Stock Deep Dive · 2026-08-13
LG Energy Solution (373220) closed at ₩365,500, up 1.95% on the day. Year-to-date return is -0.8%, sitting at 32% of its 52-week range. Next earnings: 2026-11-05 (in 84 days). Listed in Seoul — for USD-based investors, KRW moves add an FX layer on top of the stock’s local return.
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Close
₩365,500
+1.95% · YTD -0.8%
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Market Cap
₩85.53T
Electrical Equipment & Parts
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Forward P/E
46.7x
PER -53.4x
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52-wk Range
32%
High ₩527,000 · Low ₩290,500
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🔍 At a Glance
LG Energy Solution is riding a wave of headline-grabbing deals — including a reported $4.3B Tesla battery agreement and a major U.S. storage contract — that helped drive a 16% single-day surge and a strong +13.5% one-month return, alongside 24.8% YoY quarterly revenue growth. Yet the bear case is hard to ignore: the company is still posting a negative ROE (-3.6%), a razor-thin 3.2% operating margin, a negative trailing PER, and a steep forward PER of 46.7x — priced for a profitability turnaround that hasn’t fully arrived yet.
🏢 How It Makes Money
LG Energy Solution manufactures pouch-type EV battery cells, modules, and packs, plus batteries for IT devices, e-bikes, power tools, and energy storage systems (ESS) for grids and commercial use. Revenue (TTM ₩23.50T) is scaling quickly, but thin margins reflect heavy capex, raw material costs, and EV-demand cyclicality across its Korea/China/US manufacturing footprint. As a KOSPI-listed subsidiary of LG Chem (part of the LG chaebol), its fortunes are tied to both battery-market dynamics and group-level capital allocation decisions.
📈 Quarterly Results — Is Business Growing?
| Quarter | Revenue | Op. Income | Net Income | Op. Margin |
|---|---|---|---|---|
| 25Q1 | ₩6.72T | ₩374.7B | ₩-145.7B | 5.6% |
| 25Q2 | ₩5.57T | ₩492.2B | ₩-297.4B | 8.8% |
| 25Q3 | ₩5.70T | ₩601.3B | ₩247.2B | 10.5% |
| 25Q4 | ₩6.14T | ₩-122.0B | ₩-876.8B | -2.0% |
| 26Q1 | ₩6.55T | ₩-207.8B | ₩-676.0B | -3.2% |
| 26Q2* | ₩7.56T | ₩113.3B | ₩-328.6B | 1.5% |
* 26Q2 figures come from the company’s preliminary earnings disclosure filed with Korea’s DART on 2026-07-30. They are unaudited and will be replaced once the reviewed quarterly or half-year report is filed. Net income for that quarter is the consolidated total — the controlling-interest share was not disclosed — so it is not directly comparable with the other quarters.
Latest-quarter revenue up +24.8% versus the same quarter a year ago.
💡 Korea Market 101
💵 Balance Sheet & Runway — How Long Can It Last?
| Item | Value | How to read it |
|---|---|---|
| Cash & equivalents | ₩3.74T | Money available right now |
| Total debt | ₩24.68T | What it owes — larger than cash means a net debt position |
| Free cash flow | ₩-8.24T | Operating cash minus capex — negative means cash is going out |
| Operating cash flow | ₩2.95T | Cash actually generated by the business, which can differ from accounting profit |
| Debt to equity | 82.5% | Debt against shareholders’ equity — above 100% means more debt than equity |
| Current ratio | 1.04 | Short-term assets against short-term liabilities — below 1 signals near-term strain |
At the current burn rate, the cash on hand covers roughly 0.5 years (5 months). The real figure shifts with revenue growth, cost control, and any new financing.
💡 Korea Market 101
⚖️ Valuation — Cheap or Expensive?
Trailing twelve-month losses make P/E and PEG unavailable or meaningless here.
| Metric | Value | How to read it |
|---|---|---|
| P/E (trailing) | -53.4x | Price vs last 12 months’ earnings |
| P/E (forward) | 46.7x | Price vs next 12 months’ expected earnings — growth hopes baked in |
| P/S | 3.6x | Price vs revenue — for high-growth names with thin profits |
| P/B | 4.2x | Price vs book value — below 1x means priced under liquidation value |
| EV/EBITDA | 25.8x | Enterprise value (incl. debt) vs cash generation |
Peer comparison
| Name | Mkt Cap | P/E | Fwd P/E | P/S |
|---|---|---|---|---|
| LG Energy Solution | ₩85.53T | — | 46.7x | 3.6x |
| SAMSUNG SDI CO.,LTD. | ₩38.32T | — | 27.2x | 2.7x |
| ECOPROBM | ₩11.20T | — | 141.9x | 4.5x |
💡 Korea Market 101
🎯 Street Consensus
- Price target (mean): ₩486,800
- Target high / low: ₩600,000 / ₩295,000
- Implied upside: +33.2%
- Rating: Buy (1.7/5)
- Analysts covering: 30
- Next earnings: 2026-11-05
💡 Korea Market 101
📉 Price Action — Technical Check
| Indicator | Value | How to read it |
|---|---|---|
| RSI (14d) | 61.9 | Above 70 overbought · below 30 oversold |
| vs 60-day MA | -0.1% | Above/below the medium-term trend |
| vs 200-day MA | -9.3% | Above/below the long-term trend |
| Golden/death cross | 50-day below 200-day (bearish alignment) | 50-day MA crossing above (golden) or below (death) the 200-day |
| Volume (vs 20d avg) | 1.5x | 2x+ means a spike in market attention |
💡 Korea Market 101
📰 Recent News
- LG Energy Solution’s shares surge as much as 16% after landing major U.S. battery storage deal — cnbc.com
- LG Chem plans to sell LG Energy Solution stake for shareholder returns — Reuters
- LG Energy Solution Swings to Loss in Q2, Revenue Jumps; Shares Rise 6% — Moomoo
- Should You Investigate LG Energy Solution, Ltd. (KRX:373220) At ₩385,000? — simplywall.st
- LG Energy Solution Ltd. Revenue Breakdown – KRX:373220 — TradingView
- US Government Confirms $4.3 Billion Battery Deal Between Tesla (TSLA) and LG Energy Solution, Reuters Reports — Yahoo Finance
How to read these headlines
The common thread is a pivot from EV-battery demand jitters toward diversified deal flow — Tesla and U.S. storage contracts — that reassures investors on revenue visibility even as Q2 profitability remained negative. Separately, LG Chem’s plan to sell its LGES stake for shareholder returns introduces a supply overhang worth confirming, as increased float could offset sentiment gains from contract wins.
Headlines are credited to their publishers — click a headline to open the original article. The commentary is written by this site and does not represent the views of any publisher.
💡 Korea Market 101
🔭 Scenarios & What to Watch
Watch the next earnings release on 2026-11-05 for signs the Q2 loss-to-swing narrative is reversing into sustained profitability. Bull case: continued large-scale contract wins (Tesla, U.S. storage) convert into margin expansion and justify the ₩486,800 average target (up to ₩600,000). Bear case: EV demand softness, ESS competition, or LG Chem’s stake sale overhang could pressure shares, especially with the stock still 9.3% below its 200-day average despite a 61.9 RSI reading near overbought territory.
Next earnings on 2026-11-05 (in 84 days) — guidance usually decides the stock’s direction more than the reported quarter.
💡 Korea Market 101
📚 All stock analysis · More on LG Energy Solution · Market report for this session
Stock report · published 2026-08-13 16:00 KST
For information only — a summary of public data, not a recommendation to buy or sell any security. Source data (Yahoo Finance and others) may be delayed or contain errors. All investment decisions are your own responsibility.
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