Is UDC a profitable company?
As UDC has added more manufacturing partners to its ecosystem and generated progressively higher raw material and royalty income, it's turned into a highly profitable firm. In fact, net income of $92.2 million through the first half of 2021 represents an enviable net income profit margin of 35%.
Will UDC increase manufacturing capacity?
On the last earnings call, UDC management confirmed that its forecast for manufacturing capacity to increase 50% from 2019 to 2021 has come to pass. And the company promises to provide another update on what it sees taking place in 2022 and beyond on this front on the end-of-2021 call. But with so many devices out there yet to get OLED screens (OLED has penetrated only about 1% of the IT market, for example), there is plenty of room for UDC to continue its run.
Ending a forgettable year on a high note
UDC fared poorly during the onset of the pandemic last spring. Revenue was cut in half year over year during Q2. However, it would have been a good buy at that time -- the company's sales have since rallied and then some, notching a 39% year-over-year advance in Q4 to $141.5 million.
More OLED materials and manufacturing processes
At the moment, UDC is getting a lift as more smartphones and high-end TVs adopt OLED displays. But there's more going for the company long-term. Blue phosphorescent emitters are still being developed, which would provide a big boost to UDC's material sales (when those arrive).
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