Universal Display Current Valuation vs. Price To Sales

OLED Stock  USD 160.10  4.26  2.59%   
Based on the key profitability measurements obtained from Universal Display's financial statements, Universal Display is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess Universal Display's ability to earn profits and add value for shareholders. At present, Universal Display's Operating Cash Flow Sales Ratio is projected to increase slightly based on the last few years of reporting. The current year's Days Of Sales Outstanding is expected to grow to 90.48, whereas EV To Sales is forecasted to decline to 14.88. At present, Universal Display's Net Income is projected to increase significantly based on the last few years of reporting. The current year's Income Tax Expense is expected to grow to about 44.3 M, whereas Net Income From Continuing Ops is forecasted to decline to about 103.8 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin1.070.7651
Significantly Up
Pretty Stable
Return On Equity0.150.1403
Notably Up
Slightly volatile
For Universal Display profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Universal Display to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Universal Display utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Universal Display's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Universal Display over time as well as its relative position and ranking within its peers.
  

Universal Display's Revenue Breakdown by Earning Segment

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Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Universal Display. If investors know Universal will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Universal Display listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.299
Dividend Share
1.55
Earnings Share
4.85
Revenue Per Share
13.536
Quarterly Revenue Growth
0.146
The market value of Universal Display is measured differently than its book value, which is the value of Universal that is recorded on the company's balance sheet. Investors also form their own opinion of Universal Display's value that differs from its market value or its book value, called intrinsic value, which is Universal Display's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Universal Display's market value can be influenced by many factors that don't directly affect Universal Display's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Universal Display's value and its price as these two are different measures arrived at by different means. Investors typically determine if Universal Display is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Universal Display's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Universal Display Price To Sales vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Universal Display's current stock value. Our valuation model uses many indicators to compare Universal Display value to that of its competitors to determine the firm's financial worth.
Universal Display is regarded fifth in current valuation category among its peers. It is regarded second in price to sales category among its peers . The ratio of Current Valuation to Price To Sales for Universal Display is about  615,819,576 . At present, Universal Display's Price To Sales Ratio is projected to decrease significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Universal Display by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Universal Current Valuation vs. Competition

Universal Display is regarded fifth in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Information Technology industry is now estimated at about 312.86 Billion. Universal Display holds roughly 7.27 Billion in current valuation claiming about 2.32% of equities under Information Technology industry.

Universal Price To Sales vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Universal Display

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
7.27 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Universal Display

P/S

 = 

MV Per Share

Revenue Per Share

 = 
11.80 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.

Universal Price To Sales Comparison

Universal Display is currently under evaluation in price to sales category among its peers.

Universal Display Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Universal Display, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Universal Display will eventually generate negative long term returns. The profitability progress is the general direction of Universal Display's change in net profit over the period of time. It can combine multiple indicators of Universal Display, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-1.1 M-1.1 M
Operating Income217.2 M228 M
Net Income203 M213.2 M
Income Tax Expense42.2 M44.3 M
Income Before Tax245.2 M257.4 M
Total Other Income Expense Net28 M29.4 M
Net Income From Continuing Ops206.2 M103.8 M
Non Operating Income Net Other1.3 M1.9 M
Net Income Applicable To Common Shares241.6 M253.6 M
Interest Income23.8 M25 M
Net Interest Income23.8 M25 M
Change To Netincome17.5 M9.7 M
Net Income Per Share 4.27  4.48 
Income Quality 0.76  0.96 
Net Income Per E B T 0.83  1.02 

Universal Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Universal Display. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Universal Display position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Universal Display's important profitability drivers and their relationship over time.

Use Universal Display in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Universal Display position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Universal Display will appreciate offsetting losses from the drop in the long position's value.

Universal Display Pair Trading

Universal Display Pair Trading Analysis

The ability to find closely correlated positions to Universal Display could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Universal Display when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Universal Display - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Universal Display to buy it.
The correlation of Universal Display is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Universal Display moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Universal Display moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Universal Display can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Universal Display position

In addition to having Universal Display in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

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Healthcare
Healthcare Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Healthcare theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Healthcare Theme or any other thematic opportunities.
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When determining whether Universal Display is a strong investment it is important to analyze Universal Display's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Universal Display's future performance. For an informed investment choice regarding Universal Stock, refer to the following important reports:
Check out Your Equity Center.
For information on how to trade Universal Stock refer to our How to Trade Universal Stock guide.
You can also try the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
To fully project Universal Display's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Universal Display at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Universal Display's income statement, its balance sheet, and the statement of cash flows.
Potential Universal Display investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Universal Display investors may work on each financial statement separately, they are all related. The changes in Universal Display's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Universal Display's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.