Lotte Data Communication (KOSE:A286940) - Share price, News & Analysis

A286940 fundamental analysis
Snowflake Score
Valuation	6/6
Future Growth	3/6
Past Performance	4/6
Financial Health	5/6
Dividends	3/6

A286940 Stock Overview

Lotte Data Communication Company offers IT services worldwide.

Rewards

Trading at 57.6% below our estimate of its fair value

Earnings are forecast to grow 18.58% per year

Earnings have grown 8.4% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Lotte Data Communication Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Lotte Data Communication
Historical stock prices
Current Share Price	₩30,950.00
52 Week High	₩44,700.00
52 Week Low	₩30,400.00
Beta	0.76
1 Month Change	-17.47%
3 Month Change	-11.06%
1 Year Change	-21.45%
3 Year Change	-32.42%
5 Year Change	n/a
Change since IPO	6.72%

Recent News & Updates

Apr 09

Is Lotte Data Communication Company (KRX:286940) A Good Fit For Your Dividend Portfolio?

Is Lotte Data Communication Company ( KRX:286940 ) a good dividend stock? How can we tell? Dividend paying companies...

Shareholder Returns

	A286940	KR IT	KR Market
7D	-2.1%	-6.3%	-1.8%
1Y	-21.4%	-15.5%	-15.2%

Return vs Industry: A286940 underperformed the KR IT industry which returned -15.5% over the past year.

Return vs Market: A286940 underperformed the KR Market which returned -15.2% over the past year.

Price Volatility

Is A286940's price volatile compared to industry and market?
A286940 volatility
A286940 Average Weekly Movement	4.1%
IT Industry Average Movement	5.7%
Market Average Movement	5.6%
10% most volatile stocks in KR Market	10.4%
10% least volatile stocks in KR Market	3.2%

Stable Share Price: A286940 is less volatile than 75% of KR stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: A286940's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1996	2,720	Yongdeck Ma	https://www.ldcc.co.kr

Lotte Data Communication Company offers IT services worldwide. It offers digital transformation solutions, such as Smart Factory, a platform that views and controls demand prediction, production process, and safety management in real time; Smart Logistics, an automated logistic and IT solution for the entire process from transportation to storage and delivery; and Smart Retail. The company also offers security solutions, security management, security system integration, and security consulting services.

Lotte Data Communication Fundamentals Summary

How do Lotte Data Communication's earnings and revenue compare to its market cap?
A286940 fundamental statistics
Market Cap	₩468.25b
Earnings (TTM)	₩34.66b
Revenue (TTM)	₩930.00b

13.5x

P/E Ratio

0.5x

P/S Ratio

Is A286940 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
A286940 income statement (TTM)
Revenue	₩930.00b
Cost of Revenue	₩855.13b
Gross Profit	₩74.86b
Other Expenses	₩40.21b
Earnings	₩34.66b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	2.29k
Gross Margin	8.05%
Net Profit Margin	3.73%
Debt/Equity Ratio	28.1%

How did A286940 perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

31%

Payout Ratio

Valuation

Is Lotte Data Communication undervalued compared to its fair value and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

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: A286940 (₩30950) is trading below our estimate of fair value (₩73011.8)

Significantly Below Fair Value: A286940 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: A286940 is good value based on its PE Ratio (13.5x) compared to the KR IT industry average (17.1x).

PE vs Market: A286940 is good value based on its PE Ratio (13.5x) compared to the KR market (14.2x).

Price to Earnings Growth Ratio

PEG Ratio: A286940 is good value based on its PEG Ratio (0.7x)

Price to Book Ratio

PB vs Industry: A286940 is good value based on its PB Ratio (1.1x) compared to the KR IT industry average (1.6x).

Future Growth

How is Lotte Data Communication 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

18.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: A286940's forecast earnings growth (18.6% per year) is above the savings rate (3.5%).

Earnings vs Market: A286940's earnings (18.6% per year) are forecast to grow faster than the KR market (14.9% per year).

High Growth Earnings: A286940's earnings are forecast to grow, but not significantly.

Revenue vs Market: A286940's revenue (10.6% per year) is forecast to grow faster than the KR market (9.7% per year).

High Growth Revenue: A286940's revenue (10.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: A286940's Return on Equity is forecast to be low in 3 years time (11.2%).

Past Performance

How has Lotte Data Communication performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

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

8.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: A286940 has high quality earnings.

Growing Profit Margin: A286940's current net profit margins (3.7%) are higher than last year (3.5%).

Past Earnings Growth Analysis

Earnings Trend: A286940's earnings have grown by 8.4% per year over the past 5 years.

Accelerating Growth: A286940's earnings growth over the past year (16%) exceeds its 5-year average (8.4% per year).

Earnings vs Industry: A286940 earnings growth over the past year (16%) underperformed the IT industry 16.7%.

Return on Equity

High ROE: A286940's Return on Equity (8%) is considered low.

Financial Health

How is Lotte Data Communication'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: A286940's short term assets (₩348.6B) exceed its short term liabilities (₩210.9B).

Long Term Liabilities: A286940's short term assets (₩348.6B) exceed its long term liabilities (₩106.0B).

Debt to Equity History and Analysis

Debt Level: A286940 has more cash than its total debt.

Reducing Debt: Insufficient data to determine if A286940's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: A286940's debt is well covered by operating cash flow (71.8%).

Interest Coverage: A286940's interest payments on its debt are well covered by EBIT (203.7x coverage).

Balance Sheet

Dividend

What is Lotte Data Communication 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

2.26%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: A286940's dividend (2.26%) is higher than the bottom 25% of dividend payers in the KR market (0.85%).

High Dividend: A286940's dividend (2.26%) is low compared to the top 25% of dividend payers in the KR market (2.75%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, A286940 has been paying a dividend for less than 10 years.

Growing Dividend: A286940's dividend payments have increased, but the company has only paid a dividend for 3 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (30.6%), A286940's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (29.3%), A286940's dividend payments are well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Software industry.

Management

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

CEO

Yongdeck Ma (62 yo)

no data

Tenure

Mr. Yong-Deck Ma serves as the Chief Executive Officer and Senior Managing Director at Lotte Data Communication Company.

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	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31