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LG Display Co. (LPL)
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LG Display (LPL) AI Stock Analysis

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LPL

LG Display

(NYSE:LPL)

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Neutral 53 (OpenAI - 4o)
Rating:53Neutral
Price Target:
$5.00
▼(-0.60% Downside)
The overall stock score is primarily influenced by the company's financial challenges, including high leverage and cash flow issues. However, positive earnings call sentiment and technical indicators provide some optimism. The valuation remains a concern due to negative profitability.

LG Display (LPL) vs. SPDR S&P 500 ETF (SPY)

LG Display Business Overview & Revenue Model

Company DescriptionLG Display Co., Ltd. is a leading global manufacturer of display panels, specializing in liquid crystal display (LCD) and organic light-emitting diode (OLED) technologies. The company operates primarily in the electronics sector, producing high-quality display panels for a variety of applications, including televisions, computer monitors, smartphones, and other consumer electronics. LG Display is recognized for its innovative advancements in display technology, driving the development of ultra-high-definition and flexible displays.
How the Company Makes MoneyLG Display generates revenue primarily through the sale of its display panels to major electronics manufacturers, including companies that produce televisions, smartphones, and computer monitors. The company has established significant partnerships with leading brands in the consumer electronics industry, which are crucial for its sales. Key revenue streams include the production and sale of OLED panels, which are in high demand due to their superior picture quality and energy efficiency compared to traditional LCDs. Additionally, LG Display earns revenue from licensing its technologies and providing display solutions tailored to specific customer needs. Market factors such as the increasing demand for larger and higher-resolution displays, as well as the growth of the gaming and mobile sectors, further contribute to its earnings.

LG Display Earnings Call Summary

Earnings Call Date:Oct 30, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Jan 28, 2026
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with significant revenue and profit growth driven by OLED expansion, despite challenges in LCD business and external uncertainties.
Q3-2025 Updates
Positive Updates
Strong Revenue and Profit Growth
Revenue was KRW 6.957 trillion, up by 25% Q-o-Q and up 2% Y-o-Y. Operating profit reached KRW 431 billion, improving by over KRW 500 billion Q-o-Q and Y-o-Y.
OLED Product Line Expansion
Panel shipment grew across the entire OLED product line, driven by seasonality and new small- and medium-sized OLED products. OLED product revenue share increased to 65%, up 9 percentage points Q-o-Q.
Improved Financial Metrics
Debt-to-equity ratio decreased by 5 percentage points Q-o-Q to 263%, and net debt-to-equity ratio decreased by 4 percentage points to 151%.
Increased ASP for OLED
ASP per square meter was $1,365, up 29% Q-o-Q, an all-time high driven by small and medium OLED shipments.
Positive Outlook for OLED TV and Gaming Monitor
OLED TV shipments projected to reach mid-6 million units this year with an expectation of 7 million units next year. Gaming OLED monitor demand is seeing meaningful growth.
Negative Updates
Reduced Area Shipment
Area shipment fell 1% Q-o-Q despite seasonality and growing shipment of small and medium OLED product lines.
IT Segment Revenue Decline
IT segment's revenue share fell to 37%, shrinking by 5 percentage points Q-o-Q.
Challenges in LCD Business
Ongoing downsizing of non-strategic LCD businesses, with LCD shipment expected to decrease as profitability-centered product portfolio continues.
External Uncertainties and Competitive Pressures
External uncertainties and competition in the display market persist, impacting ASP and profit margins.
Company Guidance
During the LG Display Q3 2025 earnings call, several key metrics and guidance for future performance were discussed. The company reported a revenue of KRW 6.957 trillion, marking a 25% increase quarter-over-quarter (Q-o-Q) and a 2% rise year-over-year (Y-o-Y). Operating profit increased significantly to KRW 431 billion, showing an improvement of over KRW 500 billion Q-o-Q and Y-o-Y, largely due to increased OLED panel shipments and cost optimization efforts. The net income was KRW 1.2 billion, supported by foreign currency translation gains, while EBITDA stood at KRW 1.4239 trillion with a 20% margin. The revenue share of OLED products reached 65%, up 9 percentage points Q-o-Q. Looking forward, LG Display expects continued growth in OLED area shipments in Q4, although overall area shipment growth is projected to be in the low single digits Q-o-Q. The company also highlighted its focus on enhancing profitability through ongoing cost innovation and strategic product portfolio management, anticipating OLED revenue share to remain consistent in Q4. Cash and cash equivalents were reported at KRW 1.555 trillion, with a debt-to-equity ratio of 263%, improving financial stability.

LG Display Financial Statement Overview

Summary
LG Display faces financial difficulties characterized by declining revenues, negative profitability, high leverage, and cash flow challenges. The company must focus on improving operational efficiency, reducing debt, and enhancing cash flow to strengthen its financial position and ensure long-term sustainability.
Income Statement
45
Neutral
LG Display's income statement shows a challenging financial position with declining revenue growth and negative net profit margins over the TTM period. The gross profit margin has decreased, indicating pressure on profitability. Despite a positive EBITDA margin, the EBIT margin remains negative, reflecting operational inefficiencies. The company needs to address these issues to improve its financial health.
Balance Sheet
40
Negative
The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which poses a risk in volatile markets. The return on equity is negative, reflecting losses and inefficiencies in generating shareholder value. The equity ratio is low, suggesting a heavy reliance on debt financing. Improving equity and reducing debt could stabilize the financial structure.
Cash Flow
35
Negative
Cash flow analysis shows a significant decline in free cash flow growth, with negative free cash flow to net income ratios. Operating cash flow is positive but insufficient to cover net income losses, indicating cash flow challenges. The company must enhance its cash generation capabilities to support operations and reduce financial strain.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue26.31T26.62T21.33T26.15T29.88T24.23T
Gross Profit2.99T2.58T345.18B1.12T5.31T2.64T
EBITDA6.06T3.84T1.60T638.00M6.34T3.90T
Net Income-669.84B-2.56T-2.73T-3.20T1.19T-70.64B
Balance Sheet
Total Assets27.98T32.86T35.76T35.69T38.15T35.07T
Cash, Cash Equivalents and Short-Term Investments1.68T2.03T2.40T2.10T3.57T4.23T
Total Debt13.50T14.61T16.60T15.06T12.75T14.15T
Total Liabilities20.39T24.79T26.99T24.37T23.39T22.33T
Stockholders Equity6.48T6.54T7.23T9.88T13.12T11.40T
Cash Flow
Free Cash Flow164.61B282.03B-2.45T-2.90T1.98T-669.91B
Operating Cash Flow2.32T2.41T1.68T3.01T5.75T2.29T
Investing Cash Flow-695.89B-1.36T-2.59T-6.70T-4.26T-2.32T
Financing Cash Flow-1.93T-1.33T1.35T1.95T-2.47T931.83B

LG Display Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price5.03
Price Trends
50DMA
4.88
Negative
100DMA
4.28
Positive
200DMA
3.71
Positive
Market Momentum
MACD
<0.01
Positive
RSI
41.46
Neutral
STOCH
34.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LPL, the sentiment is Neutral. The current price of 5.03 is below the 20-day moving average (MA) of 5.19, above the 50-day MA of 4.88, and above the 200-day MA of 3.71, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 41.46 is Neutral, neither overbought nor oversold. The STOCH value of 34.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$4.00T40.89149.81%0.38%5.97%0.15%
$172.85B22.8314.70%0.35%-4.41%18.04%
$37.18B12.37-10.20%1.83%8.50%-7.62%
$4.88B-9.31%3.97%72.99%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LPL
LG Display
4.82
1.11
29.92%
AAPL
Apple
271.40
49.52
22.32%
SONY
Sony Group
27.75
10.49
60.78%

LG Display Corporate Events

LG Display Reports Q3 2025 Profit Turnaround
Oct 30, 2025

In the third quarter of 2025, LG Display reported a significant financial turnaround with revenues increasing by 25% quarter-on-quarter to KRW 6,957 billion and operating profit reaching KRW 431 billion. This marks a return to profitability for the first time in four years, driven by increased OLED panel shipments and strong cost innovation initiatives. The company is focusing on expanding its OLED business across various segments, including automotive displays, and aims to enhance its premium product lineup to strengthen market positioning.

LG Display to Announce Q3 2025 Earnings on October 30
Oct 1, 2025

LG Display has announced that it will disclose its 2025 third-quarter earnings on October 30, 2025. The earnings release materials will be available on the company’s website following the disclosure. This announcement is crucial for investors and stakeholders as it provides insights into the company’s financial performance during the period from July 1 to September 30, 2025, and may influence investment decisions.

LG Display to Announce Q3 2025 Earnings Results on October 30
Oct 1, 2025

On October 30, 2025, LG Display will host a conference call to announce its third-quarter earnings results. The event will be accessible to domestic and international investors, analysts, and media, with materials available on the company’s IR website. This initiative aims to enhance communication with shareholders and provide insights into the company’s financial performance.

LG Display to Present at UBS Korea Summit 2025
Aug 20, 2025

On August 25, 2025, LG Display Co., Ltd. will participate in the UBS Korea Summit 2025, held in Seoul. The event targets domestic and international institutional investors, where the company will discuss its Q2 2025 financial results through one-on-one and group meetings. This participation is expected to enhance LG Display’s investor relations and provide insights into its financial performance, potentially impacting stakeholders’ investment decisions.

LG Display Releases Semi-Annual Report for H1 2025
Aug 14, 2025

LG Display Co., Ltd. released its semi-annual report for the period from January 1, 2025, to June 30, 2025. The report, originally prepared in Korean and translated for international stakeholders, outlines the company’s financial performance and strategic initiatives. The report highlights LG Display’s continued focus on customer-oriented marketing activities and investment in research and development to maintain its competitive edge in the display industry. The company’s credit ratings for domestic corporate bonds were noted, reflecting a strong capacity for timely repayment, albeit with some vulnerability to adverse economic conditions.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Oct 30, 2025