Yahoo Finance Why Universal Display Corporation (NASDAQ:OLED) Is An Attractive Investment
As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Universal Display Corporation (NASDAQ:OLED), it is a financially-robust company with a strong history and an optimistic growth outlook. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Universal Display here.
Exceptional growth potential with flawless balance sheet
In the previous year, OLED has ramped up its bottom line by 76.18%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, OLED also outperformed its industry, which delivered a growth of 28.19%. This is an optimistic signal for the future.
OLED is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. Looking at OLED’s capital structure, the company has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is rather impressive for a US$4.64B market cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.
Next Steps:
For Universal Display, I’ve compiled three pertinent aspects you should further research:
Valuation: What is OLED worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether OLED is currently mispriced by the market.
Dividend Income vs Capital Gains: Does OLED return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from OLED as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of OLED? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
