UNIVERSAL DISPLAY CORP (OLED) Stock Fundamental Analysis
NASDAQ:OLED - Nasdaq - US91347P1057 - Common Stock - Currency: USD
OLED gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 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 not overvalued while it is showing excellent growth. This is an interesting combination. This makes OLED very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
OLED had positive earnings in the past year.
In the past year OLED had a positive cash flow from operations.
OLED had positive earnings in each of the past 5 years.
OLED had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 15.33%, OLED belongs to the best of the industry, outperforming 88.18% of the companies in the same industry.
OLED has a better Return On Equity (17.23%) than 80.91% of its industry peers.
OLED's Return On Invested Capital of 14.48% is amongst the best of the industry. OLED outperforms 88.18% of its industry peers.
OLED had an Average Return On Invested Capital over the past 3 years of 12.91%. This is in line with the industry average of 11.17%.
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 Profit Margin of 35.13%. This is amongst the best in the industry. OLED outperforms 94.55% of its industry peers.
OLED's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 37.90%, OLED belongs to the top 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
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
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 22.50. This indicates that OLED is financially healthy and has little risk of bankruptcy at the moment.
OLED has a better Altman-Z score (22.50) than 90.91% 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 | 22.5 |
ROIC/WACC1.26
WACC11.45%
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.
Looking at the Current ratio, with a value of 9.00, OLED belongs to the top of the industry, outperforming 93.64% of the companies in the same industry.
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 93.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 9 | ||
| Quick Ratio | 7.26 |
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.
OLED shows a strong growth in Revenue. In the last year, the Revenue has grown by 33.16%.
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)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.
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 Y9.27%
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.
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
Based on the Price/Earnings ratio of 29.73, the valuation of OLED can be described as expensive.
Based on the Price/Earnings ratio, OLED is valued a bit cheaper than 60.91% of the companies in the same industry.
When comparing the Price/Earnings ratio of OLED to the average of the S&P500 Index (25.82), we can say OLED is valued inline with the index average.
With a Price/Forward Earnings ratio of 25.19, OLED can be considered very expensive at the moment.
OLED's Price/Forward Earnings is on the same level as the industry average.
OLED is valuated at similar levels of the S&P average 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 | 29.73 | ||
| Fwd PE | 25.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OLED is valued a bit cheaper than 69.09% of the companies in the same industry.
61.82% 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 | 41.48 | ||
| EV/EBITDA | 16.8 |
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 16.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.21
PEG (5Y)3.05
EPS Next 2Y10.51%
EPS Next 3Y16.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.18%, OLED has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.41, OLED pays a better dividend. On top of this OLED pays more dividend than 82.73% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, OLED's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
5.2 History
On average, the dividend of OLED grows each year by 32.14%, which is quite nice.
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.
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%
143.01
-2.49 (-1.71%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners83.75%
Inst Owner Change5.74%
Ins Owners6.9%
Ins Owner Change1.24%
Market Cap6.79B
Analysts78.89
Price Target179.69 (25.65%)
Short Float %3.32%
Short Ratio1.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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)-4.97%
PT rev (3m)-15.27%
EPS NQ rev (1m)8.62%
EPS NQ rev (3m)0.39%
EPS NY rev (1m)2.61%
EPS NY rev (3m)-5.12%
Revenue NQ rev (1m)2.61%
Revenue NQ rev (3m)-2.46%
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)-5.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.73 | ||
| Fwd PE | 25.19 | ||
| P/S | 8.34 | ||
| P/FCF | 41.48 | ||
| P/OCF | 32 | ||
| P/B | 4.09 | ||
| P/tB | 4.33 | ||
| EV/EBITDA | 16.8 |
EPS(TTM)4.81
EY3.36%
EPS(NY)5.68
Fwd EY3.97%
FCF(TTM)3.45
FCFY2.41%
OCF(TTM)4.47
OCFY3.12%
SpS17.15
BVpS34.96
TBVpS33.06
PEG (NY)3.21
PEG (5Y)3.05
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 | 22.5 |
F-Score5
WACC11.45%
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 Year23.24%
EBIT Next 3Y20.76%
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%