# LG Electronics (066570.KO)

Canonical: https://gigainvestors.com/s/066570.KO

Analysis as of: 2026-10-16T07:34:38.311Z. Financial observations: FY2002–FY2025.

Listing currency: KRW. Reporting currency: KRW.

## Verdict

Not a wonderful business

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

Share price: KRW 168,600.00 per share; close as of 2026-10-15.

Estimated value: low KRW 88,798.25 per share, central KRW 104,011.82 per share, high KRW 115,532.29 per share. Buy at or below the central value KRW 104,011.82 per share. Valuation as of 2026-10-16T07:34:38.311Z; scenarios are not confidence intervals.

Expected annual return: 6.6% at the stated quote. About 6.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; KR 10-year bond 4.2% + 4 points).

## Checklist

### understandable: pass

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

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.21×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.02×

- FY2017: 0.04×

- FY2018: 0.04×

- FY2019: 0.04×

- FY2020: 0.05×

- FY2021: 0.05×

- FY2022: 0.04×

- FY2023: 0.04×

- FY2024: 0.04×

- FY2025: 0.03×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 9.4%

- ROIC, second-lowest year: 5.8%

- Typical minus recent gross margin: 1.1 pp

- Typical gross margin (annual median): 24.5%

- Recent gross margin (lower of latest and 3-year median): 23.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.3%

- ROIC including acquisitions, ten-year median: 0.9%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 5.0%

- FY2017: 9.5%

- FY2018: 9.9%

- FY2019: 7.9%

- FY2020: 12.3%

- FY2021: 12.9%

- FY2022: 11.5%

- FY2023: 9.4%

- FY2024: 7.9%

- FY2025: 5.8%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.54×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: KRW 2.32T

- Net income, five-year total: KRW 4.27T

- Return on incremental invested capital: 9.7%

- Working capital / revenue, annual change: 0.3 pp

- Working capital / revenue, change between three-year averages: 1.7 pp

- Working capital / revenue, final three-year average: 12.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 0.82×

- FY2023: -0.77×

- FY2024: 0.31×

- FY2025: 0.77×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 9.5% vs 7.9%

- Per-share earnings: 6887.14 to 3954.00 (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: 2.0%

- Market cap gain: KRW -2.58T

- Cumulative retained earnings: KRW 6.46T

- Diluted shares, 5-year annual growth: 2.0%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -8.8%

- Per-share value change: KRW -3K

- Per-share value, starting three-year median: KRW 7K

- Per-share value, ending three-year median: KRW 4K

- Average buyback yield: 0.1%

- Buyback history: 1 years

- Debt-funded buybacks: No

- Acquisition spending: KRW 4.30T

- Cumulative net income, 10 years: KRW 9.31T

- ROIC, first three-year median: 9.5%

- ROIC, last three-year median: 7.9%

Chart: Earnings per share; fiscal year observations.

- FY2017: KRW 10K

- FY2018: KRW 7K

- FY2019: KRW 173.74

- FY2020: KRW 12K

- FY2021: KRW 6K

- FY2022: KRW 7K

- FY2023: KRW 4K

- FY2024: KRW 2K

- FY2025: KRW 5K

### accounting: pass

- Sloan accruals: -4.8%

- Receivables to sales index (DSRI): 1.04×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 4.46×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.18×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -8.1%

- FY2017: -1.1%

- FY2018: -7.4%

- FY2019: -8.2%

- FY2020: -5.5%

- FY2021: -3.1%

- FY2022: -3.5%

- FY2023: -6.9%

- FY2024: -5.3%

- FY2025: -4.8%

## Holders

## Price story

Down 42% since May 2026 · sales +1.7%

Story as of 2026-10-16T10:00:01.676Z; price observation 2026-10-15.

Price needs cash profits to grow 12.3% a year for ten years

### Sales · FY2024–2025

sales +1.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: KRW 55.37T 

- FY2017: KRW 61.40T 

- FY2018: KRW 61.34T 

- FY2019: KRW 62.31T 

- FY2020: KRW 63.26T 

- FY2021: KRW 74.72T 

- FY2022: KRW 83.47T 

- FY2023: KRW 82.26T 

- FY2024: KRW 87.73T 

- FY2025: KRW 89.20T 

### Gross margin · FY2025

gross margin 23.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 24.8% 

- FY2017: 23.9% 

- FY2018: 24.6% 

- FY2019: 24.6% 

- FY2020: 25.8% 

- FY2021: 25.3% 

- FY2022: 24.2% 

- FY2023: 24.1% 

- FY2024: 24.4% 

- FY2025: 23.4% 

## Owner memo

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

### How it makes money

Operates in consumer electronics; annual sales are KRW 89.2 trillion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:38.311Z); FY2025: revenue 89200882000000; grossProfit 20841658000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 066570.KO: LG Electronics Inc., together with its subsidiaries, manufactures and sells consumer and commercial products in South Korea and internationally. It operates through the Home Appliance & Air Solution, Home Entertainment, Vehicle Component Solutions, Business Solutions, LG Innotek Co., Ltd. (Innotek), and Other segments. The Home Appliance & Air Solution segment provides refrigerators, washing machines, vacuum cleaners, and residential and commercial air conditioners. Its Home Entertainment segment offers televisions and digital media products. The Vehicle Component Solutions segment designs and manufactures automobile parts. Its Business Solutions segment provides monitors, PCs, information displays, and other products. The Innotek segment offers optics solutions, substrate materials, and automotive components, as well as camera modules and motors/sensors. Its Other segment engages in equipment production and other activities. The company was formerly known as GoldStar and changed its name to LG Electronics Inc. in 1995. LG Electronics Inc. was founded in 1958 and is headquartered in Seoul, South Korea.

### Why customers stay

Margins ranged from 23.4% to 24.4% during 2023–25; it earns 9.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:38.311Z); FY2023: grossProfit / revenue = 24.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:38.311Z); FY2024: grossProfit / revenue = 24.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:38.311Z); FY2025: grossProfit / revenue = 23.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:38.311Z); 10-year return on capital observations [[2016,0.050103676574262776],[2017,0.09458394507626659],[2018,0.09863344064770102],[2019,0.07870339504210819],[2020,0.12252488329783519],[2021,0.12906762583651019],[2022,0.11526295866357152],[2023,0.09382834640971331],[2024,0.07896408246082158],[2025,0.0579514178496295]]; median 0.09420614574298995. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 24% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:38.311Z); Gross margin observations: [[2021,0.2525758237952762],[2022,0.24244495312524597],[2023,0.24070772859969622]]; range within 2 percentage points.

### Where the cash goes

Spends 38.7% of cash earnings on expansion; earns 9.7% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:38.311Z); FY2018: growth capex 0; upkeep 3166489000000; owner earnings 73762000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:38.311Z); FY2019: growth capex 0; upkeep 2072127000000; owner earnings 311241200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:38.311Z); FY2020: growth capex 0; upkeep 2281865000000; owner earnings 2156954000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:38.311Z); FY2021: growth capex 0; upkeep 2648065000000; owner earnings 1031459600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:38.311Z); FY2022: growth capex 767668000000; upkeep 2985120000000; owner earnings 977195000000. Growth capex / owner earnings = 0.7855832254565364.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:38.311Z); FY2024: growth capex 134161000000; upkeep 3533864000000; owner earnings 115543000000. Growth capex / owner earnings = 1.161134815609773.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:38.311Z); FY2025: growth capex 286553418977.96533; upkeep 3620826581022.0347; owner earnings 739974994944.1593. Growth capex / owner earnings = 0.387247435299607.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:38.311Z); Incremental return on capital 0.09689524638224721, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:38.311Z); Dividend observations: [[2016,117414000000],[2017,116754000000],[2018,122567000000],[2019,230915000000],[2020,235182000000],[2021,291232000000],[2022,239947000000],[2023,233824000000],[2024,316709000000],[2025,266335000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:38.311Z); FY2025: cash repurchases 22699128450 KRW.

### Are managers owners

Insiders own 35.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 066570.KO SharesStats.PercentInsiders = 35.299 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 12.3% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:38.311Z); Ten-year compound average after fade. Initial solved rate 0.1648356696943728. Price 168600; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

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

- 2016-10: KRW 47,800.00 per share

- 2016-11: KRW 44,900.00 per share

- 2016-12: KRW 51,600.00 per share

- 2017-01: KRW 55,400.00 per share

- 2017-02: KRW 59,800.00 per share

- 2017-03: KRW 67,900.00 per share

- 2017-04: KRW 69,100.00 per share

- 2017-05: KRW 82,500.00 per share

- 2017-06: KRW 80,200.00 per share

- 2017-07: KRW 67,100.00 per share

- 2017-08: KRW 81,500.00 per share

- 2017-09: KRW 82,400.00 per share

- 2017-10: KRW 91,000.00 per share

- 2017-11: KRW 90,000.00 per share

- 2017-12: KRW 106,000.00 per share

- 2018-01: KRW 102,500.00 per share

- 2018-02: KRW 99,900.00 per share

- 2018-03: KRW 109,500.00 per share

- 2018-04: KRW 102,000.00 per share

- 2018-05: KRW 92,600.00 per share

- 2018-06: KRW 83,000.00 per share

- 2018-07: KRW 74,800.00 per share

- 2018-08: KRW 76,800.00 per share

- 2018-09: KRW 71,000.00 per share

- 2018-10: KRW 63,300.00 per share

- 2018-11: KRW 72,500.00 per share

- 2018-12: KRW 62,300.00 per share

- 2019-01: KRW 66,600.00 per share

- 2019-02: KRW 70,500.00 per share

- 2019-03: KRW 75,100.00 per share

- 2019-04: KRW 75,800.00 per share

- 2019-05: KRW 78,600.00 per share

- 2019-06: KRW 79,300.00 per share

- 2019-07: KRW 65,300.00 per share

- 2019-08: KRW 61,300.00 per share

- 2019-09: KRW 67,400.00 per share

- 2019-10: KRW 66,900.00 per share

- 2019-11: KRW 69,900.00 per share

- 2019-12: KRW 72,100.00 per share

- 2020-01: KRW 65,900.00 per share

- 2020-02: KRW 60,400.00 per share

- 2020-03: KRW 48,200.00 per share

- 2020-04: KRW 54,900.00 per share

- 2020-05: KRW 59,300.00 per share

- 2020-06: KRW 63,200.00 per share

- 2020-07: KRW 70,700.00 per share

- 2020-08: KRW 84,200.00 per share

- 2020-09: KRW 91,700.00 per share

- 2020-10: KRW 84,000.00 per share

- 2020-11: KRW 85,500.00 per share

- 2020-12: KRW 135,000.00 per share

- 2021-01: KRW 153,000.00 per share

- 2021-02: KRW 146,500.00 per share

- 2021-03: KRW 150,000.00 per share

- 2021-04: KRW 157,500.00 per share

- 2021-05: KRW 152,000.00 per share

- 2021-06: KRW 163,500.00 per share

- 2021-07: KRW 157,500.00 per share

- 2021-08: KRW 142,000.00 per share

- 2021-09: KRW 127,500.00 per share

- 2021-10: KRW 120,500.00 per share

- 2021-11: KRW 115,500.00 per share

- 2021-12: KRW 138,000.00 per share

- 2022-01: KRW 127,500.00 per share

- 2022-02: KRW 123,500.00 per share

- 2022-03: KRW 120,500.00 per share

- 2022-04: KRW 116,500.00 per share

- 2022-05: KRW 105,000.00 per share

- 2022-06: KRW 88,300.00 per share

- 2022-07: KRW 94,400.00 per share

- 2022-08: KRW 101,000.00 per share

- 2022-09: KRW 78,600.00 per share

- 2022-10: KRW 81,600.00 per share

- 2022-11: KRW 97,600.00 per share

- 2022-12: KRW 86,500.00 per share

- 2023-01: KRW 100,100.00 per share

- 2023-02: KRW 111,200.00 per share

- 2023-03: KRW 115,300.00 per share

- 2023-04: KRW 109,300.00 per share

- 2023-05: KRW 122,800.00 per share

- 2023-06: KRW 126,700.00 per share

- 2023-07: KRW 108,400.00 per share

- 2023-08: KRW 98,500.00 per share

- 2023-09: KRW 100,900.00 per share

- 2023-10: KRW 99,700.00 per share

- 2023-11: KRW 102,700.00 per share

- 2023-12: KRW 101,800.00 per share

- 2024-01: KRW 93,500.00 per share

- 2024-02: KRW 94,900.00 per share

- 2024-03: KRW 95,100.00 per share

- 2024-04: KRW 92,900.00 per share

- 2024-05: KRW 104,800.00 per share

- 2024-06: KRW 110,900.00 per share

- 2024-07: KRW 104,000.00 per share

- 2024-08: KRW 99,400.00 per share

- 2024-09: KRW 104,300.00 per share

- 2024-10: KRW 89,500.00 per share

- 2024-11: KRW 89,700.00 per share

- 2024-12: KRW 83,500.00 per share

- 2025-01: KRW 84,200.00 per share

- 2025-02: KRW 78,900.00 per share

- 2025-03: KRW 77,200.00 per share

- 2025-04: KRW 71,400.00 per share

- 2025-05: KRW 71,100.00 per share

- 2025-06: KRW 73,800.00 per share

- 2025-07: KRW 77,400.00 per share

- 2025-08: KRW 73,900.00 per share

- 2025-09: KRW 75,600.00 per share

- 2025-10: KRW 87,600.00 per share

- 2025-11: KRW 85,600.00 per share

- 2025-12: KRW 91,900.00 per share

- 2026-01: KRW 99,100.00 per share

- 2026-02: KRW 145,700.00 per share

- 2026-03: KRW 105,600.00 per share

- 2026-04: KRW 140,900.00 per share

- 2026-05: KRW 293,000.00 per share

- 2026-06: KRW 203,000.00 per share

- 2026-07: KRW 162,100.00 per share

- 2026-08: KRW 216,500.00 per share

- 2026-09: KRW 212,500.00 per share

- 2026-10: KRW 178,000.00 per share

## Annual estimated value (KRW per share)

- FY2019: low KRW 24,602.86 per share, central KRW 25,229.91 per share, high KRW 26,064.64 per share

- FY2020: low KRW 34,104.73 per share, central KRW 34,808.56 per share, high KRW 35,745.50 per share

- FY2021: low KRW 48,791.40 per share, central KRW 51,915.36 per share, high KRW 56,074.02 per share

- FY2022: low KRW 81,885.44 per share, central KRW 90,058.48 per share, high KRW 100,938.51 per share

- FY2023: low KRW 104,847.35 per share, central KRW 135,966.65 per share, high KRW 154,087.47 per share

- FY2024: low KRW 98,991.85 per share, central KRW 122,382.92 per share, high KRW 138,638.98 per share

- FY2025: low KRW 80,903.74 per share, central KRW 95,386.43 per share, high KRW 106,353.43 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 2026-10-15T06:40:21.032Z 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.