WBAG:LGLG

Stock Analysis Report

Executive Summary

LG Electronics Inc. manufactures and sells consumer electronics, mobile communications, and home appliances worldwide.

Snowflake

Fundamentals

Excellent balance sheet and good value.


Similar Companies

Share Price & News

How has LG Electronics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LGLG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.5%

LGLG

1.7%

AT Consumer Durables

0.4%

AT Market


1 Year Return

-1.0%

LGLG

5.7%

AT Consumer Durables

2.1%

AT Market

Return vs Industry: LGLG underperformed the Austrian Consumer Durables industry which returned 5.7% over the past year.

Return vs Market: LGLG underperformed the Austrian Market which returned 2.1% over the past year.


Shareholder returns

LGLGIndustryMarket
7 Day-3.5%1.7%0.4%
30 Day1.9%1.7%5.2%
90 Day14.6%10.8%8.5%
1 Year1.4%-1.0%12.7%5.7%5.8%2.1%
3 Yearn/a37.3%18.8%46.4%33.2%
5 Yearn/a85.2%47.2%69.3%45.5%

Price Volatility Vs. Market

How volatile is LG Electronics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is LG Electronics undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LGLG (€11) is trading below our estimate of fair value (€27.63)

Significantly Below Fair Value: LGLG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LGLG is poor value based on its PE Ratio (14.7x) compared to the Consumer Durables industry average (11.9x).

PE vs Market: LGLG is poor value based on its PE Ratio (14.7x) compared to the Austrian market (14.5x).


Price to Earnings Growth Ratio

PEG Ratio: LGLG is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: LGLG is good value based on its PB Ratio (0.8x) compared to the XE Consumer Durables industry average (1.4x).


Next Steps

Future Growth

How is LG Electronics forecast to perform in the next 1 to 3 years based on estimates from 30 analysts?

38.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LGLG's forecast earnings growth (38.8% per year) is above the savings rate (0.5%).

Earnings vs Market: LGLG's earnings (38.8% per year) are forecast to grow faster than the Austrian market (8.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LGLG's revenue (5.3% per year) is forecast to grow faster than the Austrian market (2.8% per year).

High Growth Revenue: LGLG's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LGLG's Return on Equity is forecast to be low in 3 years time (10.2%).


Next Steps

Past Performance

How has LG Electronics performed over the past 5 years?

25.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LGLG has high quality earnings.

Growing Profit Margin: LGLG's current net profit margins (1%) are lower than last year (2.4%).


Past Earnings Growth Analysis

Earnings Trend: LGLG's earnings have grown significantly by 25.1% per year over the past 5 years.

Accelerating Growth: LGLG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LGLG had negative earnings growth (-60.1%) over the past year, making it difficult to compare to the Consumer Durables industry average (1.6%).


Return on Equity

High ROE: LGLG's Return on Equity (5.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is LG Electronics's financial position?


Financial Position Analysis

Short Term Liabilities: LGLG's short term assets (₩21,840.8B) exceeds its short term liabilities (₩8,200.1B)

Long Term Liabilities: LGLG's short term assets (21,840.8B) exceeds its long term liabilities (21,553.6B)


Debt to Equity History and Analysis

Debt Level: LGLG's debt to equity ratio (60.5%) is considered high

Reducing Debt: LGLG's debt to equity ratio has reduced from 71.3% to 60.5% over the past 5 years.

Debt Coverage: LGLG's debt is well covered by operating cash flow (37%).

Interest Coverage: LGLG's interest payments on its debt are well covered by EBIT (9.1x coverage).


Balance Sheet

Inventory Level: LGLG has a high level of physical assets or inventory.

Debt Coverage by Assets: LGLG's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

What is LG Electronics's current dividend yield, its reliability and sustainability?

1.09%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.7%markettop25%4.2%industryaverage5.0%forecastin3Years1.2%

Current dividend yield vs market & industry

Notable Dividend: LGLG's dividend (1.09%) isn’t notable compared to the bottom 25% of dividend payers in the Austrian market (1.69%).

High Dividend: LGLG's dividend (1.09%) is low compared to the top 25% of dividend payers in the Austrian market (4.18%).


Stability and Growth of Payments

Stable Dividend: LGLG's dividend payments have been volatile in the past 10 years.

Growing Dividend: LGLG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.1%), LGLG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LGLG's dividends in 3 years are forecast to be thoroughly covered by earnings (8.2% payout ratio).


Next Steps

Management

What is the CEO of LG Electronics's salary, the management and board of directors tenure and is there insider trading?

2.9yrs

Average management tenure


CEO

Seoung-Jin Jo (63yo)

2.9yrs

Tenure

0

Mr. Seoung-Jin Jo has been Chief Executive Officer of LG Electronics Inc since December 1, 2016. Mr. Jo served as the Chief Executive Officer of Home Appliance & Air Solution Company at LG Electronics Inc ...


Management Age and Tenure

2.9yrs

Average Tenure

62yo

Average Age

Experienced Management: LGLG's management team is considered experienced (2.9 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

62.5yo

Average Age

Experienced Board: LGLG's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Young-Soo Kwon (62yo)

    Executive Director

    • Tenure: 0.7yrs
  • Ki-Wan Kim (60yo)

    VP & Head of India Corporation

    • Tenure: 0yrs
  • David Jung (62yo)

    President

    • Tenure: 11.8yrs
  • Seung-Kwon Skott Ahn (62yo)

    Chief Technology Officer

    • Tenure: 0yrs
  • Chongfeng Zhao

    Chief Operating Officer of China

    • Tenure: 0yrs
  • Sang-Gyu Choi (63yo)

    Head of Korea Sales Division

    • Tenure: 0yrs
  • Soon-Kook Hong (59yo)

    Director of Material/ Production Technology Institute

    • Tenure: 0yrs
  • Seoung-Jin Jo (63yo)

    Vice Chairman & CEO

    • Tenure: 2.9yrs
  • Sang-Bong Lee (62yo)

    Head of Energy Business Center

    • Tenure: 0yrs
  • Hye-Woong Lee (58yo)

    VP & Head of Corporation in China

    • Tenure: 0yrs

Board Members

  • Young-Soo Kwon (62yo)

    Executive Director

    • Tenure: 0.7yrs
  • David Jung (62yo)

    President

    • Tenure: 11.8yrs
  • William Jun-Ho (60yo)

    Director

    • Tenure: 3.9yrs
  • Seoung-Jin Jo (63yo)

    Vice Chairman & CEO

    • Tenure: 2.9yrs
  • Dae-Hyung Kim (69yo)

    Outside Independent Director

    • Tenure: 3.6yrs
  • Yong-Ho Baek (63yo)

    Outside Independent Director

    • Tenure: 2.6yrs
  • Joon-Keun Choi

    Outside Independent Director

    • Tenure: 1.7yrs
  • Sang-Goo Lee

    Outside Director

    • Tenure: 0.7yrs

Company Information

LG Electronics Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LG Electronics Inc.
  • Ticker: LGLG
  • Exchange: WBAG
  • Founded: 1958
  • Industry: Consumer Electronics
  • Sector: Consumer Durables
  • Market Cap: ₩11.691t
  • Listing Market Cap: ₩9.071b
  • Shares outstanding: 180.07m
  • Website: https://www.lg.com

Number of Employees


Location

  • LG Electronics Inc.
  • LG Twin Tower 128
  • Yeoui-daero
  • Seoul
  • South Korea

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LGLGDB (Deutsche Boerse AG)GDR ECH REP 1/2 NV STK KRW5000 144ADEEURAug 2000
LGLDLBATS-CHIXE (BATS 'Chi-X Europe')GDR ECH REP 1/2 NV STK KRW5000 144AGBUSDAug 2000
LGLGWBAG (Wiener Boerse AG)GDR ECH REP 1/2 NV STK KRW5000 144AATEURAug 2000
A066570KOSE (Korea Stock Exchange)YesCommon StockKRKRWApr 2002
A066575KOSE (Korea Stock Exchange)Preferred StockKRKRWApr 2002

Biography

LG Electronics Inc. manufactures and sells consumer electronics, mobile communications, and home appliances worldwide. The company offers home appliances and air solutions, including refrigerators, washing ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 22:12
End of Day Share Price2019/11/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.