LG Chem, Ltd. (051910.KS) stock analysis

In our weekly check, LG Chem, Ltd. is graded F (A to F). Of 23 checks on debt, profit, cash flow and trend: 7 pass, warnings: 3, red flags: 13.

About LG Chem, Ltd.

LG Chem, Ltd. is a Basic Materials company (Chemicals) based in South Korea, listed on KSC as 051910.KS.

What our checks show for 051910.KS

Red flags

• Net debt is 5.9x a year of EBITDA (debt/equity 1.14). That limits room in a downturn and raises refinancing risk.
• Operating profit does not cover the interest bill (0.2x): interest is paid from cash or new debt.
• The net margin fell by 11.7 points over 5 years, to -3.1%: the company keeps less of each sale as profit.
• The gross margin fell by 8.6 points, to 17.7%: costs are rising faster than prices.
• Revenue fell 1.4% a year over the last 3 years.
• Earnings per share fell 6.5% a year over the last 3 years.
• The company is losing money: the net margin is -3.1%.
• Free cash flow is negative (-8.3% of revenue): the business spends more cash than it brings in.
• LG Chem, Ltd. pays a dividend while losing money: it is funded from reserves or debt.
• The price swings a lot: 66.9% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 82% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 0.6%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• The stock is still below its previous peak.
• Beta 1.39: the stock usually moves more than the market, both up and down.
• Thinly traded (about 209 thousand shares a day): buying and selling can move the price.

Strengths

• Operating cash flow is 4.08x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 38.9% a year over the next years.
• Analysts expect revenue to grow about 15.9% a year over the next years.
• Analysts expect the net margin to improve by 8 points from today's -3.1%.
• A large company: market value $13.53 billion.

Next earnings report: 2026-11-05

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Questions

What grade does LG Chem, Ltd. (051910.KS) have?

In our weekly check, LG Chem, Ltd. is graded F (A to F). Of 23 checks on debt, profit, cash flow and trend: 7 pass, warnings: 3, red flags: 13. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 051910.KS stock?

This week's biggest flags for LG Chem, Ltd.: High debt, Weak interest cover, Margins falling. In total 16 of 23 checks show a warning or a red flag.

What does LG Chem, Ltd. do?

LG Chem, Ltd. is a Basic Materials company (Chemicals) based in South Korea, listed on KSC as 051910.KS.

When does LG Chem, Ltd. report earnings next?

The next earnings report is expected on 2026-11-05. 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 2026-10-24

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