Universal DisplayOLED +2.34%84 Operating Margin % is 30.06% as of Mar. 2026, which is 21% below its 10-year median of 37.95. GuruFocus rates OLED with a GF Score™ of 84/100 and a GF Value™ of $153.50 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,472 Hardware companies, Universal Display ranks better than 98.54% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Universal Display Operating Margin % Related Terms
Universal Display Operating Margin % Historical Data
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The historical data trend for Universal Display's Operating 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.
OLED vs BELFB, OSIS, KN: Operating Margin % Comparison
For the Electronic Components subindustry, Universal Display's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Universal Display's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Universal Display's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Universal Display's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Universal Display (OLED) has a Operating Margin % of 30.06% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Universal Display and its competitors. This is 21% below median its historical median of 37.95. Over the past decade, Universal Display's Operating Margin % has ranged from 22.93 to 43.57. According to the industry distribution chart, Universal Display ranks #36 out of 2472 companies in the Hardware industry, placing it in the top 1.5%.
Is Universal Display's Operating Margin % too high?
Universal Display's current Operating Margin % of 30.06% is 21% below median its 10-year median of 37.95. Over the past 10 years, this metric has ranged from a low of 22.93 to a high of 43.57. The Hardware industry median Operating Margin % is 3.80. Universal Display's value of 30.06% is 691.1% above this industry median. Based on the distribution chart, Universal Display ranks #36 out of 2472 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 84/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Universal Display's Operating Margin % compare to BELFB and OSIS?
According to the Hardware industry distribution chart, Universal Display ranks #36 out of 2472 companies for Operating Margin %. This places Universal Display in the top 2% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.80. Universal Display's value of 30.06% is 691.1% above this benchmark. Historically, Universal Display's own Operating Margin % has ranged from 22.93 to 43.57 over the past decade. While the company's 10-year median is 37.95 vs. the industry median of 3.80, 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 Operating Margin % for a Hardware company?
The median Operating Margin % among Hardware companies is 3.80, based on 2,472 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Universal Display's current Operating Margin % of 30.06% is 691.1% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Universal Display and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Display's current Operating Margin % is 30.06%, which is 21% below median its own 10-year median of 37.95. 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 (OLED) is currently considered Significantly Undervalued. The stock's GF Value™ is $153.50, compared to a current price of $87.60 — trading 42.9% below its estimated fair value. The current Operating Margin % is 30.06%, which is 21% below median its 10-year median of 37.95 and 691.1% above the Hardware industry median of 3.80. Universal Display's overall GF Score™ is 84/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Universal Display (OLED), the current Operating Margin % is 30.06% 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 (OLED) Overvalued in 2026?
Based on GuruFocus' analysis, Universal Display stock appears to be undervalued.
The current stock price of $87.60 is trading 42.9% below its estimated GF Value™ of $153.50.
GuruFocus considers Universal Display to be Significantly Undervalued.
Key valuation signals for OLED:
Operating Margin %: 30.06% (21% below median its 10-year median of 37.95)
GF Value™: $153.50 vs. price of $87.60 (42.9% below fair value)
Industry Position: 691.1% above the Hardware median (#36 of 2472)
No single metric tells the full story. See the OLED 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.
84GF Score
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