SK Gas: Higher Earnings, Low Book Multiple and a New Share Buyback Program

Thesis

The data supports a picture of improving profitability at a low valuation. TTM net income of ₩319.7B is above the 2025 level of ₩235.2B, and the P/E of 7.9 is below the 8.8 recorded at the end of 2025. The P/B of 0.7 is unchanged from year-end 2025. News headlines dated 2026-10-13 describe a plan to buy back and cancel ₩90B of shares over three years, about ₩30B a year, and a buyback trust contract filing is dated the same day. Against that, the TTM operating margin of 4.4% is below the 5.8% of 2025, so operating profit has not kept pace with revenue. The shares are also near the upper part of their 52-week range (₩196,100 to ₩302,000). Investor flow, foreign ownership and short balance data are not available, so it is not possible to say who has been buying.

Business overview

SK Gas is listed on KOSPI and classified in the Retail & Trade sector. It was founded on 1985-12-20 and listed on 1997-08-27, with 9,245,244 listed shares. The CEO is listed as 윤병석. Revenue has ranged from ₩6.5T in 2021 to ₩8.1T in 2022, and was ₩7.7T in 2025. Recent filings include a merger decision attachment, a new facility investment correction, a sale of shares in another company, related-party transactions and changes in transactions with companies controlled by the same individual. The data does not give product or segment detail.

Financial analysis

These figures come from filed financial statements (DART). TTM to H1 2026 revenue is ₩8.9T, operating income ₩393.0B and net income ₩319.7B, giving an operating margin of 4.4%, a net margin of 3.6% and ROE of 9.8%. Annual revenue growth was 8.2% in 2025, 1.5% in 2024, -13.3% in 2023 and 24.2% in 2022. Operating income was ₩442.8B in 2025 (5.8% margin), ₩287.2B in 2024 (4.0%), ₩303.6B in 2023 (4.3%), ₩390.5B in 2022 (4.8%) and ₩105.5B in 2021 (1.6%). Net income in 2025 was ₩235.2B, versus ₩316.3B in 2023. The balance sheet shows liabilities to equity of 147.9%, cash of ₩1.17T and borrowings of ₩620.3B, so cash exceeds borrowings. TTM free cash flow is ₩260.4B.

Valuation

The current P/E is 7.9, P/B 0.7 and P/S 0.3, with a dividend yield of 2.9% and enterprise value of ₩1.96T. EV/EBITDA is not available. Year-end 2025 multiples were a P/E of 8.8 and a P/B of 0.7, so the P/E has edged lower while P/B is unchanged. Earlier year-end multiples are not available. Among the listed peers, P/E ranges from 5.5 (Youngone) to 52.3 (ISC), with Samsung C&T at 19.1, POSCO International at 11.6 and Shinsegae at 17.3. P/B ranges from 0.5 (Samsung C&T, Shinsegae) to 7.0 (ISC), with Youngone also at 0.7. SK Gas sits at the lower end on P/E, apart from Youngone, and in line with the lower P/B group. The peer group is mixed in business, so comparisons are only indicative.

Catalysts

• A ₩90B share buyback and cancellation plan over three years, reported on 2026-10-13, comes with a filed buyback trust contract.
• A bondholders meeting convocation was filed on 2026-10-01, and its outcome could matter for the debt structure.
• Filings on 2026-08-26 and 2026-08-27 cover a major management matter and a merger decision attachment, and further details could affect the company's structure.
• An amended filing on 2026-10-07 concerns the sale of shares in another company, and a 5%+ holding report was filed on 2026-10-02.
• A new facility investment correction on 2026-09-18 points to ongoing capital spending.

Risks

• The TTM operating margin of 4.4% is below the 5.8% of 2025, so profit growth may not be driven by operations.
• Revenue has been volatile, with a -13.3% change in 2023 and a 24.2% rise in 2022.
• Liabilities to equity of 147.9% and borrowings of ₩620.3B leave the company exposed to financing conditions.
• Several filings relate to related-party and same-group transactions, which add complexity for outside investors.
• Investor flow, foreign ownership and short interest data are not available, and the shares are up 23.7% in three months, near the upper part of the 52-week range.

Closing view

The filed numbers show higher net income, positive free cash flow, more cash than borrowings and a low P/B of 0.7. A buyback program adds a shareholder return element. Offsetting this, margins have slipped from 2025, leverage is moderate to high, group-related transactions are frequent, and key flow data is missing. The evidence points to a company with improving earnings and a modest valuation, but the data cannot show whether this will continue.

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Report history

1. Oct 13, 2026InitiationSK Gas: Higher Earnings, Low Book Multiple and a New Share Buyback Program