LG Energy Solution, Ltd. (373220.KS) stock analysis

In our weekly check, LG Energy Solution, Ltd. is graded D (A to F). Of 22 checks on debt, profit, cash flow and trend: 8 pass, warnings: 4, red flags: 10.

About LG Energy Solution, Ltd.

LG Energy Solution, Ltd. is an Industrials company (Electrical Equipment & Parts) based in South Korea, listed on KSC as 373220.KS.

What our checks show for 373220.KS

Red flags

• Net debt is 5.5x a year of EBITDA (debt/equity 1.3). That limits room in a downturn and raises refinancing risk.
• Operating profit does not cover the interest bill (-0.3x): interest is paid from cash or new debt.
• The net margin fell by 11.8 points over 5 years, to -7.3%: the company keeps less of each sale as profit.
• The gross margin fell by 4 points, to 17%: costs are rising faster than prices.
• Weak EPS growth
• The company is losing money: the net margin is -7.3%.
• Free cash flow is negative (-20.2% of revenue): the business spends more cash than it brings in.
• The price swings a lot: 60% annual volatility. Expect large ups and downs.
• Return on capital (ROCE) is zero or negative: the business does not earn on the money put into it.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Revenue grew only 0.5% a year over the last 3 years.
• The stock has fallen as much as 57% from a peak. Would you have held through that?
• The stock is still below its previous peak.
• Thinly traded (about 344 thousand shares a day): buying and selling can move the price.

Strengths

• Operating cash flow is 1.43x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 21.7% a year over the next years.
• Analysts expect revenue to grow about 28.6% a year over the next years.
• Analysts expect the net margin to improve by 13.7 points from today's -7.3%.
• A large company: market value $67.65 billion.

Next earnings report: 2026-11-03

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Questions

What grade does LG Energy Solution, Ltd. (373220.KS) have?

In our weekly check, LG Energy Solution, Ltd. is graded D (A to F). Of 22 checks on debt, profit, cash flow and trend: 8 pass, warnings: 4, red flags: 10. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 373220.KS stock?

This week's biggest flags for LG Energy Solution, Ltd.: High debt, Weak interest cover, Margins falling. In total 14 of 22 checks show a warning or a red flag.

What does LG Energy Solution, Ltd. do?

LG Energy Solution, Ltd. is an Industrials company (Electrical Equipment & Parts) based in South Korea, listed on KSC as 373220.KS.

When does LG Energy Solution, Ltd. report earnings next?

The next earnings report is expected on 2026-11-03. 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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