One-glance verdict
Within fair range
$79.90 our estimate vs market $87.57
Wall Street consensus: $114.89 (43.8% higher than our fair-value estimate)
10% above our estimate
Fundamentals snapshot
Universal Display Corporation
OLED · NMS · Technology · Electronic Components
Current price
$87.57
52-week range
$70.77 - $134.60
Market cap
$3.94B
Balance sheet
Healthy
6.26x Adequate
Net cash $412.07M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Returns 13.5% on equity, ahead of 60% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Forward P/E (18.8x) is higher than trailing (17.8x) - earnings are expected to drop.
- Risk Operating margin compressed from 43.3% to 33.5% over 3 years.
What this company does
Universal Display Corporation
Universal Display Corporation creates the special ingredients and technology that make the vibrant, energy-efficient screens found in many smartphones, TVs, and lighting. Their main income comes from licensing these patented technologies and selling the materials to screen manufacturers, which is important because it means they get paid even when other companies make and sell the final products. This business model relies on their expertise and intellectual property, making their profit margins (the percentage of sales left after covering direct costs) a key indicator of success.
How the company got here
Universal Display Corporation (UDC) was founded in 1985, long before the sleek, vibrant screens we see today were commonplace. The company's journey has been focused on a specific type of lighting technology: organic light-emitting diodes, or OLEDs. Over decades, UDC has invested heavily in researching and developing the core materials that make OLED screens work, gradually building up a portfolio of patents and expertise. A key turning point was the successful commercialization of their proprietary phosphorescent OLED (PHOLED) technology, which significantly improved the efficiency and lifespan of OLED displays. This allowed them to partner with major electronics manufacturers, transforming them from a research firm into a critical supplier in the display industry.
What it actually does
Imagine the vibrant, thin screens on your smartphone, TV, or smartwatch. Many of these use OLED technology, and Universal Display Corporation is a key player behind the scenes. They don't make the final gadgets themselves; instead, they develop and license the special chemical "inks" or materials that make the pixels light up. Think of them as the ingredient supplier for the most advanced screen technology. Their innovations allow screens to be brighter, more energy-efficient, and even flexible, enabling new types of devices.
OLED Materials
This is the heart of Universal Display Corporation's business. They create and sell the advanced chemical compounds that are essential for manufacturing OLED displays. These materials are what allow each tiny dot on a screen to emit its own light, creating vivid colors and deep blacks. Companies that make smartphones, TVs, and other electronic devices purchase these materials from UDC to build their screens. This segment is the largest part of UDC's revenue, as it's the fundamental technology that powers many of today's premium displays.
OLED Licensing and Technology Services
Beyond selling the physical materials, UDC also makes money by licensing its extensive patent portfolio related to OLED technology. This means other companies pay UDC for the right to use their patented inventions in their own products. Additionally, UDC provides technical support and research services to partners, helping them integrate and optimize OLED technology. This segment acts as a crucial revenue stream, leveraging UDC's deep knowledge and intellectual property in the OLED space, and represents a significant portion of their overall income.
What management is betting on now
Universal Display Corporation is focused on expanding the reach of OLED technology into new applications and markets. They are heavily investing in research and development to create even more advanced materials that offer better performance, lower costs, and new functionalities, such as improved flexibility and durability. Management is also prioritizing growth in emerging areas like solid-state lighting, where OLEDs can offer unique design possibilities. By continuing to innovate and secure intellectual property, UDC aims to remain the go-to supplier for the foundational components of next-generation displays and lighting solutions.
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.
FY2024 Q4
$22.04M
FY2025 Q1
$17.50M
FY2025 Q2
$37.46M
FY2025 Q3
$84.34M
FY2025 Q4
$15.06M
FY2026 Q1
$100.27M
FY2026 Q2
$20.35M
FY2026 Q3
$95.93M
Revenue
$160.43M
Net income
$78.95M
Diluted EPS
1.72
Operating cash flow
$100.20M
Free cash flow
$95.93M
Fetching…
Sources
Revenue
$152.16M
Net income
$49.42M
Diluted EPS
1.06
Operating cash flow
$24.98M
Free cash flow
$20.35M
Fetching…
Sources
Revenue
$142.21M
Net income
$35.90M
Diluted EPS
0.76
Operating cash flow
$108.88M
Free cash flow
$100.27M
Fetching…
Sources
Revenue
$172.93M
Net income
$66.34M
Diluted EPS
1.40
Operating cash flow
$31.15M
Free cash flow
$15.06M
Fetching…
Sources
Revenue
$139.61M
Net income
$44.02M
Diluted EPS
0.92
Operating cash flow
$97.18M
Free cash flow
$84.34M
Fetching…
Sources
Revenue
$171.79M
Net income
$67.26M
Diluted EPS
1.41
Operating cash flow
$51.94M
Free cash flow
$37.46M
Fetching…
Sources
Revenue
$166.28M
Net income
$64.44M
Diluted EPS
1.35
Operating cash flow
$30.56M
Free cash flow
$17.50M
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Sources
Revenue
$162.29M
Net income
$46.02M
Diluted EPS
0.96
Operating cash flow
$34.71M
Free cash flow
$22.04M
Fetching…
Sources
Is it cheap or expensive?
Fair value $79.90 vs current price $87.57
Wall Street consensus is the average analyst price target: $114.89 (43.8% higher than our fair-value estimate).
Our most-likely fair value is $79.90 a share — about 8.8% away from today's price of $87.57, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $412.1M - more cash than debt. Interest coverage 6.3x.
Net debt
$-412.07M
Interest coverage
6.26x
Universal Display Corporation's profit covers its interest bill about 6.3 times over. which is stronger than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
OLED
BASELINE
Universal Display Corporation
Total debt $21.39M Interest coverage 6.26x This is the baseline the peer rows are being compared against.
Total debt $262.52M Interest coverage 4.88x -22% vs OLED Carries about 1.3x less debt cushion than OLED.
Total debt $21.70M Interest coverage 43.42x +594% vs OLED Carries about 6.9x more debt cushion than OLED.
Total debt $38.12M Interest coverage -293.99x -100% vs OLED This peer has almost no interest-payment cushion compared with OLED.
Total debt $3.89M Interest coverage 3,784.75x +60,358% vs OLED Carries about 604.6x more debt cushion than OLED.
What you should know
The case for and against OLED
3 Rewards
2 Risks
Rewards
-
Returns 13.5% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 10/10 years.
-
Trades at 17.8x P/E vs peer median 38.4x (53.6% cheaper).
Risks
-
Forward P/E (18.8x) is higher than trailing (17.8x) - earnings are expected to drop.
-
Operating margin compressed from 43.3% to 33.5% over 3 years.
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)
17.80x
Forward P/E
18.77x
P/B
2.38x
P/S
6.28x
EV/EBITDA
13.14x
PEG ratio
1.00x
Profitability
How much profit each dollar creates
Gross margin
73.3%
Operating margin
33.5%
Net margin
36.7%
ROE
13.5%
ROA
7.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.01x
Current ratio
7.56x
Quick ratio
4.98x
Total debt
$21.39M
Total cash
$433.47M
Growth
How the business has been compounding
Revenue TTM
$627.73M
Revenue 5Y CAGR
4.1%
EPS TTM
4.92
EPS 5Y CAGR
4.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$265.21M
Free CF TTM
$154.36M
FCF margin
24.6%
Dividend
Shareholder payout
Yield
2.3%
Payout ratio
39.6%
Last ex-div date
2026-12-17