# Cosmo Chem (005420.KO)

Canonical: https://gigainvestors.com/s/005420.KO

Analysis as of: 2026-10-16T07:49:14.446Z. Financial observations: FY2013–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 10,520.00 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 4 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: 4

- Years with a net loss: 7

- Operating margin variation: 1.79×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.05×

- FY2018: 0.01×

- FY2019: -0.01×

- FY2020: 0.01×

- FY2021: 0.06×

- FY2022: 0.06×

- FY2023: 0.00×

- FY2024: -0.00×

- FY2025: -0.02×

- LTM to Jun 2026: 0.00×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 0.9%

- ROIC, second-lowest year: -2.2%

- Typical minus recent gross margin: 1.9 pp

- Typical gross margin (annual median): 5.9%

- Recent gross margin (lower of latest and 3-year median): 4.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 7.1%

- ROIC including acquisitions, ten-year median: -10.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -3.7%

- FY2017: 7.5%

- FY2018: 1.9%

- FY2019: -1.5%

- FY2020: 1.2%

- FY2021: 6.8%

- FY2022: 8.7%

- FY2023: 0.5%

- FY2024: -0.2%

- FY2025: -2.2%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: KRW -388B

- Net income, five-year total: KRW -100B

- Return on incremental invested capital: 5.0%

- Working capital / revenue, annual change: 2.2 pp

- Working capital / revenue, change between three-year averages: 16.8 pp

- Working capital / revenue, final three-year average: 29.6%

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

- FY2021: KRW 10B

- FY2022: KRW 11B

- FY2023: KRW -117B

- FY2024: KRW -234B

- FY2025: KRW -58B

### 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: 1.9% vs -0.2%

- Per-share earnings: -918.78 to -791.00 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 8.0%

- Market cap gain: KRW 506B

- Cumulative retained earnings: KRW 95B

- Diluted shares, 5-year annual growth: 8.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: KRW 127.78

- Per-share value, starting three-year median: KRW -918.78

- Per-share value, ending three-year median: KRW -791.00

- Buybacks concentrated in cheaper years (correlation): -0.50

- Average buyback yield: 0.1%

- Buyback history: 3 years

- Debt-funded buybacks: Yes

- Acquisition spending: KRW 5.7B

- Cumulative net income, 10 years: KRW -206B

- ROIC, first three-year median: 1.9%

- ROIC, last three-year median: -0.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: KRW -5K

- FY2017: KRW 633.63

- FY2018: KRW -918.78

- FY2019: KRW -555.87

- FY2020: KRW -915.09

- FY2021: KRW 391.14

- FY2022: KRW 327.60

- FY2023: KRW -754.00

- FY2024: KRW -2K

- FY2025: KRW -791.00

### accounting: pass

- Sloan accruals: -13.0%

- Receivables to sales index (DSRI): 0.63×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.01×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -11.8%

- FY2017: 12.4%

- FY2018: -3.4%

- FY2019: -4.3%

- FY2020: -4.2%

- FY2021: -2.9%

- FY2022: 1.6%

- FY2023: 1.7%

- FY2024: -3.1%

- FY2025: -13.0%

## Holders

## Price story

Down 82% since Apr 2023 · sales +7.7%

Story as of 2026-10-16T10:00:13.794Z; price observation 2026-10-15.

### Sales · FY2025–2026

sales +7.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: KRW 432B 

- FY2018: KRW 678B 

- FY2019: KRW 407B 

- FY2020: KRW 356B 

- FY2021: KRW 513B 

- FY2022: KRW 718B 

- FY2023: KRW 799B 

- FY2024: KRW 749B 

- FY2025: KRW 664B 

- FY2026: KRW 715B 

### Gross margin · FY2025

gross margin 4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 5.1% 

- FY2017: 11.3% 

- FY2018: 5.3% 

- FY2019: 5.9% 

- FY2020: 9.8% 

- FY2021: 12.5% 

- FY2022: 11.2% 

- FY2023: 5.8% 

- FY2024: 5.5% 

- FY2025: 4.0% 

## Owner memo

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

### How it makes money

Operates in specialty chemicals; annual sales are KRW 664.2 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:49:14.446Z); FY2025: revenue 664155164370; grossProfit 26582803250; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 005420.KO: Cosmo Chemical Co., Ltd., a chemical materials company, manufactures and sells titanium dioxide (TiO2) anatase in South Korea. The company offers COTIOX KA-100, a general purpose TiO2 anatase product for use in various applications, including rubbers, paints, papers, resins, etc.; and COTIOX KA-300, a TiO2 anatase product used in textiles comprising polyester filament, stable, and acryl fibers, as well as for use in plastics, inks, etc. It also provides ferrous sulfate heptahydrate for use in waste treatment agents, other raw materials, and catalysts; poly ferric sulfate solution, which is used as a waste treatment agent for dyeing, leather, paper, foods, and other wastes; cobalt sulfate liquid and cobalt sulfate solid phase for use in lithium secondary batteries, paint drying materials, cobalt pigments, tire bonds, and others; and gypsum used in construction materials. In addition, the company offers textiles, food, and electronic products. The company was founded in 1968 and is headquartered in Seoul, South Korea.

### Why customers stay

Margins ranged from 4% to 5.8% during 2023–25; it earns 0.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:49:14.446Z); FY2023: grossProfit / revenue = 5.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:49:14.446Z); FY2024: grossProfit / revenue = 5.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:49:14.446Z); FY2025: grossProfit / revenue = 4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:49:14.446Z); 10-year return on capital observations [[2016,-0.03727638857997394],[2017,0.07472882240500585],[2018,0.01932251101618569],[2019,-0.014713511200727702],[2020,0.01203067087235752],[2021,0.06757767463681733],[2022,0.08744803374055113],[2023,0.005107802689779973],[2024,-0.00249341117673534],[2025,-0.02226147986296552]]; median 0.008569236781068747. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid no dividends in 7 years; bought back KRW 15.7 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:49:14.446Z); FY2021: growth capex 22419600170; upkeep 23991071320; owner earnings 10473530460. Growth capex / owner earnings = 2.1405962636595035.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:49:14.446Z); FY2022: growth capex 16599186390; upkeep 26014848810; owner earnings 11018606712.557238. Growth capex / owner earnings = 1.5064687235894276.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:49:14.446Z); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:49:14.446Z); FY2025: cash repurchases 15670077.5 KRW.

### Are managers owners

Insiders own 31.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 005420.KO SharesStats.PercentInsiders = 31.636999999999997 percentage points; cache date 2026-10-16.

### What the price says

The price is 0.6 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:49:14.446Z); Closing price 10520 KRW; reporting-to-trading FX 1; FY2025 annual sales per share 17312.84035459153; price multiple 0.6076414836927665. FY2025 cash earnings/share -1519.8107894742398. Closing-price date 2026-10-15.

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

- 2016-11: KRW 3,007.02 per share

- 2016-12: KRW 3,018.20 per share

- 2017-01: KRW 3,111.35 per share

- 2017-02: KRW 3,949.74 per share

- 2017-03: KRW 3,912.48 per share

- 2017-04: KRW 4,068.98 per share

- 2017-05: KRW 4,344.71 per share

- 2017-06: KRW 8,234.83 per share

- 2017-07: KRW 8,309.36 per share

- 2017-08: KRW 10,097.92 per share

- 2017-09: KRW 11,700.17 per share

- 2017-10: KRW 9,091.85 per share

- 2017-11: KRW 12,110.05 per share

- 2017-12: KRW 19,562.39 per share

- 2018-01: KRW 21,313.69 per share

- 2018-02: KRW 19,189.77 per share

- 2018-03: KRW 19,376.08 per share

- 2018-04: KRW 15,538.13 per share

- 2018-05: KRW 17,103.12 per share

- 2018-06: KRW 15,090.98 per share

- 2018-07: KRW 15,538.13 per share

- 2018-08: KRW 13,898.61 per share

- 2018-09: KRW 15,948.00 per share

- 2018-10: KRW 10,656.84 per share

- 2018-11: KRW 10,992.20 per share

- 2018-12: KRW 9,017.33 per share

- 2019-01: KRW 11,811.96 per share

- 2019-02: KRW 12,706.24 per share

- 2019-03: KRW 9,799.82 per share

- 2019-04: KRW 10,135.18 per share

- 2019-05: KRW 8,197.57 per share

- 2019-06: KRW 8,383.88 per share

- 2019-07: KRW 6,736.91 per share

- 2019-08: KRW 5,007.97 per share

- 2019-09: KRW 4,642.81 per share

- 2019-10: KRW 4,575.74 per share

- 2019-11: KRW 3,964.09 per share

- 2019-12: KRW 5,251.14 per share

- 2020-01: KRW 7,627.88 per share

- 2020-02: KRW 6,606.82 per share

- 2020-03: KRW 5,191.07 per share

- 2020-04: KRW 6,598.24 per share

- 2020-05: KRW 7,318.98 per share

- 2020-06: KRW 6,838.49 per share

- 2020-07: KRW 7,576.39 per share

- 2020-08: KRW 9,781.53 per share

- 2020-09: KRW 8,185.59 per share

- 2020-10: KRW 6,563.92 per share

- 2020-11: KRW 7,799.48 per share

- 2020-12: KRW 10,467.95 per share

- 2021-01: KRW 10,510.85 per share

- 2021-02: KRW 10,510.85 per share

- 2021-03: KRW 9,438.32 per share

- 2021-04: KRW 10,339.25 per share

- 2021-05: KRW 9,481.22 per share

- 2021-06: KRW 9,738.63 per share

- 2021-07: KRW 11,283.08 per share

- 2021-08: KRW 15,959.33 per share

- 2021-09: KRW 16,088.04 per share

- 2021-10: KRW 13,299.44 per share

- 2021-11: KRW 12,055.30 per share

- 2021-12: KRW 13,814.26 per share

- 2022-01: KRW 10,768.26 per share

- 2022-02: KRW 11,540.49 per share

- 2022-03: KRW 12,484.32 per share

- 2022-04: KRW 14,586.49 per share

- 2022-05: KRW 15,238.18 per share

- 2022-06: KRW 14,908.89 per share

- 2022-07: KRW 16,576.33 per share

- 2022-08: KRW 23,932.69 per share

- 2022-09: KRW 22,363.34 per share

- 2022-10: KRW 24,717.37 per share

- 2022-11: KRW 22,559.51 per share

- 2022-12: KRW 20,156.43 per share

- 2023-01: KRW 22,657.59 per share

- 2023-02: KRW 40,950.41 per share

- 2023-03: KRW 48,895.28 per share

- 2023-04: KRW 57,085.36 per share

- 2023-05: KRW 48,502.94 per share

- 2023-06: KRW 45,952.73 per share

- 2023-07: KRW 54,437.07 per share

- 2023-08: KRW 42,617.85 per share

- 2023-09: KRW 38,450.00 per share

- 2023-10: KRW 31,250.00 per share

- 2023-11: KRW 37,500.00 per share

- 2023-12: KRW 39,000.00 per share

- 2024-01: KRW 28,700.00 per share

- 2024-02: KRW 35,050.00 per share

- 2024-03: KRW 39,350.00 per share

- 2024-04: KRW 32,150.00 per share

- 2024-05: KRW 29,100.00 per share

- 2024-06: KRW 28,000.00 per share

- 2024-07: KRW 21,400.00 per share

- 2024-08: KRW 19,420.00 per share

- 2024-09: KRW 23,550.00 per share

- 2024-10: KRW 21,450.00 per share

- 2024-11: KRW 17,300.00 per share

- 2024-12: KRW 15,300.00 per share

- 2025-01: KRW 20,200.00 per share

- 2025-02: KRW 19,080.00 per share

- 2025-03: KRW 15,190.00 per share

- 2025-04: KRW 15,500.00 per share

- 2025-05: KRW 13,770.00 per share

- 2025-06: KRW 14,770.00 per share

- 2025-07: KRW 16,440.00 per share

- 2025-08: KRW 16,200.00 per share

- 2025-09: KRW 14,730.00 per share

- 2025-10: KRW 19,290.00 per share

- 2025-11: KRW 16,970.00 per share

- 2025-12: KRW 14,350.00 per share

- 2026-01: KRW 16,620.00 per share

- 2026-02: KRW 17,070.00 per share

- 2026-03: KRW 14,870.00 per share

- 2026-04: KRW 17,750.00 per share

- 2026-05: KRW 14,190.00 per share

- 2026-06: KRW 11,010.00 per share

- 2026-07: KRW 8,880.00 per share

- 2026-08: KRW 11,710.00 per share

- 2026-09: KRW 10,310.00 per share

- 2026-10: KRW 11,500.00 per share

## Annual estimated value (KRW 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 2026-10-15T06:54:43.811Z 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