LS ELECTRIC (KOSE:A010120) - Share price, News & Analysis

A010120 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	3/6
Past Performance	0/6
Financial Health	5/6
Dividends	3/6

A010120 Stock Overview

LS ELECTRIC Co., Ltd. operates as a smart energy solutions provider worldwide.

Rewards

Trading at 20.1% below our estimate of its fair value

Earnings are forecast to grow 23.42% per year

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results

LS ELECTRIC Competitors

Siemens

XTRA:SIE

€90.8b

Schneider Electric

ENXTPA:SU

€70.9b

Eaton

NYSE:ETN

US$56.4b

ABB

SWX:ABBN

CHF54.6b

Price History & Performance

Summary of all time highs, changes and price drops for LS ELECTRIC
Historical stock prices
Current Share Price	₩49,850.00
52 Week High	₩71,500.00
52 Week Low	₩40,000.00
Beta	1.1
1 Month Change	8.37%
3 Month Change	18.69%
1 Year Change	-9.53%
3 Year Change	11.52%
5 Year Change	-7.86%
Change since IPO	-49.69%

Shareholder Returns

	A010120	KR Electrical	KR Market
7D	-1.5%	0.4%	0.006%
1Y	-9.5%	31.3%	-15.8%

Return vs Industry: A010120 underperformed the KR Electrical industry which returned 31.3% over the past year.

Return vs Market: A010120 exceeded the KR Market which returned -15.8% over the past year.

Price Volatility

Is A010120's price volatile compared to industry and market?
A010120 volatility
A010120 Average Weekly Movement	4.4%
Electrical Industry Average Movement	6.1%
Market Average Movement	5.5%
10% most volatile stocks in KR Market	10.3%
10% least volatile stocks in KR Market	3.2%

Stable Share Price: A010120 is not significantly more volatile than the rest of KR stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: A010120's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1974	3,132	Ja-Kyun Koo	https://www.ls-electric.com

LS ELECTRIC Co., Ltd. operates as a smart energy solutions provider worldwide. The company’s smart power solutions include energy management systems, supervisory control and data acquisition systems, distribution management systems, distribution control systems, micro grid systems, and diagnosis solutions; systems comprise gas insulated switchgears, power transformers, HVDC solutions, power distribution products, modular substations, photovoltaic systems, and energy storage systems; and devices consists of low and medium voltage products, protective relays and measuring devices, and DC components. It also provides various automation solutions ranging from unit devices to process control, such as programmable logic controller that controls devices; AC drive, which converts motor speed; servo that controls the devices; human machine interfaces, which provide real-time monitoring of devices; and inverters and gearboxes.

LS ELECTRIC Fundamentals Summary

How do LS ELECTRIC's earnings and revenue compare to its market cap?
A010120 fundamental statistics
Market Cap	₩1.43t
Earnings (TTM)	₩84.28b
Revenue (TTM)	₩2.67t

17.3x

P/E Ratio

0.5x

P/S Ratio

Is A010120 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
A010120 income statement (TTM)
Revenue	₩2.67t
Cost of Revenue	₩2.18t
Gross Profit	₩487.09b
Other Expenses	₩402.81b
Earnings	₩84.28b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	2.87k
Gross Margin	18.25%
Net Profit Margin	3.16%
Debt/Equity Ratio	46.7%

How did A010120 perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

35%

Payout Ratio

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

20.1%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: A010120 (₩49850) is trading below our estimate of fair value (₩62387.18)

Significantly Below Fair Value: A010120 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: A010120 is poor value based on its PE Ratio (17.3x) compared to the KR Electrical industry average (17.1x).

PE vs Market: A010120 is poor value based on its PE Ratio (17.3x) compared to the KR market (14.3x).

Price to Earnings Growth Ratio

PEG Ratio: A010120 is good value based on its PEG Ratio (0.7x)

Price to Book Ratio

PB vs Industry: A010120 is good value based on its PB Ratio (1x) compared to the KR Electrical industry average (1.6x).

Future Growth

How is LS ELECTRIC forecast to perform in the next 1 to 3 years based on estimates from 6 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

23.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: A010120's forecast earnings growth (23.4% per year) is above the savings rate (3.5%).

Earnings vs Market: A010120's earnings (23.4% per year) are forecast to grow faster than the KR market (15.2% per year).

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

Revenue vs Market: A010120's revenue (7% per year) is forecast to grow slower than the KR market (9.6% per year).

High Growth Revenue: A010120's revenue (7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: A010120's Return on Equity is forecast to be low in 3 years time (11%).

Past Performance

How has LS ELECTRIC performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

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

-4.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: A010120 has a large one-off loss of ₩37.1B impacting its December 31 2021 financial results.

Growing Profit Margin: A010120's current net profit margins (3.2%) are lower than last year (3.5%).

Past Earnings Growth Analysis

Earnings Trend: A010120's earnings have declined by 4.8% per year over the past 5 years.

Accelerating Growth: A010120's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: A010120 had negative earnings growth (-0.7%) over the past year, making it difficult to compare to the Electrical industry average (56.7%).

Return on Equity

High ROE: A010120's Return on Equity (5.8%) is considered low.

Financial Health

How is LS ELECTRIC's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

Short Term Liabilities: A010120's short term assets (₩1,887.7B) exceed its short term liabilities (₩845.3B).

Long Term Liabilities: A010120's short term assets (₩1,887.7B) exceed its long term liabilities (₩478.0B).

Debt to Equity History and Analysis

Debt Level: A010120 has more cash than its total debt.

Reducing Debt: A010120's debt to equity ratio has reduced from 64% to 46.7% over the past 5 years.

Debt Coverage: A010120's debt is not well covered by operating cash flow (14.8%).

Interest Coverage: A010120's interest payments on its debt are well covered by EBIT (30.5x coverage).

Balance Sheet

Dividend

What is LS ELECTRIC 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

2.21%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: A010120's dividend (2.21%) is higher than the bottom 25% of dividend payers in the KR market (0.84%).

High Dividend: A010120's dividend (2.21%) is low compared to the top 25% of dividend payers in the KR market (2.73%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, A010120 has been paying a dividend for less than 10 years.

Growing Dividend: A010120 has only been paying a dividend for 3 years, and since then payments have fallen.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (34.8%), A010120's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (84.4%), A010120's dividend payments are covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Capital Goods industry.

Management

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

7.8yrs

Average board tenure

CEO

Ja-Kyun Koo (64 yo)

no data

Tenure

Mr. Ja-Kyun Koo serves as the Vice Chairman and Chief Executive Officer of LS Industrial Systems Co., Ltd. He serves as the Chairman of the Board and Chief Executive Officer of LSIS Co. at LS Corporation....

Board Members

Experienced Board: A010120's board of directors are considered experienced (7.8 years average tenure).

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	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31