Solus Advanced Materials (KOSE:A336370) - Share price, News & Analysis

Q: What is the Fair Price of A336370 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

A336370 (₩43800) is trading above our estimate of [[fair value]] (₩248.51)

A336370 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	5/6
Past Performance	2/6
Financial Health	1/6
Dividends	0/6

A336370 Stock Overview

Solus Advanced Materials Co. Ltd. provides materials and solutions in South Korea and Europe.

Rewards

Earnings are forecast to grow 52.41% per year

Became profitable this year

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings

Shareholders have been diluted in the past year

Solus Advanced Materials Competitors

DAEDUCK ELECTRONICS

KOSE:A353200

₩1.3t

Solum

KOSE:A248070

₩962.8b

Daejoo Electronic Materials

KOSDAQ:A078600

₩927.6b

ILJIN Materials

KOSE:A020150

₩3.1t

Price History & Performance

Summary of all time highs, changes and price drops for Solus Advanced Materials
Historical stock prices
Current Share Price	₩43,800.00
52 Week High	₩124,000.00
52 Week Low	₩41,200.00
Beta	1.66
1 Month Change	-29.35%
3 Month Change	-39.00%
1 Year Change	-13.78%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	694.92%

Shareholder Returns

	A336370	KR Electronic	KR Market
7D	-12.9%	-10.1%	-5.2%
1Y	-13.8%	-22.5%	-29.5%

Return vs Industry: A336370 exceeded the KR Electronic industry which returned -22.5% over the past year.

Return vs Market: A336370 exceeded the KR Market which returned -29.5% over the past year.

Price Volatility

Is A336370's price volatile compared to industry and market?
A336370 volatility
A336370 Average Weekly Movement	7.2%
Electronic Industry Average Movement	6.4%
Market Average Movement	6.3%
10% most volatile stocks in KR Market	10.7%
10% least volatile stocks in KR Market	3.9%

Stable Share Price: A336370 is not significantly more volatile than the rest of KR stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: A336370's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2019	256	Daeje Chin	https://www.solusadvancedmaterials.com

Solus Advanced Materials Co. Ltd. provides materials and solutions in South Korea and Europe. It offers battery copper foil for use in electric car battery; copper foil for use in various electronic equipment; electro materials for use in organic light emitting diode display devices, such as mobile, TV, and vehicle/tablet/PCs; and natural bio materials for use in pharmaceutical, cosmeceutical, and nutraceutical ingredients, as well as provides customized development manufacturing services.

Solus Advanced Materials Fundamentals Summary

How do Solus Advanced Materials's earnings and revenue compare to its market cap?
A336370 fundamental statistics
Market Cap	₩1.58t
Earnings (TTM)	₩9.41b
Revenue (TTM)	₩416.01b

202.7x

P/E Ratio

4.6x

P/S Ratio

Is A336370 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
A336370 income statement (TTM)
Revenue	₩416.01b
Cost of Revenue	₩338.36b
Gross Profit	₩77.64b
Other Expenses	₩68.23b
Earnings	₩9.41b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	216.06
Gross Margin	18.66%
Net Profit Margin	2.26%
Debt/Equity Ratio	89.9%

How did A336370 perform over the long term?

See historical performance and comparison

Dividends

0.2%

Current Dividend Yield

40%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is A336370 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales 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 A336370?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for A336370. This is calculated by dividing A336370's market cap by their current preferred multiple.
What is A336370's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₩1.58t

A336370 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/Revenue	5.2x
Enterprise Value/EBITDA	58x
PEG Ratio	3.9x

Price to Sales Ratio vs Peers

How does A336370's PS Ratio compare to its peers?

A336370 PS Ratio vs Peers

The above table shows the PS ratio for A336370 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	2.8x
A353200 DAEDUCK ELECTRONICS	1.3x	16.0%	₩1.3t
A248070 Solum	0.8x	16.6%	₩962.8b
A078600 Daejoo Electronic Materials	5.1x	32.4%	₩927.6b
A020150 ILJIN Materials	4.3x	29.3%	₩3.1t
A336370 Solus Advanced Materials	4.6x	34.3%	₩1.6t

Forward PS

Price-To-Sales vs Peers: A336370 is expensive based on its Price-To-Sales Ratio (4.6x) compared to the peer average (2.8x).

Price to Earnings Ratio vs Industry

How does A336370's PE Ratio compare vs other companies in the KR Electronic Industry?

Price-To-Sales vs Industry: A336370 is expensive based on its Price-To-Sales Ratio (4.6x) compared to the KR Electronic industry average (0.9x)

Price to Sales Ratio vs Fair Ratio

What is A336370's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

A336370 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	4.6x
Fair PS Ratio	3x

Price-To-Sales vs Fair Ratio: A336370 is expensive based on its Price-To-Sales Ratio (4.6x) compared to the estimated Fair Price-To-Sales Ratio (3x).

Share Price vs Fair Value

What is the Fair Price of A336370 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: A336370 (₩43800) is trading above our estimate of fair value (₩248.51)

Significantly Below Fair Value: A336370 is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: A336370 is poor value based on its PEG Ratio (3.9x)

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Future Growth

How is Solus Advanced Materials forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

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

52.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: A336370's forecast earnings growth (52.4% per year) is above the savings rate (3.6%).

Earnings vs Market: A336370's earnings (52.4% per year) are forecast to grow faster than the KR market (13.8% per year).

High Growth Earnings: A336370's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: A336370's revenue (34.3% per year) is forecast to grow faster than the KR market (8.9% per year).

High Growth Revenue: A336370's revenue (34.3% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: A336370's Return on Equity is forecast to be low in 3 years time (17%).

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Past Performance

How has Solus Advanced Materials performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

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

35.1%

Last years revenue growth

Earnings and Revenue History

Quality Earnings: A336370 has a high level of non-cash earnings.

Growing Profit Margin: A336370 became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: A336370 has become profitable over the past 5 years.

Accelerating Growth: A336370 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: A336370 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electronic industry (74.3%).

Return on Equity

High ROE: A336370's Return on Equity (-0.5%) is considered low.

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Financial Health

How is Solus Advanced Materials's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

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

Financial Position Analysis

Short Term Liabilities: A336370's short term assets (₩420.5B) do not cover its short term liabilities (₩423.1B).

Long Term Liabilities: A336370's short term assets (₩420.5B) exceed its long term liabilities (₩246.9B).

Debt to Equity History and Analysis

Debt Level: A336370's net debt to equity ratio (70%) is considered high.

Reducing Debt: Insufficient data to determine if A336370's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: A336370's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if A336370's interest payments on its debt are well covered by EBIT.

Balance Sheet

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Dividend

What is Solus Advanced Materials's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.23%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: A336370's dividend (0.23%) isn’t notable compared to the bottom 25% of dividend payers in the KR market (1.05%).

High Dividend: A336370's dividend (0.23%) is low compared to the top 25% of dividend payers in the KR market (3.3%).

Stability and Growth of Payments

Stable Dividend: A336370 is not paying a notable dividend for the KR market, therefore no need to check if payments are stable.

Growing Dividend: A336370 is not paying a notable dividend for the KR market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: A336370 is not paying a notable dividend for the KR market.

Cash Payout to Shareholders

Cash Flow Coverage: A336370 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?

1.6yrs

Average board tenure

CEO

Daeje Chin

1.58yrs

Tenure

Daeje Chin is Chairperson & Chief Executive Officer of Solus Advanced Materials Co. Ltd. from December 14, 2020.

Board Members

Experienced Board: A336370's board of directors are not considered experienced ( 1.6 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 been diluted in the past year, with total shares outstanding growing by 14.8%.

Data	Last Updated (UTC time)
Company Analysis	2022/07/05 00:00
End of Day Share Price	2022/07/05 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31