Fact based stock research
Lotte Fine Chemical (KOSE:A004000)

KR7004000006

How to read the ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Lotte Fine Chemical stock research in summary

lottefinechem.com

ANALYSIS: With an Obermatt Combined Rank of 74 (better than 74% compared with investment alternatives), Lotte Fine Chemical (Diversified Chemicals, South Korea) shares have above-average financial characteristics compared with similar stocks. Shares of Lotte Fine Chemical are a good value (attractively priced) with a consolidated Value Rank of 95 (better than 95% of alternatives), are safely financed (Safety Rank of 100, which means low debt burdens), but show below-average growth (Growth Rank of 7). ...read more

RECOMMENDATION: A Combined Rank of 74, is a buy recommendation based on Lotte Fine Chemical's financial characteristics. As the company Lotte Fine Chemical's key financial metrics exhibit good value (Obermatt Value Rank of 95) but low growth (Obermatt Growth Rank of 7) while being safely financed (Obermatt Safety Rank of 100), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 95% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	95
Growth Rank	7
Safety Rank	100
Combined Rank	74

Country	South Korea
Industry	Diversified Chemicals
Index	Low Emissions, KOSPI
Size class	Large

This stock has achievements: Top 10 Stock.

18-Apr-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Lotte Fine Chemical

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	96	59	59	95
GROWTH
GROWTH	35	99	69	7
SAFETY
SAFETY	100	82	100	100
SENTIMENT
SENTIMENT	n/a	88	65	^new
360° VIEW
360° VIEW	n/a	100	88	^new

Most recent update of the stock research: 18-Apr-2024. Financial reporting date used for calculating ranks: 31-Dec-2023. Stock research history is based on the Obermatt Method. The higher the rank, the better Lotte Fine Chemical is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	96	59	59	95
GROWTH
GROWTH	35	99	69	7
SAFETY
SAFETY	100	82	100	100
COMBINED
COMBINED	100	100	86	74

Last update of combined financial performance: 18-Apr-2024. Stock analysis on combined financial performance: The higher the rank of Lotte Fine Chemical the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 95 (better than 95% compared with alternatives) for 2024, Lotte Fine Chemical shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Lotte Fine Chemical. Price-to-Profit (also referred to as price to earnings, P/E ratio) is 97 which means that the stock price compared with what market professionals expect for future profits is lower than for 97% of comparable companies, indicating a good value concerning Lotte Fine Chemical's profit levels. The same is valid for the expected Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 87, and for Dividend Yield with a Dividend Yield Rank of 98. But, compared with other companies in the same industry, the stock price is higher than average as regards expected revenues; only 61% of all competitors have an even higher stock price as regards to sales revenues (a Price-to-Sales Rank of 39). Profits, the level of invested capital, and dividend policy suggest that this stock is attractively priced. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 95, is a buy recommendation based on Lotte Fine Chemical's stock price compared with the company's operational size and dividend yields. Since it is on the expensive side for Price-to-Sales, it may mean that Lotte Fine Chemical has pricing power in its distribution market because it can charge higher prices than its competitors. If this is the case, all four value indicators are positive signals for purchasing Lotte Fine Chemical shares. 9. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	65	34	27	39
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	94	93	93	97
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	90	37	46	87
DIVIDEND YIELD
DIVIDEND YIELD	72	82	96	98
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	96	59	59	95

Last update of Value Rank: 18-Apr-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Lotte Fine Chemical; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 7 (better than 7% compared with alternatives), Lotte Fine Chemical shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below-average for Lotte Fine Chemical. While Sales Growth ranks at 64, professionals currently expect the company to grow more than 64% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 32, which means that, currently, professionals expect the company to grow its profits less than 68% of its competitors, and Capital Growth has a low rank of 16. Historic stock returns were also below average with a current Stock Returns rank of 11 which means that the stock returns have recently been below 89% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 7, is a sell recommendation for growth and momentum investors. If revenues are expected to increase, but all other growth indicators are negative, the company may be investing in future growth through means not visible in the balance sheet and thus not reflected in capital growth. The fact that Stock Returns have been below market doesn't mean that much, as it may be due to overly optimistic investor behavior in the past, which has been corrected to a more reasonable level recently. If that were the case, a positive Value Rank would be a reason to invest because the company is still expected to grow, while stock prices are now at a more reasonable level. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance isn't stellar here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	35	89	14	64
PROFIT GROWTH
PROFIT GROWTH	86	74	84	32
CAPITAL GROWTH
CAPITAL GROWTH	n/a	100	100	16
STOCK RETURNS
STOCK RETURNS	40	75	49	11
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	35	99	69	7

Last update of Growth Rank: 18-Apr-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Lotte Fine Chemical.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 100 (better than 100% compared with alternatives) for 2024, the company Lotte Fine Chemical has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of Lotte Fine Chemical is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, where all three are above average for Lotte Fine Chemical. Leverage is at 96, meaning the company has a below-average debt-to-equity ratio. It has less debt than 96% of its competitors. Refinancing is at a rank of 95, meaning that the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 95% of its competitors. Finally, Liquidity is also good at a rank of 86, which means that the company generates more profit to service its debt than 86% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 100 (better than 100% compared with alternatives), Lotte Fine Chemical has a financing structure that is significantly safer than that of its competitors. These three positive financing indicators signal that the company is less likely to default on its debt obligations. However, it also means that its shareholder returns will be more modest if things go well. A low safety means fewer troubles in downtimes and less upside in good times. Investors may not have a debt issue with Lotte Fine Chemical but they should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	76	96	96	96
REFINANCING
REFINANCING	86	37	91	95
LIQUIDITY
LIQUIDITY	100	82	100	86
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	100	82	100	100

Last update of Safety Rank: 18-Apr-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Lotte Fine Chemical and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	85	93	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	26	69	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	72	65	^new
MARKET PULSE
MARKET PULSE	n/a	95	9	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	88	65	^new

Last update of Sentiment Rank: 18-Apr-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Lotte Fine Chemical.
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