Goodwill - Universal Display Corp (NASDAQ:OLED)

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Price: 117.22 USD -0.3% Market Closed

Market Cap: $5.6B

Universal Display Corp
Goodwill

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Universal Display Corp
Goodwill Peer Comparison

	Goodwill	CAGR 3Y	CAGR 5Y	CAGR 10Y
Universal Display Corp NASDAQ:OLED	Goodwill $15.5m	CAGR 3-Years 0%	CAGR 5-Years 0%	CAGR 10-Years N/A
Micron Technology Inc NASDAQ:MU	Goodwill $1.2B	CAGR 3-Years -2%	CAGR 5-Years -1%	CAGR 10-Years N/A
Intel Corp NASDAQ:INTC	Goodwill $23.9B	CAGR 3-Years -5%	CAGR 5-Years -2%	CAGR 10-Years 8%
NVIDIA Corp NASDAQ:NVDA	Goodwill $6.3B	CAGR 3-Years 13%	CAGR 5-Years 8%	CAGR 10-Years 26%
Broadcom Inc NASDAQ:AVGO	Goodwill $97.8B	CAGR 3-Years 31%	CAGR 5-Years 18%	CAGR 10-Years 50%
Advanced Micro Devices Inc NASDAQ:AMD	Goodwill $25.1B	CAGR 3-Years 1%	CAGR 5-Years 144%	CAGR 10-Years 57%

Universal Display Corp
Glance View

Economic Moat

Narrow

Market Cap

5.6B USD

Industry

Semiconductors

In the complex and vibrant world of display technology, Universal Display Corporation (UDC) stands as a pioneer and industry leader. Founded in 1994, the company has been at the forefront of developing and commercializing organic light-emitting diode (OLED) technology. Unlike traditional light-emitting systems, OLEDs offer vibrant colors, deeper blacks, and more energy-efficient displays. Universal Display operates at the intersection of science and business, focusing on research and the subsequent commercialization of innovative OLED technologies. Their work has not only enriched the visual appeal of devices but also expanded the possibilities across various applications, from smartphones and televisions to automotive displays and lighting solutions. Central to Universal Display's business model is its robust intellectual property portfolio, comprising over 5,500 patents. This expansive portfolio allows the company to generate revenue primarily through license and royalty agreements with display manufacturers around the globe. In addition to licensing, UDC supplies its patented PHOLED materials, critical components in creating efficient and high-quality OLED products, to these manufacturers. By leveraging a dual-revenue strategy of material sales and licensing arrangements, Universal Display captures value at multiple points in the OLED supply chain. This approach ensures a steady stream of income while maintaining the agility to invest in further research and development, solidifying its role as a catalyst in the evolving display technology industry.

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What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Universal Display Corp
NASDAQ:OLED

Universal Display Corp
Goodwill

Universal Display Corp
Goodwill Peer Comparison

Competitors Analysis
Latest Figures & CAGR of Competitors

Universal Display Corp
Glance View

See Also

What is Universal Display Corp's Goodwill?

Goodwill
15.5m USD

What is Universal Display Corp's Goodwill growth rate?

Goodwill CAGR 5Y
0%

Company

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52 Week Range	106.2875 161.44
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Universal Display Corp NASDAQ:OLED

Universal Display Corp Goodwill

Universal Display Corp Goodwill Peer Comparison

Competitors Analysis Latest Figures & CAGR of Competitors

Universal Display Corp Glance View

See Also

What is Universal Display Corp's Goodwill? Goodwill 15.5m USD

What is Universal Display Corp's Goodwill growth rate? Goodwill CAGR 5Y 0%

Company

Help

Tools

Stocks

Universal Display Corp
NASDAQ:OLED

Universal Display Corp
Goodwill

Universal Display Corp
Goodwill Peer Comparison

Competitors Analysis
Latest Figures & CAGR of Competitors

Universal Display Corp
Glance View

What is Universal Display Corp's Goodwill?

Goodwill
15.5m USD

What is Universal Display Corp's Goodwill growth rate?

Goodwill CAGR 5Y
0%