UNIVERSAL DISPLAY CORP (OLED)
US91347P1057 - Common Stock
OLED gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 107 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 valued quite expensive, but it does show an excellent growth. This makes OLED very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
OLED had positive earnings in the past year.
OLED had a positive operating cash flow in the past year.
In the past 5 years OLED has always been profitable.
In the past 5 years OLED always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of OLED (13.01%) is better than 82.24% of its industry peers.
OLED's Return On Equity of 14.75% is fine compared to the rest of the industry. OLED outperforms 73.83% of its industry peers.
OLED has a better Return On Invested Capital (11.90%) than 78.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OLED is above the industry average of 10.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.01% | ||
| ROE | 14.75% | ||
| ROIC | 11.9% |
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
Looking at the Profit Margin, with a value of 35.83%, OLED belongs to the top of the industry, outperforming 96.26% of the companies in the same industry.
In the last couple of years the Profit Margin of OLED has grown nicely.
The Operating Margin of OLED (38.38%) is better than 95.33% of its industry peers.
OLED's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 76.84%, OLED belongs to the best of the industry, outperforming 94.39% 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 | 38.38% | ||
| PM (TTM) | 35.83% | ||
| GM | 76.84% |
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.
The number of shares outstanding for OLED has been reduced compared to 1 year ago.
The number of shares outstanding for OLED remains at a similar level compared to 5 years ago.
OLED has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
OLED has an Altman-Z score of 26.89. This indicates that OLED is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of OLED (26.89) is better than 90.65% of its industry peers.
OLED has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 26.89 |
ROIC/WACC0.95
WACC12.51%
2.3 Liquidity
A Current Ratio of 9.70 indicates that OLED has no problem at all paying its short term obligations.
OLED has a better Current ratio (9.70) than 93.46% of its industry peers.
A Quick Ratio of 7.88 indicates that OLED has no problem at all paying its short term obligations.
OLED has a Quick ratio of 7.88. This is amongst the best in the industry. OLED outperforms 94.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 9.7 | ||
| Quick Ratio | 7.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.05% over the past year.
Measured over the past years, OLED shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.88% on average per year.
OLED shows a small growth in Revenue. In the last year, the Revenue has grown by 2.44%.
The Revenue has been growing by 18.43% on average over the past years. This is quite good.
EPS 1Y (TTM)10.05%
EPS 3Y14.83%
EPS 5Y27.88%
EPS growth Q2Q43.37%
Revenue 1Y (TTM)2.44%
Revenue growth 3Y10.36%
Revenue growth 5Y18.43%
Revenue growth Q2Q26.67%
3.2 Future
The Earnings Per Share is expected to grow by 20.82% on average over the next years. This is a very strong growth
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 Y15.21%
EPS Next 2Y17.17%
EPS Next 3Y24.85%
EPS Next 5Y20.82%
Revenue Next Year12.68%
Revenue Next 2Y13.88%
Revenue Next 3Y15.59%
Revenue Next 5Y17.44%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
OLED is valuated quite expensively with a Price/Earnings ratio of 38.05.
Based on the Price/Earnings ratio, OLED is valued a bit cheaper than the industry average as 60.75% of the companies are valued more expensively.
OLED's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.60.
A Price/Forward Earnings ratio of 30.07 indicates a quite expensive valuation of OLED.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OLED is on the same level as its industry peers.
OLED's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 20.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.05 | ||
| Fwd PE | 30.07 |
4.2 Price Multiples
65.42% of the companies in the same industry are more expensive than OLED, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OLED is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 151.34 | ||
| EV/EBITDA | 25.77 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of OLED may justify a higher PE ratio.
OLED's earnings are expected to grow with 24.85% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.5
PEG (5Y)1.37
EPS Next 2Y17.17%
EPS Next 3Y24.85%
5. Dividend
5.1 Amount
With a yearly dividend of 0.92%, OLED is not a good candidate for dividend investing.
OLED's Dividend Yield is rather good when compared to the industry average which is at 1.83. OLED pays more dividend than 81.31% of the companies in the same industry.
With a Dividend Yield of 0.92, OLED pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
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 Years6
Div Non Decr Years6
5.3 Sustainability
31.71% of the earnings are spent on dividend by OLED. This is a low number and sustainable payout ratio.
OLED's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.71%
EPS Next 2Y17.17%
EPS Next 3Y24.85%
UNIVERSAL DISPLAY CORP
NASDAQ:OLED (5/20/2024, 12:16:26 PM)
175.05
+1.91 (+1.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.30B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.92% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.05 | ||
| Fwd PE | 30.07 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.5
PEG (5Y)1.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.01% | ||
| ROE | 14.75% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 38.38% | ||
| PM (TTM) | 35.83% | ||
| GM | 76.84% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 9.7 | ||
| Quick Ratio | 7.88 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)10.05%
EPS 3Y14.83%
EPS 5Y
EPS growth Q2Q
EPS Next Y15.21%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.44%
Revenue growth 3Y10.36%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y