Lotte Chemical Corp
KRX:011170

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Lotte Chemical Corp Logo
Lotte Chemical Corp
KRX:011170
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Price: 94 000 KRW -1.47%
Market Cap: 4T KRW
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Intrinsic Value

Lotte Chemical Corp's intrinsic value estimate is unreliable because it is based only on its multiples and doesn't use a DCF valuation.

The intrinsic value of one Lotte Chemical Corp stock under the Base Case scenario is 360 131.91 KRW. Compared to the current market price of 94 000 KRW, Lotte Chemical Corp is Undervalued by 74%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

Intrinsic Value
360 131.91 KRW
Undervaluation 74%
Intrinsic Value
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Lotte Chemical Corp

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Lotte Chemical Corp

Current Assets 9.8T
Cash & Short-Term Investments 3.9T
Receivables 2.8T
Other Current Assets 3.2T
Non-Current Assets 23.7T
Long-Term Investments 4.4T
PP&E 14.7T
Intangibles 3.7T
Other Non-Current Assets 839.8B
Current Liabilities 6.5T
Accounts Payable 1.4T
Accrued Liabilities 105.7B
Short-Term Debt 3.4T
Other Current Liabilities 1.6T
Non-Current Liabilities 11.4T
Long-Term Debt 5.8T
Other Non-Current Liabilities 5.6T
Efficiency

Earnings Waterfall
Lotte Chemical Corp

Revenue
20.3T KRW
Cost of Revenue
-19.7T KRW
Gross Profit
671.9B KRW
Operating Expenses
-1.2T KRW
Operating Income
-489.9B KRW
Other Expenses
210.7B KRW
Net Income
-279.1B KRW

Free Cash Flow Analysis
Lotte Chemical Corp

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

In Q2 2024, LOTTE Chemical reported sales of KRW 5,248 billion, a 3.2% increase from Q1, alongside an improved EBITDA of KRW 207.9 billion, reflecting better operational efficiency and demand growth. However, operating losses of KRW 111.2 billion underscored ongoing challenges due to falling feedstock prices and rising inventory valuation losses. The company expects continued revenue growth into Q3, forecasted at approximately KRW 150 billion due to increased chlorine-based and green material sales. To enhance cash flow, LOTTE aims to adjust investment plans, targeting a total cash improvement of KRW 1.9 trillion by 2025. A dividend of KRW 1,000 per share is also slated for payout on August 9.

What is Earnings Call?
Fundamental Scores

Profitability Score
Profitability Due Diligence

Lotte Chemical Corp's profitability score is 37/100. The higher the profitability score, the more profitable the company is.

Positive 3-Years Revenue Growth
Positive Revenue Growth Forecast
Negative 1-Year Revenue Growth
Positive Gross Profit
37/100
Profitability
Score

Lotte Chemical Corp's profitability score is 37/100. The higher the profitability score, the more profitable the company is.

Solvency Score
Solvency Due Diligence

Lotte Chemical Corp's solvency score is 39/100. The higher the solvency score, the more solvent the company is.

Low D/E
Long-Term Solvency
Short-Term Solvency
Positive Net Debt
39/100
Solvency
Score

Lotte Chemical Corp's solvency score is 39/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

Price Targets Summary
Lotte Chemical Corp

Wall Street analysts forecast Lotte Chemical Corp stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for Lotte Chemical Corp is 136 221 KRW with a low forecast of 80 800 KRW and a high forecast of 231 000 KRW.

Lowest
Price Target
80 800 KRW
14% Downside
Average
Price Target
136 221 KRW
45% Upside
Highest
Price Target
231 000 KRW
146% Upside
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Dividends

Dividend Yield
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Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
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Safe
0
25
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100
Shareholder Yield

Current shareholder yield for Lotte Chemical Corp is .

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Profile

Lotte Chemical Corp Logo
Lotte Chemical Corp

Country

Korea

Industry

Chemicals

Market Cap

4T KRW

Dividend Yield

4.79%

Description

Lotte Chemical Corp. is engaged in the manufacture of petrochemicals. The company is headquartered in Seoul, Seoul. The firm operates its business through four segments. The Polymer segment is involved in the manufacturing and sale of raw materials of plastics, home appliances and automobiles. The main polymer products include high-density polyethylene, polypropylene, low-density polyethylene, polyethylene terephthalate, among others. The Monomer segment is involved in the manufacturing and sale of raw materials of processed petrochemicals such as styrene monomer, butadiene, ethylenesic acid duct, ethylene oxide glycol. The Basic Chemical segment is involved in the manufacturing and sale of raw materials such as ethane, propylene, benzene, and toluene. The Other segment is engaged in the real estate leasing, as well as the provision of dispatch services.

Contact

SEOUL
Seoul
14-16F, Korea Lotte World Tower, 300, Olympic-ro, Songpa-gu
+8228294114
www.lottechem.com

IPO

1991-05-30

Employees

-

Officers

Chairman of the Board & CEO
Mr. Dong-Bin Shin
President, CEO & Director
Mr. Hun Ki Lee
VP, CEO & Director
Mr. Young-jun Lee
CFO & Inside Director
Mr. Nak-Seon Sung
Deputy MD & Director of Financial Accounting Department
Mr. Sung-Taek Cho
Head of the IR team
Kim Hoon
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Deputy MD & Director of Legal Affairs Department
Mr. Sung-Ki Kim
Deputy MD and Director of HR Department & Purchasing Department
Mr. Yoon-Seok Kim
New Business Division Head
Min-Woo Kim
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See Also

Discover More
What is the Intrinsic Value of one Lotte Chemical Corp stock?

The intrinsic value of one Lotte Chemical Corp stock under the Base Case scenario is 360 131.91 KRW.

Is Lotte Chemical Corp stock undervalued or overvalued?

Compared to the current market price of 94 000 KRW, Lotte Chemical Corp is Undervalued by 74%.

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