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Universal Display
(NASDAQ:OLED)
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Rating:75Outperform
Price Target:
$100.00
▲(0.45% Upside)
Action:Reiterated
Date:06/23/26
Overall score reflects strong financial quality (high margins, net-cash balance sheet, strong cash generation) as the primary support. This is tempered by weak technical trends (price below key moving averages with negative MACD) and a mixed earnings outlook after a downward revenue guidance revision, partially offset by continued high margin guidance and aggressive capital returns.
Positive Factors
High Profitability / Margins
Sustained gross (~74%) and net (~34%) margins reflect durable pricing power from proprietary emitter materials and IP licensing. High margins provide structural resilience against cyclical volume swings, funding R&D and allowing the business to earn strong returns even if revenue growth lags.
Negative Factors
Inconsistent Top-line / Revenue Volatility
Material revenue swings (Q1 down 14% YoY) highlight inconsistent demand and customer purchasing variability. Persistent top-line volatility can impede scaling of materials sales and licensing income, complicate capacity planning, and extend the time required for R&D investments to translate into steady revenue growth.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability / Margins
Sustained gross (~74%) and net (~34%) margins reflect durable pricing power from proprietary emitter materials and IP licensing. High margins provide structural resilience against cyclical volume swings, funding R&D and allowing the business to earn strong returns even if revenue growth lags.
Read all positive factors
Universal Display Key Performance Indicators (KPIs)
Any
Revenue by Segment
Highlights revenue from different business segments, providing insight into which areas are driving growth and how the company is diversifying its income streams.
Highlights revenue from different business segments, providing insight into which areas are driving growth and how the company is diversifying its income streams.
Data provided by:
The Fly
The FlyUniversal Display (OLED) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.75B
Dividend Yield1.52%
Average Volume (3M)731.40K
Price to Earnings (P/E)17.9
Beta (1Y)1.46
Revenue Growth-3.42%
EPS Growth-6.78%
CountryUS
Employees469
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)4.49
Shares Outstanding46,750,893
10 Day Avg. Volume699,548
30 Day Avg. Volume731,400
Financial Highlights & Ratios
PEG Ratio2.49
Price to Book (P/B)3.15
Price to Sales (P/S)8.53
P/FCF Ratio35.97
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$126.60Price Target Upside27.17% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)4.22
Revenue Forecast (FY)$643.83M
Universal Display Business Overview & Revenue Model
Company Description
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 appli...
How the Company Makes Money
Universal Display makes money mainly through (1) the sale of OLED materials and (2) licensing and royalties from its intellectual property. Materials revenue comes from supplying proprietary OLED chemical materials—most notably phosphorescent emit...
Universal Display Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Neutral
The call presents a mixed near-term picture but retains a positive long-term outlook. Near-term results and guidance reflect meaningful headwinds: revenue declined 14% year-over-year, royalties fell ~27%, operating margin compressed from ~42% to ~30%, and net income dropped ~44%. However, the company maintains a strong balance sheet (~$911M cash), healthy operating cash flow ($109M in Q1), ongoing shareholder returns (new $400M buyback and dividend), clear R&D momentum (AI-driven material discovery and progress on phosphorescent blue with potential ~25% energy-efficiency gains), and continued customer partnerships and industry capacity expansion that support a multiyear growth thesis. On balance, near-term challenges weigh heavily on the quarter, but financial strength and technology leadership underpin confidence in recovery and long-term opportunity.Positive Updates
Strong cash position and cash generation
Ended Q1 with approximately $911 million in cash and investments and generated $109 million of operating cash flow in the quarter, supporting balance sheet flexibility.
Negative Updates
Revenue decline year-over-year
Q1 2026 revenue was $142 million, down 14% versus $166 million in Q1 2025, driven by customer mix, tariff-related prior-year purchasing, and softer macro demand.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong cash position and cash generation
Ended Q1 with approximately $911 million in cash and investments and generated $109 million of operating cash flow in the quarter, supporting balance sheet flexibility.
Read all positive updates
Company Guidance
Management revised 2026 revenue guidance to $630–$670 million (down from $650–$700M), expects Q2 revenue to be sequentially higher than Q1 (Q1 revenue was $142M) and the second half to be stronger than the first; full‑year gross margin guidance remains 74–76% (Q1 was 75%) and the full‑year effective tax rate is expected to be ~20% (Q1 was 21%). They noted Q1 material volumes were down ~4% YoY, materials sales $84M (green/yellow $64M, red $20M), royalties/licenses $54M, Adesis $4.3M, operating income $43M (≈30% margin), net income $36M ($0.76 diluted), operating cash flow $109M, and cash & investments of ~$911M at quarter end. Other metrics/guidance: materials-to-royalties ratio expected closer to 1.3:1 for the year (Q1 ~1.5:1), industry square‑meter growth now projected ~2% (vs prior mid‑single digits), OpEx trending toward mid‑single‑digit growth, they expect ~mid‑to‑high‑40% of revenues in H1 with the balance in H2, completed $100M repurchase (≈924k shares), repurchased ~633k shares for $66M in Q1, authorized a new $400M repurchase program, and declared a $0.50/share Q2 dividend.Universal Display Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 626.54M | 650.61M | 647.68M | 576.43M | 616.62M | 553.52M |
| Gross Profit | 454.70M | 477.78M | 499.22M | 441.05M | 488.72M | 438.53M |
| EBITDA | 308.63M | 341.38M | 316.27M | 288.57M | 310.50M | 270.21M |
| Net Income | 213.53M | 242.07M | 222.08M | 203.01M | 210.06M | 184.21M |
Balance Sheet | ||||||
| Total Assets | 1.89B | 1.97B | 1.83B | 1.67B | 1.53B | 1.47B |
| Cash, Cash Equivalents and Short-Term Investments | 516.41M | 602.36M | 492.67M | 514.12M | 577.77M | 663.19M |
| Total Debt | 22.11M | 43.19M | 19.14M | 22.86M | 29.04M | 27.26M |
| Total Liabilities | 190.74M | 211.84M | 215.81M | 221.74M | 257.45M | 367.00M |
| Stockholders Equity | 1.70B | 1.76B | 1.62B | 1.45B | 1.28B | 1.10B |
Cash Flow | ||||||
| Free Cash Flow | 237.13M | 154.36M | 211.10M | 28.42M | 79.61M | 147.55M |
| Operating Cash Flow | 289.14M | 210.83M | 253.74M | 154.78M | 126.81M | 191.10M |
| Investing Cash Flow | -93.78M | -45.48M | -164.41M | -83.29M | -280.74M | -457.75M |
| Financing Cash Flow | -193.49M | -125.98M | -82.33M | -72.93M | -64.64M | -51.37M |
Universal Display Technical Analysis
Negative
99.55
Price Trends
87.58
Negative
91.81
Negative
108.31
Negative
Market Momentum
-2.68
Positive
41.43
Neutral
38.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OLED, the sentiment is Negative. The current price of 99.55 is above the 20-day moving average (MA) of 82.99, above the 50-day MA of 87.58, and below the 200-day MA of 108.31, indicating a bearish trend. The MACD of -2.68 indicates Positive momentum. The RSI at 41.43 is Neutral, neither overbought nor oversold. The STOCH value of 38.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OLED.
Universal Display Risk Analysis
Universal Display disclosed 30 risk factors in its most recent earnings report. Universal Display reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Universal Display Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.75B | 17.86 | 12.33% | 1.52% | -3.42% | -6.78% | |
75 Outperform | $17.16B | 859.51 | 2.79% | ― | 17.45% | -61.07% | |
74 Outperform | $10.97B | 47.62 | 17.44% | ― | 19.12% | 10.38% | |
72 Outperform | $3.93B | 235.30 | 2.44% | 2.27% | 3.11% | -54.05% | |
62 Neutral | $8.66B | -575.96 | -1.57% | ― | 22.77% | 79.17% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $11.64B | -335.37 | -5.93% | ― | 14.22% | 81.01% |
* Technology Sector Average
OLED
Universal Display
80.18
-67.39
-45.67%
LSCC
Lattice Semiconductor
125.23
73.08
140.13%
POWI
Power Integrations
70.45
17.08
32.01%
RMBS
Rambus
101.44
32.53
47.21%
SMTC
Semtech
124.96
71.90
135.51%
ALGM
Allegro MicroSystems
46.48
9.79
26.68%
Universal Display Corporate Events
Executive/Board ChangesShareholder Meetings
Universal Display Shareholders Approve Directors and Executive Pay
Positive
Jun 22, 2026
Universal Display held its 2026 annual meeting on June 18, 2026, with 42,581,241 votes represented in person or by proxy, sufficient for quorum with broker non-votes and abstentions counted as present. Shareholders re-elected all nominated directo...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Universal Display Cuts Outlook Amid Weaker Q1 Results
Negative
Apr 30, 2026
On April 30, 2026, Universal Display reported first-quarter 2026 results showing a year-on-year decline in performance as softer demand and an unfavorable customer mix weighed on revenue and profits. Total revenue fell to $142.2 million from $166....
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.