# Lotte (004990.KO)

Canonical: https://gigainvestors.com/s/004990.KO

Analysis as of: 2026-10-16T07:43:08.451Z. Financial observations: FY2001–FY2026.

Listing currency: KRW. Reporting currency: KRW.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: KRW 22,100.00 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 2 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 6

- Operating margin variation: 4.28×

Chart: Operating margin; fiscal year observations.

- FY2017: -0.11×

- FY2018: 0.01×

- FY2019: 0.02×

- FY2020: 0.02×

- FY2021: 0.02×

- FY2022: 0.03×

- FY2023: 0.03×

- FY2024: 0.02×

- FY2025: 0.02×

- LTM to Jun 2026: 0.02×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 1.9%

- ROIC, second-lowest year: 1.0%

- Typical minus recent gross margin: 0.3 pp

- Typical gross margin (annual median): 28.8%

- Recent gross margin (lower of latest and 3-year median): 28.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.6%

- ROIC including acquisitions, ten-year median: -1.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 3.6%

- FY2017: -1.5%

- FY2018: 1.0%

- FY2019: 1.8%

- FY2020: 1.5%

- FY2021: 2.0%

- FY2022: 2.7%

- FY2023: 2.5%

- FY2024: 2.1%

- FY2025: 1.5%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: KRW -2.27T

- Net income, five-year total: KRW -1.20T

- Return on incremental invested capital: 7.2%

- Working capital / revenue, annual change: -1.0 pp

- Working capital / revenue, change between three-year averages: -7.6 pp

- Working capital / revenue, final three-year average: 9.3%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: KRW 289B

- FY2022: KRW 98B

- FY2023: KRW -150B

- FY2024: KRW -1.30T

- FY2025: KRW -1.20T

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 1.0% vs 2.1%

- Per-share earnings: 4912.87 to -9028.00 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 0.3%

- Market cap gain: KRW 883B

- Cumulative retained earnings: KRW 1.30T

- Diluted shares, 5-year annual growth: 0.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: KRW -14K

- Per-share value, starting three-year median: KRW 5K

- Per-share value, ending three-year median: KRW -9K

- Buybacks concentrated in cheaper years (correlation): -0.90

- Average buyback yield: 0.6%

- Buyback history: 5 years

- Debt-funded buybacks: Yes

- Acquisition spending: KRW 1.97T

- Cumulative net income, 10 years: KRW -1.04T

- ROIC, first three-year median: 1.0%

- ROIC, last three-year median: 2.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: KRW 5K

- FY2017: KRW 8K

- FY2018: KRW 3K

- FY2019: KRW -5K

- FY2020: KRW -3K

- FY2021: KRW 4K

- FY2022: KRW 2K

- FY2023: KRW -215.00

- FY2024: KRW -14K

- FY2025: KRW -9K

### accounting: pass

- Sloan accruals: -7.8%

- Receivables to sales index (DSRI): 0.98×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: -0.1%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.17×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.1%

- FY2017: 5.3%

- FY2018: 3.7%

- FY2019: -6.5%

- FY2020: -3.5%

- FY2021: -1.5%

- FY2022: -3.3%

- FY2023: -5.4%

- FY2024: -9.1%

- FY2025: -7.8%

## Holders

## Price story

Down 47% since Aug 2022 · sales +0.6%

Story as of 2026-10-16T10:00:12.607Z; price observation 2026-10-15.

### Sales · FY2025–2026

sales +0.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: KRW 1.90T 

- FY2018: KRW 7.27T 

- FY2019: KRW 8.86T 

- FY2020: KRW 9.09T 

- FY2021: KRW 9.92T 

- FY2022: KRW 14.11T 

- FY2023: KRW 15.16T 

- FY2024: KRW 15.76T 

- FY2025: KRW 15.54T 

- FY2026: KRW 15.63T 

### Gross margin · FY2025

gross margin 28.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 36.1% 

- FY2017: 25.3% 

- FY2018: 27.2% 

- FY2019: 29.3% 

- FY2020: 27.4% 

- FY2021: 26.5% 

- FY2022: 29.4% 

- FY2023: 29.3% 

- FY2024: 29.1% 

- FY2025: 28.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in confectioners; annual sales are KRW 15.5 trillion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:08.451Z); FY2025: revenue 15539626589470; grossProfit 4430741650310; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 004990.KO: LOTTE Corporation engages in the food, retail, chemical, construction, manufacturing, tourism, service, and finance businesses worldwide. It offers confectionery, beverages, liquor, food ingredients, and processed foods; coffee and coffee mixes, powdered drinks, food and beverage solution, and petcare products; manufactures, wholesales, and distributes soft drinks and alcoholic beverages; import and sells wine; and engages in restaurant franchise business. The company also operates department stores, grocery market, supermarkets, convenience stores, and home shopping networks; e-commerce platform; easy payment service; imports and sells clothing and general merchandise; retails consumer elec payment services; and operates multiplex movie theater. In addition, it manufactures and sells petrochemicals, aluminium anode foil, organic chemical, Acetic acid, VAM, hydrogen, office machinery, electronic instruments, synthetic resins, synthetic textiles, and by-products; imports and exports cameras, medical devices, projectors, and network cameras; and offers instant cameras, photobooks, photo solution services, digital printing devices, RFID and IoT solutions, etc. Further, the company engages in housing, architecture, civil engineering, and plant; construction; delivery, distribution/storage, shipping, forwarding, port operations, and consultation activities; rental of car and equipment; operation of resort condominium, Tourist hotel, and LOTTE World Tower and Mall, as well as theme parks; construction and management of golf course; Culture and arts business; social welfare activities; education consultancy; real estate development and financial consulting; owns a professional baseball team; and offers digital platform, travel, Lease financing, corporate, and individual loans. The company was formerly known as Lotte Confectionery Co. Ltd. and changed its name to LOTTE Corporation in October 2017. The company was founded in 1967 and is headquartered in Seoul, South Korea.

### Why customers stay

Margins ranged from 28.5% to 29.3% during 2023–25; it earns 1.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:08.451Z); FY2023: grossProfit / revenue = 29.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:08.451Z); FY2024: grossProfit / revenue = 29.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:08.451Z); FY2025: grossProfit / revenue = 28.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:08.451Z); 10-year return on capital observations [[2016,0.03626720633402202],[2017,-0.015275119034584667],[2018,0.00950827517587018],[2019,0.018368216580617203],[2020,0.014514321154073917],[2021,0.01955985799674431],[2022,0.027035271449686406],[2023,0.025330906602654347],[2024,0.020974354000697033],[2025,0.014957346637023932]]; median 0.018964037288680756. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:08.451Z); FY2016: growth capex 0; upkeep 103132719290; owner earnings 62867826810. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:08.451Z); FY2017: growth capex 0; upkeep 61186663290; owner earnings 485510371710. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:08.451Z); FY2021: growth capex 0; upkeep 462249148990; owner earnings 288569399640. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:08.451Z); FY2022: growth capex 34060732640; upkeep 722325000000; owner earnings 97770755347.11658. Growth capex / owner earnings = 0.3483734222884319.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:08.451Z); Dividend observations: [[2016,17155254030],[2017,2385650],[2018,7382266610],[2019,93155187670],[2020,68880071090],[2021,88275531220],[2022,140440185090],[2023,143258216940],[2024,148029837230],[2025,127696505560]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 45.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 004990.KO SharesStats.PercentInsiders = 45.738 percentage points; cache date 2026-10-16.

### What the price says

The price is 0.1 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:08.451Z); Closing price 22100 KRW; reporting-to-trading FX 1; FY2025 annual sales per share 216649.10274263163; price multiple 0.10200826922534593. FY2025 cash earnings/share -16757.89082610929. Closing-price date 2026-10-15.

## Monthly share-price history (KRW per share)

- 2016-11: KRW 71,400.00 per share

- 2016-12: KRW 71,400.00 per share

- 2017-01: KRW 81,600.00 per share

- 2017-02: KRW 78,200.00 per share

- 2017-03: KRW 76,800.00 per share

- 2017-04: KRW 82,000.00 per share

- 2017-05: KRW 88,000.00 per share

- 2017-06: KRW 79,200.00 per share

- 2017-07: KRW 81,400.00 per share

- 2017-08: KRW 79,000.00 per share

- 2017-09: KRW 66,400.00 per share

- 2017-10: KRW 74,500.00 per share

- 2017-11: KRW 61,500.00 per share

- 2017-12: KRW 65,100.00 per share

- 2018-01: KRW 69,800.00 per share

- 2018-02: KRW 62,700.00 per share

- 2018-03: KRW 63,500.00 per share

- 2018-04: KRW 65,100.00 per share

- 2018-05: KRW 58,600.00 per share

- 2018-06: KRW 57,300.00 per share

- 2018-07: KRW 52,600.00 per share

- 2018-08: KRW 48,200.00 per share

- 2018-09: KRW 57,100.00 per share

- 2018-10: KRW 47,550.00 per share

- 2018-11: KRW 55,300.00 per share

- 2018-12: KRW 52,700.00 per share

- 2019-01: KRW 52,300.00 per share

- 2019-02: KRW 53,100.00 per share

- 2019-03: KRW 49,400.00 per share

- 2019-04: KRW 49,050.00 per share

- 2019-05: KRW 42,200.00 per share

- 2019-06: KRW 44,000.00 per share

- 2019-07: KRW 34,000.00 per share

- 2019-08: KRW 33,350.00 per share

- 2019-09: KRW 36,250.00 per share

- 2019-10: KRW 36,500.00 per share

- 2019-11: KRW 35,650.00 per share

- 2019-12: KRW 38,950.00 per share

- 2020-01: KRW 35,300.00 per share

- 2020-02: KRW 29,050.00 per share

- 2020-03: KRW 24,000.00 per share

- 2020-04: KRW 40,100.00 per share

- 2020-05: KRW 34,300.00 per share

- 2020-06: KRW 31,600.00 per share

- 2020-07: KRW 31,000.00 per share

- 2020-08: KRW 30,000.00 per share

- 2020-09: KRW 28,600.00 per share

- 2020-10: KRW 28,400.00 per share

- 2020-11: KRW 35,400.00 per share

- 2020-12: KRW 35,300.00 per share

- 2021-01: KRW 32,450.00 per share

- 2021-02: KRW 33,600.00 per share

- 2021-03: KRW 34,000.00 per share

- 2021-04: KRW 36,600.00 per share

- 2021-05: KRW 41,000.00 per share

- 2021-06: KRW 40,200.00 per share

- 2021-07: KRW 37,750.00 per share

- 2021-08: KRW 35,500.00 per share

- 2021-09: KRW 33,700.00 per share

- 2021-10: KRW 32,700.00 per share

- 2021-11: KRW 29,000.00 per share

- 2021-12: KRW 29,900.00 per share

- 2022-01: KRW 26,550.00 per share

- 2022-02: KRW 28,900.00 per share

- 2022-03: KRW 32,400.00 per share

- 2022-04: KRW 34,250.00 per share

- 2022-05: KRW 35,100.00 per share

- 2022-06: KRW 37,300.00 per share

- 2022-07: KRW 37,350.00 per share

- 2022-08: KRW 41,450.00 per share

- 2022-09: KRW 38,300.00 per share

- 2022-10: KRW 32,600.00 per share

- 2022-11: KRW 32,850.00 per share

- 2022-12: KRW 30,800.00 per share

- 2023-01: KRW 32,350.00 per share

- 2023-02: KRW 30,650.00 per share

- 2023-03: KRW 28,750.00 per share

- 2023-04: KRW 28,000.00 per share

- 2023-05: KRW 28,200.00 per share

- 2023-06: KRW 25,000.00 per share

- 2023-07: KRW 25,450.00 per share

- 2023-08: KRW 24,950.00 per share

- 2023-09: KRW 25,450.00 per share

- 2023-10: KRW 26,000.00 per share

- 2023-11: KRW 28,000.00 per share

- 2023-12: KRW 27,050.00 per share

- 2024-01: KRW 29,050.00 per share

- 2024-02: KRW 30,200.00 per share

- 2024-03: KRW 27,150.00 per share

- 2024-04: KRW 27,700.00 per share

- 2024-05: KRW 26,150.00 per share

- 2024-06: KRW 25,200.00 per share

- 2024-07: KRW 24,700.00 per share

- 2024-08: KRW 24,750.00 per share

- 2024-09: KRW 24,650.00 per share

- 2024-10: KRW 23,950.00 per share

- 2024-11: KRW 20,900.00 per share

- 2024-12: KRW 21,800.00 per share

- 2025-01: KRW 20,850.00 per share

- 2025-02: KRW 21,850.00 per share

- 2025-03: KRW 21,400.00 per share

- 2025-04: KRW 22,600.00 per share

- 2025-05: KRW 29,800.00 per share

- 2025-06: KRW 27,800.00 per share

- 2025-07: KRW 28,150.00 per share

- 2025-08: KRW 29,200.00 per share

- 2025-09: KRW 28,950.00 per share

- 2025-10: KRW 29,250.00 per share

- 2025-11: KRW 27,450.00 per share

- 2025-12: KRW 26,450.00 per share

- 2026-01: KRW 31,400.00 per share

- 2026-02: KRW 35,750.00 per share

- 2026-03: KRW 27,300.00 per share

- 2026-04: KRW 30,550.00 per share

- 2026-05: KRW 25,450.00 per share

- 2026-06: KRW 22,950.00 per share

- 2026-07: KRW 22,600.00 per share

- 2026-08: KRW 23,900.00 per share

- 2026-09: KRW 24,050.00 per share

- 2026-10: KRW 22,650.00 per share

## Annual estimated value (KRW per share)

- FY2016: low KRW 36,807.71 per share, central KRW 40,116.64 per share, high KRW 44,521.51 per share

- FY2017: low KRW 45,766.32 per share, central KRW 47,103.84 per share, high KRW 48,884.36 per share

- FY2018: low KRW 47,033.88 per share, central KRW 51,361.46 per share, high KRW 57,122.39 per share

- FY2019: low KRW 56,453.41 per share, central KRW 61,672.17 per share, high KRW 68,619.46 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:48:52.426Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations