One-glance verdict
Overvalued
$-6.12 our estimate vs market $2.75
Wall Street consensus: $4.30 (-170.4% lower than our fair-value estimate)
145% below our estimate, beyond the bull case
Fundamentals snapshot
LG Display Co., Ltd.
LPL · NYQ · Technology · Consumer Electronics
Current price
$2.75
52-week range
$2.73 - $5.83
Market cap
$2.75B
Balance sheet
Distressed
0.74x Concerning
Net debt $8.84B. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
1 Risk
1 rewards · 1 risks
- Reward Free cash flow was positive in 1/10 years.
- Risk Return on equity was -17.6% last year — the company lost money on shareholders' equity.
What this company does
LG Display Co., Ltd.
LG Display Co., Ltd. makes screens, like the ones on your TV and phone, primarily for other companies that build those devices. Their main income comes from selling these display panels, which are important because without them, electronic gadgets wouldn't have a picture. This means LG Display is a key part of the technology supply chain (the process of making and delivering a product).
How the company got here
LG Display started in 1999 as a joint venture between South Korea's LG Electronics and the Dutch company Philips, initially focusing on making active matrix liquid crystal displays (LCDs). It became an independent company in 2004 and was listed on stock exchanges in New York and South Korea. In 2008, Philips sold its shares, and the company officially changed its name to LG Display. The company has been a significant player in display technology, developing Thin-Film Transistor Liquid Crystal Displays (TFT-LCDs) and later becoming a leader in Organic Light-Emitting Diode (OLED) technology. Recently, LG Display has been strategically shifting its focus from LCD to OLED production, with plans to exit the LCD manufacturing business entirely.
What it actually does
LG Display is a major global manufacturer that designs, develops, and produces a wide variety of display panels. These panels are the screens you see on many electronic devices. They make displays for televisions, computer monitors, laptops, smartphones, smartwatches, and even for use in automobiles. The company's technology is used in products from various well-known brands, showcasing its role as a key supplier in the consumer electronics industry.
TV
LG Display produces panels for televisions, which are a significant part of their business. These are the screens that show you your favorite shows and movies. The company has been a leader in developing and manufacturing both LCD and OLED technologies for TVs. Recently, LG Display has been strategically shifting its production focus towards OLED panels for TVs, moving away from traditional LCDs.
IT Products (Monitors and Laptops)
This segment includes display panels for monitors and laptop computers. These are the screens you use for work, gaming, or browsing the internet. LG Display is known for its high-quality IPS (in-plane switching) panels, which offer better color accuracy and wider viewing angles, making them popular for professional use and high-end consumer devices. The company is also developing new technologies like FLiPP for future OLED panels in laptops and monitors.
Mobile
LG Display manufactures display panels for mobile devices, such as smartphones and smartwatches. These are the small, high-resolution screens that allow you to communicate, access information, and use apps on the go. The company's expertise in display technology, including OLED, is applied to create vibrant and efficient screens for these portable devices.
Automotive
This business line involves creating display panels specifically designed for use in vehicles. These displays can be found in car dashboards, infotainment systems, and other in-car entertainment or information displays. As cars become more technologically advanced, the demand for sophisticated and integrated displays is growing, and LG Display is a key supplier in this area.
Commercial Displays
LG Display also produces displays for commercial applications, which are used in business settings rather than for individual consumers. This includes products like digital signage (screens used for advertising or information in public spaces), video walls, and specialized displays for businesses. These displays are designed to be durable and impactful for professional use.
What management is betting on now
LG Display's current strategy, dubbed "JUMP," focuses on achieving a financial turnaround by prioritizing innovative products and advanced technology, particularly in OLED. The company is investing heavily in its 4th-generation OLED panels, which offer enhanced brightness and efficiency, aiming to lead the market with these cutting-edge displays. Management is also emphasizing "just in time" production, creating "unique value," establishing "market leadership," and fostering "partnerships" to navigate challenging market conditions like oversupply and reduced demand. The company is strategically pivoting from LCD to OLED, seeing OLED as the future of display technology and a key to regaining profitability and market share.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$17.22B
Net income
$954.48M
Diluted EPS
2,640.00
Operating cash flow
$3.57B
Free cash flow
$2.69B
Fetching…
Sources
Is it cheap or expensive?
Fair value $-6.12 vs current price $2.75
Wall Street consensus is the average analyst price target: $4.30 (-170.4% lower than our fair-value estimate).
Our most-likely fair value is $-6.12 a share — about 322.5% below today's price of $2.75, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $8.8B. Interest coverage 0.7x.
Net debt
$8.84B
Interest coverage
0.74x
LG Display Co., Ltd. is healthier than 0 of 1 peers on balance-sheet leverage.
Distressed
Worse cushion
Baseline
Better cushion
LPL
BASELINE
LG Display Co., Ltd.
Total debt $10.03B Interest coverage 0.74x This is the baseline the peer rows are being compared against.
What you should know
The case for and against LPL
1 Reward
1 Risk
Rewards
-
Free cash flow was positive in 1/10 years.
Risks
-
Return on equity was -17.6% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
25.84x
P/B
0.60x
P/S
0.00x
EV/EBITDA
3.33x
PEG ratio
6.56x
Profitability
How much profit each dollar creates
Gross margin
14.4%
Operating margin
-1.9%
Net margin
-5.3%
ROE
-17.6%
ROA
1.4%
Health
Liquidity and balance-sheet strength
Debt / equity
1.76x
Current ratio
0.64x
Quick ratio
0.35x
Total debt
$10.03B
Total cash
$1.19B
Growth
How the business has been compounding
Revenue TTM
$17.22B
Revenue 5Y CAGR
—
EPS TTM
-0.93
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$3.57B
Free CF TTM
$182.58M
FCF margin
1.1%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
2021-12-30