Fact based stock research
S-Oil (KOSE:A010950)
KR7010950004
How to read the free ranks
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.
S-Oil stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 30 (worse than 70% compared with investment alternatives), S-Oil (Oil & Gas Refining, South Korea) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of S-Oil are low in value (priced high) with a consolidated Value Rank of 49 (worse than 51% of alternatives), show below-average growth (Growth Rank of 15), and are riskily financed (Safety Rank of 38), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 30, is a hold recommendation based on S-Oil's financial characteristics. As the company S-Oil's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 49), low growth (Obermatt Growth Rank of 15), and risky financing practices (Obermatt Safety Rank of 38), 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. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to 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
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360° Viewnew| Country | South Korea |
| Industry | Oil & Gas Refining |
| Index | Low Emissions, Energy Efficient, Human Rights, KOSPI |
| Size class | XX-Large |
14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: S-Oil
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 60 |
|
55 |
|
65 |
|
49 |
|
| GROWTH | ||||||||
| GROWTH | 41 |
|
100 |
|
33 |
|
15 |
|
| SAFETY | ||||||||
| SAFETY | 56 |
|
1 |
|
58 |
|
38 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
68 |
|
86 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
65 |
|
82 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 30 (worse than 70% compared with investment alternatives), S-Oil (Oil & Gas Refining, South Korea) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of S-Oil are low in value (priced high) with a consolidated Value Rank of 49 (worse than 51% of alternatives), show below-average growth (Growth Rank of 15), and are riskily financed (Safety Rank of 38), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 30, is a hold recommendation based on S-Oil's financial characteristics. As the company S-Oil's key financial metrics all exhibit below-average performance, such as low value (Obermatt Value Rank of 49), low growth (Obermatt Growth Rank of 15), and risky financing practices (Obermatt Safety Rank of 38), 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. Such poor financial performance sometimes indicates that the company's business is all concentrated in some distant future. This is sometimes the case for high-tech or biotechnology companies. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and risky today. In such cases, the Obermatt Method has limited value as it is based on facts we can observe today. If the facts are all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that should only amount to 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
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 60 |
|
55 |
|
65 |
|
49 |
|
| GROWTH | ||||||||
| GROWTH | 41 |
|
100 |
|
33 |
|
15 |
|
| SAFETY | ||||||||
| SAFETY | 56 |
|
1 |
|
58 |
|
38 |
|
| COMBINED | ||||||||
| COMBINED | 53 |
|
54 |
|
58 |
|
30 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 49 (worse than 51% compared with alternatives), S-Oil 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 are above average for S-Oil. Price-to-Sales (P/S) is 69, which means that the stock price compared with what market professionals expect for future sales is lower than for 69% of comparable companies, indicating a good value concerning S-Oil's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 53% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 45 (dividends are expected to be higher than for 45% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 61% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for S-Oil to 39. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 49, is a hold recommendation based on S-Oil's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner on assets than its competitors. For instance, the company could be leasing its production facilities, or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the low Dividend Yield is also explained as such companies tend to invest their income into market development. The other good value ranks for Sales and Profits are encouraging indicators for the stock price value. 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 | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 79 |
|
65 |
|
71 |
|
69 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 83 |
|
61 |
|
83 |
|
53 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 45 |
|
26 |
|
36 |
|
39 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 55 |
|
89 |
|
76 |
|
45 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 60 |
|
55 |
|
65 |
|
49 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 15 (better than 15% compared with alternatives), S-Oil shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for S-Oil. Only Capital Growth has a good rank of 51, which means that currently professionals expect the company to grow its invested capital more than 10% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 1 which means that currently professionals expect the company to grow less than 99% of its competitors. Profit Growth with a rank of 10 and Stock Returns with a rank of 41 are also low (below 59% of alternative investments). ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 15, is a sell recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for S-Oil is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. 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 limited here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 44 |
|
80 |
|
28 |
|
1 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 12 |
|
82 |
|
23 |
|
10 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
100 |
|
87 |
|
51 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 63 |
|
87 |
|
13 |
|
41 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 41 |
|
100 |
|
33 |
|
15 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 38 (better than 38% compared with alternatives), the company S-Oil has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of S-Oil is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for S-Oil. Liquidity is at 54, meaning the company generates more profit to service its debt than 54% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 19, 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 81% of its competitors. Leverage is also high at a rank of 40, which means that the company has an above-average debt-to-equity ratio. It has more debt than 60% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 38 (worse than 62% compared with alternatives), S-Oil has a financing structure that is riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 49 |
|
12 |
|
40 |
|
40 |
|
| REFINANCING | ||||||||
| REFINANCING | 63 |
|
5 |
|
31 |
|
19 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 56 |
|
1 |
|
72 |
|
54 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 56 |
|
1 |
|
58 |
|
38 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
78 |
|
83 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
22 |
|
47 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
81 |
|
68 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
42 |
|
76 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
68 |
|
86 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for S-Oil from November 14, 2024.
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