LG CNS: Steady Profits and Mid-Teens Multiples After a Sharp Fall From the 52-Week High

Thesis

The data supports a profitable, cash-generative IT services business with low debt. Trailing operating margin is 8.8%, ROE is 18.7%, and borrowings of ₩59.9B are small against cash of ₩565.0B.

The data does not explain the share price decline from the 52-week high. No news headlines, investor flow data, foreign ownership or short balance figures are available. Revenue growth slowed to 2.5% in 2025 from 6.7% in 2024, which is one visible change in the numbers, but the data does not link it to the price move.

The stock is down 7.8% over one month and 2.8% over three months, and flat over one year.

Business overview

LG CNS is an IT services company listed on KOSPI since 2025-02-05. It was founded on 1987-01-14 and is led by CEO 현신균. It has 96,885,948 listed shares and a market capitalization of about ₩6.4T.

Revenue grew from ₩5.61T in 2023 to ₩5.98T in 2024 and ₩6.13T in 2025. Trailing twelve-month revenue to H1 2026 is ₩6.29T. Among listed peers in the data, Samsung SDS is larger at ₩15.1T, while the other four peers are each below ₩700B.

Financial analysis

All figures below come from filed financial statements (DART).

Revenue rose 6.7% in 2024 and 2.5% in 2025. Operating income increased from ₩464.0B in 2023 to ₩512.9B in 2024 and ₩551.8B in 2025. Net income went from ₩332.3B to ₩364.5B and then ₩437.9B. Operating margin moved from 8.3% to 8.6% and then 9.0%.

Trailing twelve months to H1 2026: revenue ₩6.29T, operating income ₩554.2B, net income ₩481.4B, operating margin 8.8%, net margin 7.6%. ROE is 18.7%, compared with 17.3% in 2025.

The balance sheet is conservative. Liabilities to equity is 61.9%, cash is ₩565.0B, borrowings are ₩59.9B and free cash flow is ₩543.1B.

Valuation

The current P/E is 13.3, P/B is 2.1 and P/S is 1.0. The dividend yield is 2.8%. Enterprise value is about ₩5.92T. EV/EBITDA is not available.

At the end of 2025 the P/E was 13.6 and the P/B was 2.0, so current multiples are close to that year-end level. Earlier year-end multiples are not available because of the 2025 listing.

Among peers, only Samsung SDS has multiples in the data, with a P/E of 23.3 and a P/B of 1.5. LG CNS has a lower P/E but a higher P/B than Samsung SDS. Multiples for the other peers are not available.

Catalysts

• A major sales or supply contract was filed on 2026-09-22, though the data gives no value or details.
• Several investor relations events were filed on 2026-09-02, 2026-09-16 and 2026-10-07, which show active communication with investors.
• A 5%+ holding report was filed on 2026-10-02, indicating a change in a significant shareholding, but the data does not say who or in which direction.
• The half-year report for June 2026 was filed on 2026-08-14, and it provides the latest trailing figures.
• An acquisition of property, plant and equipment was filed on 2026-09-11, with no amount given in the data.

Risks

• Revenue growth slowed to 2.5% in 2025, and a further slowdown would weigh on earnings growth.
• The share price is 56.7% below its 52-week high, which shows high volatility since listing.
• Investor flow, foreign ownership and short balance data are unavailable, so shifts in sentiment cannot be assessed.
• Filings include related-party transaction changes within the business group, but the data gives no details on their size.
• Operating margin of 8.8% is slightly below the 9.0% of 2025, so margin gains have not continued in the latest trailing period.

Closing view

The filed numbers describe a profitable company with steady revenue, margins around 9%, high ROE, ample cash and little debt. Its P/E of 13.3 is near the 2025 year-end level and below Samsung SDS, while its P/B is above that peer.

The large drop from the 52-week high is not explained by the available data, and missing flow, ownership and news data limit the picture. The evidence is mixed: strong fundamentals against slowing growth and a weaker share price trend.

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, 2026InitiationLG CNS: Steady Profits and Mid-Teens Multiples After a Sharp Fall From the 52-Week High