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LG Display Co. (LPL)
:LPL
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LG Display
(NYSE:LPL)
Rating:55Neutral
Price Target:
$3.50
▲(2.34%Upside)
LG Display (LPL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.35B
Dividend YieldN/A
Average Volume (3M)214.43K
Price to Earnings (P/E)―
Beta (1Y)0.89
Revenue Growth17.34%
EPS Growth34.72%
CountryUS
Employees27,352
SectorTechnology
Sector Strength91
IndustryConsumer Electronics
Share Statistics
EPS (TTM)-0.19
Shares Outstanding1,000,000,000
10 Day Avg. Volume223,363
30 Day Avg. Volume214,431
Financial Highlights & Ratios
PEG Ratio-0.08
Price to Book (P/B)0.63
Price to Sales (P/S)0.00
P/FCF Ratio-57.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.50Price Target Upside2.34% Upside
Rating ConsensusHold
Number of Analyst Covering1
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. Its key revenue streams include the sale of TFT-LCD and OLED panels to original equipment manufacturers (OEMs) and consumer electronics companies. The company benefits from its strong relationships with major global brands in the electronics industry, which rely on LG Display's advanced technology for their products. Additionally, LG Display generates income through strategic partnerships and joint ventures aimed at developing next-generation display technologies. The company's revenue is influenced by factors such as technology advancements, production efficiency, market demand, and consumer trends in electronic devices.
LG Display Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: 17.53%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant revenue growth and profitability driven by strategic OLED-centric upgrades and strong performance in the auto business. However, challenges such as area shipment declines, ASP drops, and global trade uncertainties were noted. The sentiment is mostly positive due to the outweighing positive achievements.Q1-2025 Updates
Positive Updates
Significant Revenue Growth
Revenue reported a solid KRW 6,065.3 billion, an increase of 15% year-over-year, driven by OLED-centric business structural upgrades and favorable FX impacts.
Sustained Profitability
Operating profit was KRW 33.5 billion, marking an improvement of KRW 509.2 billion year-over-year, sustaining a profit streak since last quarter.
OLED Business Expansion
Revenue from OLED products increased 8 percentage points year-on-year, reaching 55% of total revenue, highlighting the success of the OLED-centric business transformation.
Strong EBITDA Performance
Q1 EBITDA was KRW 1,231.3 billion with an EBITDA margin rate at 20%, the highest since Q3 of 2021.
Strategic Large Panel OLED Focus
Post-discontinuation of LCD TV business, the company is focusing on OLED-centric structural upgrades, expecting positive performance from differentiated products like gaming monitors and Gen 4 OLED TVs.
Auto Business Growth
The auto segment revenue mix increased, with plans to strengthen market leadership through differentiated products and technology portfolio, including plastic OLED and high-end LTPS LCD.
Negative Updates
Area Shipment Decline
Area shipment in Q1 was down 19% quarter-on-quarter due to seasonality impacts on mid- to larger panels.
ASP Per Square Meter Drop
ASP per square meter recorded $804, down by 8% quarter-on-quarter, despite robust OLED performance mitigating the decline.
Uncertainties in Global Trade
The company faces heightened uncertainties in the downstream market and shifts in the global trade environment, including potential impacts from U.S. tariffs.
Decline in LCD Business
Following the closing of the Guangzhou LCD TV plant sale, a decline in large panel revenue is expected starting in Q2 as LCD TV revenue will no longer be captured.
Company Guidance
During the first quarter of 2025 earnings call, LG Display reported a revenue of KRW 6,065.3 billion, a 15% year-over-year increase, largely driven by their OLED-centric business upgrades and favorable FX impact. Operating profit reached KRW 33.5 billion, marking an improvement of KRW 509.2 billion year-over-year, and KRW 1,131.8 billion compared to Q1 2023, sustaining profitability for the first time in eight years outside of the COVID period. EBITDA stood at KRW 1,231.3 billion with a margin of 20%, the highest since Q3 2021. Despite a 19% quarter-on-quarter decline in area shipment due to seasonality, there was a 1% year-over-year increase, supported by OLED TV and notebook panel shipments. The average selling price per square meter was $804, down 8% quarter-on-quarter. The OLED revenue mix increased by 8 percentage points year-on-year to 55%. Looking ahead to Q2, LG Display anticipates a mid-20% decline in area shipment following the LCD TV business discontinuation, while ASP per square meter is expected to rise by around 20%. The company plans to maintain its focus on OLED business expansion, cost innovations, and operational efficiency to sustain profitability amidst market uncertainties.LG Display Financial Statement Overview
Summary
LG Display's financial statements reveal a mixed performance. Despite improvements in cash flow generation and revenue recovery in 2024, the company struggles with profitability and high leverage. Operational inefficiency and a high debt-to-equity ratio are concerns, though liquidity has slightly improved.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 27.43T | 26.62T | 21.33T | 26.15T | 29.88T | 24.23T |
| Gross Profit | 3.10T | 2.58T | 345.18B | 1.12T | 5.31T | 2.64T |
| EBITDA | 3.59T | 3.84T | 1.60T | 638.00M | 6.34T | 3.90T |
| Net Income | -2.04T | -2.56T | -2.73T | -3.20T | 1.19T | -70.64B |
Balance Sheet | ||||||
| Total Assets | 31.99T | 32.86T | 35.76T | 35.69T | 38.15T | 35.07T |
| Cash, Cash Equivalents and Short-Term Investments | 991.61B | 2.03T | 2.40T | 2.10T | 3.57T | 4.23T |
| Total Debt | 14.66T | 14.61T | 16.60T | 15.06T | 12.75T | 14.15T |
| Total Liabilities | 24.15T | 24.79T | 26.99T | 24.37T | 23.39T | 22.33T |
| Stockholders Equity | 6.27T | 6.54T | 7.23T | 9.88T | 13.12T | 11.40T |
Cash Flow | ||||||
| Free Cash Flow | 1.47T | 282.03B | -2.45T | -2.90T | 1.98T | -669.91B |
| Operating Cash Flow | 3.43T | 2.41T | 1.68T | 3.01T | 5.75T | 2.29T |
| Investing Cash Flow | -1.08T | -1.36T | -2.59T | -6.70T | -4.26T | -2.32T |
| Financing Cash Flow | -2.71T | -1.33T | 1.35T | 1.95T | -2.47T | 931.83B |
LG Display Technical Analysis
Positive
3.42
Price Trends
3.26
Positive
3.18
Positive
3.32
Positive
Market Momentum
0.05
Positive
52.38
Neutral
37.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LPL, the sentiment is Positive. The current price of 3.42 is below the 20-day moving average (MA) of 3.44, above the 50-day MA of 3.26, and above the 200-day MA of 3.32, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 52.38 is Neutral, neither overbought nor oversold. The STOCH value of 37.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (69)
Financial Indicators
Performance Comparison
LPL
LG Display
3.42
-1.32
-27.85%
AAPL
Apple
211.16
-22.15
-9.49%
SONY
Sony Group
24.43
5.37
28.17%
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.