OLED

Universal Display Corporation

Fundamental data last updated:November 6, 2026

We may earn a commission from partner links. This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate.

company profile

SECTOR

Technology

industry

Hardware, Equipment & Parts

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

02/25/2027

Business Summary

Universal Display Corporation is dedicated to the investigation, advancement, and market deployment of organic light-emitting diode (OLED) innovations and their constituent materials, primarily for use in display and solid-state illumination applications. The company safeguards its intellectual property with a vast global portfolio of roughly 5,500 patents, encompassing both granted and pending applications, which it either owns outright, licenses exclusively, or holds sole sublicensing authority over. Manufacturers of displays, lighting, and other goods procure its specialized UniversalPHOLED materials. Beyond these core offerings, Universal Display actively cultivates and commercializes a diverse array of other OLED device and production methodologies. Notable among these are FOLED (flexible OLEDs for crafting devices on pliable substrates), OVJP (an organic vapor jet printing technique), thin-film encapsulation (critical for packaging flexible OLEDs and other thin-film components, as well as serving as a protective barrier for plastic bases), and UniversalP2OLED (phosphorescent OLEDs designed for printing). The corporation also extends technology development and support services, collaborating with and assisting external entities in launching their OLED products. Furthermore, it undertakes contract research initiatives, delving into the synthesis, development, and commercialization of chemical materials for uses outside the OLED domain. Established in 1985, Universal Display Corporation maintains its primary corporate offices in Ewing, New Jersey.

 


VALUATION

P/E

16.89

Market Cap ($M USD)

$3.84B

Forward P/E

19.97

PEG

-1.11

PRICE TO SALES

6.12

PRICE TO BOOK

2.30

EV / EBITDA

11.99

5-Year Average P/E

Free Cash Flow Yield

5.76%

DCF Value

$45.32

Graham Number

$64.25

Price to FCF

17.34

EV to FCF

16.93

Earnings Yield

6.02%

FCF Yield

5.76%

DIVIDEND

Yield

2.33%

Annual Payout

$1.95

Payout Ratio

39.33%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$5.04

Next Year EPS Growth Estimate

$4.19

Next Year Revenue Growth Estimate

$630.26M

Return on Equity (ROE)

13.54%

FREE CASH FLOW

Operating Margin

34.62%

Debt-to-Equity

0.00

Piotroski F-Score

5

Altman Z-Score

13.89

Return on Invested Capital (ROIC)

10.10%

Current Ratio

7.56

Quick Ratio

5.57

Net Debt to EBITDA

-0.30

Interest Coverage

0.00

Gross Profit margin

74.94%

FCF PER SHARE

$4.84

REVENUE PER SHARE

$13.72

Gainseekers Quantitative Analysis

Summary

OLED Universal Display Corporation’s current valuation paints a complex picture. Despite a Forward P/E of 15.14 suggesting potential undervaluation, the stock’s trading price has been significantly above its DCF value, indicating market optimism or overextension. The Altman Z-score of 15.63 underscores financial stability, while a robust Earnings Yield of 4.94% suggests decent returns relative to its price. However, the Graham Number is notably lower than the snapshot price, hinting at possible overvaluation. Overall, the market may be pricing in future growth that has yet to materialize.

AI Exposure / Tech Reliance

Positioned within the semiconductor industry, Universal Display Corporation is well-placed to capitalize on AI advancements and tech shifts. Their focus on OLED technology aligns with the increasing demand for high-performance displays in AI-driven devices. This strategic alignment could bolster their resilience in a rapidly evolving tech landscape.

The Bull Case

For the discerning GARP investor, Universal Display offers compelling reasons to buy. With an ROIC of 12.45%, the company demonstrates efficient capital allocation, translating into strong returns. A Piotroski F-Score of 6 indicates solid financial health, while a Free Cash Flow Yield of 5.53% highlights its ability to generate cash. Coupled with a commanding Operating Margin of 35.70%, these metrics suggest robust pricing power and operational efficiency.

The Bear Case

Despite its strengths, the stock is not without risks. The Price/Sales ratio of 6.85 and Price/Book of 2.53 suggest a premium valuation that may not be justified by its current fundamentals. Additionally, the stock's proximity to its 52-week high raises concerns about technical overextension. The Earnings Surprise of -0.33% further questions the reliability of growth projections, casting doubt on management's ability to meet market expectations.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$119.50

Institutional Ownership %

1-Year Beta

1.53

Insider Buying % (6 Mo)

Distance to 52-Week High

81.33%

Distance to 52-Week Low

15.35%

EARNINGS SURPRISE %

8.85%

50-DAY SMA

$80.83

200-DAY SMA

$92.32

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.