$Universal Display (OLED.US)$In the analysis two years ago, ...

The American company, which was listed in 1996, is mainly engaged in OLED material sales and licensing business. The current price is 151, mainly in the Korean market.

In the past 5 years, revenue grew in the first 4 years, shrank 6.5% in 2023, with an average growth rate of 18.4%. Operating profit increased for 3 years except 2020 and 2023, with an average growth rate of 31%. However, the growth rate declined severely in recent years. The average growth rate in the past 3 years was 11%, and net profit was similar. The 5-year average growth rate was 28%, and the average growth rate in the past 3 years was 15%. Interest expenses account for 12.9% of operating profit in 2023, and the interest burden is heavy. The gross margin fell from 81.4% to 76.5% in the past 5 years, and the return on net assets fell from 18.3% to 14.8%.

The current price-earnings ratio is 35.7, which is not very attractive considering the recent sharp slowdown in growth.