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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2901
Positioning
Market Dominance
Manufacturing
Electronic Equipment
$6.8B
Steven V. Abramson
Universal Display Corporation engages in research, development, and commercialization of organic light emitting diode (OLED) technologies. It owns, exclusively licenses, or has sole rights to sublicense approximately 5,500 issued and pending patents worldwide. The company supplies its proprietary UniversalPHOLED materials to display and lighting manufacturers, and others.
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Dates updated upon official exchange announcement.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = OLED ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | 28.5% | 8.0% | 100.0% | 100.0% | 10.4% | -4.6% | 3.3% | 0.0x | $141.8B | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | 46.1% | 16.6% | 51.3% | 31.9% | 26.8% | -4.0% | 1.0% | 25.0x | $272.1B | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | 10.3% | 3.1% | 24.1% | 7.2% | 4.7% | 14.3% | 0.8% | 25.0x | $11.4B | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | 2.2% | 1.5% | 9.3% | 5.3% | 2.2% | -8.5% | 2.2% | 16.0x | $18.9B | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 35.5% | 19.8% | 48.7% | 29.2% | 24.7% | 4.4% | 0.8% | 32.0x | $181.9B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | 11.8% | 8.8% | 45.9% | 11.3% | 11.1% | 25.7% | 3.7% | 0.0x | $1.8B | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.6% | 7.0% | 66.5% | 17.1% | 15.6% | 39.0% | 0.0% | 0.0x | $115M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | 22.6% | 4.9% | 71.2% | 12.8% | 9.4% | 1.7% | 5.9% | 124.0x | $72.1B | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | 3.0% | 1.1% | 20.9% | 7.3% | 1.3% | 3.0% | 0.9% | 67.0x | $1.2B | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | 8.2% | 3.5% | 55.3% | 25.9% | 12.4% | 0.7% | 1.7% | 0.0x | $87.0B | VS | |
$OLED UNIVERSAL DISPLAY CORP \PA\ | 44 | 57 | 58 | 25 | 20.4x | 19.9x | 13.8% | 12.3% | 76.7% | 38.5% | 37.7% | -11.9% | 1.2% | 12.0x | $6.8B | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -2.5% | -0.1% | 42.5% | 1.3% | -0.2% | 5.9% | 0.0% | 0.2x | - | REF |
UNIVERSAL DISPLAY CORP \PA\ (OLED) receives a "Reduce" rating with a composite score of 44.4/100. It ranks #2901 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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YOY expansion rate
Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
Steven V. Abramson
Chief Executive Officer
Labor Force
440
57
43
55
Audit Verdict: Average governance indicators based on financial metrics.
No recent insider transactions available for OLED
Lagging peers — losers tend to keep underperforming
Fair valuation relative to peers
Average quality profile
Average volatility — neutral timing signal
Moderate investment profile
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for OLED.
View All RatingsMaterial decline in asset turnover efficiency detected
High margin volatility — erratic forensic earnings quality
ROE proxy 13.8% (sector -2.5%)
GM 77% vs sector 43%, OM 39% vs sector 1%
Capital turnover N/A, R&D intensity 22.5%
Rev growth -12%, 10yr history
Interest coverage N/A, Net debt/EBITDA -0.5x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
UNIVERSAL DISPLAY CORP \PA\ receives a Reduce rating from our analysis, with a composite score of 44.4/100 and 2 out of 5 stars, ranking #2901 out of 7,333 stocks. OLED's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
With a quality score of 57/100, OLED shows adequate but unremarkable business quality. The company reports a return on equity of 13.8% (sector avg: -2.5%), gross margins of 76.7% (sector avg: 42.5%), net margins of 37.7% (sector avg: -0.2%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
OLED's value score of 58/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 20.39x, an EV/EBITDA of 19.92x, a P/B ratio of 2.81x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
With an investment score of 43/100, OLED exhibits moderate growth-oriented spending. Key growth metrics include revenue growth of -11.9% vs. a sector average of 5.9% and a return on assets of 12.3% (sector: -0.1%). The company appears to be balancing growth investments with capital returns, though the pace of investment may not be enough to accelerate top-line growth meaningfully.
UNIVERSAL DISPLAY CORP \PA\ is experiencing notably weak momentum with a score of just 25/100. The stock has underperformed its peers and is trending below major moving averages. Revenue growth stands at -11.9% year-over-year, while a beta of 1.67 reflects its sensitivity to broader market moves. While deep momentum weakness can occasionally present value opportunities, it often reflects deteriorating fundamentals or structural headwinds that may persist.
With a stability score of 55/100, OLED exhibits average financial resilience. Key stability metrics include a beta of 1.67 and a debt-to-equity ratio of 12.00x (sector avg: 0.2x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
UNIVERSAL DISPLAY CORP \PA\'s short interest score of 36/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include high market sensitivity (beta: 1.67), elevated leverage (D/E: 12.00x). At $6.8B (mid-cap), OLED carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
OLED offers a modest dividend yield of 1.2%. While the income contribution is relatively small, even a small dividend signals management's commitment to shareholder returns and can serve as a signal of financial discipline.
UNIVERSAL DISPLAY CORP \PA\ is a mid-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #2901 of 7,333 overall (60th percentile). Key comparisons include ROE of 13.8% exceeding the -2.5% sector median and operating margins of 38.5% above the 1.3% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While OLED currently exhibits a REDUCE profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
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Improvement in Momentum (25) would have the largest impact on the composite score.
EV/EBITDA 74% ABOVE SECTOR MEDIAN
ROE 656% BELOW SECTOR MEDIAN
Gross Margin 80% ABOVE SECTOR MEDIAN (FAVORABLE)
AUDIT DATA AS OF SEP 30, 2025 (Q2 FY2025)
We rate UNIVERSAL DISPLAY CORP \PA\ (OLED) as a Reduce with a composite score of 44.4/100 at a current price of $106.42. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential and elevated risk of underperformance relative to peers over the next 12 months.
The rating is primarily driven by strength in value (58th percentile) and quality (57th percentile), which together account for the majority of the composite score. Offsetting weakness in momentum (25th percentile) and investment (43th percentile) tempers our overall conviction. We assign a Narrow Moat rating (54/100), Medium uncertainty, and Exemplary capital allocation.
Key items to watch: momentum to confirm whether the current price trend has legs. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
UNIVERSAL DISPLAY CORP \PA\ holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 44.4/100 places it at rank #2901 in our full 7,333-stock universe. At $6.8B in market capitalization, UNIVERSAL DISPLAY CORP \PA\ is a mid-cap player in the Manufacturing space, which limits certain scale advantages but may allow for more agile strategic execution.
Revenue contraction of -12% combined with momentum at the 25th percentile paints a cautious picture of the near-term business outlook. The market appears to be pricing in continued challenges, and a catalyst for reversal is not clearly visible from current data.
The margin cascade tells an important story: gross margins of 77% (+34.2pp vs sector) narrow to operating margins of 39% (+37.3pp vs sector) and net margins of 37.7%, yielding a gross-to-net conversion rate of 49%. This efficient conversion suggests well-controlled operating costs and limited margin leakage between the gross and net levels.
At a current price of $106.42, UNIVERSAL DISPLAY CORP \PA\ is trading near fair value based on current fundamentals. Our value factor score of 58/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.
The stock currently trades at a P/E of 20.4x (roughly in line with the sector median of 22.3x), EV/EBITDA of 19.9x (at a premium), P/B of 2.8x, P/S of 7.7x. The below-sector P/E suggests possible undervaluation or the market pricing in near-term headwinds.
Gross margins of 77% signal strong pricing power and brand/IP advantages — businesses with margins above 40% have historically demonstrated more resilient earnings through economic cycles.
A conservative balance sheet (12% D/E) provides financial flexibility for acquisitions, buybacks, or weathering economic downturns without dilution.
Return on assets of 12.3% indicates efficient deployment of the full asset base, not just equity capital.
The Reduce rating (composite 44.4/100) reflects multi-factor weakness, and historically, stocks in this scoring range have underperformed the market by a meaningful margin.
Revenue decline of -12% signals business deterioration — declining revenues make it difficult to grow into the current valuation and often precede further negative revisions.
We assign a Medium uncertainty rating to UNIVERSAL DISPLAY CORP \PA\. The stock presents a balanced risk profile: elevated market sensitivity (beta of 1.67). While not risk-free, the core business fundamentals are adequate to withstand moderate economic stress, and the range of potential outcomes around our fair value estimate is manageable.
Specific risk factors that inform our assessment include: elevated market sensitivity (beta of 1.67). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 55th percentile and quality factor at the 57th percentile provide a quantitative summary of the overall risk landscape.
Key risk mitigants include: healthy gross margins of 77% provide a buffer against cost pressures; conservative leverage (12% D/E) limits balance sheet risk. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.
We rate UNIVERSAL DISPLAY CORP \PA\'s capital allocation as Exemplary. Management demonstrates a strong track record of balancing reinvestment with shareholder returns, evidenced by disciplined leverage (12% D/E), best-in-class net margins of 37.7%. Exemplary allocators typically generate returns on equity above 20% while maintaining debt-to-equity below 50% — UNIVERSAL DISPLAY CORP \PA\ approaches this high bar.
The balance sheet remains conservatively managed, providing financial flexibility for opportunistic investments while maintaining a margin of safety for shareholders. The company returns capital via a 1.22% dividend yield, and the combination of 12.3% return on assets and controlled leverage suggests management is deploying capital at rates well above the cost of capital — the hallmark of exemplary stewardship.
In summary, UNIVERSAL DISPLAY CORP \PA\ receives a Reduce rating with a composite score of 44.4/100 (rank #2901 of 7,333). Our quantitative framework assigns a Narrow Moat (54/100, trend: stable), Medium uncertainty, and Exemplary capital allocation. The average factor score across quality, value, momentum, stability, and investment is 48/100.
Our analysis does not support a constructive view on UNIVERSAL DISPLAY CORP \PA\ at this time. The combination of the current quantitative profile, medium uncertainty, and exemplary capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We assign UNIVERSAL DISPLAY CORP \PA\ a Narrow Moat rating with a composite moat score of 54/100. The company possesses identifiable competitive advantages, though they are less entrenched than those of wide-moat peers. Our analysis indicates that UNIVERSAL DISPLAY CORP \PA\ can sustain above-average returns on invested capital for at least 10 years, with the strongest contributor being margin superiority at 19.5/20.
The strongest moat sources are margin superiority (19.5/20) and financial resilience (11.2/20). GM 77% vs sector 43%, OM 39% vs sector 1%. Interest coverage N/A, Net debt/EBITDA -0.5x. These pillars form the core of UNIVERSAL DISPLAY CORP \PA\'s competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include economic value creation (6.3/20) and reinvestment efficiency (7/20). ROE proxy 13.8% (sector -2.5%). Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect UNIVERSAL DISPLAY CORP \PA\'s moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include gross margins of 77% providing a solid profitability foundation, operating margins of 39% reflecting effective cost management, declining revenues (-12%) that pressure the earnings outlook. The margin cascade from 77% gross to 39% operating to 37.7% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that profit quality is adequate though not exceptional, with the quality factor at the 57th percentile.
The margin profile shows gross margins of 77%, operating margins of 39%, net margins of 37.7%. Return metrics include ROE of 13.8% and ROA of 12.3%. Relative to the Manufacturing sector, gross margins are 34.2 percentage points above the sector median of 43%, and ROE of 13.8% compares to a sector median of -2.5%.
The balance sheet reflects a conservatively managed balance sheet with D/E of 12%, a dividend yield of 1.22%, revenue growth of -12%. The sector median D/E is 0%, putting UNIVERSAL DISPLAY CORP \PA\ at higher leverage than the typical peer. The combination of low leverage and healthy profitability provides significant financial resilience and strategic optionality.
Weak momentum (25th percentile) suggests institutional selling pressure and unfavorable technical dynamics that may persist.
High beta of 1.67 means amplified losses in market selloffs — in a broad market correction, this stock would likely decline more than the index.
Above 50MA
37.18%
Net New Highs
+51081
The article discusses three undervalued stocks - Crocs, Academy Sports and Outdoors, and Universal Display - that underperformed the S&P 500 in 2024 but are expected to do well in 2025 due to their strong business fundamentals and growth prospects.
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how analog semiconductors stocks fared in Q4, starting with Analog Devices (NASDAQ:ADI).
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The semiconductor rally continues its unstoppable advance, fueled by the propulsion of artificial intelligence, with the U.S. chipmaking industry now soaring to a combined valuation of $6.3 trillion. The PHLX Semiconductor Sector Index, mirrored by the Invesco PHLX Semiconductor ETF (NYSE:SOXQ), is poised for a 6% gain this week, marking its strongest performance in two months and achieving record high levels. Since late October 2023, the index has surged by 78%, while the broader chip industry has seen an astonishing 169% increase from its October 2022 low. In stark contrast, the broader tech sector, as tracked by the Invesco QQQ Trust (NASDAQ:QQQ), has risen by 39% from its October 2023 low and by 88% since October 2022. Nvidia’s Dominance ...Full story available on Benzinga.com
Shares of OLED provider Universal Display (NASDAQ:OLED) fell 11.4% in the afternoon session after the company released a full-year revenue forecast that disappointed investors, overshadowing an otherwise mixed fourth-quarter report.