UNIVERSAL DISPLAY CORP (OLED) Stock Fundamental Analysis
NASDAQ:OLED - Nasdaq - US91347P1057 - Common Stock - Currency: USD
OLED gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 110 industry peers in the Semiconductors & Semiconductor Equipment industry. OLED gets an excellent profitability rating and is at the same time showing great financial health properties. OLED is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, OLED could be worth investigating further 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.
Each year in the past 5 years OLED has been profitable.
OLED had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
OLED's Return On Assets of 12.65% is amongst the best of the industry. OLED outperforms 85.45% of its industry peers.
OLED's Return On Equity of 14.25% is fine compared to the rest of the industry. OLED outperforms 80.00% of its industry peers.
OLED's Return On Invested Capital of 11.73% is amongst the best of the industry. OLED outperforms 83.64% 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 10.86%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.65% | ||
| ROE | 14.25% | ||
| ROIC | 11.73% |
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 36.90%. This is amongst the best in the industry. OLED outperforms 95.45% of its industry peers.
OLED's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 38.93%, 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.
OLED has a Gross Margin of 77.19%. This is amongst the best in the industry. OLED outperforms 96.36% of its industry peers.
OLED's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.93% | ||
| PM (TTM) | 36.9% | ||
| GM | 77.19% |
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
Compared to 5 years ago, OLED has about the same amount of shares outstanding.
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 20.66 indicates that OLED is not in any danger for bankruptcy at the moment.
OLED has a Altman-Z score of 20.66. This is amongst the best in the industry. OLED outperforms 90.91% 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 | 20.66 |
ROIC/WACC1.02
WACC11.47%
2.3 Liquidity
OLED has a Current Ratio of 8.05. This indicates that OLED is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of OLED (8.05) is better than 90.00% of its industry peers.
A Quick Ratio of 6.39 indicates that OLED has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 6.39, OLED belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.05 | ||
| Quick Ratio | 6.39 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.87% 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 very negative growth in Revenue. In the last year, the Revenue has decreased by -16.04%.
The Revenue has been growing by 9.83% on average over the past years. This is quite good.
EPS 1Y (TTM)9.87%
EPS 3Y6.4%
EPS 5Y9.75%
EPS Q2Q%28.18%
Revenue 1Y (TTM)-16.04%
Revenue growth 3Y5.38%
Revenue growth 5Y9.83%
Sales Q2Q%8.38%
3.2 Future
Based on estimates for the next years, OLED will show a very strong growth in Earnings Per Share. The EPS will grow by 20.56% on average per year.
OLED is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.10% yearly.
EPS Next Y10.06%
EPS Next 2Y11.71%
EPS Next 3Y20.87%
EPS Next 5Y20.56%
Revenue Next Year5.63%
Revenue Next 2Y8.62%
Revenue Next 3Y11.75%
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 27.63, which means the current valuation is very expensive for OLED.
65.45% of the companies in the same industry are more expensive than OLED, based on the Price/Earnings ratio.
OLED is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
OLED is valuated rather expensively with a Price/Forward Earnings ratio of 24.38.
OLED's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.29, OLED is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.63 | ||
| Fwd PE | 24.38 |
4.2 Price Multiples
OLED's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. OLED is cheaper than 69.09% of the companies in the same industry.
OLED's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. OLED is cheaper than 64.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.95 | ||
| EV/EBITDA | 19.1 |
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.
The excellent profitability rating of OLED 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)2.75
PEG (5Y)2.83
EPS Next 2Y11.71%
EPS Next 3Y20.87%
5. Dividend
5.1 Amount
OLED has a Yearly Dividend Yield of 1.25%.
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 | 1.25% |
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
32.87% 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.
DP32.87%
EPS Next 2Y11.71%
EPS Next 3Y20.87%
141.47
-2.11 (-1.47%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners86.49%
Inst Owner Change0.78%
Ins Owners6.95%
Ins Owner Change1.39%
Market Cap6.72B
Analysts80
Price Target184.26 (30.25%)
Short Float %3.74%
Short Ratio3.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Yearly Dividend1.61
Dividend Growth(5Y)32.14%
DP32.87%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.19%
Min EPS beat(2)19.17%
Max EPS beat(2)21.2%
EPS beat(4)3
Avg EPS beat(4)11.17%
Min EPS beat(4)-11.27%
Max EPS beat(4)21.2%
EPS beat(8)6
Avg EPS beat(8)7.69%
EPS beat(12)9
Avg EPS beat(12)12.55%
EPS beat(16)10
Avg EPS beat(16)7.53%
Revenue beat(2)2
Avg Revenue beat(2)4.59%
Min Revenue beat(2)4.45%
Max Revenue beat(2)4.74%
Revenue beat(4)3
Avg Revenue beat(4)2.81%
Min Revenue beat(4)-4%
Max Revenue beat(4)6.06%
Revenue beat(8)4
Avg Revenue beat(8)0.67%
Revenue beat(12)7
Avg Revenue beat(12)2.4%
Revenue beat(16)8
Avg Revenue beat(16)0.98%
PT rev (1m)2.54%
PT rev (3m)2.54%
EPS NQ rev (1m)-2.26%
EPS NQ rev (3m)-5.96%
EPS NY rev (1m)0%
EPS NY rev (3m)0.72%
Revenue NQ rev (1m)-1.97%
Revenue NQ rev (3m)-4.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.63 | ||
| Fwd PE | 24.38 | ||
| P/S | 10.16 | ||
| P/FCF | 46.95 | ||
| P/OCF | 34.12 | ||
| P/B | 3.92 | ||
| P/tB | 4.13 | ||
| EV/EBITDA | 19.1 |
EPS(TTM)5.12
EY3.62%
EPS(NY)5.8
Fwd EY4.1%
FCF(TTM)3.01
FCFY2.13%
OCF(TTM)4.15
OCFY2.93%
SpS13.93
BVpS36.07
TBVpS34.28
PEG (NY)2.75
PEG (5Y)2.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.65% | ||
| ROE | 14.25% | ||
| ROCE | 14.27% | ||
| ROIC | 11.73% | ||
| ROICexc | 16.54% | ||
| ROICexgc | 17.72% | ||
| OM | 38.93% | ||
| PM (TTM) | 36.9% | ||
| GM | 77.19% | ||
| FCFM | 21.64% |
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 Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 121.13% | ||
| Cap/Sales | 8.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.22% | ||
| Profit Quality | 58.63% | ||
| Current Ratio | 8.05 | ||
| Quick Ratio | 6.39 | ||
| Altman-Z | 20.66 |
F-Score5
WACC11.47%
ROIC/WACC1.02
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)9.87%
EPS 3Y6.4%
EPS 5Y9.75%
EPS Q2Q%28.18%
EPS Next Y10.06%
EPS Next 2Y11.71%
EPS Next 3Y20.87%
EPS Next 5Y20.56%
Revenue 1Y (TTM)-16.04%
Revenue growth 3Y5.38%
Revenue growth 5Y9.83%
Sales Q2Q%8.38%
Revenue Next Year5.63%
Revenue Next 2Y8.62%
Revenue Next 3Y11.75%
Revenue Next 5Y17.1%
EBIT growth 1Y-12.74%
EBIT growth 3Y1.61%
EBIT growth 5Y8.57%
EBIT Next Year27.44%
EBIT Next 3Y20.77%
EBIT Next 5YN/A
FCF growth 1Y778.82%
FCF growth 3Y12.69%
FCF growth 5Y5.26%
OCF growth 1Y100.89%
OCF growth 3Y9.91%
OCF growth 5Y5.53%