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

Sector: Technology Industry: Consumer Electronics CIK: 0001290109
P/B 0.47
P/E -17.49
P/S 0.12
Market Cap 2.27 Bn
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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Analysis

Pros

  • 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.

Cons

  • 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.

Peer Comparison

Companies in the Consumer Electronics
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 AAPL Apple Inc. 4,169.05 Bn 37.22 10.02 98.66 Bn
2 SONY Sony Group Corp 162.78 Bn 20.79 1.91 13.01 Bn
3 SONO Sonos Inc 2.28 Bn -37.29 1.58 0.05 Bn
4 LPL LG Display Co., Ltd. 2.27 Bn -17.49 0.12 9.69 Bn
5 ZEPP Zepp Health Corp 0.47 Bn -7.16 2.03 0.21 Bn
6 TBCH Turtle Beach Corp 0.29 Bn 15.92 0.84 0.09 Bn
7 GPRO GoPro, Inc. 0.28 Bn -2.32 0.43 0.20 Bn
8 VUZI Vuzix Corp 0.24 Bn -6.54 46.00 0.00 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets -0.14 1.62
EV to Cash from Ops. -1.85 6.45
EV to Debt -0.30 200.47
EV to EBIT -2.18 -28.79
EV to EBITDA 7.52 6.30
EV to Free Cash Flow [EV/FCF] -4.18 44.66
EV to Market Cap -1.29 1.96
EV to Revenue -0.16 3.73
Price to Book Value [P/B] 0.47 4.94
Price to Earnings [P/E] -17.49 -24.97

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 -85.09
Dividend Payout Ratio % 0.00 1.06
Dividend per Basic Share 0.00 0.06
FCF Dividend Payout Ratio % 0.00 0.86
Interest Coverage 1.20 -24.02

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % 47.14 -25,923.54
Cash and Equivalents Growth (1y) % -18.88 21.58
Dividend Growth (1y) % 0.00 -3.99
EBIAT Growth (1y) % -6,841.18 -636.78
EBITDA Growth (1y) % 0.00 -136.04
EBIT Growth (1y) % 11,325.81 392.34
EBT Growth (1y) % 119.27 -2.62
EPS Growth (1y) % 81.60 -36.64
FCF Growth (1y) % 245.29 -2,257.13
Gross Profit Growth (1y) % 21.35 63.03

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.00 0.77
Cash Payout Ratio 0.00 0.01
Cash Ratio 0.13 0.79
Current Ratio 0.70 3.15
Debt to Equity Ratio 2.02 3.74
Interest Cover Ratio 1.20 -24.02
Times Interest Earned 1.20 -24.02

Profitability

Metric Value Industry Percentile
EBITDA Margin % 0.00 -156.03
EBIT Margin % 9,970.23 395.52
EBT Margin % 1.18 -168.00
Gross Margin % 12.40 19.60
Net Profit Margin % -0.70 -169.24