# SK Innovation (096770.KO)

Canonical: https://gigainvestors.com/s/096770.KO

Analysis as of: 2026-10-16T07:34:46.506Z. Financial observations: FY2007–FY2025.

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 155,000.00 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: 1.57×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.08×

- FY2017: 0.07×

- FY2018: 0.04×

- FY2019: 0.03×

- FY2020: -0.08×

- FY2021: 0.04×

- FY2022: 0.05×

- FY2023: 0.02×

- FY2024: 0.00×

- FY2025: 0.01×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 3.8%

- ROIC, second-lowest year: 0.5%

- Typical minus recent gross margin: 1.5 pp

- Typical gross margin (annual median): 6.9%

- Recent gross margin (lower of latest and 3-year median): 5.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 6.9%

- ROIC including acquisitions, ten-year median: -3.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 12.8%

- FY2017: 11.2%

- FY2018: 7.0%

- FY2019: 3.3%

- FY2020: -8.4%

- FY2021: 4.2%

- FY2022: 7.3%

- FY2023: 3.2%

- FY2024: 0.5%

- FY2025: 0.8%

### 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 -17.33T

- Net income, five-year total: KRW -3.48T

- Return on incremental invested capital: -2.9%

- Working capital / revenue, annual change: -0.4 pp

- Working capital / revenue, change between three-year averages: -2.6 pp

- Working capital / revenue, final three-year average: 9.7%

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

- FY2021: KRW -23B

- FY2022: KRW 1.29T

- FY2023: KRW -4.26T

- FY2024: KRW -10.52T

- FY2025: KRW -3.81T

### 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: 11.2% vs 0.8%

- Per-share earnings: 18990.42 to -21502.00 (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: 13.6%

- Market cap gain: KRW 2.39T

- Cumulative retained earnings: KRW -6.37T

- Diluted shares, 5-year annual growth: 13.6%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: KRW -40K

- Per-share value, starting three-year median: KRW 19K

- Per-share value, ending three-year median: KRW -22K

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 4.2%

- Buyback history: 3 years

- Debt-funded buybacks: Yes

- Acquisition spending: KRW 2.42T

- Cumulative net income, 10 years: KRW -260B

- ROIC, first three-year median: 11.2%

- ROIC, last three-year median: 0.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: KRW 18K

- FY2017: KRW 23K

- FY2018: KRW 19K

- FY2019: KRW -405.16

- FY2020: KRW -26K

- FY2021: KRW 4K

- FY2022: KRW 18K

- FY2023: KRW 3K

- FY2024: KRW -22K

- FY2025: KRW -22K

### accounting: pass

- Sloan accruals: -5.3%

- Receivables to sales index (DSRI): 0.80×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.08×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -6.2%

- FY2017: -0.2%

- FY2018: -0.1%

- FY2019: -4.7%

- FY2020: -13.0%

- FY2021: 1.6%

- FY2022: 1.7%

- FY2023: -6.3%

- FY2024: -4.1%

- FY2025: -5.3%

## Holders

## Price story

Down 38% since Oct 2021 · sales +8.1%

Story as of 2026-10-16T10:00:02.446Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales +8.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: KRW 39.52T 

- FY2017: KRW 46.26T 

- FY2018: KRW 54.51T 

- FY2019: KRW 49.88T 

- FY2020: KRW 34.16T 

- FY2021: KRW 46.84T 

- FY2022: KRW 78.06T 

- FY2023: KRW 77.29T 

- FY2024: KRW 74.27T 

- FY2025: KRW 80.30T 

### Gross margin · FY2025

gross margin 5.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 12.5% 

- FY2017: 11.6% 

- FY2018: 7.3% 

- FY2019: 6.3% 

- FY2021: 9.0% 

- FY2022: 9.0% 

- FY2023: 6.5% 

- FY2024: 5.4% 

- FY2025: 5.4% 

## Owner memo

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

### How it makes money

Operates in oil & gas refining & marketing; annual sales are KRW 80.3 trillion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:46.506Z); FY2025: revenue 80296054243000; grossProfit 4299838929000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 096770.KO: SK Innovation Co., Ltd., together with its subsidiaries, engages in the development, production, and sale of petroleum, natural gas, petrochemical, lubricants, and base oil products in South Korea, Asia, Europe, the United States, and internationally. The company operates through Energy & Chemicals, Battery & Materials, E&S, and Others segments. The company is also involved in insurance, power, district energy, renewable, city gas, LNG, manufacturing, trading, and oil exploration businesses; storage and sale of petroleum products; manufacturing of industrial gas and separator for secondary batteries; operating gas station and sports club; selling asphalt; issuance and redemption of floating securities; evaluation, certification, manufacturing, and selling of lithium battery; collection and disposal of waste batteries; battery separators; invests in carbon capture and storage, as well as in equity; and installation of electric wire. In addition, it provides business consulting, resource development, information and communication, transporting, and software development services. Further, the company offers energy solutions and operates in hydrogen industry. The company was formerly known as SK Energy Co., Ltd. and changed its name to SK Innovation Co., Ltd. in January 2011. SK Innovation Co., Ltd. was founded in 1962 and is headquartered in Seoul, South Korea.

### Why customers stay

Margins ranged from 5.4% to 6.5% during 2023–25; it earns 3.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:46.506Z); FY2023: grossProfit / revenue = 6.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:46.506Z); FY2024: grossProfit / revenue = 5.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:46.506Z); FY2025: grossProfit / revenue = 5.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:46.506Z); 10-year return on capital observations [[2016,0.1276847336680961],[2017,0.11238170726077575],[2018,0.06986122954411184],[2019,0.03294951578821293],[2020,-0.08409736832205393],[2021,0.04211566539204765],[2022,0.07297008879667838],[2023,0.031713661096607705],[2024,0.0050766012326474794],[2025,0.0076209115629444595]]; median 0.03753259059013029. 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 2026-10-16T07:34:46.506Z); FY2016: growth capex 0; upkeep 664686880000; owner earnings 1921011445000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:46.506Z); FY2017: growth capex 0; upkeep 938406756000; owner earnings 1241757723000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:46.506Z); FY2018: growth capex 0; upkeep 1271505428000; owner earnings 427976242000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:46.506Z); FY2022: growth capex 4983432799000; upkeep 1793158000000; owner earnings 1285221682608.7014. Growth capex / owner earnings = 3.8774888927214404.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:46.506Z); Dividend observations: [[2016,451295755000],[2017,756649584000],[2018,812285011000],[2019,1003950847000],[2020,149275978000],[2021,25196660000],[2022,217200803000],[2023,313932205000],[2024,313663876000],[2025,681497338000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 57.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 096770.KO SharesStats.PercentInsiders = 57.211 percentage points; cache date 2026-10-16.

### What the price says

The price is 0.3 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:46.506Z); Closing price 155000 KRW; reporting-to-trading FX 1; FY2025 annual sales per share 515711.7986804207; price multiple 0.3005554660502373. FY2025 cash earnings/share -24489.636738714416. Closing-price date 2026-10-15.

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

- 2016-10: KRW 148,360.69 per share

- 2016-11: KRW 149,339.95 per share

- 2016-12: KRW 143,464.28 per share

- 2017-01: KRW 153,746.71 per share

- 2017-02: KRW 151,298.52 per share

- 2017-03: KRW 163,049.86 per share

- 2017-04: KRW 167,456.61 per share

- 2017-05: KRW 165,498.05 per share

- 2017-06: KRW 155,215.62 per share

- 2017-07: KRW 172,842.65 per share

- 2017-08: KRW 184,593.99 per share

- 2017-09: KRW 194,876.40 per share

- 2017-10: KRW 200,752.07 per share

- 2017-11: KRW 202,221.00 per share

- 2017-12: KRW 200,262.43 per share

- 2018-01: KRW 200,262.43 per share

- 2018-02: KRW 201,241.71 per share

- 2018-03: KRW 206,627.74 per share

- 2018-04: KRW 192,428.21 per share

- 2018-05: KRW 201,731.36 per share

- 2018-06: KRW 197,814.24 per share

- 2018-07: KRW 194,386.76 per share

- 2018-08: KRW 189,000.73 per share

- 2018-09: KRW 222,300.11 per share

- 2018-10: KRW 209,075.94 per share

- 2018-11: KRW 192,428.21 per share

- 2018-12: KRW 175,780.48 per share

- 2019-01: KRW 184,593.99 per share

- 2019-02: KRW 184,104.35 per share

- 2019-03: KRW 175,780.48 per share

- 2019-04: KRW 178,718.32 per share

- 2019-05: KRW 161,580.94 per share

- 2019-06: KRW 155,705.27 per share

- 2019-07: KRW 167,456.61 per share

- 2019-08: KRW 161,580.94 per share

- 2019-09: KRW 162,560.22 per share

- 2019-10: KRW 156,684.55 per share

- 2019-11: KRW 143,464.28 per share

- 2019-12: KRW 146,891.76 per share

- 2020-01: KRW 127,306.19 per share

- 2020-02: KRW 110,658.46 per share

- 2020-03: KRW 85,197.22 per share

- 2020-04: KRW 96,263.07 per share

- 2020-05: KRW 122,523.55 per share

- 2020-06: KRW 128,285.48 per share

- 2020-07: KRW 124,368.36 per share

- 2020-08: KRW 141,995.37 per share

- 2020-09: KRW 136,119.70 per share

- 2020-10: KRW 122,899.44 per share

- 2020-11: KRW 169,415.17 per share

- 2020-12: KRW 186,062.90 per share

- 2021-01: KRW 289,507.12 per share

- 2021-02: KRW 255,102.03 per share

- 2021-03: KRW 214,461.98 per share

- 2021-04: KRW 264,894.81 per share

- 2021-05: KRW 259,508.79 per share

- 2021-06: KRW 289,376.78 per share

- 2021-07: KRW 247,757.45 per share

- 2021-08: KRW 244,329.97 per share

- 2021-09: KRW 259,508.79 per share

- 2021-10: KRW 250,733.85 per share

- 2021-11: KRW 190,469.66 per share

- 2021-12: KRW 233,557.90 per share

- 2022-01: KRW 211,524.14 per share

- 2022-02: KRW 196,834.97 per share

- 2022-03: KRW 210,544.86 per share

- 2022-04: KRW 200,752.07 per share

- 2022-05: KRW 211,034.50 per share

- 2022-06: KRW 188,021.45 per share

- 2022-07: KRW 193,866.38 per share

- 2022-08: KRW 186,062.90 per share

- 2022-09: KRW 140,526.45 per share

- 2022-10: KRW 169,415.17 per share

- 2022-11: KRW 175,290.84 per share

- 2022-12: KRW 150,808.83 per share

- 2023-01: KRW 158,740.98 per share

- 2023-02: KRW 146,989.64 per share

- 2023-03: KRW 175,584.56 per share

- 2023-04: KRW 169,513.05 per share

- 2023-05: KRW 185,181.50 per share

- 2023-06: KRW 155,215.58 per share

- 2023-07: KRW 211,524.08 per share

- 2023-08: KRW 177,500.00 per share

- 2023-09: KRW 148,800.00 per share

- 2023-10: KRW 122,200.00 per share

- 2023-11: KRW 143,100.00 per share

- 2023-12: KRW 140,300.00 per share

- 2024-01: KRW 117,100.00 per share

- 2024-02: KRW 117,100.00 per share

- 2024-03: KRW 116,000.00 per share

- 2024-04: KRW 111,100.00 per share

- 2024-05: KRW 100,000.00 per share

- 2024-06: KRW 116,100.00 per share

- 2024-07: KRW 104,200.00 per share

- 2024-08: KRW 110,000.00 per share

- 2024-09: KRW 117,100.00 per share

- 2024-10: KRW 117,400.00 per share

- 2024-11: KRW 114,600.00 per share

- 2024-12: KRW 112,000.00 per share

- 2025-01: KRW 127,500.00 per share

- 2025-02: KRW 125,700.00 per share

- 2025-03: KRW 112,400.00 per share

- 2025-04: KRW 94,400.00 per share

- 2025-05: KRW 89,500.00 per share

- 2025-06: KRW 122,400.00 per share

- 2025-07: KRW 107,900.00 per share

- 2025-08: KRW 100,900.00 per share

- 2025-09: KRW 100,500.00 per share

- 2025-10: KRW 128,900.00 per share

- 2025-11: KRW 115,000.00 per share

- 2025-12: KRW 101,200.00 per share

- 2026-01: KRW 112,000.00 per share

- 2026-02: KRW 127,700.00 per share

- 2026-03: KRW 108,700.00 per share

- 2026-04: KRW 146,200.00 per share

- 2026-05: KRW 119,200.00 per share

- 2026-06: KRW 94,900.00 per share

- 2026-07: KRW 110,500.00 per share

- 2026-08: KRW 125,500.00 per share

- 2026-09: KRW 148,800.00 per share

- 2026-10: KRW 156,800.00 per share

## Annual estimated value (KRW per share)

- FY2017: low KRW 181,951.62 per share, central KRW 202,032.43 per share, high KRW 228,764.26 per share

- FY2018: low KRW 223,968.09 per share, central KRW 249,324.90 per share, high KRW 283,080.19 per share

- FY2019: low KRW 206,816.51 per share, central KRW 229,689.26 per share, high KRW 260,137.75 per share

- FY2020: low KRW 86,962.50 per share, central KRW 91,872.15 per share, high KRW 98,407.94 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

## 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.