Universal Display Corporation
Universal Display Corporation Fundamental Analysis
Universal Display Corporation (OLED) shows strong financial fundamentals with a PE ratio of 18.47, profit margin of 37.21%, and ROE of 14.07%. The company generates $0.7B in annual revenue with strong year-over-year growth of 12.36%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze OLED's fundamental strength across five key dimensions:
Efficiency Score
ExcellentOLED demonstrates superior asset utilization.
Valuation Score
ModerateOLED shows balanced valuation metrics.
Growth Score
ModerateOLED shows steady but slowing expansion.
Financial Health Score
ExcellentOLED maintains a strong and stable balance sheet.
Profitability Score
ModerateOLED maintains healthy but balanced margins.
Key Financial Metrics
Is OLED Expensive or Cheap?
P/E Ratio
OLED trades at 18.47 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, OLED's PEG of 2.00 indicates potential overvaluation.
Price to Book
The market values Universal Display Corporation at 2.54 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 14.46 times EBITDA. This signals the market has high growth expectations.
How Well Does OLED Make Money?
Net Profit Margin
For every $100 in sales, Universal Display Corporation keeps $37.21 as profit after all expenses.
Operating Margin
Core operations generate 38.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.07 in profit for every $100 of shareholder equity.
ROA
Universal Display Corporation generates $12.27 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Universal Display Corporation generates strong operating cash flow of $210.74M, reflecting robust business health.
Free Cash Flow
Universal Display Corporation generates strong free cash flow of $154.29M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.25 in free cash annually.
FCF Yield
OLED converts 3.46% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.47
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.001
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.54
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.87
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
10.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How OLED Stacks Against Its Sector Peers
| Metric | OLED Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.47 | 34.43 | Better (Cheaper) |
| ROE | 14.07% | 1135.00% | Weak |
| Net Margin | 37.21% | -134663.00% (disorted) | Strong |
| Debt/Equity | 0.02 | 7.92 | Strong (Low Leverage) |
| Current Ratio | 10.06 | 5.77 | Strong Liquidity |
| ROA | 12.27% | -310462.00% (disorted) | Strong |
OLED outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Universal Display Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
57.87%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
58.58%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
29.23%
Industry Style: Growth, Innovation, High Beta
High Growth