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. Both the health and profitability get an excellent rating, making OLED a very profitable company, without any liquidiy or solvency issues. OLED is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make OLED a good candidate 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.
Each year in the past 5 years OLED had a positive operating cash flow.
1.2 Ratios
OLED's Return On Assets of 15.33% is amongst the best of the industry. OLED outperforms 88.18% of its industry peers.
The Return On Equity of OLED (17.23%) is better than 80.00% of its industry peers.
OLED has a better Return On Invested Capital (14.48%) than 87.27% 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 10.57%.
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
Looking at the Profit Margin, with a value of 35.13%, OLED belongs to the top of the industry, outperforming 94.55% 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 (37.90%) than 95.45% of its industry peers.
In the last couple of years the Operating Margin of OLED has remained more or less at the same level.
With an excellent Gross Margin value of 76.81%, OLED belongs to the best of the industry, outperforming 96.36% of the companies in the same industry.
OLED's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for OLED has been increased compared to 1 year ago.
OLED has about the same amout of shares outstanding than it did 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 23.66. This indicates that OLED is financially healthy and has little risk of bankruptcy at the moment.
OLED has a better Altman-Z score (23.66) than 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 | 23.66 |
ROIC/WACC1.44
WACC10.02%
2.3 Liquidity
A Current Ratio of 9.00 indicates that OLED has no problem at all paying its short term obligations.
OLED has a Current ratio of 9.00. This is amongst the best in the industry. OLED outperforms 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.
The Quick ratio of OLED (7.26) is better than 91.82% 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.
The Earnings Per Share has been growing by 9.75% on average over the past years. This is quite good.
Looking at the last year, OLED shows a very strong growth in Revenue. 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
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.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 31.92, 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.
OLED's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.31.
The Price/Forward Earnings ratio is 27.04, which means the current valuation is very expensive for OLED.
OLED's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of OLED to the average of the S&P500 Index (22.13), we can say OLED is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.92 | ||
| Fwd PE | 27.04 |
4.2 Price Multiples
OLED's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. OLED is cheaper than 70.00% 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 60.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.62 | ||
| EV/EBITDA | 17.92 |
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.
A more expensive valuation may be justified as OLED's earnings are expected to grow with 16.51% in the coming years.
PEG (NY)3.44
PEG (5Y)3.27
EPS Next 2Y10.51%
EPS Next 3Y16.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.13%, OLED has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.52, 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 1.13, OLED pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
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
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 2Y10.51%
EPS Next 3Y16.51%
153.52
-5.61 (-3.53%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners86.78%
Inst Owner Change4.73%
Ins Owners6.94%
Ins Owner Change1.21%
Market Cap7.30B
Analysts78.89
Price Target179.69 (17.05%)
Short Float %4.02%
Short Ratio2.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
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)0%
PT rev (3m)-7.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.62%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.92 | ||
| Fwd PE | 27.04 | ||
| P/S | 8.97 | ||
| P/FCF | 44.62 | ||
| P/OCF | 34.42 | ||
| P/B | 4.4 | ||
| P/tB | 4.65 | ||
| EV/EBITDA | 17.92 |
EPS(TTM)4.81
EY3.13%
EPS(NY)5.68
Fwd EY3.7%
FCF(TTM)3.44
FCFY2.24%
OCF(TTM)4.46
OCFY2.9%
SpS17.11
BVpS34.88
TBVpS32.99
PEG (NY)3.44
PEG (5Y)3.27
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 | 23.66 |
F-Score5
WACC10.02%
ROIC/WACC1.44
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 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%