SK Innovation Co., Ltd. (096770.KS) stock analysis
In our weekly check, SK Innovation Co., Ltd. is graded D (A to F). Of 23 checks on debt, profit, cash flow and trend: 9 pass, warnings: 4, red flags: 10.
About SK Innovation Co., Ltd.
SK Innovation Co., Ltd. is an Energy company (Oil & Gas Refining & Marketing) based in South Korea, listed on KSC as 096770.KS.
What our checks show for 096770.KS
Red flags
- The net margin fell by 1.9 points over 5 years, to -1.3%: the company keeps less of each sale as profit.
- Analysts expect revenue to shrink about 2% a year.
- Earnings per share fell 27.1% a year over the last 3 years.
- The company is losing money: the net margin is -1.3%.
- Free cash flow is negative (-0.1% of revenue): the business spends more cash than it brings in.
- SK Innovation Co., Ltd. pays a dividend while losing money: it is funded from reserves or debt.
- The price swings a lot: 67% annual volatility. Expect large ups and downs.
- The stock has fallen as much as 77% from a peak. Would you have held through that?
- The share count grew by 72.3% in 2 years: each shareholder owns a smaller slice.
- Pay in shares equals 0% of free cash flow: it dilutes shareholders.
Warning signs
- Net debt is 3.4x a year of EBITDA (debt/equity 1.58). That limits room in a downturn and raises refinancing risk.
- Operating profit covers interest only 3.8 times: a weak year could make the payments hard.
- Beta 1.44: the stock usually moves more than the market, both up and down.
- Return on capital (ROCE) is only 8.6%.
Strengths
- The gross margin is 10.5% and has risen by 1.6 points: pricing power is holding.
- Operating cash flow is 3.66x net profit: the profit arrives as real cash.
- Analysts expect earnings per share to grow about 25.8% a year over the next years.
- Analysts expect the net margin to improve by 3.5 points from today's -1.3%.
- A large company: market value $17.62 billion.
Next earnings report: 2026-10-29
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Questions
What grade does SK Innovation Co., Ltd. (096770.KS) have?
In our weekly check, SK Innovation Co., Ltd. is graded D (A to F). Of 23 checks on debt, profit, cash flow and trend: 9 pass, warnings: 4, red flags: 10. The grade is a risk check, not a buy or sell recommendation.
What are the main risks of 096770.KS stock?
This week's biggest flags for SK Innovation Co., Ltd.: Margins falling, Weak revenue forecast, Weak EPS growth. In total 14 of 23 checks show a warning or a red flag.
What does SK Innovation Co., Ltd. do?
SK Innovation Co., Ltd. is an Energy company (Oil & Gas Refining & Marketing) based in South Korea, listed on KSC as 096770.KS.
When does SK Innovation Co., Ltd. report earnings next?
The next earnings report is expected on 2026-10-29. 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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