Universal DisplayBSP:O2LE34 57 Gross Margin % is 74.60% as of Mar. 2026, which is 6% below its 10-year median of 79.25. GuruFocus rates BSP:O2LE34 with a GF Score™ of 57/100 and a GF Value™ of R$44.96 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,450 Hardware companies, Universal Display ranks better than 97.92% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Universal Display had a gross margin of 74.60% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Universal Display Gross Margin % Related Terms
Universal Display Gross Margin % Historical Data
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The historical data trend for Universal Display's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BSP:O2LE34 vs BELFB, OSIS, KN: Gross Margin % Comparison
For the Electronic Components subindustry, Universal Display's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Universal Display Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Universal Display's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Universal Display's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Universal Display (BSP:O2LE34) has a Gross Margin % of 74.60% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Universal Display and its competitors. This is near median its historical median of 79.25. Over the past decade, Universal Display's Gross Margin % has ranged from 75.72 to 86.78. According to the industry distribution chart, Universal Display ranks #51 out of 2450 companies in the Hardware industry, placing it in the top 2.1%.
Is Universal Display's Gross Margin % too high?
Universal Display's current Gross Margin % of 74.60% is near median its 10-year median of 79.25. Over the past 10 years, this metric has ranged from a low of 75.72 to a high of 86.78. The Hardware industry median Gross Margin % is 24.53. Universal Display's value of 74.60% is 204.1% above this industry median. Based on the distribution chart, Universal Display ranks #51 out of 2450 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Universal Display has a GF Score™ of 57/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Universal Display's Gross Margin % compare to BELFB and OSIS?
According to the Hardware industry distribution chart, Universal Display ranks #51 out of 2450 companies for Gross Margin %. This places Universal Display in the top 2% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.53. Universal Display's value of 74.60% is 204.1% above this benchmark. Historically, Universal Display's own Gross Margin % has ranged from 75.72 to 86.78 over the past decade. While the company's 10-year median is 79.25 vs. the industry median of 24.53, Universal Display has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Hardware company?
The median Gross Margin % among Hardware companies is 24.53, based on 2,450 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Universal Display's current Gross Margin % of 74.60% is 204.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Universal Display and its competitors. For the Hardware industry, the median Gross Margin % is 24.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Display's current Gross Margin % is 74.60%, which is near median its own 10-year median of 79.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Universal Display stock overvalued right now?
Based on GuruFocus' analysis, Universal Display (BSP:O2LE34) is currently considered Significantly Undervalued. The stock's GF Value™ is R$44.96, compared to a current price of R$25.07 — trading 44.2% below its estimated fair value. The current Gross Margin % is 74.60%, which is near median its 10-year median of 79.25 and 204.1% above the Hardware industry median of 24.53. Universal Display's overall GF Score™ is 57/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Universal Display (BSP:O2LE34), the current Gross Margin % is 74.60% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Universal Display (BSP:O2LE34) Overvalued in 2026?
Based on GuruFocus' analysis, Universal Display stock appears to be undervalued.
The current stock price of R$25.07 is trading 44.2% below its estimated GF Value™ of R$44.96.
GuruFocus considers Universal Display to be Significantly Undervalued.
Key valuation signals for BSP:O2LE34:
Gross Margin %: 74.60% (near median its 10-year median of 79.25)
GF Value™: R$44.96 vs. price of R$25.07 (44.2% below fair value)
Industry Position: 204.1% above the Hardware median (#51 of 2450)
No single metric tells the full story. See the BSP:O2LE34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Universal Display Corp researches, develops, and manufactures organic light-emitting diode, or OLED, technologies for use in displays for mobile phones, tablets, televisions, wearables, personal computers, automotive interiors, and the solid-state lighting market. OLED technologies are an alternative to light-emitting diode, or LED, technologies, in the solid-state lighting market, and liquid crystal displays in the flat-panel-display market. The Company has one reportable business segment being OLED technologies and materials. The large majority of the firm's revenue is generated in South Korea, with the rest coming from Japan, China, the United States, and other countries across the world.
57GF Score
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