Fact based stock research
LG Household & Health Care (KOSE:A051900)

KR7051900009

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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 Household & Health Care stock research in summary

lghnh.com

ANALYSIS: With an Obermatt Combined Rank of 69 (better than 69% compared with investment alternatives), LG Household & Health Care (Personal Products, South Korea) shares have above-average financial characteristics compared with similar stocks. Shares of LG Household & Health Care are low in value (priced high) with a consolidated Value Rank of 37 (worse than 63% of alternatives). But they show above-average growth (Growth Rank of 55) and are safely financed (Safety Rank of 79, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 69, is a buy recommendation based on LG Household & Health Care's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company LG Household & Health Care exhibits low value (Obermatt Value Rank of 37), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 55). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 79) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). 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	37
Growth Rank	55
Safety Rank	79
Combined Rank	69

Country	South Korea
Industry	Personal Products
Index	Human Rights, KOSPI
Size class	X-Large

14-Nov-2024. 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 Household & Health Care

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	52	25	32	37
GROWTH
GROWTH	7	39	29	55
SAFETY
SAFETY	62	37	74	79
SENTIMENT
SENTIMENT	n/a	87	45	^new
360° VIEW
360° VIEW	n/a	33	34	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better LG Household & Health Care is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	52	25	32	37
GROWTH
GROWTH	7	39	29	55
SAFETY
SAFETY	62	37	74	79
COMBINED
COMBINED	57	10	36	69

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of LG Household & Health Care the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 37 (worse than 63% compared with alternatives), LG Household & Health Care shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators where three out of four are below average for LG Household & Health Care. Only the Price-to-Book Capital ratio (also referred to as market-to-book ratio) indicates good stock value with a Price-to-Book Rank of 53, which means that the stock price is lower compared with invested capital than for 53% of comparable investments. All other value indicators are below the market median. Price-to-Sales is 47 which means the stock price compared with what market professionals expect for future profits is higher than 53% of comparable companies, indicating a low value concerning LG Household & Health Care's revenue levels. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Book Rank of 53 and for the dividend yields rank which is lower than for 58% of comparable companies, making the stock more expensive as regards to with the company's expected dividend payouts. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 37, is a hold recommendation based on LG Household & Health Care's stock price compared with the company's operational size and dividend yields. Why are market participants paying such a high price for LG Household & Health Care, where three out of four value indicators are below par? One reason could be that the company is well financed, indicated by the high book capital level, and has a promising future that is not yet visible in reported revenues and profits. That would also explain the low dividend yield because the company needs the cash to invest in its future. If investors can verify a picture in this sense, the stock may still be a good investment, even though current company-reported financials don't fully explain current stock prices. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	57	26	46	47
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	67	37	34	38
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	26	20	57	53
DIVIDEND YIELD
DIVIDEND YIELD	64	40	34	42
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	52	25	32	37

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of LG Household & Health Care; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 55 (better than 55% compared with alternatives), LG Household & Health Care shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for LG Household & Health Care. Profit Growth has a rank of 74, which means that currently professionals expect the company to grow its profits more than 74% of its competitors. This is a good sign for shareholders, which is confirmed by an above-average Stock Returns rank of 63 (above 63% of alternative investments). But Sales Growth has a below the median rank of 17, which means that, currently, professionals expect the company to grow less than 83% of its competitors, and Capital Growth also has a lower rank of 46. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 55, is a buy recommendation for growth and momentum investors. Because revenues and invested capital are the more solid growth indicators, the positive development on the profit side is less relevant. It may have been caused by cost-cutting, which may be a negative growth indicator. Finally, the above-average stock returns recently are a thing of the past and not a good indicator of future returns. Investors should be confident that the cost-cutting initiative leading to higher profits is to benefit the company's future. If not, there is little growth momentum, and investment is only advisable if the Value Ranks suggest a good investment timing for LG Household & Health Care. 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 Obermatt’s 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	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	11	45	42	17
PROFIT GROWTH
PROFIT GROWTH	63	41	57	74
CAPITAL GROWTH
CAPITAL GROWTH	n/a	92	42	46
STOCK RETURNS
STOCK RETURNS	6	7	5	63
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	7	39	29	55

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of LG Household & Health Care.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 79 (better than 79% compared with alternatives) for 2024, the company LG Household & Health Care has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of LG Household & Health Care 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, where all three are above average for LG Household & Health Care. Leverage is at 76, meaning the company has a below-average debt-to-equity ratio. It has less debt than 76% of its competitors. Refinancing is at a rank of 51, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 51% of its competitors. Finally, Liquidity is also good at a rank of 71, which means that the company generates more profit to service its debt than 71% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 79 (better than 79% compared with alternatives), LG Household & Health Care has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with LG Household & Health Care but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	36	62	60	76
REFINANCING
REFINANCING	28	7	49	51
LIQUIDITY
LIQUIDITY	100	71	74	71
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	62	37	74	79

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of LG Household & Health Care and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	59	22	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	40	48	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	83	58	^new
MARKET PULSE
MARKET PULSE	n/a	70	84	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	87	45	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for LG Household & Health Care.
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