Fact based stock research
LG Chem (KOSE:A051910)

KR7051910008

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

LG Chem stock research in summary

lgchem.com

ANALYSIS: With an Obermatt Combined Rank of 36 (worse than 64% compared with investment alternatives), LG Chem (Commodity Chemicals, South Korea) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of LG Chem are low in value (priced high) with a consolidated Value Rank of 29 (worse than 71% of alternatives) and show below-average growth (Growth Rank of 39) but are safely financed (Safety Rank of 56), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 36, is a hold recommendation based on LG Chem's financial characteristics. As the company LG Chem's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 29) and low growth (Obermatt Growth Rank of 39), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 56) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	29
Growth Rank	39
Safety Rank	56
Combined Rank	36

Country	South Korea
Industry	Commodity Chemicals
Index	Low Emissions, Energy Efficient, Low Waste, Recycling, KOSPI
Size class	XX-Large

27-Feb-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: LG Chem

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	13	39	29	29
GROWTH
GROWTH	71	61	37	39
SAFETY
SAFETY	14	60	56	56
SENTIMENT
SENTIMENT	46	86	39	^new
360° VIEW
360° VIEW	7	71	55	^new

Most recent update of the stock research: 27-Feb-2025. Financial reporting date used for calculating ranks: 31-Dec-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better LG Chem is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	13	39	29	29
GROWTH
GROWTH	71	61	37	39
SAFETY
SAFETY	14	60	56	56
COMBINED
COMBINED	8	60	36	36

Last update of combined financial performance: 9-Jan-2025. Stock analysis on combined financial performance: The higher the rank of LG Chem the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 29 (worse than 71% compared with alternatives), LG Chem shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where half the indicators are below and half above average for LG Chem. Price-to-Sales (P/S) is 59, which means that the stock price compared with what market professionals expect for future sales is lower than for 59% of comparable companies, indicating a good value concerning LG Chem's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio), which is more favorable than for 52% of alternatives (48% of peers have a higher ratio). But expected dividend yields with a Dividend Yield rank of 18 are lower than average (dividends are expected to be lower than 82% of other stocks) while the Price to Profit ratio (or Price to Earnings (P/E) ratio) is higher than average with a Price-to-Profit Rank of 21, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 29, is a hold recommendation based on LG Chem's stock price compared with the company's operational size and dividend yields. Low profits and low dividends as seen here for LG Chem may indicate a restructuring phase. This could be transitory, making the company a good value when profits recover and dividends return to higher levels. If the stock price is compared with the size indicators for revenue and invested capital, it is on the lower side, making this stock a good value investment (apart from current profit and dividend expectations). We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	36	48	59	59
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	9	50	21	21
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	13	22	52	52
DIVIDEND YIELD
DIVIDEND YIELD	21	43	18	18
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	13	39	29	29

Last update of Value Rank: 27-Feb-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of LG Chem; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 39 (better than 39% compared with alternatives), LG Chem shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for LG Chem. Sales Growth has a rank of 98, which means that, currently, professionals expect the company to grow more than 98% of its competitors. Profit Growth with a rank of 68 is also above average. But Capital Growth has only a rank of 18, and Stock Returns with 7 are also below-average. Stock returns for LG Chem have recently been below 93% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 39, is a hold recommendation for growth and momentum investors. Are investors forecasting troubles based on the lack of operating investment activity at the company? This could be one explanation as to why stock returns are low. But stock returns can also be the result of correcting an error in the past, in this case, an overly optimistic outlook on the future, which is now more realistic. The Value Ranks may confirm such a picture. The more important growth indicators are revenues and profits, which are both above average for LG Chem. This is a positive sign from the company's operational side and may give investors courage, despite the poor recent stock price performance. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with the Obermatt Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	89	90	96	98
PROFIT GROWTH
PROFIT GROWTH	91	56	68	68
CAPITAL GROWTH
CAPITAL GROWTH	57	76	19	18
STOCK RETURNS
STOCK RETURNS	9	11	5	7
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	71	61	37	39

Last update of Growth Rank: 27-Feb-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of LG Chem.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 56 (better than 56% compared with alternatives), the company LG Chem has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of LG Chem is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for LG Chem. Leverage is at a rank of 50, meaning the company has a below-average debt-to-equity ratio. It has less debt than 50% of its competitors. Liquidity is also good at a rank of 50, meaning the company generates more profit to service its debt than 50% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 49, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 51% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 56 (better than 56% compared with alternatives), LG Chem has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for LG Chem. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with LG Chem and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	32	50	50	50
REFINANCING
REFINANCING	19	51	49	49
LIQUIDITY
LIQUIDITY	26	50	50	50
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	14	60	56	56

Last update of Safety Rank: 9-Jan-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of LG Chem and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	89	84	^new
OPINIONS CHANGE
OPINIONS CHANGE	21	50	10	^new
PRO HOLDINGS
PRO HOLDINGS	7	55	12	^new
MARKET PULSE
MARKET PULSE	78	69	71	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	46	86	39	^new

Last update of Sentiment Rank: 27-Feb-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for LG Chem.
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