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LOTTE Fine Chemical Co (004000) Fair Value & Analysis

Basic Materials · KR · Market cap 1.2T KRW

LF LOTTE Fine Chemical Co 004000 · KO
Price48,550 KRW
Fair Value54,050 KRW
Upside+11.3%
Quality57/100
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Expensive Growth
Thin margins · 6.7% net margin
Low debt · generates free cash flow
3.33% dividend yield
Ranks above peers (8/10)
Narrow moat 35/100
Evidence: High Range 37,835 KRW – 70,265 KRW Share as image

Fair value as of: Jul 22, 2026

From 21 valuation models · updated 19 days ago

Share price +12.0% over the past month.

A solid business, screening 11% undervalued on our models.

What matters now

  • A fairly wide model range (37,835 KRW to 70,265 KRW) leaves room in how you read the outcome.
  • Our model range runs from 37,835 KRW (bear) to 70,265 KRW (bull), base 54,050 KRW. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 57/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

81,797 KRW 29,811 KRW Fair Value 54,050 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 29,811 KRW – 81,797 KRW · fair‑value band 37,835 KRW – 70,265 KRW · the 48,550 KRW price screens below the 54,050 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.

Full chart & analysis →

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Analysis

LOTTE Fine Chemical Co (004000) currently trades at 48,550 KRW, while our model-based Fair Value estimate is 54,050 KRW, implying the stock looks roughly 11.3% undervalued today. The Quality Score stands at 57/100 (solid quality), in the Basic Materials 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, LOTTE Fine Chemical Co generated revenue of 1.8T KRW at a net margin of 6.7%. Revenue grew 14.6% year over year. It earns a return on equity of 5.1%. Net debt stands at 70.7B KRW. Fundamentals as of Jul 22, 2026

Our scenario range runs from 37,835 KRW (bear case) to 70,265 KRW (bull case); at 48,550 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 32% below its 52-week high and 36% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -46% fair-value upside, at 11%, 004000 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 BearBaseBull Evidence
Highest evidence
Growth DCF 16,322 KRW 20,871 KRW 29,558 KRW 80
Residual Income 73,138 KRW 73,422 KRW 68,951 KRW 76
Rev-Margin DCF 23,680 KRW 35,109 KRW 49,316 KRW 74
All 21 models by family
DCF Models
FCF DCF 15,772 KRW 20,370 KRW 29,963 KRW 38
5Y Revenue Exit 23,680 KRW 34,843 KRW 51,645 KRW 39
5Y EBITDA Exit 46,646 KRW 73,821 KRW 110,902 KRW 41
5Y P/E Exit 37,194 KRW 57,779 KRW 83,024 KRW 38
10Y Revenue Exit 19,872 KRW 29,290 KRW 40,205 KRW 36
10Y EBITDA Exit 35,032 KRW 55,494 KRW 79,189 KRW 37
10Y P/E Exit 29,103 KRW 44,710 KRW 60,849 KRW 35
Earnings-Based
Graham-Dodd 28,325 KRW 45,616 KRW 55,029 KRW 54
EPV 27,381 KRW 31,574 KRW 35,302 KRW 59
Multiples
P/E Multiple 53,109 KRW 70,812 KRW 88,515 KRW 63
P/S Multiple 53,109 KRW 70,812 KRW 88,515 KRW 58
P/B Multiple 53,109 KRW 70,812 KRW 88,515 KRW 55
EV/EBIT 34,308 KRW 44,538 KRW 54,768 KRW 53
EV/EBITDA 73,939 KRW 97,380 KRW 120,821 KRW 54
EV/Revenue 30,216 KRW 41,615 KRW 53,014 KRW 43
Asset-Based
NCAV (Graham) 47,816 KRW 64,073 KRW 95,632 KRW 50
Growth DCF
Growth DCF 16,322 KRW 20,871 KRW 29,558 KRW 80
Rev-Margin DCF 23,680 KRW 35,109 KRW 49,316 KRW 74
Economic Profit
Residual Income 73,138 KRW 73,422 KRW 68,951 KRW 76
ROIC Compounder 27,381 KRW 31,574 KRW 35,302 KRW 72
Growth Earnings
Growth-Adj P/E 37,835 KRW 54,050 KRW 70,265 KRW 68

Widest divergence: Multiples (70,812 KRW) versus Growth DCF (20,871 KRW). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 1.8T KRW
Revenue growth (YoY) +14.6%
Net margin 6.7%
Return on equity 5.1%
Free cash flow 29.3B KRW FY2025
Operating margin 6.4%
More key figures
Dividend yield 3.3%
EPS growth (YoY) +57.5%
Net debt 70.7B KRW FY2019

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

Quality Score breakdown

Overall quality 57/100

Of which business quality 57 · Market factors (momentum, volatility) 46

Profitability 31
Margins and returns on capital today
Quality Growth 46
Are margins and returns improving?
Cashflow 46
Earnings quality: real cash, not paper profit
Fin. Strength 78
Balance sheet, leverage, solvency risk
Investment 71
Disciplined investing over empire-building
Low Volatility 57
Calm price path (market factor)
Momentum 40
Price trend over the last 3–12 months (market factor)
52W Momentum 45
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

LOTTE Fine Chemical Co., Ltd. manufactures and sells chemical products in South Korea, the rest of Asia, North America, Europe, and internationally.

Full company description

LOTTE Fine Chemical Co., Ltd. manufactures and sells chemical products in South Korea, the rest of Asia, North America, Europe, and internationally. The company offers chlorine relatives, including epichlorohydrin, caustic soda, tetramethyl ammonium chloride, 3-Chloro-2-Hydroxypropyl trimethylammonium chloride, methyl chloride, methylene chloride, methaclean, chloroform, sodium hypochlorite, and hydrochloric acid; ammonia relatives comprising urea solution, ammonia, monomethylamine, dimethylamine, trimethylamine, and trimethylamine-HCL; and toners for printers. It provides green materials, such as cellulose products, under the MECELLOSE, HECELLOSE, AnyCoat, and AnyAddy brand names. LOTTE Fine Chemical Co., Ltd. was formerly known as SAMSUNG Fine Chemicals Co., Ltd. and changed its name to LOTTE Fine Chemical Co., Ltd. in 2016. LOTTE Fine Chemical Co., Ltd. was incorporated in 1964 and is based in Ulsan, South Korea.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

LOTTE Fine Chemical Co reported revenue of 1.8T KRW in FY2025 versus 1.8T KRW in FY2021, a compound −0.4%/yr. Reported net income was 106B KRW in FY2025, compounding −34.8%/yr from FY2021.

Growth Quality 53/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
1.8T KRW
Latest YoY
+4.9%
Avg. growth/yr (3Y)
−10.7%
Avg. growth/yr (5Y)
+6.8%
Avg. growth/yr (14Y)
+2.0%
Revenue −0.4%/yr
FY21 1.8T KRW
FY22 2.5T KRW
FY23 1.8T KRW
FY24 1.7T KRW
FY25 1.8T KRW
Net income −34.8%/yr
FY21 585B KRW
FY22 146B KRW
FY23 182B KRW
FY24 36.4B KRW
FY25 106B KRW

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Cite: Fair Value Calculator (2026). "LOTTE Fine Chemical Co Fair Value". https://www.fairvalue-calculator.com/stock/004000

Peer Group

Chemicals · 334 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 57 · Above median
Fair Value upside +11% · Top 25%
Return on equity (TTM) 5% · Above median
Return on assets 2% · Below median
Net margin (TTM) 7% · Above median
Operating margin (TTM) 6% · Below median
Revenue growth 15% · Above median
Dividend yield (TTM) 3.3% · Top 25%
Debt / equity 0.03× · Lower than median

Valuation Multiples vs Chemicals 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 48 · sector 0
FUTURE 73 · sector 20
PAST 20 · sector 19
HEALTH 98 · sector 94
DIVIDEND 67 · sector 27

Values & ESG

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

None of the checked exposures detected

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

Similar stocks

10 more Chemicals stocks, each showing price versus our Fair Value estimate (as of Jul 22, 2026).

Stock Price Fair Value vs Fair Value
BASF SE BASN 1,034 MXN 532.13 MXN -49%
Ningxia Baofeng Energy Group 600989 ¥20.32 ¥20.17 -1%
Zhejiang Juhua Co 600160 ¥42.85 ¥23.35 -46%
PT Barito Pacific Tbk, BRPT 1,690 IDR 1,628 IDR -4%
LG Chem, Ltd 051910 260,500 KRW 587,755 KRW +126%
Formosa Chemicals & Fibre Corporation 1326 66.10 TWD 6.79 TWD -90%
PTT Global Chemical Public Company PTTGC 35.50 THB 18.21 THB -49%
542812 542812 ₹4,369 ₹791.05 -82%
Indorama Ventures Public Company IVL 24.50 THB 17.95 THB -27%
Navin Fluorine International Limited NAVINFLUOR ₹8,650 ₹2,146 -75%

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Frequently asked questions

Is LOTTE Fine Chemical Co (004000) overvalued or undervalued?
As of Jul 22, 2026, our model estimates a fair value of 54,050 KRW versus a price of 48,550 KRW, about +11% (undervalued).
What is the fair value of 004000?
Our model-based fair value for LOTTE Fine Chemical Co is 54,050 KRW (as of Jul 22, 2026), built from audited fundamentals. The current price is 48,550 KRW.
What is the quality score of 004000?
LOTTE Fine Chemical Co has a Quality Score of 57/100. 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 LOTTE Fine Chemical Co (004000)?
LOTTE Fine Chemical Co reported trailing-twelve-month revenue of about 1.8T KRW (latest available figure, as of Jul 22, 2026).
What is the net profit margin of 004000?
The net profit margin of LOTTE Fine Chemical Co is about 6.7%, meaning it keeps roughly 6.7% of revenue as net income. Based on the latest reported figures.
Does LOTTE Fine Chemical Co pay a dividend?
LOTTE Fine Chemical Co currently shows a dividend yield of about 3.07% 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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