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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
$2.49B
Dividend YieldN/A
Average Volume (3M)259.20K
Price to Earnings (P/E)―
Beta (1Y)0.95
Revenue Growth19.52%
EPS Growth24.03%
CountryUS
Employees27,352
SectorTechnology
Sector Strength40
IndustryConsumer Electronics
Share Statistics
EPS (TTM)-2.05
Shares Outstanding1,000,000,000
10 Day Avg. Volume435,101
30 Day Avg. Volume259,201
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 Co., Ltd. engages in the design, manufacture, and sale of thin-film transistor liquid crystal display (TFT-LCD) and organic light emitting diode (OLED) technology-based display panels. Its TFT-LCD and OLED technology-based display panels are primarily used in televisions, notebook computers, desktop monitors, tablet computers, mobile devices, and automotive displays. The company also provides display panels for industrial and other applications, including entertainment systems, portable navigation devices, and medical diagnostic equipment. It operates in South Korea, China, rest of Asia, the United States, Poland, and other European countries. The company was formerly known as LG.Philips LCD Co., Ltd. and changed its name to LG Display Co., Ltd. in March 2008. LG Display Co., Ltd. was incorporated in 1985 and is headquartered in Seoul, South Korea.
How the Company Makes MoneyLG Display makes money primarily through the manufacturing and sale of display panels. The company's revenue model is centered around its diverse product offerings, which include OLED and LCD panels. These panels are sold to a variety of sectors, including consumer electronics, automotive, and commercial displays. Key revenue streams include the sale of large-sized panels for televisions and monitors, as well as small to medium-sized panels for mobile devices and automotive applications. LG Display also collaborates with major electronics brands and has established significant partnerships to ensure a steady demand for its products. The company invests heavily in research and development to maintain its leadership in display technology, which helps drive sustained revenue growth.
LG Display Financial Statement Overview
Summary
LG Display's financial performance shows mixed results. The income statement reflects challenges in profitability with consistent net losses and volatile gross margins. The balance sheet reveals high leverage and declining stockholders' equity, although asset stability and liquidity improvements are noted. Cash flow shows moderate performance with positive trends in operating cash flow and a return to positive free cash flow.Income Statement
LG Display's income statement reveals challenges with profitability as evidenced by consistent net losses over the years. Gross profit margins have shown volatility, peaking in 2021 but declining significantly in subsequent years. Revenue growth has been inconsistent, with a notable decrease in 2023 before a recovery in 2024. EBIT and EBITDA margins remain concerning, with EBIT consistently negative, indicating operational inefficiency.45
Neutral
Balance Sheet
The balance sheet indicates a high level of leverage, with a debt-to-equity ratio exceeding 2 in most years, signaling potential financial risk. Stockholders' equity has decreased over recent years, impacting the equity ratio negatively. However, the company's total assets have shown stability, and the cash position has improved slightly in the latest period, providing some liquidity buffer.55
Neutral
Cash Flow
Cash flow analysis shows moderate performance with some positive trends. Operating cash flow has improved significantly in 2024, which is a positive sign of the company's ability to generate cash from operations. Free cash flow remains a concern, although it has turned positive in 2024 after several years of negative figures. The operating cash flow to net income ratio is strong, indicating efficient cash generation relative to net income.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 26.62T | 21.33T | 26.15T | 29.88T | 24.23T | Gross Profit |
| 2.58T | 345.18B | 1.12T | 5.31T | 2.64T | EBIT |
| -231.06B | -2.51T | -1.75T | 2.23T | 55.12B | EBITDA |
| 4.57T | 1.60T | 638.00M | 6.34T | 3.90T | Net Income Common Stockholders |
| -2.56T | -2.73T | -3.20T | 1.19T | -70.64B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.03T | 2.40T | 2.10T | 3.57T | 4.23T | Total Assets |
| 32.86T | 35.76T | 35.69T | 38.15T | 35.07T | Total Debt |
| 14.61T | 16.60T | 15.06T | 12.75T | 14.15T | Net Debt |
| 12.59T | 14.34T | 13.24T | 9.21T | 9.93T | Total Liabilities |
| 24.79T | 26.99T | 24.37T | 23.39T | 22.33T | Stockholders Equity |
| 6.54T | 7.23T | 9.88T | 13.12T | 11.40T |
| Cash Flow | Free Cash Flow | |||
| 282.03B | -2.45T | -2.90T | 1.98T | -669.91B | Operating Cash Flow |
| 2.41T | 1.68T | 3.01T | 5.75T | 2.29T | Investing Cash Flow |
| -1.36T | -2.59T | -6.70T | -4.26T | -2.32T | Financing Cash Flow |
| -1.33T | 1.35T | 1.95T | -2.47T | 931.83B |
LG Display Technical Analysis
Negative
2.80
Price Trends
3.19
Negative
3.23
Negative
3.62
Negative
Market Momentum
-0.04
Positive
37.20
Neutral
22.53
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 2.8 is below the 20-day moving average (MA) of 3.05, below the 50-day MA of 3.19, and below the 200-day MA of 3.62, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 37.20 is Neutral, neither overbought nor oversold. The STOCH value of 22.53 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 (57)
Financial Indicators
Performance Comparison
LPL
LG Display
2.80
-0.95
-25.33%
AAPL
Apple
198.15
22.43
12.76%
SONY
Sony Group
22.92
6.18
36.92%
LG Display Earnings Call Summary
Earnings Call Date: Jan 22, 2025 | % Change Since: -15.15% | Next Earnings Date: Apr 24, 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.