The U.S. Department of Defense last year awarded multiple contracts to eMagin (NYSE:EMAN), a supplier of high-performance OLED microdisplays. Given the broad applications of OLED technology in multiple sectors, investors have been betting on EMAN. However, the question is, will the company be able to live up to expectations given its poor fundamentals? Read more to find out.eMagin Corporation (EMAN) manufactures miniature displays using organic light emitting diode (OLED) technology. Its products have applications in the military, healthcare and industrial sectors. EMAN entered an agreement with the U.S. Department of Defense last July under which it will receive $33.60 million funding over a 22-month span to expand the critical industrial base production of OLED microdisplays. This follows EMAN’s $5.50 million grant from the Department of Defense for industrial base analysis and a sustainment program for OLED supply chain assurance.
As EMAN is the sole domestic supplier of high-performance OLED microdisplays. These microdisplays have immense applications in military equipment. The company’s contracts with the defense department make it an attractive stock. Shares of EMAN have gained 541.1% over the past year and 118.2% year-to-date. The stock has gained 36.9% over the past month to close yesterday’s trading session at $3.60.
However, despite securing government contracts, EMAN’s financials have yet to improve. Also, the company’s forward Price/Earnings multiple is negative, placing a bleak spin on its prospects.