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LG Innotek KOSE:A011070 Stock Report

Last Price

₩356.50k

Market Cap

₩8.4t

7D

7.7%

1Y

57.4%

Updated

29 Jun, 2022

Data

Company Financials +
A011070 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends1/6

A011070 Stock Overview

LG Innotek Co., Ltd. manufactures and sells electronic materials and components for mobile, automotive, display, semiconductor, LED, and Internet of Things (IoT) businesses in South Korea and internationally.

LG Innotek Competitors

Price History & Performance

Summary of all time highs, changes and price drops for LG Innotek
Historical stock prices
Current Share Price₩356,500.00
52 Week High₩414,500.00
52 Week Low₩181,000.00
Beta0.64
1 Month Change-7.40%
3 Month Change-7.28%
1 Year Change57.40%
3 Year Change208.66%
5 Year Change123.51%
Change since IPO706.56%

Recent News & Updates

Shareholder Returns

A011070KR ElectronicKR Market
7D7.7%6.5%3.3%
1Y57.4%-13.5%-26.6%

Return vs Industry: A011070 exceeded the KR Electronic industry which returned -10.6% over the past year.

Return vs Market: A011070 exceeded the KR Market which returned -25.6% over the past year.

Price Volatility

Is A011070's price volatile compared to industry and market?
A011070 volatility
A011070 Average Weekly Movement5.5%
Electronic Industry Average Movement6.4%
Market Average Movement6.2%
10% most volatile stocks in KR Market10.8%
10% least volatile stocks in KR Market3.9%

Stable Share Price: A011070 is not significantly more volatile than the rest of KR stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: A011070's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19708,304Cheol-Dong Jeonghttps://www.lginnotek.com

LG Innotek Co., Ltd. manufactures and sells electronic materials and components for mobile, automotive, display, semiconductor, LED, and Internet of Things (IoT) businesses in South Korea and internationally. The company offers 2 metal COF; automotive radars; BLE system in package (SiP); COB; COF; CSP; electric oil pumps; electric vehicle communication controllers; flip chip CSP; motor for braking; motor for dual clutch transmission; motor for eletro hydraulic brakes and electric power steering; photo masks; SiP; and smart cameras for IoT. It also provides 3D sensing modules; battery management systems; Bluetooth/Bluetooth + Wi-Fi combo modules; camera modules for automotive and mobile; cellular modules; DC-DC converters for automotive; digital key modules; digital tuners; door and glass break sensors; LED driver modules for automotive; LED modules for automotive; motion sensors; PoE to WiFi bridge; switch mode power supply; steering sensor; v2x communication module; water leakage sensor; and Wi-Fi modules.

LG Innotek Fundamentals Summary

How do LG Innotek's earnings and revenue compare to its market cap?
A011070 fundamental statistics
Market Cap₩8.44t
Earnings (TTM)₩890.82b
Revenue (TTM)₩15.83t

9.5x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
A011070 income statement (TTM)
Revenue₩15.83t
Cost of Revenue₩13.62t
Gross Profit₩2.21t
Other Expenses₩1.32t
Earnings₩890.82b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)37.64k
Gross Margin13.97%
Net Profit Margin5.63%
Debt/Equity Ratio49.2%

How did A011070 perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

8%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is A011070 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for A011070?

Other financial metrics that can be useful for relative valuation.

A011070 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA4.5x
PEG Ratio1x

Price to Earnings Ratio vs Peers

How does A011070's PE Ratio compare to its peers?

A011070 PE Ratio vs Peers
The above table shows the PE ratio for A011070 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average22.6x
A009150 Samsung Electro-Mechanics
9.1x10.5%₩9.9t
A034220 LG Display
5.4x28.8%₩5.3t
A020150 ILJIN Materials
48.3x29.0%₩3.4t
A006400 Samsung SDI
27.5x19.9%₩37.7t
A011070 LG Innotek
9.5x9.2%₩8.4t

Price-To-Earnings vs Peers: A011070 is good value based on its Price-To-Earnings Ratio (9.5x) compared to the peer average (22.6x).


Price to Earnings Ratio vs Industry

How does A011070's PE Ratio compare vs other companies in the KR Electronic Industry?

Price-To-Earnings vs Industry: A011070 is good value based on its Price-To-Earnings Ratio (9.5x) compared to the KR Electronic industry average (13.2x)


Price to Earnings Ratio vs Fair Ratio

What is A011070's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

A011070 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.5x
Fair PE Ratio18.7x

Price-To-Earnings vs Fair Ratio: A011070 is good value based on its Price-To-Earnings Ratio (9.5x) compared to the estimated Fair Price-To-Earnings Ratio (18.7x).


Share Price vs Fair Value

What is the Fair Price of A011070 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: A011070 (₩356500) is trading below our estimate of fair value (₩935448.25)

Significantly Below Fair Value: A011070 is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: A011070 is poor value based on its PEG Ratio (1x)


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Future Growth

How is LG Innotek forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


9.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: A011070's forecast earnings growth (9.2% per year) is above the savings rate (3.5%).

Earnings vs Market: A011070's earnings (9.2% per year) are forecast to grow slower than the KR market (13.8% per year).

High Growth Earnings: A011070's earnings are forecast to grow, but not significantly.

Revenue vs Market: A011070's revenue (5.5% per year) is forecast to grow slower than the KR market (9.1% per year).

High Growth Revenue: A011070's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: A011070's Return on Equity is forecast to be low in 3 years time (19.8%).


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Past Performance

How has LG Innotek performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


45.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: A011070 has a high level of non-cash earnings.

Growing Profit Margin: A011070's current net profit margins (5.6%) are higher than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: A011070's earnings have grown significantly by 45.8% per year over the past 5 years.

Accelerating Growth: A011070's earnings growth over the past year (88%) exceeds its 5-year average (45.8% per year).

Earnings vs Industry: A011070 earnings growth over the past year (88%) exceeded the Electronic industry 74.3%.


Return on Equity

High ROE: A011070's Return on Equity (25.1%) is considered high.


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Financial Health

How is LG Innotek's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: A011070's short term assets (₩4,488.4B) exceed its short term liabilities (₩3,214.0B).

Long Term Liabilities: A011070's short term assets (₩4,488.4B) exceed its long term liabilities (₩1,403.2B).


Debt to Equity History and Analysis

Debt Level: A011070's net debt to equity ratio (26.9%) is considered satisfactory.

Reducing Debt: A011070's debt to equity ratio has reduced from 62% to 49.2% over the past 5 years.

Debt Coverage: A011070's debt is well covered by operating cash flow (68.8%).

Interest Coverage: A011070's interest payments on its debt are well covered by EBIT (35.3x coverage).


Balance Sheet


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Dividend

What is LG Innotek current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.84%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: A011070's dividend (0.84%) isn’t notable compared to the bottom 25% of dividend payers in the KR market (0.99%).

High Dividend: A011070's dividend (0.84%) is low compared to the top 25% of dividend payers in the KR market (3.15%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, A011070 has been paying a dividend for less than 10 years.

Growing Dividend: A011070's dividend payments have increased, but the company has only paid a dividend for 3 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (8%), A011070's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: A011070 is paying a dividend but the company has no free cash flows.


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Management

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

3.5yrs

Average management tenure


CEO

Cheol-Dong Jeong (61 yo)

3.5yrs

Tenure

Mr. Cheol-Dong Jeong serves as President & Chief Executive Officer at LG Innotek Co., Ltd. since December 2018. He was the Chairman of LG Innotek Co., Ltd., since March 2019 until 2022 and serves as its Re...


Leadership Team

Experienced Management: A011070's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: A011070's board of directors are not considered experienced ( 1.8 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.


Top Shareholders

Company Information

LG Innotek Co., Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: LG Innotek Co., Ltd.
  • Ticker: A011070
  • Exchange: KOSE
  • Founded: 1970
  • Industry: Electronic Components
  • Sector: Tech
  • Implied Market Cap: ₩8.436t
  • Shares outstanding: 23.66m
  • Website: https://www.lginnotek.com

Number of Employees


Location

  • LG Innotek Co., Ltd.
  • 30, Magokjungang 10-ro
  • E1/E3
  • Seoul
  • 7796
  • South Korea

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/29 00:00
End of Day Share Price2022/06/29 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.