LOTTE (KOSE:A004990) - Share price, News & Analysis

A004990 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	3/6
Past Performance	1/6
Financial Health	0/6
Dividends	3/6

A004990 Stock Overview

LOTTE Corporation engages in the food, retail, tourism, chemical, construction, and finance businesses worldwide.

Rewards

Trading at 70.9% below our estimate of its fair value

Earnings are forecast to grow 29.01% per year

Became profitable this year

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 4.44% is not well covered by earnings

Large one-off items impacting financial results

LOTTE Competitors

Exxon Mobil

NYSE:XOM

US$395.5b

TotalEnergies

ENXTPA:TTE

€137.5b

Saudi Basic Industries

SASE:2010

ر.س355.8b

Formosa Chemicals & Fibre

TWSE:1326

NT$467.9b

Price History & Performance

Summary of all time highs, changes and price drops for LOTTE
Historical stock prices
Current Share Price	₩33,800.00
52 Week High	₩43,650.00
52 Week Low	₩25,600.00
Beta	1.4
1 Month Change	-0.59%
3 Month Change	16.35%
1 Year Change	-8.15%
3 Year Change	-20.47%
5 Year Change	-60.70%
Change since IPO	2,240.72%

Shareholder Returns

	A004990	KR Industrials	KR Market
7D	-1.2%	-0.8%	1.2%
1Y	-8.2%	-12.9%	-14.3%

Return vs Industry: A004990 exceeded the KR Industrials industry which returned -12.9% over the past year.

Return vs Market: A004990 exceeded the KR Market which returned -14.3% over the past year.

Price Volatility

Is A004990's price volatile compared to industry and market?
A004990 volatility
A004990 Average Weekly Movement	3.9%
Industrials Industry Average Movement	3.7%
Market Average Movement	5.4%
10% most volatile stocks in KR Market	10.2%
10% least volatile stocks in KR Market	3.1%

Stable Share Price: A004990 is less volatile than 75% of KR stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: A004990's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1967	261	Dong-Bin Shin	https://www.lotte.co.kr

LOTTE Corporation engages in the food, retail, tourism, chemical, construction, and finance businesses worldwide. It offers candies, biscuits, ice cream, beverages, liquor, and coffee; manufactures, wholesales, and retails soft drinks; produces and sells dairy products, and processed milk and meat products; and produces and sells alcoholic beverages, including soju, beer, whiskey, wine, and refined rice wine. The company also operates department stores, hypermarkets, supermarkets, discount stores, convenience stores, health and beauty stores, home shopping networks, and duty free shops; retails apparel; wholesales and sells consumer electronics; and offers integrated membership and easy payment services.

LOTTE Fundamentals Summary

How do LOTTE's earnings and revenue compare to its market cap?
A004990 fundamental statistics
Market Cap	₩2.46t
Earnings (TTM)	₩287.15b
Revenue (TTM)	₩10.56t

8.4x

P/E Ratio

0.2x

P/S Ratio

Is A004990 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
A004990 income statement (TTM)
Revenue	₩10.56t
Cost of Revenue	₩7.71t
Gross Profit	₩2.85t
Other Expenses	₩2.56t
Earnings	₩287.15b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	4.01k
Gross Margin	26.95%
Net Profit Margin	2.72%
Debt/Equity Ratio	75.6%

How did A004990 perform over the long term?

See historical performance and comparison

Dividends

4.4%

Current Dividend Yield

37%

Payout Ratio

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: A004990 (₩33800) is trading below our estimate of fair value (₩116183.19)

Significantly Below Fair Value: A004990 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: A004990 is poor value based on its Price-To-Earnings Ratio (8.4x) compared to the KR Industrials industry average (6.8x).

PE vs Market: A004990 is good value based on its Price-To-Earnings Ratio (8.4x) compared to the KR market (14.1x).

Price to Earnings Growth Ratio

PEG Ratio: A004990 is good value based on its PEG Ratio (0.3x)

Price to Book Ratio

PB vs Industry: A004990 is good value based on its Price-To-Book Ratio (0.3x) compared to the KR Industrials industry average (0.5x).

Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

29.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: A004990's forecast earnings growth (29% per year) is above the savings rate (3.5%).

Earnings vs Market: A004990's earnings (29% per year) are forecast to grow faster than the KR market (14.6% per year).

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

Revenue vs Market: A004990's revenue (5.8% per year) is forecast to grow slower than the KR market (9.6% per year).

High Growth Revenue: A004990's revenue (5.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if A004990's Return on Equity is forecast to be high in 3 years time

Past Performance

How has LOTTE performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-20.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: A004990 has a large one-off loss of ₩341.0B impacting its March 31 2022 financial results.

Growing Profit Margin: A004990 became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: A004990's earnings have declined by 20.4% per year over the past 5 years.

Accelerating Growth: A004990 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: A004990 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Industrials industry (32.1%).

Return on Equity

High ROE: A004990's Return on Equity (1.2%) is considered low.

Financial Health

How is LOTTE's financial position?

Financial Health Score

0/6

Financial Health Score 0/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: A004990's short term assets (₩5,191.0B) do not cover its short term liabilities (₩5,400.2B).

Long Term Liabilities: A004990's short term assets (₩5,191.0B) do not cover its long term liabilities (₩6,147.2B).

Debt to Equity History and Analysis

Debt Level: A004990's net debt to equity ratio (48.9%) is considered high.

Reducing Debt: A004990's debt to equity ratio has increased from 32% to 75.6% over the past 5 years.

Debt Coverage: A004990's debt is not well covered by operating cash flow (8.2%).

Interest Coverage: A004990's interest payments on its debt are not well covered by EBIT (2.5x coverage).

Balance Sheet

Dividend

What is LOTTE current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.44%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: A004990's dividend (4.44%) is higher than the bottom 25% of dividend payers in the KR market (0.84%).

High Dividend: A004990's dividend (4.44%) is in the top 25% of dividend payers in the KR market (2.75%)

Stability and Growth of Payments

Stable Dividend: A004990 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: A004990's dividend payments have increased, but the company has only paid a dividend for 9 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (37.4%), A004990's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (117.7%), A004990's dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

0.2yrs

Average board tenure

CEO

Dong-Bin Shin (66 yo)

no data

Tenure

Mr. Dong-Bin Shin served as the Vice Chairman of the Board at Lotte Corporation and serves as its Chief Executive Officer and Executive Chairman. He has been Director at Lotte Corporation since October 12,...

Board Members

Experienced Board: A004990's board of directors are not considered experienced ( 0.2 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31