NasdaqGS:OLED

Stock Analysis Report

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Market Cap

US$10.2b

Last Updated

2021/06/24 02:17 UTC

Data Sources

Company Financials +

Executive Summary

Universal Display Corporation engages in the research, development, and commercialization of organic light emitting diode (OLED) technologies and materials for use in display and solid-state lighting applications. More Details


Snowflake Analysis

Exceptional growth potential with flawless balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: OLED is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: OLED's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

2.1%

OLED

0.9%

US Semiconductor

0.5%

US Market


1 Year Return

46.0%

OLED

59.4%

US Semiconductor

42.6%

US Market

Return vs Industry: OLED underperformed the US Semiconductor industry which returned 59.4% over the past year.

Return vs Market: OLED exceeded the US Market which returned 42.6% over the past year.


Shareholder returns

OLEDIndustryMarket
7 Day2.1%0.9%0.5%
30 Day1.4%4.8%1.9%
90 Day-4.7%10.7%7.9%
1 Year46.4%46.0%61.7%59.4%44.9%42.6%
3 Year169.5%167.2%128.3%116.7%64.4%54.1%
5 Year229.5%225.9%332.1%291.1%128.3%102.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

69.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: OLED ($215.73) is trading above our estimate of fair value ($122.7)

Significantly Below Fair Value: OLED is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: OLED is poor value based on its PE Ratio (69.9x) compared to the US Semiconductor industry average (33.5x).

PE vs Market: OLED is poor value based on its PE Ratio (69.9x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: OLED is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: OLED is overvalued based on its PB Ratio (10.8x) compared to the US Semiconductor industry average (4.6x).


Future Growth

How is Universal Display forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

26.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OLED's forecast earnings growth (26.7% per year) is above the savings rate (2%).

Earnings vs Market: OLED's earnings (26.7% per year) are forecast to grow faster than the US market (15.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: OLED's revenue (20.8% per year) is forecast to grow faster than the US market (9.5% per year).

High Growth Revenue: OLED's revenue (20.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OLED's Return on Equity is forecast to be high in 3 years time (21.9%)


Past Performance

How has Universal Display performed over the past 5 years?

22.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OLED has high quality earnings.

Growing Profit Margin: OLED's current net profit margins (32.4%) are lower than last year (33.5%).


Past Earnings Growth Analysis

Earnings Trend: OLED's earnings have grown significantly by 22.9% per year over the past 5 years.

Accelerating Growth: OLED's earnings growth over the past year (1.4%) is below its 5-year average (22.9% per year).

Earnings vs Industry: OLED earnings growth over the past year (1.4%) underperformed the Semiconductor industry 48.9%.


Return on Equity

High ROE: OLED's Return on Equity (15.4%) is considered low.


Financial Health

How is Universal Display's financial position?


Financial Position Analysis

Short Term Liabilities: OLED's short term assets ($959.3M) exceed its short term liabilities ($166.3M).

Long Term Liabilities: OLED's short term assets ($959.3M) exceed its long term liabilities ($191.7M).


Debt to Equity History and Analysis

Debt Level: OLED is debt free.

Reducing Debt: OLED has not had any debt for past 5 years.

Debt Coverage: OLED has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: OLED has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Universal Display current dividend yield, its reliability and sustainability?

0.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OLED's dividend (0.37%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.3%).

High Dividend: OLED's dividend (0.37%) is low compared to the top 25% of dividend payers in the US market (3.46%).


Stability and Growth of Payments

Stable Dividend: OLED is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: OLED is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: OLED is not paying a notable dividend for the US market.


Future Payout to Shareholders

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


Next Steps

Management

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

13.5yrs

Average management tenure


CEO

Steve Abramson (68 yo)

13.5yrs

Tenure

US$18,246,271

Compensation

Mr. Steven V. Abramson, also known as Steve, has been the Chief Executive Officer and President of Universal Display Corporation since December 2007 and May 1996 respectively. Mr. Abramson served as the Pr...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD18.25M) is above average for companies of similar size in the US market ($USD11.28M).

Compensation vs Earnings: Steve's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: OLED's management team is seasoned and experienced (13.5 years average tenure).


Board Members

Experienced Board: OLED's board of directors are seasoned and experienced ( 20.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: OLED insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Universal Display Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Universal Display Corporation
  • Ticker: OLED
  • Exchange: NasdaqGS
  • Founded: 1985
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$10.169b
  • Shares outstanding: 47.14m
  • Website: https://oled.com

Number of Employees


Location

  • Universal Display Corporation
  • 375 Phillips Boulevard
  • Ewing
  • New Jersey
  • 8618
  • United States

Listings


Biography

Universal Display Corporation engages in the research, development, and commercialization of organic light emitting diode (OLED) technologies and materials for use in display and solid-state lighting appli...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/24 02:17
End of Day Share Price2021/06/23 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.