LG Display Co., Ltd. (NYSE: LPL)

Sector: Technology Industry: Consumer Electronics CIK: 0001290109
Market Cap 4.03 Bn
P/B 0.88
P/E 25.65
P/S 0.22
ROIC (Qtr) 3,503.13
Div Yield % 0.00
Rev 1y % (Qtr) -8.43
Total Debt (Qtr) 8.83 Bn
Debt/Equity (Qtr) 1.93
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About

LG Display Co., Ltd., a South Korean company known by its ticker symbol LPL, is a prominent player in the global display industry. The company specializes in the production of display panels, including liquid crystal display (LCD) and organic light-emitting diode (OLED) panels. LG Display's operations span across various countries and regions, supplying a diverse range of customers, which includes major smartphone and television manufacturers. The core of LG Display's business revolves around the manufacturing and sale of display panels. These...

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Investment thesis

Bull case

  • Operating cash flow of 1.63B provides exceptional 30.35x coverage of minority interest expenses 53.76M, showing strong core operations.
  • Strong operating cash flow of 1.63B provides 1.62x coverage of SG&A expenses 1B, showing efficient operational cost management.
  • Tangible assets of 17.65B provide robust 24.71x coverage of other current liabilities 714.05M, indicating strong asset backing.
  • Cash position of 1.09B provides exceptional 20.29x coverage of minority interest expenses 53.76M, indicating strong liquidity.
  • Operating cash flow of 1.63B fully covers other non-current liabilities 378.76M by 4.31x, showing strong long-term stability.

Bear case

  • Operating cash flow of 1.63B barely covers its investment activities of (678.84M), with a coverage ratio of -2.40, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (678.84M) provide weak support for R&D spending of 978.63M, which is -0.69x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Free cash flow of 783.10M represents just -0.59x of debt issuance (1.33B), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Cash position of 1.09B provides weak coverage of payables of 3.31B, which is 0.33x, indicating potential working capital stress and supplier relationship risks.
  • Tangible assets of 17.65B provide limited backing for working capital of (1.81B), which is -9.73x, suggesting increased operational risk in market downturns.

Peer comparison

Companies in the Consumer Electronics
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 AAPL Apple Inc. 6,723.18 Bn 479.78 103.08 90.51 Bn
2 SONY Sony Group Corp 132.91 Bn -97.61 1.71 12.46 Bn
3 LPL LG Display Co., Ltd. 4.03 Bn 25.65 0.22 8.83 Bn
4 SONO Sonos Inc 1.83 Bn -104.00 1.27 0.05 Bn
5 ZEPP Zepp Health Corp 0.37 Bn -5.62 1.59 0.21 Bn
6 TBCH Turtle Beach Corp 0.23 Bn 12.65 0.67 0.09 Bn
7 VUZI Vuzix Corp 0.21 Bn -5.50 38.67 0.00 Bn
8 GPRO GoPro, Inc. 0.13 Bn -1.07 0.20 0.20 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -0.01 1.78
EV to Cash from Ops. EV/CFO -0.11 -1.62
EV to Debt EV to Debt -0.02 107.90
EV to EBIT EV/EBIT -0.16 27.25
EV to EBITDA EV/EBITDA 0.45 19.36
EV to Free Cash Flow [EV/FCF] EV/FCF -0.22 69.87
EV to Market Cap EV to Market Cap -0.04 5.36
EV to Revenue EV/Rev -0.01 8.17
Price to Book Value [P/B] P/B 0.88 9.46
Price to Earnings [P/E] P/E 25.65 14.96
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -85.07
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 -0.94
Dividend per Basic Share Div per Share (Qtr) 0.00 0.06
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 0.69
Interest Coverage Int. cover (Qtr) 1.37 -38.56
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 35.02 -25,921.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -22.53 51.04
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -3.99
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 246.66 -97.56
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 -124.49
EBIT Growth (1y) % EBIT 1y % (Qtr) 400.42 -56.87
EBT Growth (1y) % EBT 1y % (Qtr) 118.02 23.23
EPS Growth (1y) % EPS 1y % (Qtr) 108.30 -15.88
FCF Growth (1y) % FCF 1y % (Qtr) 109.51 -2,155.24
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 30.59 -2.16
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.76
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.16 0.99
Current Ratio Curr Ratio (Qtr) 0.73 3.14
Debt to Equity Ratio Debt/Equity (Qtr) 1.93 3.77
Interest Cover Ratio Int Coverage (Qtr) 1.37 -38.56
Times Interest Earned Times Interest Earned (Qtr) 1.37 -38.56
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 -158.21
EBIT Margin % EBIT Margin % (Qtr) 8,808.81 240.24
EBT Margin % EBT Margin % (Qtr) 1.64 -170.49
Gross Margin % Gross Margin % (Qtr) 13.10 19.30
Net Profit Margin % Net Margin % (Qtr) 0.90 -171.80