NasdaqGS:OLED

Stock Analysis Report

Executive Summary

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

Rewards

Earnings are forecast to grow 26.54% per year

Earnings grew by 82% over the past year

Risk Analysis

No risks detected for OLED from our risk checks.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.9%

OLED

0.7%

US Semiconductor

0.06%

US Market


1 Year Return

19.6%

OLED

40.4%

US Semiconductor

19.3%

US Market

Return vs Industry: OLED exceeded the US Semiconductor industry which returned 40.4% over the past year.

Return vs Market: OLED exceeded the US Market which returned 19.3% over the past year.


Shareholder returns

OLEDIndustryMarket
7 Day-1.9%0.7%0.06%
30 Day-17.4%3.2%1.7%
90 Day-9.6%16.7%9.0%
1 Year19.9%19.6%43.1%40.4%21.8%19.3%
3 Year116.5%115.3%96.2%85.6%49.5%39.9%
5 Year409.8%407.0%157.0%132.4%73.1%54.1%

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?

59.21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: OLED ($178.77) is trading above our estimate of fair value ($116.72)

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 (64.5x) compared to the Semiconductor industry average (38.2x).

PE vs Market: OLED is poor value based on its PE Ratio (64.5x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: OLED is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: OLED is overvalued based on its PB Ratio (10.8x) compared to the US Semiconductor industry average (3.2x).


Next Steps

Future Growth

How is Universal Display forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

28.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OLED's forecast earnings growth (26.5% per year) is above the savings rate (1.7%).

Earnings vs Market: OLED's earnings (26.5% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: OLED's revenue (21% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: OLED's revenue (21% 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 (21.3%)


Next Steps

Past Performance

How has Universal Display performed over the past 5 years?

33.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OLED has high quality earnings.

Growing Profit Margin: OLED's current net profit margins (34.8%) are higher than last year (24.4%).


Past Earnings Growth Analysis

Earnings Trend: OLED's earnings have grown significantly by 25.6% per year over the past 5 years.

Accelerating Growth: OLED's earnings growth over the past year (82%) exceeds its 5-year average (25.6% per year).

Earnings vs Industry: OLED earnings growth over the past year (82%) exceeded the Semiconductor industry -28%.


Return on Equity

High ROE: OLED's Return on Equity (16.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Universal Display's financial position?


Financial Position Analysis

Short Term Liabilities: OLED's short term assets ($731.0M) exceed its short term liabilities ($148.4M).

Long Term Liabilities: OLED's short term assets ($731.0M) exceed its long term liabilities ($127.6M).


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

Inventory Level: OLED has a low level of unsold assets or inventory.

Debt Coverage by Assets: OLED's debt is covered by short term assets (assets are 4.1152542315022E+17x debt).


Next Steps

Dividend

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

0.23%

Current Dividend Yield


Dividend Yield vs Market

company0.2%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years0.4%

Current dividend yield vs market & industry

Notable Dividend: OLED's dividend (0.22%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: OLED's dividend (0.22%) is low compared to the top 25% of dividend payers in the US market (3.71%).


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?

17.7yrs

Average management tenure


CEO

Steve Abramson (67yo)

12.1yrs

Tenure

US$6,879,849

Compensation

Mr. Steven V. Abramson, also known as Steve, has been the Chief Executive Officer and President of Universal Display Corporation since January 2008 and May 1996 respectively. Mr. Abramson served as the Chi ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD6.88M) is about average for companies of similar size in the US market ($USD6.36M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Sherwin Seligsohn
Founder & Chairman24.7yrsUS$1.32m6.77% $556.2m
Steven Abramson
President12.1yrsUS$6.88m0.44% $36.5m
Sidney Rosenblatt
Executive VP23.8yrsUS$6.20m0.66% $54.0m
Julia Brown
Senior VP & CTO17.7yrsUS$3.45m0.19% $15.4m
Mauro Premutico
VP of Legal and GM of Patents & Licensing7.8yrsUS$1.85m0.11% $9.3m
Darice Liu
Director of Investor Relations & Corporate Communications0yrsno datano data
Michael Hack
Vice President of Business Development20.3yrsUS$1.07mno data

17.7yrs

Average Tenure

64.5yo

Average Age

Experienced Management: OLED's management team is seasoned and experienced (17.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sherwin Seligsohn
Founder & Chairman24.7yrsUS$1.32m6.77% $556.2m
Steven Abramson
President12.1yrsUS$6.88m0.44% $36.5m
Sidney Rosenblatt
Executive VP23.8yrsUS$6.20m0.66% $54.0m
Elizabeth Gemmill
Lead Independent Director2yrsUS$270.04k0.25% $20.7m
C. Hartley
Independent Director19.4yrsUS$262.54k0.19% $16.0m
Lawrence Lacerte
Independent Director20.3yrsUS$257.54k0.56% $46.0m
Stephen Forrest
Member of the Scientific Advisory Board0yrsno datano data
Cynthia Comparin
Independent Director0.08yrsno datano data
Richard Elias
Independent Director5.8yrsUS$252.54k0.050% $4.1m
Mark Thompson
Member of the Scientific Advisory Board0yrsno datano data

19.9yrs

Average Tenure

69yo

Average Age

Experienced Board: OLED's board of directors are seasoned and experienced ( 19.9 years average tenure).


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.


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$8.215b
  • Shares outstanding: 47.11m
  • Website: https://oled.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OLEDNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 1996
UVDDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1996
0LJELSE (London Stock Exchange)YesCommon StockGBUSDApr 1996
UVDBRSE (Berne Stock Exchange)YesCommon StockCHCHFApr 1996
OLED *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNApr 1996

Biography

Universal Display Corporation engages in the research, development, and commercialization of organic light emitting diode (OLED) technologies and materials for use in flat panel displays and solid-state lighting applications. As of February 21, 2019, it owned or had exclusive and co-exclusive licenses, or had sole license rights with respect to approximately 5,000 issued and pending patents worldwide. The company licenses and supplies its proprietary UniversalPHOLED materials to display and lighting manufacturers, and others. It is also involved in the research, development, and commercialization of other OLED device and manufacturing technologies, including FOLED that are flexible OLEDs for the fabrication of OLEDs on flexible substrates; encapsulation technology for the packaging of flexible OLEDs and other thin-film devices, as well as for use as a barrier film for plastic substrates; UniversalP2OLED, which are printable phosphorescent OLEDs; OVJP, an organic vapor jet printing technology; OVPD, an organic vapor phase deposition process for manufacturing a small molecule OLED; and TOLED, which are transparent OLEDs for the fabrication of OLEDs that have transparent cathodes. In addition, the company provides technology development and support services, including government contract work and support provided to third parties for the commercialization of their OLED products. Universal Display Corporation has strategic relationships with Samsung Display Co., Ltd.; LG Display Co., Ltd.; BOE Technology Group Co., Ltd.; Tianma Micro-electronics Co., Ltd.; AU Optronics Corporation; EverDisplay Optronics (Shanghai) Limited; Konica Minolta Holdings Inc.; Sumitomo Chemical Company, Ltd.; OLEDWorks GmbH; and Kaneka Corporation, as well as a research and development collaboration with Merck KGaA to develop OLED stacks for OLED manufacturers. The company was founded in 1985 and is headquartered in Ewing, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 00:56
End of Day Share Price2020/02/21 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.