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

Sector: Technology Industry: Consumer Electronics CIK: 0001290109
Market Cap 2.14 Bn
P/B 0.45
P/E -16.47
P/S 0.11
ROIC (Qtr) -7,627.45
Div Yield % 0.00
Rev 1y % (Qtr) -4.55
Total Debt (Qtr) 9.69 Bn
Debt/Equity (Qtr) 2.02

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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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 1.59B provides 1.53x coverage of SG&A expenses 1.04B, showing efficient operational cost management.
  • Tangible assets of 19.42B provide robust 29.48x coverage of other current liabilities 658.74M, indicating strong asset backing.
  • Operating cash flow of 1.59B fully covers other non-current liabilities 412.28M by 3.85x, showing strong long-term stability.
  • Strong cash position of 1.11B provides 1.68x coverage of other current liabilities 658.74M, indicating excellent liquidity.
  • Cash reserves of 1.11B provide solid 2.68x coverage of other non-current liabilities 412.28M, indicating strong liquidity.

Bear case

  • Operating cash flow of 1.59B barely covers its investment activities of (679.85M), with a coverage ratio of -2.34, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (679.85M) provide weak support for R&D spending of 1.01B, which is -0.68x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 1.59B shows concerning coverage of minority interest expenses of (1.50M), which is -1056.37x, suggesting complex corporate structure risks.
  • Operating cash flow of 1.59B is outpaced by equity issuance of (923.25M) (-1.72 ratio), indicating concerning reliance on equity markets for funding operations.
  • Cash position of 1.11B provides weak coverage of payables of 4.09B, which is 0.27x, indicating potential working capital stress and supplier relationship risks.

Geographical areas [axis] Breakdown of Revenue (2024)

Products and services [axis] Breakdown of Revenue (2024)

Peer comparison

Companies in the Consumer Electronics
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 AAPL Apple Inc. 3,878.78 Bn 34.63 9.32 98.66 Bn
2 SONY Sony Group Corp 150.52 Bn 19.23 1.76 13.01 Bn
3 LPL LG Display Co., Ltd. 2.14 Bn -16.47 0.11 9.69 Bn
4 SONO Sonos Inc 1.99 Bn -32.61 1.38 0.05 Bn
5 ZEPP Zepp Health Corp 0.42 Bn -6.30 1.78 0.21 Bn
6 TBCH Turtle Beach Corp 0.26 Bn 14.29 0.75 0.09 Bn
7 VUZI Vuzix Corp 0.26 Bn -6.90 48.49 0.00 Bn
8 GPRO GoPro, Inc. 0.23 Bn -1.92 0.36 0.20 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -0.15 1.60
EV to Cash from Ops. EV/CFO -1.93 12.05
EV to Debt EV to Debt -0.32 190.88
EV to EBIT EV/EBIT -2.28 -26.74
EV to EBITDA EV/EBITDA 7.86 5.01
EV to Free Cash Flow [EV/FCF] EV/FCF -4.37 91.29
EV to Market Cap EV to Market Cap -1.43 4.51
EV to Revenue EV/Rev -0.16 3.74
Price to Book Value [P/B] P/B 0.45 4.74
Price to Earnings [P/E] P/E -16.47 -22.81
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -85.09
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 1.06
Dividend per Basic Share Div per Share (Qtr) 0.00 0.06
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 0.86
Interest Coverage Int. cover (Qtr) 1.20 -21.34
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 47.14 -25,917.65
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -18.88 24.14
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -3.99
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -6,841.18 -460.09
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 -135.96
EBIT Growth (1y) % EBIT 1y % (Qtr) 11,325.81 574.68
EBT Growth (1y) % EBT 1y % (Qtr) 119.27 39.32
EPS Growth (1y) % EPS 1y % (Qtr) 81.60 -8.06
FCF Growth (1y) % FCF 1y % (Qtr) 245.29 -2,232.41
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 21.35 60.40
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.77
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.13 0.81
Current Ratio Curr Ratio (Qtr) 0.70 3.16
Debt to Equity Ratio Debt/Equity (Qtr) 2.02 3.74
Interest Cover Ratio Int Coverage (Qtr) 1.20 -21.34
Times Interest Earned Times Interest Earned (Qtr) 1.20 -21.34
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 -156.08
EBIT Margin % EBIT Margin % (Qtr) 9,970.23 393.83
EBT Margin % EBT Margin % (Qtr) 1.18 -168.19
Gross Margin % Gross Margin % (Qtr) 12.40 19.36
Net Profit Margin % Net Margin % (Qtr) -0.70 -169.48