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Songwon Industrial Co (004430) Fair Value & Analysis

Basic Materials · KR · Market cap 312B KRW

SI Songwon Industrial Co 004430 · KO
Price12,590 KRW
Fair Value10,509 KRW
Upside-16.5%
Quality51/100
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Weak Growth
Thin margins · 1.5% net margin
Low debt · generates free cash flow
2.43% dividend yield
Mixed vs. peers (5/10)
Narrow moat 30/100
Evidence: Medium Range 5,320 KRW – 15,698 KRW Share as image

Fair value as of: Jul 24, 2026

From 11 valuation models · updated 17 days ago

Fair value updated Jul 24, 2026, revised from 5,254 KRW to 10,509 KRW (+100.0%) since Jul 22, 2026. Share price +0.8% over the past month.

A solid business, but screening 17% overvalued on our models.

What matters now

  • The model range is unusually wide (5,320 KRW to 15,698 KRW). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (51/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

25,253 KRW 8,233 KRW Fair Value 10,509 KRW Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 24, 2026.

How to read this chart

60‑month range 8,233 KRW – 25,253 KRW · fair‑value band 5,320 KRW – 15,698 KRW · the 12,590 KRW price screens above the 10,509 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 24, 2026.

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Analysis

Songwon Industrial Co (004430) currently trades at 12,590 KRW, while our model-based Fair Value estimate is 10,509 KRW, implying the stock looks roughly 16.5% overvalued today. The Quality Score stands at 51/100 (solid quality), in the Basic Materials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Songwon Industrial Co generated revenue of 1.0T KRW at a net margin of 1.5%. Revenue declined 2.4% year over year. It earns a return on equity of 2.0%. Net debt stands at 123B KRW. Fundamentals as of Jul 24, 2026

Our scenario range runs from 5,320 KRW (bear case) to 15,698 KRW (bull case); at 12,590 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 25% below its 52-week high and 54% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -58% fair-value upside, at -17%, 004430 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
Growth DCF 7,744 KRW 10,729 KRW 15,012 KRW 80
Rev-Margin DCF 6,474 KRW 9,340 KRW 12,410 KRW 74
EV/EBITDA 8,559 KRW 11,153 KRW 13,748 KRW 54
All 11 models by family
DCF Models
FCF DCF 7,514 KRW 10,688 KRW 15,433 KRW 38
Owner Earnings 6,413 KRW 9,068 KRW 13,037 KRW 31
5Y Revenue Exit 6,474 KRW 9,261 KRW 12,669 KRW 39
5Y EBITDA Exit 7,562 KRW 11,191 KRW 15,224 KRW 41
10Y Revenue Exit 6,625 KRW 9,222 KRW 12,392 KRW 36
10Y EBITDA Exit 7,484 KRW 10,555 KRW 14,293 KRW 37
Multiples
EV/EBITDA 8,559 KRW 11,153 KRW 13,748 KRW 54
EV/Revenue 6,256 KRW 8,605 KRW 10,954 KRW 43
Asset-Based
NCAV (Graham) 13,743 KRW 18,415 KRW 27,486 KRW 50
Growth DCF
Growth DCF 7,744 KRW 10,729 KRW 15,012 KRW 80
Rev-Margin DCF 6,474 KRW 9,340 KRW 12,410 KRW 74

Widest divergence: Asset-Based (18,415 KRW) versus Multiples (8,605 KRW). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 1.0T KRW
Revenue growth (YoY) -2.4%
Net margin 1.5%
Return on equity 2.0%
Free cash flow 14.5B KRW FY2025
Operating margin 9.9%
More key figures
Dividend yield 2.9%
EPS growth (YoY) +273%
Net debt 123B KRW FY2025

Figures from reported company fundamentals · as of Jul 24, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 51/100

Of which business quality 49 · Market factors (momentum, volatility) 50

Profitability 23
Margins and returns on capital today
Quality Growth 27
Are margins and returns improving?
Cashflow 22
Earnings quality: real cash, not paper profit
Fin. Strength 68
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 52
Calm price path (market factor)
Momentum 51
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

Songwon Industrial Co., Ltd., together with its subsidiaries, manufactures and sells polymer stabilizers, tin intermediates, PVC stabilizers, and specialty chemicals in South Korea, Rest of Asia, Europe, North and South America, the Middle East, and Africa. The company operates in two segments: Industrial Chemicals and Performance Chemicals segments.

Full company description

Songwon Industrial Co., Ltd., together with its subsidiaries, manufactures and sells polymer stabilizers, tin intermediates, PVC stabilizers, and specialty chemicals in South Korea, Rest of Asia, Europe, North and South America, the Middle East, and Africa. The company operates in two segments: Industrial Chemicals and Performance Chemicals segments. It offers phenolic, phosphite, thioester, and aminic antioxidants; binary blends; application specific antioxidants; hindered amine light stabilizers; UV absorbers and hydroxybenzoates; and high melter, low melter, nucleator and clarifier, and highly loaded UV blends, as well as blends including liquid components. The company also provides a range of antioxidants for fuels and lubricants, as well as fuel additives as stabilizers; tin intermediates; PVC stabilizers and plasticizers, including one pack systems for PVC stabilization, mixed metal stabilizers, metal soap stabilizers, organo-tin stabilizers, auxiliary stabilizers and lubricants, and plasticizers; and specialty polymers comprising polyester diols, thermosetting and/or thermoplastic polyurethanes, and thermoplastic polyurethanes. In addition, it offers coatings, specialty chemicals for fast-moving industries, including electronics and functional monomers for various applications. It serves the adhesive, agriculture, automotive, building and construction, coatings, durable and consumer goods, electrical and electronics, fuels and lubricants, packaging, wire and cable, and textile and fibers industries. Songwon Industrial Co., Ltd. was incorporated in 1965 and is headquartered in Ulsan, South Korea.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Songwon Industrial Co reported revenue of 842B KRW in FY2025 versus 998B KRW in FY2021, a compound −4.2%/yr. Reported net income was −3.9B KRW in FY2025.

Growth Quality 31/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
842B KRW
Latest YoY
−21.3%
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.
−14.1%
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.
+0.8%
Avg. growth/yr (25Y) 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.
+7.0%
Revenue −4.2%/yr
FY21 998B KRW
FY22 1.3T KRW
FY23 1.0T KRW
FY24 1.1T KRW
FY25 842B KRW
Net income
FY21 72.3B KRW
FY22 132B KRW
FY23 34.8B KRW
FY24 45.1B KRW
FY25 −3.9B KRW

004430 screens 17% overvalued. Compare with Linde plc →

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Cite: Fair Value Calculator (2026). "Songwon Industrial Co Fair Value". https://www.fairvalue-calculator.com/stock/004430

Peer Group

Specialty Chemicals · 673 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 51 · Below median
Fair Value upside −17% · Above median
Return on equity (TTM) 2% · Below median
Return on assets 2% · Below median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 10% · Above median
Revenue growth -2% · Below median
Dividend yield (TTM) 2.4% · Above median
Debt / equity 0.00× · Lower than 75% of peers

Valuation Multiples vs Specialty 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 11 · sector 0
FUTURE 0 · sector 19
PAST 8 · sector 23
HEALTH 100 · sector 95
DIVIDEND 49 · sector 25

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 Specialty Chemicals stocks, each showing price versus our Fair Value estimate (as of Jul 24, 2026).

Stock Price Fair Value vs Fair Value
Linde plc LIN $489.98 $222.03 -55%
Nan Ya Plastics Corporation 1303 181.50 TWD 255.83 TWD +41%
Wanhua Chemical Group 600309 ¥70.04 ¥68.03 -3%
Novozymes A/S NSISB kr 428.20 kr 179.66 -58%
Asian Paints Limited ASIANPAINT ₹2,689 ₹668.81 -75%
Solar Industries India Limited SOLARINDS ₹18,236 ₹2,793 -85%
Pidilite Industries Limited PIDILITIND ₹1,560 ₹351.84 -77%
PT Chandra Asri Pacific Tbk TPIA 1,805 IDR 2,888 IDR +60%
Linde India Limited LINDEINDIA ₹7,115 ₹757.93 -89%
Berger Paints India Limited BERGEPAINT ₹493.70 ₹164.29 -67%

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Frequently asked questions

Is Songwon Industrial Co (004430) overvalued or undervalued?
As of Jul 24, 2026, our model estimates a fair value of 10,509 KRW versus a price of 12,590 KRW, about −17% (overvalued).
What is the fair value of 004430?
Our model-based fair value for Songwon Industrial Co is 10,509 KRW (as of Jul 24, 2026), built from audited fundamentals. The current price is 12,590 KRW.
What is the quality score of 004430?
Songwon Industrial Co has a Quality Score of 51/100. 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 Songwon Industrial Co (004430)?
Songwon Industrial Co reported trailing-twelve-month revenue of about 1.0T KRW (latest available figure, as of Jul 24, 2026).
What is the net profit margin of 004430?
The net profit margin of Songwon Industrial Co is about 1.5%, meaning it keeps roughly 1.5% of revenue as net income. Based on the latest reported figures.
Does Songwon Industrial Co pay a dividend?
Songwon Industrial Co currently shows a dividend yield of about 2.86% relative to its recent price (as of Jul 24, 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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