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LG Electronics

WBAG:LGLG
Snowflake Description

Very undervalued with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LGLG
WBAG
₩12,566B
Market Cap
  1. Home
  2. AT
  3. Consumer Durables
Company description

LG Electronics Inc. manufactures and sells consumer electronics, mobile communications, and home appliances worldwide. The last earnings update was 42 days ago. More info.


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LGLG Share Price and Events
7 Day Returns
2%
WBAG:LGLG
2.7%
Europe Consumer Durables
3.4%
AT Market
1 Year Returns
-
WBAG:LGLG
-5%
Europe Consumer Durables
-2%
AT Market
LGLG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
LG Electronics (LGLG) 2% 6.3% 12.6% - - -
Europe Consumer Durables 2.7% 2.5% 9.8% -5% 21.9% 65.9%
AT Market 3.4% 6% 10.1% -2% 43.4% 29.5%
1 Year Return vs Industry and Market
  • No trading data on LGLG.
  • No trading data on LGLG.
Price Volatility
LGLG
Industry
5yr Volatility vs Market

Value

 Is LG Electronics undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of LG Electronics to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for LG Electronics.

WBAG:LGLG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 30 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.4%
Perpetual Growth Rate 10-Year AT Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for WBAG:LGLG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AT Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 6%
Consumer Durables Unlevered Beta Simply Wall St/ S&P Global 0.92
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.921 (1 + (1- 30%) (86.75%))
1.321
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.32
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.51% + (1.321 * 5.96%)
8.39%

Discounted Cash Flow Calculation for WBAG:LGLG using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for LG Electronics is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

WBAG:LGLG DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (KRW, Millions) Source Present Value
Discounted (@ 8.39%)
2019 1,643,921.32 Analyst x14 1,516,730.70
2020 1,843,532.09 Analyst x15 1,569,298.65
2021 1,929,462.60 Analyst x7 1,515,370.10
2022 1,993,976.81 Est @ 3.34% 1,444,873.75
2023 2,043,697.53 Est @ 2.49% 1,366,324.54
2024 2,082,496.76 Est @ 1.9% 1,284,544.14
2025 2,113,358.05 Est @ 1.48% 1,202,721.93
2026 2,138,514.54 Est @ 1.19% 1,122,876.01
2027 2,159,605.62 Est @ 0.99% 1,046,216.34
2028 2,177,819.19 Est @ 0.84% 973,411.15
Present value of next 10 years cash flows ₩13,042,367.32
WBAG:LGLG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₩2,177,819.19 × (1 + 0.51%) ÷ (8.39% – 0.51%)
₩27,792,919.77
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₩27,792,919.77 ÷ (1 + 8.39%)10
₩12,422,490.45
WBAG:LGLG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₩13,042,367.32 + ₩12,422,490.45
₩25,464,857.77
Equity Value per Share
(KRW)
= Total value / Shares Outstanding
= ₩25,464,857.77 / 180.07
₩141419.62
WBAG:LGLG Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in WBAG:LGLG represents 0.00017x of KOSE:A066570
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.00017x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (KRW) x Listing Adjustment Factor
= ₩ 141,419.62 x 0.00017
€23.39
Value per share (EUR) From above. €23.39
Current discount Discount to share price of €12.24
= -1 x (€12.24 - €23.39) / €23.39
47.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price LG Electronics is available for.
Intrinsic value
48%
Share price is €12.24 vs Future cash flow value of €23.39
Current Discount Checks
For LG Electronics to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • LG Electronics's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • LG Electronics's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for LG Electronics's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are LG Electronics's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
WBAG:LGLG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in KRW ₩6,882.00
KOSE:A066570 Share Price ** KOSE (2019-04-18) in KRW ₩74000
Europe Consumer Durables Industry PE Ratio Median Figure of 88 Publicly-Listed Consumer Durables Companies 11.59x
Austria Market PE Ratio Median Figure of 51 Publicly-Listed Companies 14.73x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of LG Electronics.

WBAG:LGLG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= KOSE:A066570 Share Price ÷ EPS (both in KRW)

= 74000 ÷ 6,882.00

10.75x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LG Electronics is good value based on earnings compared to the Europe Consumer Durables industry average.
  • LG Electronics is good value based on earnings compared to the Austria market.
Price based on expected Growth
Does LG Electronics's expected growth come at a high price?
Raw Data
WBAG:LGLG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.75x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 30 Analysts
15.3%per year
Europe Consumer Durables Industry PEG Ratio Median Figure of 58 Publicly-Listed Consumer Durables Companies 1.2x
Austria Market PEG Ratio Median Figure of 32 Publicly-Listed Companies 1.34x

*Line of best fit is calculated by linear regression .

WBAG:LGLG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.75x ÷ 15.3%

0.7x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LG Electronics is good value based on expected growth next year.
Price based on value of assets
What value do investors place on LG Electronics's assets?
Raw Data
WBAG:LGLG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in KRW ₩61,027.29
KOSE:A066570 Share Price * KOSE (2019-04-18) in KRW ₩74000
Europe Consumer Durables Industry PB Ratio Median Figure of 109 Publicly-Listed Consumer Durables Companies 1.48x
Austria Market PB Ratio Median Figure of 59 Publicly-Listed Companies 1.27x
WBAG:LGLG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= KOSE:A066570 Share Price ÷ Book Value per Share (both in KRW)

= 74000 ÷ 61,027.29

1.21x

* Primary Listing of LG Electronics.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LG Electronics is good value based on assets compared to the Europe Consumer Durables industry average.
X
Value checks
We assess LG Electronics's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Durables industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Durables industry average (and greater than 0)? (1 check)
  5. LG Electronics has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
15.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is LG Electronics expected to grow at an attractive rate?
  • LG Electronics's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • LG Electronics's earnings growth is expected to exceed the Austria market average.
  • LG Electronics's revenue growth is expected to exceed the Austria market average.
Annual Growth Rates Comparison
Raw Data
WBAG:LGLG Future Growth Rates Data Sources
Data Point Source Value (per year)
WBAG:LGLG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 30 Analysts 15.3%
WBAG:LGLG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 30 Analysts 4.9%
Europe Consumer Durables Industry Earnings Growth Rate Market Cap Weighted Average 8.1%
Europe Consumer Durables Industry Revenue Growth Rate Market Cap Weighted Average 3.1%
Austria Market Earnings Growth Rate Market Cap Weighted Average 9%
Austria Market Revenue Growth Rate Market Cap Weighted Average 2.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
WBAG:LGLG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 30 Analyst Estimates (S&P Global) See Below
All numbers in KRW Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
WBAG:LGLG Future Estimates Data
Date (Data in KRW Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 70,706,434 4,774,490 2,011,907 14
2020-12-31 67,901,764 4,440,161 1,671,535 30
2019-12-31 63,911,129 4,292,012 1,437,891 28
WBAG:LGLG Past Financials Data
Date (Data in KRW Millions) Revenue Cash Flow Net Income *
2018-12-31 61,341,664 4,541,566 1,240,139
2018-09-30 62,532,941 3,186,197 1,224,642
2018-06-30 62,330,031 2,350,681 1,171,689
2018-03-31 61,862,131 2,396,977 1,413,090
2017-12-31 61,396,284 2,166,270 1,725,774
2017-09-30 59,210,516 2,855,386 1,288,202
2017-06-30 57,210,606 3,465,577 908,078
2017-03-31 56,662,137 3,355,653 681,581
2016-12-31 55,367,033 3,157,990 76,879
2016-09-30 55,149,369 3,586,868 252,218
2016-06-30 55,953,933 3,444,260 398,245
2016-03-31 55,876,649 3,334,105 316,594

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • LG Electronics's earnings are expected to grow by 15.3% yearly, however this is not considered high growth (20% yearly).
  • LG Electronics's revenue is expected to grow by 4.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
WBAG:LGLG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 30 Analyst Estimates (S&P Global) See Below

All data from LG Electronics Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

WBAG:LGLG Future Estimates Data
Date (Data in KRW Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 11,931.17 16,120.00 9,656.00 11.00
2020-12-31 9,586.77 13,075.00 6,126.00 26.00
2019-12-31 8,261.37 9,483.00 6,582.00 24.00
WBAG:LGLG Past Financials Data
Date (Data in KRW Millions) EPS *
2018-12-31 6,882.00
2018-09-30 8,167.12
2018-06-30 7,595.57
2018-03-31 8,910.70
2017-12-31 9,579.00
2017-09-30 7,076.86
2017-06-30 4,991.24
2017-03-31 3,741.18
2016-12-31 422.00
2016-09-30 1,391.68
2016-06-30 2,195.46
2016-03-31 1,758.21

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • LG Electronics is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess LG Electronics's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
LG Electronics has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has LG Electronics performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare LG Electronics's growth in the last year to its industry (Consumer Durables).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • LG Electronics has delivered over 20% year on year earnings growth in the past 5 years.
  • LG Electronics's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • LG Electronics's 1-year earnings growth is negative, it can't be compared to the Europe Consumer Durables industry average.
Earnings and Revenue History
LG Electronics's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from LG Electronics Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

WBAG:LGLG Past Revenue, Cash Flow and Net Income Data
Date (Data in KRW Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 61,341,664.00 1,240,139.00 11,470,117.00 369,189.00
2018-09-30 62,532,941.00 1,224,642.00 11,469,005.00 199,634.00
2018-06-30 62,330,031.00 1,171,689.00 11,443,073.00 196,095.00
2018-03-31 61,862,131.00 1,413,090.00 11,277,538.00 282,898.00
2017-12-31 61,396,284.00 1,725,774.00 11,347,732.00 272,768.00
2017-09-30 59,210,516.00 1,288,202.00 10,287,394.00 1,860,575.00
2017-06-30 57,210,606.00 908,078.00 10,571,746.00 1,364,870.00
2017-03-31 56,662,137.00 681,581.00 11,874,897.00 -248,002.00
2016-12-31 55,367,033.00 76,879.00 11,458,860.00 354,408.00
2016-09-30 55,149,369.00 252,218.00 11,038,401.00 375,534.00
2016-06-30 55,953,933.00 398,245.00 10,953,905.00 384,662.00
2016-03-31 55,876,649.00 316,594.00 9,305,365.00 2,411,795.00
2015-12-31 56,509,008.00 128,222.00 10,653,650.00 402,183.00
2015-09-30 57,220,961.00 234,740.00 9,372,283.00 2,310,602.00
2015-06-30 57,905,143.00 327,252.00 9,530,323.00 2,293,094.00
2015-03-31 59,046,431.00 518,957.00 9,990,016.00 1,808,116.00
2014-12-31 59,040,767.00 576,171.00 9,648,802.00 2,264,286.00
2014-09-30 57,315,942.00 561,920.00 10,573,949.00 746,761.00
2014-06-30 56,495,118.00 469,386.00 10,200,538.00 1,253,354.00
2014-03-31 56,660,486.00 220,357.00 9,617,589.00 2,271,569.00
2013-12-31 56,772,302.00 185,069.00 9,640,697.00 2,286,442.00
2013-09-30 58,026,198.00 -231,741.00 9,774,104.00 2,306,733.00
2013-06-30 57,416,198.00 -159,056.00 9,803,199.00 2,280,690.00
2013-03-31 56,018,516.00 -127,096.00 9,611,019.00 2,176,041.00
2012-12-31 55,122,623.00 92,382.00 9,551,727.00 2,101,989.00
2012-09-30 54,135,826.00 451,160.00 9,414,395.00 1,988,131.00
2012-06-30 53,750,901.00 -129,691.00 9,432,369.00 1,856,032.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • LG Electronics has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • LG Electronics used its assets less efficiently than the Europe Consumer Durables industry average last year based on Return on Assets.
  • LG Electronics has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess LG Electronics's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Durables industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
LG Electronics has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is LG Electronics's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up LG Electronics's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • LG Electronics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • LG Electronics's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of LG Electronics's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from LG Electronics Company Filings, last reported 3 months ago.

WBAG:LGLG Past Debt and Equity Data
Date (Data in KRW Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 16,306,907.00 10,901,186.00 4,351,021.00
2018-09-30 16,445,972.00 11,503,883.00 4,618,947.00
2018-06-30 15,759,373.00 10,690,618.00 4,753,588.00
2018-03-31 15,456,014.00 9,622,203.00 3,833,592.00
2017-12-31 14,673,684.00 9,450,480.00 3,431,112.00
2017-09-30 14,924,857.00 9,163,670.00 3,567,021.00
2017-06-30 14,408,096.00 9,019,083.00 3,684,935.00
2017-03-31 13,691,595.00 8,629,203.00 3,125,310.00
2016-12-31 13,356,742.00 8,659,011.00 3,095,696.00
2016-09-30 12,577,795.00 9,007,725.00 3,569,096.00
2016-06-30 13,128,304.00 8,801,614.00 2,991,041.00
2016-03-31 12,990,000.00 9,291,700.00 3,294,800.00
2015-12-31 12,983,487.00 8,827,250.00 2,800,131.00
2015-09-30 13,423,574.00 9,773,931.00 3,038,031.00
2015-06-30 13,184,875.00 9,934,222.00 2,644,479.00
2015-03-31 12,754,190.00 9,621,251.00 2,100,582.00
2014-12-31 12,991,097.00 9,036,239.00 2,254,691.00
2014-09-30 13,255,591.00 9,455,421.00 3,017,458.00
2014-06-30 13,056,754.00 9,523,997.00 2,769,746.00
2014-03-31 12,790,225.00 9,653,994.00 2,788,525.00
2013-12-31 12,689,369.00 9,214,346.00 2,654,516.00
2013-09-30 12,878,344.00 8,974,317.00 2,423,529.00
2013-06-30 13,152,574.00 8,902,193.00 2,096,283.00
2013-03-31 12,829,113.00 9,396,949.00 2,515,731.00
2012-12-31 12,705,747.00 8,638,387.00 2,253,085.00
2012-09-30 13,415,444.00 7,001,906.00 2,811,874.00
2012-06-30 13,381,883.00 6,856,552.00 2,171,388.00
  • LG Electronics's level of debt (66.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (72.6% vs 66.9% today).
  • Debt is well covered by operating cash flow (41.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 9.1x coverage).
X
Financial health checks
We assess LG Electronics's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. LG Electronics has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.54%
Current annual income from LG Electronics dividends. Estimated to be 1.08% next year.
If you bought €2,000 of LG Electronics shares you are expected to receive €11 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • LG Electronics's pays a lower dividend yield than the bottom 25% of dividend payers in Austria (1.44%).
  • LG Electronics's dividend is below the markets top 25% of dividend payers in Austria (4.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
WBAG:LGLG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 30 Analyst Estimates (S&P Global) See Below
Europe Consumer Durables Industry Average Dividend Yield Market Cap Weighted Average of 67 Stocks 4.9%
Austria Market Average Dividend Yield Market Cap Weighted Average of 49 Stocks 3.4%
Austria Minimum Threshold Dividend Yield 10th Percentile 1.1%
Austria Bottom 25% Dividend Yield 25th Percentile 1.4%
Austria Top 25% Dividend Yield 75th Percentile 4.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

WBAG:LGLG Future Dividends Estimate Data
Date (Data in ₩) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 867.86 14.00
2020-12-31 742.62 28.00
2019-12-31 821.44 21.00
WBAG:LGLG Past Annualized Dividends Data
Date (Data in ₩) Dividend per share (annual) Avg. Yield (%)
2017-01-25 400.000 0.478
2016-04-25 400.000 0.774
2015-04-27 400.000 0.772
2014-04-18 200.000 0.302
2014-03-27 200.000 0.295
2013-04-11 200.000 0.284
2013-04-05 200.000 0.245
2013-03-29 200.000 0.252
2012-03-30 200.000 0.281
2012-03-07 200.000 0.226
2011-01-26 200.000 0.245
2010-03-31 1,750.000 1.668
2009-04-20 350.000 0.300

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • LG Electronics is not paying a notable dividend for Austria, therefore no need to check if the payments are stable.
  • LG Electronics is not paying a notable dividend for Austria, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of LG Electronics's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of LG Electronics's dividends as it is not paying a notable one for Austria.
Future Payout to shareholders
  • No need to calculate the sustainability of LG Electronics's dividends in 3 years as they are not expected to pay a notable one for Austria.
X
Income/ dividend checks
We assess LG Electronics's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can LG Electronics afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. LG Electronics has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Seoung-Jin Jo
AGE 62
TENURE AS CEO 2.3 years
CEO Bio

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. since December 2012 and served as President of Home Appliance & Air Solution Company. He served as President of LG Electronics Inc. He served as Head of Washing Machine Division at LG Electronics Inc. He serves as a Vice Chairman of LG Electronics Inc. and has been its Director since December 1, 2015.

CEO Compensation
  • Insufficient data for Seoung-Jin to compare compensation growth.
  • Insufficient data for Seoung-Jin to establish whether their remuneration is reasonable compared to companies of similar size in .
Management Team Tenure

Average tenure and age of the LG Electronics management team in years:

2.3
Average Tenure
61
Average Age
  • The tenure for the LG Electronics management team is about average.
Management Team

Seoung-Jin Jo

TITLE
Vice Chairman & CEO
AGE
62
TENURE
2.3 yrs

David Jung

TITLE
President
AGE
61
TENURE
5.3 yrs

Seung-Kwon Skott Ahn

TITLE
Chief Technology Officer
AGE
61

Sang-Gyu Choi

TITLE
Head of Korea Sales Division
AGE
62

Young-Soo Kwon

TITLE
Executive Director
AGE
61
TENURE
0.1 yrs

Ki-Wan Kim

TITLE
VP & Head of India Corporation
AGE
59

Chongfeng Zhao

TITLE
Chief Operating Officer of China

Soon-Kook Hong

TITLE
Director of Material/ Production Technology Institute
AGE
58

Hye-Woong Lee

TITLE
VP & Head of Corporation in China
AGE
57

Sang-Bong Lee

TITLE
Head of Energy Business Center
AGE
61
Board of Directors Tenure

Average tenure and age of the LG Electronics board of directors in years:

2
Average Tenure
61.5
Average Age
  • The average tenure for the LG Electronics board of directors is less than 3 years, this suggests a new board.
Board of Directors

Seoung-Jin Jo

TITLE
Vice Chairman & CEO
AGE
62

David Jung

TITLE
President
AGE
61
TENURE
11.3 yrs

Young-Soo Kwon

TITLE
Executive Director
AGE
61
TENURE
0.1 yrs

William Jun-Ho

TITLE
Director
AGE
59
TENURE
3.3 yrs

Dae-Hyung Kim

TITLE
Outside Independent Director
AGE
68
TENURE
3 yrs

Yong-Ho Baek

TITLE
Outside Independent Director
AGE
62
TENURE
2 yrs

Joon-Keun Choi

TITLE
Outside Independent Director
TENURE
1.1 yrs

Sang-Goo Lee

TITLE
Outside Director
TENURE
0.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess LG Electronics's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. LG Electronics has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

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 machines, dishwashers, cooking appliances, vacuum cleaners, built-in appliances, air conditioners, air purifiers, and dehumidifiers. It also provides home entertainment products, such as TVs, audio and video products, monitors, PCs and accessories, and commercial products; G, V, and F series mobile communication products; and vehicle components comprising in-vehicle infotainment, HVAC and motor, and vehicle engineering components. In addition, the company offers commercial display solutions, solar solutions, energy storage systems, energy management solutions, membranes, stylers, lighting products, and compressors and motors. It sells its products under the LG brand name. The company was formerly known as GoldStar and changed its name to LG Electronics Inc. in 1995. LG Electronics Inc. was founded in 1958 and is based in Seoul, South Korea.

Details
Name: LG Electronics Inc.
LGLG
Exchange: WBAG
Founded: 1958
₩9,832,708,649
180,065,945
Website: http://www.lg.com
Address: LG Electronics Inc.
LG Twin Tower 128,
Yeoui-daero,
Seoul,
South Korea
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
KOSE A066570 Common Stock Korea Stock Exchange KR KRW 22. Apr 2002
DB LGLG SP GDR 144A NV Deutsche Boerse AG DE EUR 23. Aug 2000
KOSE A066575 Preferred Stock Korea Stock Exchange KR KRW 22. Apr 2002
WBAG LGLG SP GDR 144A NV Wiener Boerse AG AT EUR 23. Aug 2000
BATS-CHIXE LGLDL SP GDR 144A NV BATS 'Chi-X Europe' GB USD 23. Aug 2000
Number of employees
Current staff
Staff numbers
0
LG Electronics employees.
Industry
Consumer Electronics
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/18 22:53
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/03/07
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.