OLED technology transition
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LG Display Co. (NYSE:LPL) Earnings Preview and Financial Health Analysis
Financial Modeling Prep· 2025-11-19 12:00
Core Viewpoint - LG Display Co. is transitioning from traditional LCD technology to high-margin OLED technology, which is expected to enhance profitability as OLED products now account for 65% of total sales [1][5] Financial Performance - On November 20, 2025, LG Display is expected to report an earnings per share (EPS) of $0.07 and projected revenue of approximately $4.88 billion [2][5] - In the third quarter of 2025, the company reported a 25% sequential increase in revenue and a rebound in operating profit, indicating positive effects from the focus on OLED technology [2] Valuation Metrics - The price-to-sales ratio is approximately 0.24, indicating the market values the company's sales at 24 cents for every dollar of sales, reflecting a cautious market stance [3] - The enterprise value to sales ratio is about 0.69, and the enterprise value to operating cash flow ratio is around 11.36, showing the relationship between the company's valuation, sales, and cash flow [3] Debt and Liquidity - The debt-to-equity ratio stands at about 2.00, indicating that the company has twice as much debt as equity, which could pose risks if not managed properly [4] - The current ratio is approximately 0.70, suggesting potential challenges in covering short-term liabilities with short-term assets [4]