Valuation Update With 7 Day Price Move • Jun 29
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₩51,300, the stock trades at a trailing P/E ratio of 3.9x. Average trailing P/E is 6x in the Oil and Gas industry in South Korea. Total returns to shareholders of 62% over the past three years. Buy Or Sell Opportunity • Jun 09
Now 23% overvalued Over the last 90 days, the stock has fallen 22% to ₩44,600. The fair value is estimated to be ₩36,335, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 6.3% over the last 3 years. Earnings per share has declined by 45%. Valuation Update With 7 Day Price Move • Apr 13
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₩60,600, the stock trades at a trailing P/E ratio of 8.6x. Average trailing P/E is 9x in the Oil and Gas industry in South Korea. Total returns to shareholders of 104% over the past three years. Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to ₩50,400, the stock trades at a trailing P/E ratio of 15.6x. Average trailing P/E is 17x in the Oil and Gas industry in South Korea. Total returns to shareholders of 70% over the past three years. Annonce • Feb 13
KKR & Co. Inc. (NYSE:KKR) proposed to acquire 31.03% stake in SK eternix Co., Ltd. (KOSE:A475150) from SK Discovery Co., Ltd. (KOSE:A006120). KKR & Co. Inc. (NYSE:KKR) proposed to acquire 31.03% stake in SK eternix Co., Ltd. (KOSE:A475150) from SK Discovery Co., Ltd. (KOSE:A006120) on February 12, 2026. A cash consideration will be paid by KKR & Co. Inc. The market anticipates the transaction price to be in the mid KRW 200 billion range. Reported Earnings • Nov 19
Third quarter 2025 earnings released: EPS: ₩714 (vs ₩1,920 in 3Q 2024) Third quarter 2025 results: EPS: ₩714 (down from ₩1,920 in 3Q 2024). Revenue: ₩2.60t (up 19% from 3Q 2024). Net income: ₩12.9b (down 65% from 3Q 2024). Profit margin: 0.5% (down from 1.7% in 3Q 2024). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 105 percentage points per year, which is a significant difference in performance. Valuation Update With 7 Day Price Move • Oct 28
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to ₩60,150, the stock trades at a trailing P/E ratio of 13.3x. Average trailing P/E is 12x in the Oil and Gas industry in South Korea. Total returns to shareholders of 131% over the past three years. Buy Or Sell Opportunity • Aug 21
Now 25% overvalued after recent price rise Over the last 90 days, the stock has risen 18% to ₩52,000. The fair value is estimated to be ₩41,754, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 4.3% over the last 3 years. Earnings per share has declined by 54%. Upcoming Dividend • Aug 01
Upcoming dividend of ₩500 per share Eligible shareholders must have bought the stock before 08 August 2025. Payment date: 22 August 2025. Payout ratio is a comfortable 41% but the company is not cash flow positive. Trailing yield: 3.3%. Lower than top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (2.4%). Buy Or Sell Opportunity • Jun 04
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 37% to ₩52,200. The fair value is estimated to be ₩42,585, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 4.3% over the last 3 years. Earnings per share has declined by 54%. Buy Or Sell Opportunity • Apr 24
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 17% to ₩41,600. The fair value is estimated to be ₩33,874, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 6.4% over the last 3 years. Earnings per share has declined by 43%. Buy Or Sell Opportunity • Apr 04
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 5.2% to ₩40,750. The fair value is estimated to be ₩33,852, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 6.4% over the last 3 years. Earnings per share has declined by 43%. New Risk • Mar 25
New major risk - Revenue and earnings growth Earnings have declined by 7.6% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.5x net interest cover). Dividend is not well covered by earnings and cash flows. Payout ratio: 289% Paying a dividend despite having no free cash flows. Earnings have declined by 7.6% per year over the past 5 years. Shareholders have been substantially diluted in the past year (88% increase in shares outstanding). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.3% net profit margin). Annonce • Mar 06
SK Discovery Co., Ltd. (KOSE:A006120) announces an Equity Buyback for KRW 30,000 million worth of its shares. SK Discovery Co., Ltd. (KOSE:A006120) announces a share repurchase program. Under the program, the company will repurchase up to KRW 30,000 million worth of its shares pursuant to a contract with SK Securities Co., Ltd. The purpose of the program is to enhance shareholder value and to stabilize stock price. The program will expire on September 4, 2025. As of March 3, 2025, the company had 1,064,000 shares in treasury within scope available for dividend and had 12,137 shares in treasury through other repurchases. Annonce • Mar 05
SK Discovery Co., Ltd., Annual General Meeting, Mar 26, 2025 SK Discovery Co., Ltd., Annual General Meeting, Mar 26, 2025, at 14:00 Tokyo Standard Time. Location: supex hall, 332, pangyo-ro, bundang-gu, gyeonggi-do, seongnam South Korea New Risk • Nov 28
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 87% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.5x net interest cover). Dividend is not well covered by earnings and cash flows. Payout ratio: 224% Paying a dividend despite having no free cash flows. Shareholders have been substantially diluted in the past year (87% increase in shares outstanding). Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.2% net profit margin). Reported Earnings • Nov 20
Third quarter 2024 earnings released: EPS: ₩1,920 (vs ₩4,826 in 3Q 2023) Third quarter 2024 results: EPS: ₩1,920 (down from ₩4,826 in 3Q 2023). Revenue: ₩2.19t (down 7.2% from 3Q 2023). Net income: ₩36.9b (down 57% from 3Q 2023). Profit margin: 1.7% (down from 3.7% in 3Q 2023). Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Buy Or Sell Opportunity • Oct 28
Now 20% overvalued Over the last 90 days, the stock has fallen 12% to ₩33,400. The fair value is estimated to be ₩27,828, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has declined by 11%. New Risk • Aug 22
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 1.5x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.5x net interest cover). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (0.7% net profit margin). Upcoming Dividend • Aug 02
Upcoming dividend of ₩500 per share Eligible shareholders must have bought the stock before 09 August 2024. Payment date: 26 August 2024. Payout ratio is a comfortable 43% but the company is not cash flow positive. Trailing yield: 4.5%. Within top quartile of South Korean dividend payers (3.6%). Higher than average of industry peers (3.6%). Reported Earnings • Mar 23
Full year 2023 earnings released: EPS: ₩9,699 (vs ₩21,631 in FY 2022) Full year 2023 results: EPS: ₩9,699 (down from ₩21,631 in FY 2022). Revenue: ₩8.94t (up 2.5% from FY 2022). Net income: ₩191.0b (down 55% from FY 2022). Profit margin: 2.1% (down from 4.9% in FY 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Annonce • Mar 08
SK Discovery Co., Ltd., Annual General Meeting, Mar 28, 2024 SK Discovery Co., Ltd., Annual General Meeting, Mar 28, 2024, at 09:01 Korea Standard Time. Location: 310, Pangyo-ro, Bundang-gu Seongnam- Si Gyeonggi-do South Korea Agenda: To consider and approve the 55th financial statement and consolidated financial statement; to consider and approve the changes in some articles of association; to consider and approve the appointment of inside director; to consider and approve the revision on executive severance pay provisions; and to consider other matters. Valuation Update With 7 Day Price Move • Feb 07
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩45,000, the stock trades at a trailing P/E ratio of 3.7x. Average trailing P/E is 10x in the Oil and Gas industry in South Korea. Total loss to shareholders of 24% over the past three years. Upcoming Dividend • Dec 20
Upcoming dividend of ₩1,200 per share at 4.2% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 29 April 2024. Payout ratio is a comfortable 18% but the company is not cash flow positive. Trailing yield: 4.2%. Within top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (3.5%). Upcoming Dividend • Jun 22
Upcoming dividend of ₩500 per share at 6.6% yield Eligible shareholders must have bought the stock before 29 June 2023. Payment date: 28 August 2023. Payout ratio is a comfortable 8.9% but the company is not cash flow positive. Trailing yield: 6.6%. Within top quartile of South Korean dividend payers (3.2%). Higher than average of industry peers (4.2%). Reported Earnings • May 20
First quarter 2023 earnings released: EPS: ₩4,608 (vs ₩5,627 in 1Q 2022) First quarter 2023 results: EPS: ₩4,608 (down from ₩5,627 in 1Q 2022). Revenue: ₩2.55t (up 6.5% from 1Q 2022). Net income: ₩91.1b (down 18% from 1Q 2022). Profit margin: 3.6% (down from 4.6% in 1Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 26
Full year 2022 earnings released: EPS: ₩21,631 (vs ₩10,478 in FY 2021) Full year 2022 results: EPS: ₩21,631 (up from ₩10,478 in FY 2021). Revenue: ₩8.72t (up 32% from FY 2021). Net income: ₩427.4b (up 101% from FY 2021). Profit margin: 4.9% (up from 3.2% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 24% per year whereas the company’s share price has increased by 20% per year. Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. No highly experienced directors. No independent directors (7 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • May 22
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: ₩5,627 (up from ₩1,984 in 1Q 2021). Revenue: ₩2.40t (up 64% from 1Q 2021). Net income: ₩111.2b (up 175% from 1Q 2021). Profit margin: 4.6% (up from 2.8% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 15%. Earnings per share (EPS) exceeded analyst estimates by 202%. Over the last 3 years on average, earnings per share has increased by 37% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. No highly experienced directors. No independent directors (7 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Upcoming Dividend • Dec 22
Upcoming dividend of ₩1,000 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 02 May 2022. Payout ratio is a comfortable 11% but the company is not cash flow positive. Trailing yield: 2.1%. Lower than top quartile of South Korean dividend payers (2.4%). Lower than average of industry peers (3.0%). Reported Earnings • May 20
First quarter 2021 earnings released: EPS ₩1,984 (vs ₩2,949 in 1Q 2020) The company reported a soft first quarter result with weaker earnings and profit margins, although revenues improved. First quarter 2021 results: Revenue: ₩1.47t (up 16% from 1Q 2020). Net income: ₩40.5b (down 33% from 1Q 2020). Profit margin: 2.8% (down from 4.8% in 1Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 67% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 28
Full year 2020 earnings released: EPS ₩13,096 (vs ₩6,164 in FY 2019) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: ₩4.52t (down 10.0% from FY 2019). Net income: ₩267.0b (up 112% from FY 2019). Profit margin: 5.9% (up from 2.5% in FY 2019). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 73% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Mar 04
New 90-day low: ₩60,300 The company is down 7.0% from its price of ₩65,000 on 04 December 2020. The South Korean market is up 12% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Oil and Gas industry, which is up 30% over the same period. Upcoming Dividend • Dec 22
Upcoming Dividend of ₩700 Per Share Will be paid on the 24th of April to those who are registered shareholders by the 29th of December. The trailing yield of 1.1% is below the top quartile of South Korean dividend payers (2.6%), and is lower than industry peers (1.7%). 