Universal Display Corporation (NASDAQ:OLED) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of OLED, it is a company with robust financial health as well as an optimistic growth outlook. In the following section, I expand a bit more on these key aspects. If you’re interested in understanding beyond my broad commentary, read the full report on Universal Display here.
Flawless balance sheet with high growth potential
OLED is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that OLED manages its cash and cost levels well, which is a key determinant of the company’s health. Investors should not worry about OLED’s debt levels because the company has none! This means it is running its business only on equity capital funding, which is rather impressive for a US$4.8b market cap company. OLED has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.
For Universal Display, there are three important aspects you should look at:
- Historical Performance: What has OLED’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- 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.
- 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 past 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. For errors that warrant correction please contact the editor at email@example.com.