LG Chem 051910.KS
LG Chem is a South Korean chemical conglomerate producing petrochemicals, advanced materials for batteries and semiconductors, and life sciences solutions. LG Chem shows 19% revenue growth, but its financial health is fragile (ND/EBITDA 5.53) and profitability is negative (ROE -5.71%), which weighs on quality and valuation despite a forward P/E of 12.27.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
LG Chem is a South Korean chemical conglomerate producing petrochemicals, advanced materials for batteries and semiconductors, and life sciences solutions. LG Chem shows 19% revenue growth, but its financial health is fragile (ND/EBITDA 5.53) and profitability is negative (ROE -5.71%), which weighs on quality and valuation despite a forward P/E of 12.27.
Score by category
| Category | Score |
|---|---|
| Financial health | 3.2 |
| Quality / Moat | 0.8 |
| Valuation | 5.1 |
| Growth | 7.6 |
| Dividend | 2.2 |
| Momentum | 3.8 |
| Risk & Context | 1.3 |
OVERALL SCORE: 3.2/10
Context and risks
Elevated governance risk in South Korea, with structural preferred stock discount and potential state intervention. Additionally, exposure to the semiconductor and battery cycle adds business model risk.
News considered in the analysis
- Tesla’s In-House Battery Plant Could Give Cybercab a Major Edge — Noticia sectorial que refuerza la demanda de baterías, pero no es específica de LG Chem y su efecto es indirecto.
- Samsung Buyback Highlights Korea’s 45% Preferred Stock Discount — Ruido de mercado sobre la estructura de capital en Corea; no aporta información nueva sobre LG Chem.
- LG Chem Ltd (XKRX:051910) (Q2 2026) Earnings Call Highlights: Operating Margin Improves to 4. ... — Mejora del margen operativo al 4.23%, pero sigue siendo bajo; la noticia ya está parcialmente en el precio.
- How Investors Are Reacting To Amkor Technology (AMKR) Tapping LG Chem’s Faster Semiconductor Stripper — Adopción de un producto de LG Chem por un cliente relevante (Amkor) valida su tecnología en semiconductores; noticia positiva y reciente.
- Pacira BioSciences, Inc. Q1 2026 Earnings Call Summary — Noticia de otra empresa sin relación con LG Chem.
Verdict: Hold; margin improvement and semiconductor product adoption are positive, but high leverage and weak profitability warrant caution.
Main risk: High leverage (ND/EBITDA 5.53) and negative cash conversion (-172.11) expose LG Chem to rising rates and solvency issues if the chemical cycle deteriorates.
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