UNIVERSAL DISPLAY CORP (OLED) Stock Fundamental Analysis
NASDAQ:OLED - Nasdaq - US91347P1057 - Common Stock - Currency: USD
Overall OLED gets a fundamental rating of 7 out of 10. We evaluated OLED against 109 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! With these ratings, OLED could be worth investigating further 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.
Each year in the past 5 years OLED has been profitable.
In the past 5 years OLED always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 15.18%, OLED belongs to the top of the industry, outperforming 88.07% of the companies in the same industry.
OLED has a Return On Equity of 17.21%. This is amongst the best in the industry. OLED outperforms 80.73% of its industry peers.
The Return On Invested Capital of OLED (14.53%) is better than 88.07% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OLED is in line with the industry average of 11.32%.
The 3 year average ROIC (12.91%) for OLED is below the current ROIC(14.53%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.18% | ||
| ROE | 17.21% | ||
| ROIC | 14.53% |
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 34.22%, OLED belongs to the top of the industry, outperforming 94.50% of the companies in the same industry.
OLED's Profit Margin has been stable in the last couple of years.
OLED has a better Operating Margin (37.11%) than 96.33% of its industry peers.
In the last couple of years the Operating Margin of OLED has remained more or less at the same level.
OLED's Gross Margin of 76.74% is amongst the best of the industry. OLED outperforms 96.33% of its industry peers.
OLED's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.11% | ||
| PM (TTM) | 34.22% | ||
| GM | 76.74% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), OLED is creating some value.
Compared to 1 year ago, OLED has more shares outstanding
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 20.84 indicates that OLED is not in any danger for bankruptcy at the moment.
OLED's Altman-Z score of 20.84 is amongst the best of the industry. OLED outperforms 91.74% 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 | 20.84 |
ROIC/WACC1.54
WACC9.46%
2.3 Liquidity
A Current Ratio of 7.18 indicates that OLED has no problem at all paying its short term obligations.
The Current ratio of OLED (7.18) is better than 89.91% of its industry peers.
OLED has a Quick Ratio of 5.72. This indicates that OLED is financially healthy and has no problem in meeting its short term obligations.
OLED has a Quick ratio of 5.72. This is amongst the best in the industry. OLED outperforms 88.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 7.18 | ||
| Quick Ratio | 5.72 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.57% 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 9.75% on average per year.
Looking at the last year, OLED shows a quite strong growth in Revenue. The Revenue has grown by 12.36% in the last year.
OLED shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.83% yearly.
EPS 1Y (TTM)4.57%
EPS 3Y6.4%
EPS 5Y9.75%
EPS Q2Q%13.45%
Revenue 1Y (TTM)12.36%
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 Y6.49%
EPS Next 2Y13.54%
EPS Next 3Y23.03%
EPS Next 5Y20.56%
Revenue Next Year5.21%
Revenue Next 2Y9.46%
Revenue Next 3Y12.33%
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
The Price/Earnings ratio is 29.94, which means the current valuation is very expensive for OLED.
OLED's Price/Earnings ratio is in line with the industry average.
OLED is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.22, which is the current average of the S&P500 Index.
OLED is valuated rather expensively with a Price/Forward Earnings ratio of 24.03.
The rest of the industry has a similar Price/Forward Earnings ratio as OLED.
When comparing the Price/Forward Earnings ratio of OLED to the average of the S&P500 Index (20.86), we can say OLED is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.94 | ||
| Fwd PE | 24.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OLED is valued a bit cheaper than the industry average as 67.89% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, OLED is valued a bit cheaper than 70.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.39 | ||
| EV/EBITDA | 16.82 |
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.
A more expensive valuation may be justified as OLED's earnings are expected to grow with 23.03% in the coming years.
PEG (NY)4.61
PEG (5Y)3.07
EPS Next 2Y13.54%
EPS Next 3Y23.03%
5. Dividend
5.1 Amount
OLED has a Yearly Dividend Yield of 1.43%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.76, OLED pays a better dividend. On top of this OLED pays more dividend than 83.49% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, OLED's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
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
27.38% 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.
DP27.38%
EPS Next 2Y13.54%
EPS Next 3Y23.03%
144.02
+2.82 (+2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.75%
Inst Owner Change-0.22%
Ins Owners6.9%
Ins Owner Change1.26%
Market Cap6.84B
Analysts78.89
Price Target175.89 (22.13%)
Short Float %3.73%
Short Ratio1.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.43% |
Yearly Dividend1.61
Dividend Growth(5Y)32.14%
DP27.38%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.16%
Min EPS beat(2)-11.27%
Max EPS beat(2)15.59%
EPS beat(4)2
Avg EPS beat(4)1.59%
Min EPS beat(4)-11.27%
Max EPS beat(4)15.59%
EPS beat(8)5
Avg EPS beat(8)7.13%
EPS beat(12)8
Avg EPS beat(12)8.17%
EPS beat(16)9
Avg EPS beat(16)6.78%
Revenue beat(2)1
Avg Revenue beat(2)1.03%
Min Revenue beat(2)-4%
Max Revenue beat(2)6.06%
Revenue beat(4)2
Avg Revenue beat(4)1.75%
Min Revenue beat(4)-4%
Max Revenue beat(4)7.48%
Revenue beat(8)3
Avg Revenue beat(8)0.25%
Revenue beat(12)6
Avg Revenue beat(12)0.87%
Revenue beat(16)7
Avg Revenue beat(16)0.95%
PT rev (1m)-9.77%
PT rev (3m)-19.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.53%
EPS NY rev (1m)-0.4%
EPS NY rev (3m)-9.17%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.58%
Revenue NY rev (1m)-0.79%
Revenue NY rev (3m)-5.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.94 | ||
| Fwd PE | 24.03 | ||
| P/S | 8.41 | ||
| P/FCF | 32.39 | ||
| P/OCF | 26.94 | ||
| P/B | 4.23 | ||
| P/tB | 4.49 | ||
| EV/EBITDA | 16.82 |
EPS(TTM)4.81
EY3.34%
EPS(NY)5.99
Fwd EY4.16%
FCF(TTM)4.45
FCFY3.09%
OCF(TTM)5.35
OCFY3.71%
SpS17.13
BVpS34.05
TBVpS32.06
PEG (NY)4.61
PEG (5Y)3.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.18% | ||
| ROE | 17.21% | ||
| ROCE | 17.67% | ||
| ROIC | 14.53% | ||
| ROICexc | 20.42% | ||
| ROICexgc | 22.15% | ||
| OM | 37.11% | ||
| PM (TTM) | 34.22% | ||
| GM | 76.74% | ||
| FCFM | 25.97% |
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-Score6
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 96.59% | ||
| Cap/Sales | 5.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 73.37% | ||
| Profit Quality | 75.88% | ||
| Current Ratio | 7.18 | ||
| Quick Ratio | 5.72 | ||
| Altman-Z | 20.84 |
F-Score6
WACC9.46%
ROIC/WACC1.54
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 Y6.49%
EPS Next 2Y13.54%
EPS Next 3Y23.03%
EPS Next 5Y20.56%
Revenue 1Y (TTM)12.36%
Revenue growth 3Y5.38%
Revenue growth 5Y9.83%
Sales Q2Q%0.62%
Revenue Next Year5.21%
Revenue Next 2Y9.46%
Revenue Next 3Y12.33%
Revenue Next 5Y17.1%
EBIT growth 1Y38.93%
EBIT growth 3Y1.61%
EBIT growth 5Y8.57%
EBIT Next Year23.24%
EBIT Next 3Y20.76%
EBIT Next 5YN/A
FCF growth 1Y642.75%
FCF growth 3Y12.69%
FCF growth 5Y5.26%
OCF growth 1Y63.94%
OCF growth 3Y9.91%
OCF growth 5Y5.53%