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LG Display Co. (LPL)
NYSE:LPL
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LG Display
(NYSE:LPL)
Rating:57Neutral
Price Target:
$4.50
▲(3.21% Upside)
LG Display (LPL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.23B
Dividend YieldN/A
Average Volume (3M)525.16K
Price to Earnings (P/E)―
Beta (1Y)0.92
Revenue Growth3.97%
EPS Growth72.99%
CountryUS
Employees27,352
SectorTechnology
Sector Strength86
IndustryConsumer Electronics
Share Statistics
EPS (TTM)0.83
Shares Outstanding1,000,000,000
10 Day Avg. Volume771,890
30 Day Avg. Volume525,162
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap3.07
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$4.50Price Target Upside3.21% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering2
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:Jul 24, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong improvement in operating loss and net income, driven by the shift to OLED and cost reduction. However, there were notable declines in sales and shipment areas due to the end of the LCD TV business and seasonal factors. The positive outlook for OLED and automotive segments suggests a potential rebound in the second half.Q2-2025 Updates
Positive Updates
Improvement in Operating Loss
Operating loss improved by KRW 480.5 billion in the first half of the year due to restructuring towards an OLED-centered business and cost reduction efforts.
Positive Net Income
Net income turned positive to KRW 890.8 billion, driven by improved FX gains and the sale of the Guangzhou LCD plant stake.
Strong EBITDA Performance
EBITDA for Q2 was KRW 1.539 trillion with an EBITDA margin of approximately 19%, maintaining a mid-teen margin for the seventh consecutive quarter.
Debt Ratio Improvements
Debt ratio decreased by 40 percentage points Q-o-Q to 268%, and net debt-to-equity ratio decreased by 19 percentage points Q-o-Q to 155%.
OLED Business Expansion
The OLED portion of total revenue increased by 1 percentage point Q-o-Q and 3 percentage points Y-o-Y, reaching 56%.
OLED Panel Shipments Growth
OLED TV panel shipments increased Q-o-Q, contributing to the growth of the OLED segment.
Automotive Segment Growth
The Automotive segment grew 1 percentage point Q-o-Q to 10% of total revenue.
CapEx Strategy for Future Readiness
CapEx for the year is expected to be in the low KRW 2 trillion range, focusing on future readiness and business structure enhancement.
Negative Updates
Sales Decline
Sales declined by 8% Q-o-Q to KRW 5.587 trillion and 17% Y-o-Y due to seasonal factors and the termination of the LCD TV business.
Operating Loss in Q2
Operating profit posted a loss of KRW 116 billion due to strong Korean won exchange rate and the end of the LCD TV business.
Decreased Shipment Area
Q2 shipment area decreased by 26% Q-o-Q due to the termination of the LCD TV business.
Mobile and Others Revenue Decline
Revenue from mobile and others declined by 6 percentage points Q-o-Q to 28% due to seasonally weak panel shipments.
Weak IT Business Profitability
The profitability of the IT business has weakened compared to the past, but efforts are being made to improve this.
Company Guidance
During LG Display's 2025 second-quarter earnings call, guidance for the third quarter highlighted expectations for a low to mid-single-digit percentage decline in shipment area due to product mix changes in mid- to large-panel products and a reduction in low-margin medium panel products. However, the average selling price (ASP) per area is forecasted to increase to mid-20% levels, driven by a seasonal increase in shipments of small- and medium-sized OLED products. The company remains committed to transitioning to an OLED-focused business structure to sustain higher ASP levels, with a projection of continued growth in the OLED portion of total revenue, which increased by 1 percentage point quarter-over-quarter (Q-o-Q) and 3 percentage points year-over-year (Y-o-Y) to reach 56%. The company also emphasized maintaining a CapEx strategy in the low KRW 2 trillion range for the year, focusing on future readiness and business structure enhancement.LG Display Financial Statement Overview
Summary
LG Display is facing financial challenges with declining revenues, negative profitability, high leverage, and cash flow issues. The company needs to improve operational efficiency, reduce debt, and enhance cash flow to strengthen its financial position.Income Statement
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.45
Neutral
Balance Sheet
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.40
Negative
Cash Flow
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.35
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 26.31T | 26.62T | 21.33T | 26.15T | 29.88T | 24.23T |
| Gross Profit | 2.99T | 2.58T | 345.18B | 1.12T | 5.31T | 2.64T |
| EBITDA | 6.06T | 3.84T | 1.60T | 638.00M | 6.34T | 3.90T |
| Net Income | -669.84B | -2.56T | -2.73T | -3.20T | 1.19T | -70.64B |
Balance Sheet | ||||||
| Total Assets | 27.98T | 32.86T | 35.76T | 35.69T | 38.15T | 35.07T |
| Cash, Cash Equivalents and Short-Term Investments | 1.68T | 2.03T | 2.40T | 2.10T | 3.57T | 4.23T |
| Total Debt | 13.50T | 14.61T | 16.60T | 15.06T | 12.75T | 14.15T |
| Total Liabilities | 20.39T | 24.79T | 26.99T | 24.37T | 23.39T | 22.33T |
| Stockholders Equity | 6.48T | 6.54T | 7.23T | 9.88T | 13.12T | 11.40T |
Cash Flow | ||||||
| Free Cash Flow | 164.61B | 282.03B | -2.45T | -2.90T | 1.98T | -669.91B |
| Operating Cash Flow | 2.32T | 2.41T | 1.68T | 3.01T | 5.75T | 2.29T |
| Investing Cash Flow | -695.89B | -1.36T | -2.59T | -6.70T | -4.26T | -2.32T |
| Financing Cash Flow | -1.93T | -1.33T | 1.35T | 1.95T | -2.47T | 931.83B |
LG Display Technical Analysis
Positive
4.36
Price Trends
3.81
Positive
3.42
Positive
3.34
Positive
Market Momentum
0.17
Positive
63.32
Neutral
79.73
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 4.36 is above the 20-day moving average (MA) of 4.23, above the 50-day MA of 3.81, and above the 200-day MA of 3.34, indicating a bullish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 63.32 is Neutral, neither overbought nor oversold. The STOCH value of 79.73 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 (61)
Financial Indicators
Performance Comparison
LPL
LG Display
4.44
0.39
9.63%
AAPL
Apple
232.56
3.84
1.68%
SONY
Sony Group
28.00
8.70
45.08%
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.