Universal Display Corporation Stock Upgraded (OLED)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

NEW YORK ( TheStreet) -- Universal Display Corporation (Nasdaq: OLED) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

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Highlights from the ratings report include:
  • OLED's very impressive revenue growth greatly exceeded the industry average of 2.5%. Since the same quarter one year prior, revenues leaped by 75.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • OLED has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 12.41, which clearly demonstrates the ability to cover short-term cash needs.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, UNIVERSAL DISPLAY CORP's return on equity exceeds that of both the industry average and the S&P 500.
  • 45.92% is the gross profit margin for UNIVERSAL DISPLAY CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 116.99% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 111.92% to $22.41 million when compared to the same quarter last year. In addition, UNIVERSAL DISPLAY CORP has also vastly surpassed the industry average cash flow growth rate of -8.23%.

Universal Display Corporation engages in the research, development, and commercialization of organic light emitting diode (OLED) technologies and materials for use in flat panel display, solid-state lighting, and other product applications. Universal Display has a market cap of $1.6 billion and is part of the technology sector and computer hardware industry. Shares are up 0.1% year to date as of the close of trading on Monday.

You can view the full Universal Display Ratings Report or get investment ideas from our investment research center.

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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