LG Electronics: Shares Up 133.8% Over One Year While Earnings Stay Modest and Multiples Have Risen

Thesis

The data supports a picture of a large, steady-revenue company whose share price has moved much faster than its profits. Revenue has grown every year shown, from ₩74.7T in 2021 to ₩89.2T in 2025, and trailing twelve-month revenue reached ₩93.3T. Operating income improved from ₩2.5T in 2025 to ₩3.8T over the trailing twelve months, which is a positive sign.

However, margins remain below the 2021 level of 5.2%, and net income is small relative to revenue. The higher P/E (28.9 now versus 15.6 at the end of 2025) suggests the market is paying more per won of earnings than before. The 52-week range of ₩77,000 to ₩438,000 shows very large price swings. Investor flow, foreign ownership and short balance data are not available, so we cannot say who has been driving the moves.

Business overview

LG Electronics is listed on KOSPI (code 066570) in the electronics sector. It was founded on 2002-04-01 and listed on 2002-04-22, and the CEO is listed as 류재철. It has 162,886,387 listed shares and a market capitalisation of about ₩30.1T. Revenue was ₩74.7T in 2021, ₩83.5T in 2022, ₩84.2T in 2023, ₩87.7T in 2024 and ₩89.2T in 2025. Growth was 11.7% in 2022 and has been between 0.9% and 4.2% since. The data does not give a segment breakdown. Recent news headlines mention AI technology displays at KES 2026, including data center cooling and robots, but the data gives no financial detail on these areas.

Financial analysis

All figures below come from filed financial statements (DART), consolidated where available.

Over the trailing twelve months to H1 2026, revenue was ₩93.3T, operating income ₩3.8T and net income ₩1.0T. Operating margin was 4.1%, net margin 1.1% and ROE 4.4%.

Annually, operating income was ₩3.9T in 2021, ₩3.6T in 2022, ₩3.5T in 2023, ₩3.4T in 2024 and ₩2.5T in 2025. Operating margin fell from 5.2% to 2.8% over that span, then recovered to 4.1% on a trailing basis. Net income was ₩1.0T in 2021, ₩1.2T in 2022, ₩712.9B in 2023, ₩367.5B in 2024 and ₩960.6B in 2025. ROE was between 1.8% and 6.6%.

On the balance sheet, liabilities to equity is 130.9%. Cash is ₩10.1T against borrowings of ₩9.2T. Trailing free cash flow is ₩3.2T.

Valuation

The current P/E is 28.9, P/B 1.1, P/S 0.3 and dividend yield 1.1%. Enterprise value is about ₩29.2T. EV/EBITDA is not available. At the end of 2025 the P/E was 15.6 and the P/B 0.6, so both multiples are higher now. Year-end multiples for earlier years are not available.

For comparison, Samsung Electronics has a P/E of 9.9 and a P/B of 2.6 with a market cap of about ₩1,482.9T. The other listed peers (Hanwha Vision, RFHIC, Joongang Advanced Materials and KMW) have no P/E or P/B in the data and are far smaller. LG Electronics therefore has a higher P/E but a lower P/B than Samsung Electronics, and the peer set is too thin for a broader comparison.

Catalysts

• Preliminary consolidated earnings and an investor relations event were both filed on 2026-10-07, so the market is digesting fresh results.
• The company filed a response to a rumour or news report on 2026-10-06, and another on 2026-09-07, so market-moving reports are recurring.
• A cash dividend decision and record date were filed on 2026-07-29, which relates to the 1.1% dividend yield.
• The company showcased AI technologies, from data center cooling to robots, at KES 2026 according to news on 2026-10-13, though the data gives no financial impact.
• The half-year report for June 2026 was filed on 2026-08-14 and shows trailing operating income of ₩3.8T.

Risks

• Net margin of 1.1% and ROE of 4.4% leave little cushion if operating profit weakens, as it did in 2025 when operating margin fell to 2.8%.
• The P/E of 28.9 is well above the 15.6 recorded at the end of 2025, so the share price depends more on continued earnings improvement.
• The share price is 57.8% below its 52-week high of ₩438,000 and fell 7.4% in the past month, showing high volatility.
• A serious accident report from a subsidiary was filed on 2026-08-06, and the data gives no detail on its financial effect.
• Investor flow, foreign ownership and short interest data are missing, so shifts in market positioning cannot be assessed.

Closing view

The data shows a business with growing revenue, recovering operating profit and ample cash relative to borrowings, but with thin net margins and modest returns on equity. The share price has more than doubled in a year while multiples have expanded, and it has since fallen sharply from its peak. Whether earnings can catch up with the higher valuation is not answered by the data. Missing flow and positioning data further limit the view, so the evidence is mixed rather than conclusive.

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 Electronics: Shares Up 133.8% Over One Year While Earnings Stay Modest and Multiples Have Risen