LG Innotek Co., Ltd. (011070.KS) stock analysis

In our weekly check, LG Innotek Co., Ltd. is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 11 pass, warnings: 6, red flags: 8.

About LG Innotek Co., Ltd.

LG Innotek Co., Ltd. is a Technology company (Hardware, Equipment & Parts) based in South Korea, listed on KSC as 011070.KS.

What our checks show for 011070.KS

Red flags

• Operating profit does not cover the interest bill (0x): interest is paid from cash or new debt.
• The net margin fell by 4.4 points over 5 years, to 1.6%: the company keeps less of each sale as profit.
• The gross margin fell by 4 points, to 10.2%: costs are rising faster than prices.
• The net margin is only 1.6%: little room if costs rise.
• The dividend takes 19340% of profit: little cushion if profit falls.
• The price swings a lot: 92.1% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 79% from a peak. Would you have held through that?
• Beta 1.92: the stock usually moves more than the market, both up and down.

Warning signs

• Revenue grew only 3.8% a year over the last 3 years.
• Earnings per share fell 29.5% a year over the last 3 years.
• Net profit fell 29.6% a year over the last 3 years.
• Free cash flow is only 3.3% of revenue.
• The stock is still below its previous peak.
• Thinly traded (about 252 thousand shares a day): buying and selling can move the price.

Strengths

• Net debt is only 0.5x a year of EBITDA: the balance sheet has room.
• Operating cash flow is 3.9x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 49.5% a year over the next years.
• Analysts expect the net margin to improve by 2.6 points from today's 1.6%.
• The price is 12.2 times earnings (P/E), reasonable for its growth.
• Pay in shares is only 0% of free cash flow.

Next earnings report: 2027-01-27

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Questions

What grade does LG Innotek Co., Ltd. (011070.KS) have?

In our weekly check, LG Innotek Co., Ltd. is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 11 pass, warnings: 6, red flags: 8. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 011070.KS stock?

This week's biggest flags for LG Innotek Co., Ltd.: Weak interest cover, Margins falling, Gross margin falling. In total 14 of 25 checks show a warning or a red flag.

What does LG Innotek Co., Ltd. do?

LG Innotek Co., Ltd. is a Technology company (Hardware, Equipment & Parts) based in South Korea, listed on KSC as 011070.KS.

When does LG Innotek Co., Ltd. report earnings next?

The next earnings report is expected on 2027-01-27. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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