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 Return On Assets of 15.33%. This is amongst the best in the industry. OLED outperforms 88.18% of its industry peers.
With a decent Return On Equity value of 17.23%, OLED is doing good in the industry, outperforming 80.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.48%, OLED belongs to the top of the industry, outperforming 87.27% 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 10.68%.
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
OLED has a better Profit Margin (35.13%) than 94.55% of its industry peers.
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.
In the last couple of years the Operating Margin of OLED has remained more or less at the same level.
OLED has a better Gross Margin (76.81%) than 96.36% 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so OLED is still 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 23.04. This indicates that OLED is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 23.04, OLED belongs to the best of the industry, outperforming 90.91% 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 | 23.04 |
ROIC/WACC1.25
WACC11.55%
2.3 Liquidity
OLED has a Current Ratio of 9.00. This indicates that OLED is financially healthy and has no problem in meeting its short term obligations.
OLED has a better Current ratio (9.00) than 93.64% of its industry peers.
OLED has a Quick Ratio of 7.26. This indicates that OLED is financially healthy and has no problem in meeting its short term obligations.
OLED has a better Quick ratio (7.26) 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%.
OLED shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.75% yearly.
OLED shows a strong growth in Revenue. In the last year, the Revenue has grown by 33.16%.
The Revenue has been growing by 9.83% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 20.56% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 17.10% on average over the next years. This is quite good.
EPS Next Y10.06%
EPS Next 2Y11.71%
EPS Next 3Y20.87%
EPS Next 5Y20.56%
Revenue Next Year5.63%
Revenue Next 2Y8.64%
Revenue Next 3Y11.79%
Revenue Next 5Y17.1%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue 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
OLED is valuated quite expensively with a Price/Earnings ratio of 31.02.
64.55% of the companies in the same industry are more expensive than OLED, based on the Price/Earnings ratio.
OLED's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.05.
A Price/Forward Earnings ratio of 25.72 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 cheaply when we compare the Price/Forward Earnings ratio to 37.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.02 | ||
| Fwd PE | 25.72 |
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.
63.64% of the companies in the same industry are more expensive than OLED, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.33 | ||
| EV/EBITDA | 17.32 |
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.
A more expensive valuation may be justified as OLED's earnings are expected to grow with 20.87% in the coming years.
PEG (NY)3.08
PEG (5Y)3.18
EPS Next 2Y11.71%
EPS Next 3Y20.87%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.20%, OLED has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.28, OLED pays a better dividend. On top of this OLED pays more dividend than 82.73% of the companies listed in the same industry.
With a Dividend Yield of 1.20, OLED pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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.
OLED has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)32.14%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
OLED pays out 27.30% of its income as dividend. This is a sustainable payout ratio.
OLED's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP27.3%
EPS Next 2Y11.71%
EPS Next 3Y20.87%
149.21
-0.3 (-0.2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners86.78%
Inst Owner Change-0.52%
Ins Owners6.94%
Ins Owner Change1.35%
Market Cap7.09B
Analysts78.82
Price Target183.34 (22.87%)
Short Float %3.83%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.2% |
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)2.03%
PT rev (3m)4.23%
EPS NQ rev (1m)-0.49%
EPS NQ rev (3m)8.1%
EPS NY rev (1m)0.72%
EPS NY rev (3m)3.35%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)2.81%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.02 | ||
| Fwd PE | 25.72 | ||
| P/S | 8.71 | ||
| P/FCF | 43.33 | ||
| P/OCF | 33.43 | ||
| P/B | 4.27 | ||
| P/tB | 4.52 | ||
| EV/EBITDA | 17.32 |
EPS(TTM)4.81
EY3.22%
EPS(NY)5.8
Fwd EY3.89%
FCF(TTM)3.44
FCFY2.31%
OCF(TTM)4.46
OCFY2.99%
SpS17.13
BVpS34.91
TBVpS33.02
PEG (NY)3.08
PEG (5Y)3.18
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 | 23.04 |
F-Score5
WACC11.55%
ROIC/WACC1.25
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 Y10.06%
EPS Next 2Y11.71%
EPS Next 3Y20.87%
EPS Next 5Y20.56%
Revenue 1Y (TTM)33.16%
Revenue growth 3Y5.38%
Revenue growth 5Y9.83%
Sales Q2Q%0.62%
Revenue Next Year5.63%
Revenue Next 2Y8.64%
Revenue Next 3Y11.79%
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%