WBAG:LGA

Stock Analysis Report

Executive Summary

LG Display Co., Ltd. manufactures and sells thin-film transistor liquid crystal display (TFT-LCD) and organic light emitting diode (OLED) technology-based display panels in South Korea, China, rest of Asia, Poland, other European countries, and the United States.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has LG Display's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LGA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-10.3%

LGA

-8.9%

AT Electronic

-9.4%

AT Market


1 Year Return

-37.3%

LGA

15.3%

AT Electronic

-6.4%

AT Market

Return vs Industry: LGA underperformed the Austrian Electronic industry which returned 15.3% over the past year.

Return vs Market: LGA underperformed the Austrian Market which returned -6.4% over the past year.


Shareholder returns

LGAIndustryMarket
7 Day-10.3%-8.9%-9.4%
30 Day-7.1%-4.1%-8.7%
90 Day-7.9%-1.2%-9.6%
1 Year-37.3%-37.3%17.4%15.3%-3.0%-6.4%
3 Yearn/a37.8%31.1%12.8%2.7%
5 Yearn/a85.6%69.3%36.7%17.7%

Price Volatility Vs. Market

How volatile is LG Display's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is LG Display undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LGA (€5.4) is trading below our estimate of fair value (€21.04)

Significantly Below Fair Value: LGA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LGA is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.

PE vs Market: LGA is unprofitable, so we can't compare its PE Ratio to the Austrian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LGA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LGA is good value based on its PB Ratio (0.4x) compared to the XE Electronic industry average (2x).


Next Steps

Future Growth

How is LG Display forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

126.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LGA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.1%).

Earnings vs Market: LGA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: LGA's is expected to become profitable in the next 3 years.

Revenue vs Market: LGA's revenue (2.3% per year) is forecast to grow slower than the Austrian market (2.5% per year).

High Growth Revenue: LGA's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LGA's Return on Equity is forecast to be low in 3 years time (0.7%).


Next Steps

Past Performance

How has LG Display performed over the past 5 years?

-44.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LGA is currently unprofitable.

Growing Profit Margin: LGA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LGA is unprofitable, and losses have increased over the past 5 years at a rate of -44.6% per year.

Accelerating Growth: Unable to compare LGA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LGA is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (7.6%).


Return on Equity

High ROE: LGA has a negative Return on Equity (-20.05%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is LG Display's financial position?


Financial Position Analysis

Short Term Liabilities: LGA's short term assets (₩10,779.6B) exceed its short term liabilities (₩10,640.8B).

Long Term Liabilities: LGA's short term assets (₩10,779.6B) do not cover its long term liabilities (₩12,476.3B).


Debt to Equity History and Analysis

Debt Level: LGA's debt to equity ratio (93.8%) is considered high.

Reducing Debt: LGA's debt to equity ratio has increased from 36% to 93.8% over the past 5 years.


Balance Sheet

Inventory Level: LGA has a high level of physical assets or inventory.

Debt Coverage by Assets: LGA's debt is not covered by short term assets (assets are 0.8x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: LGA has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: LGA has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is LG Display's current dividend yield, its reliability and sustainability?

0.55%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.6%markettop25%5.0%industryaverage1.7%forecastin3Years0.6%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate LGA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate LGA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LGA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LGA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: LGA is not paying a notable dividend for the Austrian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LGA's dividend in 3 years as they are not forecast to pay a notable one for the Austrian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average board tenure


CEO

James Jeong (58yo)

0.4yrs

Tenure

₩119,000,000

Compensation

Mr. Ho-Young Jeong, also known as James, serves as the Chief Executive Officer of LG Display Co. Ltd. since September 18, 2019. He also serves as President, Chief Financial Officer and Internal Accounting  ...


Board Members

NamePositionTenureCompensationOwnership
Dong-Hee Suh
CFO, Senior VP & Director0.9yrsno data0.0014% 51.3k
Young-Soo Kwon
Chairman0yrsno datano data
Sang-Beom Han
Vice Chairman0yrs₩2.81b0.015% 552.7k
Sung-Sik Hwang
Outside Director5.1yrsno datano data
Kun Han
Outside Director3.9yrsno datano data
Byoung Lee
Outside Director1.9yrsno datano data
Chang-Yang Lee
Outside Director0.9yrsno datano data

1.9yrs

Average Tenure

62yo

Average Age

Experienced Board: LGA's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

LG Display Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LG Display Co., Ltd.
  • Ticker: LGA
  • Exchange: WBAG
  • Founded: 1985
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: ₩4.866t
  • Listing Market Cap: ₩3.663b
  • Shares outstanding: 357.82m
  • Website: https://www.lgdisplay.com

Number of Employees


Location

  • LG Display Co., Ltd.
  • LG Twin Towers
  • 128 Yeoui-daero
  • Seoul
  • 7336
  • South Korea

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LPLNYSE (New York Stock Exchange)ADR EA REP 1/2 KRW5000USUSDJul 2004
LGADB (Deutsche Boerse AG)ADR EA REP 1/2 KRW5000DEEURJul 2004
LGAWBAG (Wiener Boerse AG)ADR EA REP 1/2 KRW5000ATEURJul 2004
A034220KOSE (Korea Stock Exchange)YesCommon StockKRKRWJul 2004

Biography

LG Display Co., Ltd. manufactures and sells thin-film transistor liquid crystal display (TFT-LCD) and organic light emitting diode (OLED) technology-based display panels in South Korea, China, rest of Asia, Poland, other European countries, and the United States. Its TFT-LCD and OLED technology-based display panels are used primarily in televisions, notebook computers, desktop monitors, tablet computers, and mobile devices. The company also provides display panels for industrial and other applications, including entertainment systems, automotive displays, portable navigation devices, and medical diagnostic equipment. The company was formerly known as LG.Philips LCD Co., Ltd. and changed its name to LG Display Co., Ltd. in March 2008. LG Display Co., Ltd. was founded in 1985 and is headquartered in Seoul, South Korea. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/29 00:28
End of Day Share Price2020/02/28 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.