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LG Display Co. (LPL)
NYSE:LPL
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LG Display
(NYSE:LPL)
52Neutral
LG Display (LPL) vs. S&P 500 (SPY)
Market Cap
$3.14B
Dividend YieldN/A
Average Volume (3M)172.89K
Price to Earnings (P/E)―
Beta (1Y)0.91
Revenue Growth19.52%
EPS Growth28.09%
CountryUS
Employees66,418
SectorTechnology
Sector Strength45
IndustryHardware & Equipment
Share Statistics
EPS (TTM)-2.05
Shares Outstanding1,000,000,000
10 Day Avg. Volume190,917
30 Day Avg. Volume172,894
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.22
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
LG Display Business Overview & Revenue Model
Company DescriptionLG Display (LPL) is a leading manufacturer and supplier of display technologies, specializing in the development and production of innovative LCD and OLED panels. The company caters to a broad range of sectors including televisions, smartphones, tablets, laptops, and automotive displays. With its headquarters in South Korea, LG Display is known for its cutting-edge research and development in display technologies, consistently pushing the boundaries in terms of quality, efficiency, and sustainability.
How the Company Makes MoneyLG Display primarily generates revenue through the sale of its display panels to various original equipment manufacturers (OEMs) across the globe. Its key revenue streams include the production and sale of large-scale OLED panels for premium televisions and mobile OLED displays for smartphones. Additionally, LG Display supplies LCDs for monitors, laptops, and automotive uses. The company benefits from strategic partnerships with leading global electronics brands, which ensures a steady demand for its technologically advanced display solutions. Furthermore, LG Display invests in continuous innovation and efficiency improvements, allowing it to maintain competitive pricing and enhance its profit margins.
LG Display Financial Statement Overview
Summary
LG Display is navigating a difficult financial landscape with substantial losses and high leverage. Despite a positive revenue growth trajectory, profitability remains a significant concern, impacting overall financial health. The company must focus on improving operational efficiency and managing debt to stabilize its financial position.Income Statement
LG Display has been facing significant challenges in revenue growth and profitability. The TTM (Trailing-Twelve-Months) data shows a net loss with a negative net profit margin of -6.06%, and a continued negative EBIT margin of -1.96%. The gross profit margin improved to 9.19% from the previous year's 1.62%. Revenue growth from the previous annual report was a robust 22.71%, indicating some positive momentum despite profitability issues.45
Neutral
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 2.14, indicating substantial leverage. Return on equity (ROE) is negative due to net losses, but the equity ratio is relatively stable at 21.05%, showing a moderate level of equity financing relative to total assets. The company needs to manage its debt levels cautiously to prevent financial distress.50
Neutral
Cash Flow
Cash flow analysis indicates negative free cash flow, although there was an improvement from the previous year. The operating cash flow to net income ratio is strong at -0.98, reflecting the company's ability to convert net income to cash, albeit from a negative income base. The free cash flow to net income ratio is negative, suggesting ongoing challenges in generating sufficient free cash flow.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 26.18T | 21.33T | 26.15T | 29.88T | 24.23T | 23.48T | Gross Profit |
| 2.41T | 345.18B | 1.12T | 5.31T | 2.64T | 1.87T | EBIT |
| -511.96B | -2.51T | -1.75T | 2.23T | 55.12B | -1.33T | EBITDA |
| 2.92T | 1.60T | 638.00M | 6.34T | 3.90T | 1.70B | Net Income Common Stockholders |
| -1.59T | -2.73T | -3.20T | 1.19T | -70.64B | -2.87T |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.39T | 2.40T | 2.10T | 3.57T | 4.23T | 3.35T | Total Assets |
| 33.18T | 35.76T | 35.69T | 38.15T | 35.07T | 35.57T | Total Debt |
| 8.56T | 16.60T | 15.06T | 12.75T | 14.15T | 13.57T | Net Debt |
| 6.19T | 14.34T | 13.24T | 9.21T | 9.93T | 10.23T | Total Liabilities |
| 18.29T | 26.99T | 24.37T | 23.39T | 22.33T | 23.09T | Stockholders Equity |
| 13.98T | 7.23T | 9.88T | 13.12T | 11.40T | 11.34T |
| Cash Flow | Free Cash Flow | ||||
| -1.37T | -2.45T | -2.90T | 1.98T | -669.91B | -4.76T | Operating Cash Flow |
| 1.56T | 1.68T | 3.01T | 5.75T | 2.29T | 2.71T | Investing Cash Flow |
| -1.59T | -2.59T | -6.70T | -4.26T | -2.32T | -6.76T | Financing Cash Flow |
| -913.09B | 1.35T | 1.95T | -2.47T | 931.83B | 4.99T |
LG Display Technical Analysis
Negative
3.21
Price Trends
3.26
Negative
3.37
Negative
3.68
Negative
Market Momentum
-0.02
Positive
43.80
Neutral
28.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LPL, the sentiment is Negative. The current price of 3.21 is below the 20-day moving average (MA) of 3.33, below the 50-day MA of 3.26, and below the 200-day MA of 3.68, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 43.80 is Neutral, neither overbought nor oversold. The STOCH value of 28.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LPL.
LG Display Risk Analysis
LG Display disclosed 43 risk factors in its most recent earnings report. LG Display reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
LG Display Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $119.42B | 19.62 | 35.19% | 1.07% | 4.45% | -10.01% | |
74 Outperform | $241.36B | 27.19 | 20.02% | 2.58% | -5.34% | -30.57% | |
73 Outperform | $7.10B | 33.53 | 14.46% | 1.03% | 12.36% | 9.70% | |
71 Outperform | $38.47B | 77.30 | 4.55% | 2.49% | 4.21% | -13.56% | |
65 Neutral | $161.36B | 35.89 | 28.25% | 2.85% | -10.72% | -26.60% | |
58 Neutral | $21.35B | 10.05 | -19.26% | 2.35% | 5.02% | -22.63% | |
52 Neutral | $3.14B | ― | -37.33% | ― | 19.52% | 28.09% |
* Technology Sector Average
Performance Comparison
LPL
LG Display
3.21
-0.91
-22.09%
AMAT
Applied Materials
149.06
-49.82
-25.05%
CSCO
Cisco Systems
60.46
11.88
24.45%
GLW
Corning
44.91
13.02
40.83%
TXN
Texas Instruments
177.34
9.36
5.57%
OLED
Universal Display
149.65
-11.83
-7.33%
LG Display Earnings Call Summary
Earnings Call Date: Jan 22, 2025 | % Change Since: -2.73% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant growth in OLED panel shipments and overall revenue, driven by strategic business transformations and strong performance in the auto segment. However, challenges persist with high debt ratios, IT segment declines, and one-off expenses impacting financial results.Highlights
OLED-Centric Business Transformation
OLED panel shipments reached a record high, accounting for 60% of total revenue, reflecting a successful business portfolio transformation.
Revenue and Profit Improvement
Annual revenue increased by 25% year-over-year, with a KRW 2 trillion profit improvement despite macroeconomic challenges.
Smartphone Panel Shipment Growth
Smartphone panel shipments increased by 15% quarter-over-quarter and 6% year-over-year, driving a turnaround in operating profit.
Auto Segment Growth
Auto segment revenue increased by mid-10% quarter-over-quarter and year-over-year, maintaining an 8% share of the revenue mix.
Strong EBITDA Performance
EBITDA in Q4 was KRW 1,306.5 billion, and KRW 4,565 billion on a yearly basis, with an EBITDA margin rate of 17%.
Lowlights
IT Segment Revenue Decline
IT segment revenue was down 28% quarter-over-quarter due to prolonged sluggishness in downstream demand.
One-Off Expenses Impact
A mid KRW 100 billion one-off expense, including ERP-related severance pay for clerical workers, affected financial performance in Q4.
High Debt-to-Equity and Net Debt Ratios
Debt-to-equity ratio and net debt ratio recorded at 307% and 155%, respectively, indicating high leverage.
Challenges in IT OLED Sales
Sales of tablet OLED panels underperformed expectations due to sluggish market conditions.
Company Guidance
During the LG Display Q4 2024 earnings call, the company provided extensive guidance on key financial metrics and projections. Revenue increased by 15% quarter-over-quarter (Q-over-Q) and 6% year-over-year (Y-o-Y), reaching KRW 7,832.9 billion, driven by smartphone panel shipments. The company reported a turnaround in operating profit at KRW 83.1 billion, with a full-year profit improvement of approximately KRW 2 trillion. EBITDA for Q4 was KRW 1,306.5 billion, contributing to an annual EBITDA margin rate of 17%. The product revenue mix saw mobile and others comprising 42% of the total, while TV and auto segments accounted for 22% and 8%, respectively. The OLED share out of total revenue reached 60%, marking a record high. For Q1 2025, LG Display anticipates a decline in TV panel shipments due to seasonality, with an expected area shipment decrease of more than mid-single-digit percentage Q-over-Q. ASP per square meter is projected to fall by mid-10% Q-over-Q, but diversification in smartphone models is expected to bolster performance. Additionally, the company plans a low to mid KRW 2 trillion CapEx for 2025, focusing on business structure upgrades and enhancing investment efficiency.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.