OLED – Market expectations are for Uniform ROA expansion, but management may be concerned about demand and inventory management
- Universal Display Corporation (OLED:USA) currently trades above recent averages relative to UAFRS-based (Uniform) Earnings, with a 41.8x Uniform P/E, implying bullish expectations for the firm. However, management may be concerned about demand and their inventory management
- Specifically, management may be concerned about the sustainability of demand from Chinese panel manufacturers, and they may be concerned about the volatility of demand for OLED products. Furthermore, they may lack confidence in their ability to accurately produce inventory to meet their demand.