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Michang Oil Ind. Co (003650) Fair Value & Analysis

Energy · KR · Market cap 219B KRW

MO Michang Oil Ind. Co 003650 · KO
Price150,000 KRW
Fair Value171,903 KRW
Upside+14.6%
Quality61/100
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Mixed Growth
Solidly profitable · 15.2% net margin
generates free cash flow
2.45% dividend yield
Ranks above peers (8/9)
Moderate moat 57/100
Evidence: High Range 128,927 KRW – 214,879 KRW Share as image

Fair value as of: Jul 22, 2026

From 24 valuation models · updated 19 days ago

Fair value updated Jul 22, 2026, revised from 321,607 KRW to 171,903 KRW (−46.5%) since Jun 25, 2026. Share price +7.8% over the past month.

A solid business, screening 15% undervalued on our models.

What matters now

  • Our model range runs from 128,927 KRW (bear) to 214,879 KRW (bull), base 171,903 KRW. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 61/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

150,000 KRW 57,180 KRW Fair Value 171,903 KRW Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 22, 2026.

How to read this chart

60‑month range 57,180 KRW – 150,000 KRW · fair‑value band 128,927 KRW – 214,879 KRW · the 150,000 KRW price screens below the 171,903 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 22, 2026.

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Analysis

Michang Oil Ind. Co (003650) currently trades at 150,000 KRW, while our model-based Fair Value estimate is 171,903 KRW, implying the stock looks roughly 14.6% undervalued today. The Quality Score stands at 61/100 (solid quality), in the Energy sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Michang Oil Ind. Co generated revenue of 416B KRW at a net margin of 15.2%. Revenue grew 10.9% year over year. It earns a return on equity of 16.8%. Net debt stands at 16.2B KRW. Fundamentals as of Jul 22, 2026

Our scenario range runs from 128,927 KRW (bear case) to 214,879 KRW (bull case); at 150,000 KRW, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 11% below its 52-week high and 51% above its 52-week low, currently above its 200-day average. For context, the median of 10 Energy peers we cover trades at -48% fair-value upside, at 15%, 003650 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income 316,780 KRW 430,576 KRW 1,395,134 KRW 76
Growth DCF 307,678 KRW 410,361 KRW 591,869 KRW 72
Gordon GGM 28,857 KRW 37,541 KRW 46,681 KRW 70
All 24 models by family
DCF Models
FCF DCF 296,225 KRW 401,016 KRW 600,659 KRW 38
Owner Earnings 525,735 KRW 720,694 KRW 1,092,119 KRW 31
5Y Revenue Exit 248,783 KRW 342,154 KRW 475,069 KRW 39
5Y EBITDA Exit 188,959 KRW 239,876 KRW 305,931 KRW 41
5Y P/E Exit 390,024 KRW 583,627 KRW 808,380 KRW 38
10Y Revenue Exit 258,054 KRW 343,931 KRW 442,085 KRW 36
10Y EBITDA Exit 226,354 KRW 274,632 KRW 326,962 KRW 37
10Y P/E Exit 352,951 KRW 507,542 KRW 668,952 KRW 35
Earnings-Based
Graham-Dodd 309,515 KRW 543,856 KRW 667,714 KRW 54
EPV 202,539 KRW 233,077 KRW 260,222 KRW 59
Dividend Discount
Gordon GGM 28,857 KRW 37,541 KRW 46,681 KRW 70
DDM Multi-Stage 28,857 KRW 39,896 KRW 53,839 KRW 61
Multiples
P/E Multiple 477,927 KRW 637,236 KRW 796,545 KRW 63
P/S Multiple 241,205 KRW 321,607 KRW 402,008 KRW 58
P/B Multiple 427,768 KRW 570,358 KRW 712,947 KRW 55
EV/EBIT 200,771 KRW 257,865 KRW 314,958 KRW 53
EV/EBITDA 144,036 KRW 182,218 KRW 220,399 KRW 54
EV/Revenue 237,311 KRW 326,376 KRW 415,442 KRW 43
Asset-Based
NCAV (Graham) 158,433 KRW 212,300 KRW 316,865 KRW 50
Growth DCF
Growth DCF 307,678 KRW 410,361 KRW 591,869 KRW 72
Rev-Margin DCF 248,783 KRW 346,744 KRW 467,118 KRW 67
Economic Profit
Residual Income 316,780 KRW 430,576 KRW 1,395,134 KRW 76
ROIC Compounder 202,539 KRW 233,077 KRW 260,222 KRW 67
Growth Earnings
Growth-Adj P/E 343,853 KRW 491,218 KRW 638,583 KRW 68

Widest divergence: Growth Earnings (491,218 KRW) versus Dividend Discount (37,541 KRW). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 416B KRW
Revenue growth (YoY) +10.9%
Net margin 15.2%
Return on equity 16.8%
Free cash flow 37.8B KRW FY2025
Operating margin 10.1%
More key figures
Dividend yield 2.5%
EPS growth (YoY) +87.6%
Net debt 16.2B KRW FY2024

Figures from reported company fundamentals · as of Jul 22, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 61/100

Of which business quality 61 · Market factors (momentum, volatility) 71

Profitability 55
Margins and returns on capital today
Quality Growth 40
Are margins and returns improving?
Cashflow 49
Earnings quality: real cash, not paper profit
Fin. Strength 85
Balance sheet, leverage, solvency risk
Investment 52
Disciplined investing over empire-building
Low Volatility 77
Calm price path (market factor)
Momentum 67
Price trend over the last 3–12 months (market factor)
52W Momentum 72
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Michang Oil Ind. Co., Ltd. engages in the petrochemical business in South Korea. It offers automotive lubricants, including motor, gasoline engine, diesel engine, gear, and automatic transmission oils, as well as other application oils; and transformer oils.

Full company description

Michang Oil Ind. Co., Ltd. engages in the petrochemical business in South Korea. It offers automotive lubricants, including motor, gasoline engine, diesel engine, gear, and automatic transmission oils, as well as other application oils; and transformer oils. The company also provides industrial lubricants, such as hydraulic, gear, turbine, and heat transfer oils; and rubber process oils comprising paraffin, naphthene, and aroma. In addition, it offers technical grade white oils; food, cosmetic, and pharma grade white mineral oils; and special fluids for applications in agricultural spray oils. Michang Oil Ind. Co., Ltd. was founded in 1962 and is headquartered in Busan, South Korea.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Michang Oil Ind. Co reported revenue of 405B KRW in FY2025 versus 406B KRW in FY2021, a compound −0.0%/yr. Reported net income was 68.9B KRW in FY2025, compounding +20.1%/yr from FY2021.

Growth Quality 71/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
405B KRW
Latest YoY
−6.1%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−1.1%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.9%
Avg. growth/yr (16Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+2.3%
Revenue −0.0%/yr
FY21 406B KRW
FY22 419B KRW
FY23 409B KRW
FY24 432B KRW
FY25 405B KRW
Net income +20.1%/yr
FY21 33.1B KRW
FY22 23.4B KRW
FY23 47.6B KRW
FY24 52.6B KRW
FY25 68.9B KRW

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Cite: Fair Value Calculator (2026). "Michang Oil Ind. Co Fair Value". https://www.fairvalue-calculator.com/stock/003650

Peer Group

Oil & Gas Refining & Marketing · 114 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 61 · Top 25%
Fair Value upside +15% · Above median
Return on equity (TTM) 17% · Top 25%
Return on assets 6% · Top 25%
Net margin (TTM) 15% · Top 25%
Operating margin (TTM) 10% · Above median
Revenue growth 11% · Above median
Dividend yield (TTM) 2.5% · Below median

Valuation Multiples vs Oil & Gas Refining & Marketing median · lower = cheaper

P/FCF 0.0× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 53 · sector 15
FUTURE 55 · sector 15
PAST 67 · sector 32
HEALTH 0 · sector 80
DIVIDEND 49 · sector 50

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Oil & gas

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Oil & Gas Refining & Marketing stocks, each showing price versus our Fair Value estimate (as of Jul 22, 2026).

Stock Price Fair Value vs Fair Value
Reliance Industries Limited RELIANCE ₹1,293 ₹835.66 -35%
Valero Energy Corporation VLO $309.65 $127.32 -59%
Marathon Petroleum Corporation MPC $283.74 $135.80 -52%
Phillips 66 PSX $196.16 $101.04 -48%
Neste Oyj NESTE €31.10 €4.07 -87%
Formosa Petrochemical Corporation 6505 81.30 TWD 16.68 TWD -79%
Indian Oil Corporation IOC ₹138.96 ₹417.35 +200%
HF Sinclair Corporation DINO $88.59 $48.90 -45%
Bharat Petroleum Corporation BPCL ₹315.55 ₹846.81 +168%
SK Innovation Co 096770 121,400 KRW 58,865 KRW -52%

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Frequently asked questions

Is Michang Oil Ind. Co (003650) overvalued or undervalued?
As of Jul 22, 2026, our model estimates a fair value of 171,903 KRW versus a price of 150,000 KRW, about +15% (undervalued).
What is the fair value of 003650?
Our model-based fair value for Michang Oil Ind. Co is 171,903 KRW (as of Jul 22, 2026), built from audited fundamentals. The current price is 150,000 KRW.
What is the quality score of 003650?
Michang Oil Ind. Co has a Quality Score of 61/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Michang Oil Ind. Co (003650)?
Michang Oil Ind. Co reported trailing-twelve-month revenue of about 416B KRW (latest available figure, as of Jul 22, 2026).
What is the net profit margin of 003650?
The net profit margin of Michang Oil Ind. Co is about 15.2%, meaning it keeps roughly 15.2% of revenue as net income. Based on the latest reported figures.
Does Michang Oil Ind. Co pay a dividend?
Michang Oil Ind. Co currently shows a dividend yield of about 2.80% relative to its recent price (as of Jul 22, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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