New Risk • 1h
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 3.5% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (3.5% operating cash flow to total debt). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Reported Earnings • Mar 25
Full year 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2025 results: EPS: ₩18,124 (up from ₩12,103 in FY 2024). Revenue: ₩10t (down 7.1% from FY 2024). Net income: ₩104.8b (up 50% from FY 2024). Profit margin: 1.0% (up from 0.6% in FY 2024). Revenue exceeded analyst estimates by 4.7%. Earnings per share (EPS) missed analyst estimates by 26%. Revenue is forecast to grow 3.4% p.a. on average during the next 2 years, compared to a 3.2% growth forecast for the Oil and Gas industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 40% per year but the company’s share price has increased by 29% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Mar 20
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₩110,800, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 12x in the Oil and Gas industry in South Korea. Total returns to shareholders of 183% over the past three years. Duyuru • Mar 13
E1 Corporation, Annual General Meeting, Mar 27, 2026 E1 Corporation, Annual General Meeting, Mar 27, 2026, at 09:01 Tokyo Standard Time. Location: conference room, 92, hangang-daero, yongsan-gu, seoul South Korea Valuation Update With 7 Day Price Move • Feb 05
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩101,300, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 6x in the Oil and Gas industry in South Korea. Total returns to shareholders of 142% over the past three years. Major Estimate Revision • Jan 13
Consensus revenue estimates fall by 10% The consensus outlook for revenues in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from ₩11.1b to ₩9.93b. EPS estimate fell from ₩25,699 to ₩24,542 per share. Net income forecast to grow 143% next year vs 20% growth forecast for Oil and Gas industry in South Korea. Consensus price target up from ₩79,000 to ₩90,000. Share price fell 4.0% to ₩79,900 over the past week. Declared Dividend • Jul 14
Dividend of ₩450 announced Shareholders will receive a dividend of ₩450. Ex-date: 30th July 2025 Payment date: 14th August 2025 Dividend yield will be 3.5%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by earnings (19% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 9.4% per year over the past 5 years. However, payments have been volatile during that time. EPS is expected to grow by 55% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Valuation Update With 7 Day Price Move • Jul 09
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩98,100, the stock trades at a forward P/E ratio of 3x. Average forward P/E is 7x in the Oil and Gas industry in South Korea. Total returns to shareholders of 173% over the past three years. Price Target Changed • Apr 16
Price target decreased by 28% to ₩67,000 Down from ₩93,500, the current price target is provided by 1 analyst. New target price is 12% above last closing price of ₩59,700. Stock is down 8.6% over the past year. The company is forecast to post earnings per share of ₩25,901 for next year compared to ₩10,873 last year. Major Estimate Revision • Apr 02
Consensus EPS estimates fall by 16%, revenue upgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast increased from ₩11.1b to ₩11.9b. EPS estimate fell from ₩30,700 to ₩25,901 per share. Net income forecast to grow 183% next year vs 9.7% growth forecast for Oil and Gas industry in South Korea. Consensus price target down from ₩93,500 to ₩87,000. Share price was steady at ₩59,800 over the past week. New Risk • Mar 27
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 25% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.5x net interest cover). High level of non-cash earnings (25% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (0.6% net profit margin). Duyuru • Mar 13
E1 Corporation, Annual General Meeting, Mar 28, 2025 E1 Corporation, Annual General Meeting, Mar 28, 2025, at 09:01 Tokyo Standard Time. Location: conference room, 92, hangang-daero, yongsan-gu, seoul South Korea New Risk • Aug 26
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 30% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.9x net interest cover). High level of non-cash earnings (30% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (1.4% net profit margin). Major Estimate Revision • Aug 21
Consensus revenue estimates increase by 14% The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast increased from ₩9.96b to ₩11.4b. EPS estimate unchanged from ₩24,626 at last update. Oil and Gas industry in South Korea expected to see average net income growth of 12% next year. Consensus price target of ₩93,500 unchanged from last update. Share price was steady at ₩75,100 over the past week. Upcoming Dividend • Jul 23
Upcoming dividend of ₩450 per share Eligible shareholders must have bought the stock before 30 July 2024. Payment date: 13 August 2024. Payout ratio is a comfortable 28% and this is well supported by cash flows. Trailing yield: 6.5%. Within top quartile of South Korean dividend payers (3.7%). Higher than average of industry peers (3.6%). Price Target Changed • Jul 17
Price target increased by 15% to ₩93,500 Up from ₩81,000, the current price target is an average from 2 analysts. New target price is 25% above last closing price of ₩74,700. Stock is up 45% over the past year. The company is forecast to post earnings per share of ₩24,626 for next year compared to ₩36,872 last year. Price Target Changed • Jun 18
Price target increased by 11% to ₩86,000 Up from ₩77,500, the current price target is an average from 2 analysts. New target price is 14% above last closing price of ₩75,200. Stock is up 46% over the past year. The company is forecast to post earnings per share of ₩24,626 for next year compared to ₩36,872 last year. New Risk • May 27
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 1.3% Last year net profit margin: 2.5% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (2.2x net interest cover). Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (1.3% net profit margin). Buying Opportunity • Jan 12
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 1.3%. The fair value is estimated to be ₩73,471, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 28% over the last 3 years. Earnings per share has grown by 41%. New Risk • Nov 23
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 14% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (14% operating cash flow to total debt). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • Mar 19
Full year 2022 earnings released: EPS: ₩24,536 (vs ₩22,789 in FY 2021) Full year 2022 results: EPS: ₩24,536 (up from ₩22,789 in FY 2021). Revenue: ₩7.99t (up 55% from FY 2021). Net income: ₩141.9b (up 7.7% from FY 2021). Profit margin: 1.8% (down from 2.6% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 58% per year but the company’s share price has only increased by 19% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 21
Upcoming dividend of ₩2,200 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 11 April 2023. Payout ratio is a comfortable 17% but the company is not cash flow positive. Trailing yield: 4.6%. Within top quartile of South Korean dividend payers (3.3%). Higher than average of industry peers (4.0%). Reported Earnings • Nov 19
Third quarter 2022 earnings released: EPS: ₩3,597 (vs ₩5,193 in 3Q 2021) Third quarter 2022 results: EPS: ₩3,597 (down from ₩5,193 in 3Q 2021). Revenue: ₩2.02t (up 51% from 3Q 2021). Net income: ₩20.8b (down 31% from 3Q 2021). Profit margin: 1.0% (down from 2.3% in 3Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 76% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Aug 20
Second quarter 2022 earnings released: EPS: ₩1,204 (vs ₩12,457 in 2Q 2021) Second quarter 2022 results: EPS: ₩1,204 (down from ₩12,457 in 2Q 2021). Revenue: ₩2.12t (up 99% from 2Q 2021). Net income: ₩6.96b (down 90% from 2Q 2021). Profit margin: 0.3% (down from 6.8% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 91% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Reported Earnings • May 22
First quarter 2022 earnings released: EPS: ₩10,307 (vs ₩7,014 in 1Q 2021) First quarter 2022 results: EPS: ₩10,307 (up from ₩7,014 in 1Q 2021). Revenue: ₩1.86t (up 47% from 1Q 2021). Net income: ₩59.6b (up 47% from 1Q 2021). Profit margin: 3.2% (in line with 1Q 2021). Over the last 3 years on average, earnings per share has increased by 91% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. No highly experienced directors. 3 independent directors (4 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Upcoming Dividend • Dec 22
Upcoming dividend of ₩2,200 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 12 April 2022. Payout ratio is a comfortable 8.3% and this is well supported by cash flows. Trailing yield: 4.5%. Within top quartile of South Korean dividend payers (2.4%). Higher than average of industry peers (3.0%). Valuation Update With 7 Day Price Move • Sep 13
Investor sentiment improved over the past week After last week's 17% share price gain to ₩63,500, the stock trades at a trailing P/E ratio of 2.7x. Average trailing P/E is 6x in the Oil and Gas industry in South Korea. Total returns to shareholders of 12% over the past three years. Reported Earnings • Mar 21
Full year 2020 earnings released: EPS ₩10,427 (vs ₩7,466 loss in FY 2019) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2020 results: Revenue: ₩3.93t (down 15% from FY 2019). Net income: ₩60.3b (up ₩103.5b from FY 2019). Profit margin: 1.5% (up from net loss in FY 2019). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 52% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Duyuru • Mar 11
E1 Corporation, Annual General Meeting, Mar 26, 2021 E1 Corporation, Annual General Meeting, Mar 26, 2021, at 10:00 Korea Standard Time. Is New 90 Day High Low • Jan 18
New 90-day low: ₩41,500 The company is down 13% from its price of ₩47,900 on 20 October 2020. The South Korean market is up 30% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Oil and Gas industry, which is up 52% over the same period. Is New 90 Day High Low • Dec 29
New 90-day low: ₩44,400 The company is down 2.0% from its price of ₩45,300 on 29 September 2020. The South Korean market is up 19% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Oil and Gas industry, which is up 25% over the same period. Upcoming Dividend • Dec 22
Upcoming Dividend of ₩2,200 Per Share Will be paid on the 13th of April to those who are registered shareholders by the 29th of December. The trailing yield of 4.9% is in the top quartile of South Korean dividend payers (2.6%), and it is higher than industry peers (1.7%).