# Lotte Chemical (011170.KO)

Canonical: https://gigainvestors.com/s/011170.KO

Analysis as of: 2026-10-16T07:41:34.809Z. Financial observations: FY2004–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 54,300.00 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 5 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: 5

- Years with a net loss: 4

- Operating margin variation: 2.35×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.18×

- FY2018: 0.12×

- FY2019: 0.07×

- FY2020: 0.03×

- FY2021: 0.08×

- FY2022: -0.03×

- FY2023: -0.02×

- FY2024: -0.05×

- FY2025: -0.05×

- LTM to Jun 2026: -0.02×

### moat: fail

- ROIC median below threshold

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

- Recent gross margin fell 9.6pp below the typical margin (limit 4pp)

- ROIC, median of available years: 4.2%

- ROIC, second-lowest year: -3.6%

- Typical minus recent gross margin: 9.6 pp

- Typical gross margin (annual median): 11.0%

- Recent gross margin (lower of latest and 3-year median): 1.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 11.2%

- ROIC including acquisitions, ten-year median: 0.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 18.5%

- FY2017: 21.5%

- FY2018: 11.9%

- FY2019: 6.2%

- FY2020: 2.1%

- FY2021: 8.9%

- FY2022: -3.6%

- FY2023: -1.4%

- FY2024: -3.6%

- FY2025: -4.1%

### 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 -6.36T

- Net income, five-year total: KRW -2.39T

- Return on incremental invested capital: -17.3%

- Working capital / revenue, annual change: 0.4 pp

- Working capital / revenue, change between three-year averages: 3.7 pp

- Working capital / revenue, final three-year average: 18.3%

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

- FY2021: KRW 1.38T

- FY2022: KRW 30B

- FY2023: KRW -2.56T

- FY2024: KRW -2.73T

- FY2025: KRW -2.48T

### management: fail

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

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 18.5% vs -3.6%

- Per-share earnings: 54488.09 to -40565.00 (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: 4.2%

- Market cap gain: KRW -8.96T

- Cumulative retained earnings: KRW 557B

- Diluted shares, 5-year annual growth: 4.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: KRW -95K

- Per-share value, starting three-year median: KRW 54K

- Per-share value, ending three-year median: KRW -41K

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 0.8%

- Buyback history: 2 years

- Debt-funded buybacks: Yes

- Acquisition spending: KRW 4.34T

- Cumulative net income, 10 years: KRW 4.14T

- ROIC, first three-year median: 18.5%

- ROIC, last three-year median: -3.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: KRW 54K

- FY2017: KRW 65K

- FY2018: KRW 46K

- FY2019: KRW 21K

- FY2020: KRW 5K

- FY2021: KRW 39K

- FY2022: KRW 2K

- FY2023: KRW -1K

- FY2024: KRW -41K

- FY2025: KRW -48K

### accounting: pass

- Sloan accruals: -8.1%

- Receivables to sales index (DSRI): 0.92×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.21×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.5%

- FY2017: -4.5%

- FY2018: 1.0%

- FY2019: -2.8%

- FY2020: -5.9%

- FY2021: -0.6%

- FY2022: 0.9%

- FY2023: -2.5%

- FY2024: -9.4%

- FY2025: -8.1%

## Holders

## Price story

Down 75% since Oct 2021 · sales +9.1%

Story as of 2026-10-16T10:00:11.995Z; price observation 2026-10-15.

### Sales · FY2025–2026

sales +9.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: KRW 15.87T 

- FY2018: KRW 16.55T 

- FY2019: KRW 15.12T 

- FY2020: KRW 12.22T 

- FY2021: KRW 18.12T 

- FY2022: KRW 22.28T 

- FY2023: KRW 19.95T 

- FY2024: KRW 19.89T 

- FY2025: KRW 18.48T 

- FY2026: KRW 20.17T 

### Gross margin · FY2025

gross margin 1.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 24.7% 

- FY2017: 23.9% 

- FY2018: 16.6% 

- FY2019: 12.7% 

- FY2020: 9.4% 

- FY2021: 13.6% 

- FY2022: 1.3% 

- FY2023: 3.9% 

- FY2024: 1.5% 

- FY2025: 1.4% 

## Owner memo

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

### How it makes money

Operates in chemicals; annual sales are KRW 18.5 trillion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:34.809Z); FY2025: revenue 18483005314920; grossProfit 262018909850; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 011170.KO: Lotte Chemical Corporation, a chemical company, manufactures and distributes petrochemical products in South Korea and internationally. The company offers basic chemicals, including high-density polyethylene, linear low-density polyethylene, low-density polyethylene, and ethylene-vinyl acetate; polypropylene injection, blow, yarn/fiber, film, and transparent-impact resistance polypropylene; and cool, bio, and clear polyethylene terephthalate. It also provides monomer products for construction, textile, and industrial products; and basic petrochemicals. In addition, the company offers advanced materials comprising general acrylonitrile butadiene styrene (ABS), extrusion ABS, flame retardant ABS, heat resistance ABS, and metal plating/painting ABS; transparent MABS, scratch resistant MABS, general ABS/GF, and flame retardant ABS/GF; weatherability ASA, ASA/PMMA, high weatherable ABS, luminous, medical, antimicrobial, and eco-friendly ABS and ABS/PET; engineering plastics; and performance materials. Further, it provides construction and interior materials and mobility materials; chlorine relatives, ammonia relatives, and other products; green materials for industrial use, as well as food and pharmaceutical materials. Additionally, the company engages in battery materials and hydrogen energy businesses; and offers recycled plastic and bio-plastic. The company sells its products under the starex, INFINO, Radianz, Locelain, Popelen, Supran, Adpoly, Lottmer, EUROX, MECELLOSE, AnyCoat, AnyAddy, and ECOSEED brand names. The company was formerly known as Honam Petrochemical Corporation and changed its name to Lotte Chemical Corporation in December 2012. Lotte Chemical Corporation was founded in 1976 and is headquartered in Seoul, South Korea.

### Why customers stay

Margins ranged from 1.4% to 3.9% during 2023–25; it earns 4.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:34.809Z); FY2023: grossProfit / revenue = 3.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:34.809Z); FY2024: grossProfit / revenue = 1.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:34.809Z); FY2025: grossProfit / revenue = 1.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:34.809Z); 10-year return on capital observations [[2016,0.18504400249322933],[2017,0.21505748978420675],[2018,0.11875107436029221],[2019,0.06162027346717812],[2020,0.02147265600967102],[2021,0.08909653599071506],[2022,-0.036072753570993876],[2023,-0.013993923755902724],[2024,-0.03586222615914908],[2025,-0.04062563737019846]]; median 0.04154646473842457. 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 2026-10-16T07:41:34.809Z); FY2016: growth capex 0; upkeep 1595029290780; owner earnings 1105610138220. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:34.809Z); FY2017: growth capex 0; upkeep 2019897194140; owner earnings 1109114203960. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:34.809Z); FY2019: growth capex 0; upkeep 892236381090; owner earnings 528471311882. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:34.809Z); FY2020: growth capex 0; upkeep 802335686410; owner earnings 162201848668. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:34.809Z); FY2021: growth capex 0; upkeep 773329760390; owner earnings 1381489491672. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:34.809Z); FY2022: growth capex 1644685578790; upkeep 947917459510; owner earnings 30233435710. Growth capex / owner earnings = 54.39955930136.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:41:34.809Z); Dividend observations: [[2016,84241662270],[2017,134782880000],[2018,411494632610],[2019,396654943600],[2020,240368852400],[2021,159300837040],[2022,350164443440],[2023,189718028960],[2024,225406283260],[2025,83196520500]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 56.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 011170.KO SharesStats.PercentInsiders = 56.165 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 2026-10-16T07:41:34.809Z); Closing price 54300 KRW; reporting-to-trading FX 1; FY2025 annual sales per share 438327.5645379229; price multiple 0.12387995734934464. FY2025 cash earnings/share -58860.08558822876. Closing-price date 2026-10-15.

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

- 2016-11: KRW 308,348.50 per share

- 2016-12: KRW 353,905.44 per share

- 2017-01: KRW 361,098.63 per share

- 2017-02: KRW 349,589.53 per share

- 2017-03: KRW 355,344.06 per share

- 2017-04: KRW 328,009.91 per share

- 2017-05: KRW 345,753.16 per share

- 2017-06: KRW 329,928.09 per share

- 2017-07: KRW 353,905.44 per share

- 2017-08: KRW 383,157.78 per share

- 2017-09: KRW 362,537.28 per share

- 2017-10: KRW 354,384.97 per share

- 2017-11: KRW 343,355.41 per share

- 2017-12: KRW 352,946.34 per share

- 2018-01: KRW 402,819.19 per share

- 2018-02: KRW 440,223.84 per share

- 2018-03: KRW 415,287.41 per share

- 2018-04: KRW 397,064.63 per share

- 2018-05: KRW 353,425.91 per share

- 2018-06: KRW 333,764.47 per share

- 2018-07: KRW 344,794.06 per share

- 2018-08: KRW 303,073.50 per share

- 2018-09: KRW 266,627.94 per share

- 2018-10: KRW 251,762.00 per share

- 2018-11: KRW 261,352.94 per share

- 2018-12: KRW 265,668.84 per share

- 2019-01: KRW 287,728.00 per share

- 2019-02: KRW 305,950.78 per share

- 2019-03: KRW 278,616.63 per share

- 2019-04: KRW 257,516.56 per share

- 2019-05: KRW 247,446.08 per share

- 2019-06: KRW 242,171.06 per share

- 2019-07: KRW 223,468.75 per share

- 2019-08: KRW 215,796.00 per share

- 2019-09: KRW 226,346.03 per share

- 2019-10: KRW 217,714.19 per share

- 2019-11: KRW 211,000.53 per share

- 2019-12: KRW 214,836.91 per share

- 2020-01: KRW 181,748.19 per share

- 2020-02: KRW 179,830.00 per share

- 2020-03: KRW 185,105.02 per share

- 2020-04: KRW 206,684.61 per share

- 2020-05: KRW 180,309.55 per share

- 2020-06: KRW 160,168.58 per share

- 2020-07: KRW 161,607.22 per share

- 2020-08: KRW 181,748.19 per share

- 2020-09: KRW 188,461.84 per share

- 2020-10: KRW 223,468.75 per share

- 2020-11: KRW 270,464.31 per share

- 2020-12: KRW 264,709.75 per share

- 2021-01: KRW 250,323.36 per share

- 2021-02: KRW 304,991.69 per share

- 2021-03: KRW 288,687.09 per share

- 2021-04: KRW 291,564.38 per share

- 2021-05: KRW 267,587.03 per share

- 2021-06: KRW 251,762.00 per share

- 2021-07: KRW 248,884.72 per share

- 2021-08: KRW 239,773.33 per share

- 2021-09: KRW 231,621.03 per share

- 2021-10: KRW 215,316.45 per share

- 2021-11: KRW 193,257.31 per share

- 2021-12: KRW 208,123.25 per share

- 2022-01: KRW 187,023.20 per share

- 2022-02: KRW 209,561.89 per share

- 2022-03: KRW 200,930.05 per share

- 2022-04: KRW 188,461.84 per share

- 2022-05: KRW 196,134.58 per share

- 2022-06: KRW 172,636.80 per share

- 2022-07: KRW 169,279.97 per share

- 2022-08: KRW 167,841.33 per share

- 2022-09: KRW 138,109.44 per share

- 2022-10: KRW 141,945.81 per share

- 2022-11: KRW 175,993.63 per share

- 2022-12: KRW 178,500.00 per share

- 2023-01: KRW 176,800.00 per share

- 2023-02: KRW 178,200.00 per share

- 2023-03: KRW 190,800.00 per share

- 2023-04: KRW 168,100.00 per share

- 2023-05: KRW 166,900.00 per share

- 2023-06: KRW 154,600.00 per share

- 2023-07: KRW 150,600.00 per share

- 2023-08: KRW 136,600.00 per share

- 2023-09: KRW 137,100.00 per share

- 2023-10: KRW 146,400.00 per share

- 2023-11: KRW 154,200.00 per share

- 2023-12: KRW 153,200.00 per share

- 2024-01: KRW 130,700.00 per share

- 2024-02: KRW 122,400.00 per share

- 2024-03: KRW 119,300.00 per share

- 2024-04: KRW 107,500.00 per share

- 2024-05: KRW 113,100.00 per share

- 2024-06: KRW 114,700.00 per share

- 2024-07: KRW 101,400.00 per share

- 2024-08: KRW 82,700.00 per share

- 2024-09: KRW 101,500.00 per share

- 2024-10: KRW 95,400.00 per share

- 2024-11: KRW 64,500.00 per share

- 2024-12: KRW 59,800.00 per share

- 2025-01: KRW 56,800.00 per share

- 2025-02: KRW 62,400.00 per share

- 2025-03: KRW 65,400.00 per share

- 2025-04: KRW 60,300.00 per share

- 2025-05: KRW 59,700.00 per share

- 2025-06: KRW 58,800.00 per share

- 2025-07: KRW 66,500.00 per share

- 2025-08: KRW 63,500.00 per share

- 2025-09: KRW 67,700.00 per share

- 2025-10: KRW 70,700.00 per share

- 2025-11: KRW 72,200.00 per share

- 2025-12: KRW 70,300.00 per share

- 2026-01: KRW 83,400.00 per share

- 2026-02: KRW 95,900.00 per share

- 2026-03: KRW 80,600.00 per share

- 2026-04: KRW 113,900.00 per share

- 2026-05: KRW 80,700.00 per share

- 2026-06: KRW 64,000.00 per share

- 2026-07: KRW 56,500.00 per share

- 2026-08: KRW 59,100.00 per share

- 2026-09: KRW 60,000.00 per share

- 2026-10: KRW 57,900.00 per share

## Annual estimated value (KRW per share)

- FY2016: low KRW 171,707.88 per share, central KRW 185,541.11 per share, high KRW 203,956.07 per share

- FY2017: low KRW 486,756.90 per share, central KRW 535,521.85 per share, high KRW 600,438.34 per share

- FY2018: low KRW 496,289.73 per share, central KRW 547,115.73 per share, high KRW 614,775.93 per share

- FY2019: low KRW 439,205.43 per share, central KRW 485,664.50 per share, high KRW 547,511.38 per share

- FY2020: low KRW 238,229.84 per share, central KRW 257,009.65 per share, high KRW 282,009.57 per share

- FY2021: low KRW 322,256.22 per share, central KRW 350,097.02 per share, high KRW 387,159.03 per share

- FY2022: low KRW 174,915.57 per share, central KRW 187,949.04 per share, high KRW 205,299.36 per share

- FY2023: low KRW 134,262.25 per share, central KRW 143,819.69 per share, high KRW 156,542.67 per share

- FY2024: low KRW 59,578.67 per share, central KRW 60,543.70 per share, high KRW 61,828.36 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 2026-10-15T06:47:11.148Z 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