Korea Petroleum Industries Co

Korea Petroleum Industries Co has a market price of 13,370 KRW and a market capitalization of 169,026,829,020 KRW, with a price-to-earnings ratio of 207.12 and a price-to-book ratio of 0.95. The company's liquidity position is characterized by a current ratio of 1.15, indicating a moderate ability to meet short-term obligations. However, the company has a negative net cash position after subtracting total debt, which raises concerns about its liquidity risk.

The company's profitability is weak, with a return on equity of 0.46% and a return on assets of 0.22%, both significantly below industry benchmarks. Operating income of 2,059,599,200 KRW and net income of 816,087,300 KRW reflect a narrow margin, and the company's gross profit of 13,341,215,600 KRW is modest relative to its revenue of 165,906,871,000 KRW. The company's debt-to-equity ratio of 0.64 suggests a moderate level of leverage.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases the company's exposure to regional economic and regulatory risks. The company's capital expenditures of -2,167,285,870 KRW indicate a reduction in investment, which may affect long-term growth prospects.

Looking ahead, the company's revenue is expected to remain flat, with no significant growth anticipated in the next fiscal year. The operating cash flow of -11,253,662,770 KRW and free cash flow of 9,047,650 KRW suggest limited capacity for reinvestment or shareholder returns. The company's risk assessment indicates a medium liquidity risk and a low dilution risk, but the negative net cash position remains a concern.

Recent filings and transcripts do not indicate any major strategic shifts or new initiatives. The company's mean price target of 21,000 KRW from analysts suggests a potential upside, but the current recommendation of 2.00 (Hold) indicates a cautious outlook. The company has not issued any recent guidance that would suggest a change in its current trajectory.

Korea Petroleum Industries Co (004090.KS) has undergone a significant structural update in its corporate classification, with its activity now formally identified as "Mineral Resources" and its economic sector designated as "Basic Materials." This reclassification represents a medium-severity change in the company's profile, shifting the understanding of its operational focus from an undefined state to a specific alignment within the materials and resources landscape. Concurrently, the company’s risk assessment framework has been populated with new data points, marking a transition from no prior recorded values to defined risk levels. The dilution risk is now assessed as "low," while the liquidity risk is classified as "medium." These assessments provide a clearer baseline for evaluating the company's financial stability and capital structure dynamics, although both changes are categorized with low severity in terms of immediate impact. The significance of these updates lies in the establishment of a more transparent analytical foundation for the firm. By defining its sector and activity, Korea Petroleum Industries is now more accurately positioned for comparative analysis within the Basic Materials industry. The explicit identification of low dilution risk suggests a stable share count environment, whereas the medium liquidity risk highlights an area requiring ongoing monitoring for investors. Despite these clarifications in classification and risk metrics, the company remains a niche entity in terms of market coverage and ownership structure. With only one officer, one analyst following the stock, no index memberships, and no identified top holders, Korea Petroleum Industries operates with limited public scrutiny and institutional engagement. This sparse coverage profile underscores the importance of the newly established fundamental data points for any potential investors seeking to understand the company's core operations and risk profile.

Analysts project 87.2% upside to a consensus target price of 21,000 KRW, signaling strong market confidence.

Net income surged 117.7% year-over-year in the latest period, demonstrating significant recent profitability improvement.

Operating income grew 31.1% year-over-year, indicating improved core operational efficiency despite revenue fluctuations.

Gross profit reached 64.6 billion KRW in FY2026, maintaining a robust top-line buffer against operating costs.

The company maintains a positive net margin of 0.49%, ensuring continued profitability in the current fiscal environment.

Free cash flow deteriorated to -28.3 billion KRW in FY2026, highlighting severe liquidity generation challenges.

Long-term debt increased to 137.8 billion KRW in FY2026, exacerbating financial leverage and credit risk.

Operating and net margins remain significantly below the Construction Materials cohort median, indicating weak competitive positioning.

Revenue KRW 173.15B, −8,3% YoY; Operating income −5,4% YoY.

• ▍Revenue KRW 173.15B, −8,3% YoY
• ▍Operating income −5,4% YoY
• ▍Net income −89,3% YoY
• ▍Free cash flow −56,4% YoY
• ▍Net margin 0.2%

Revenue KRW 171.55B, −1,7% YoY; Operating income +28,9% YoY.

• ▍Revenue KRW 171.55B, −1,7% YoY
• ▍Operating income +28,9% YoY
• ▍Net income −80,0% YoY
• ▍Free cash flow −84,5% YoY
• ▍Net margin 0.7%

Revenue KRW 192.31B, +0,2% YoY; Operating income −42,3% YoY.

• ▍Revenue KRW 192.31B, +0,2% YoY
• ▍Operating income −42,3% YoY
• ▍Net income +35,1% YoY
• ▍Free cash flow −794,4% YoY
• ▍Net margin 2.2%

Revenue KRW 158.70B, −4,3% YoY; Operating income −71,4% YoY.

• ▍Revenue KRW 158.70B, −4,3% YoY
• ▍Operating income −71,4% YoY
• ▍Net income −164,9% YoY
• ▍Free cash flow −59 923,6% YoY
• ▍Net margin -0.3%

Revenue KRW 188.74B; Operating income KRW 3.37B.

• ▍Revenue KRW 188.74B
• ▍Operating income KRW 3.37B
• ▍Net margin 1.8%

Revenue KRW 174.52B; Operating income KRW 2.55B.

• ▍Revenue KRW 174.52B
• ▍Operating income KRW 2.55B
• ▍Net margin 3.3%

Revenue KRW 192.01B; Operating income KRW 6.11B.

• ▍Revenue KRW 192.01B
• ▍Operating income KRW 6.11B
• ▍Net margin 1.6%

Revenue KRW 165.91B; Operating income KRW 2.06B.

• ▍Revenue KRW 165.91B
• ▍Operating income KRW 2.06B
• ▍Net margin 0.5%

Revenue KRW 696.93B, −3,4% YoY; Operating income −16,2% YoY.

• ▍Revenue KRW 696.93B, −3,4% YoY
• ▍Operating income −16,2% YoY
• ▍Net income −60,1% YoY
• ▍Free cash flow −214,8% YoY
• ▍Net margin 0.7%

Revenue KRW 721.18B, +6,2% YoY; Operating income −11,1% YoY.

• ▍Revenue KRW 721.18B, +6,2% YoY
• ▍Operating income −11,1% YoY
• ▍Net income −12,1% YoY
• ▍Free cash flow −170,4% YoY
• ▍Net margin 1.8%

Revenue KRW 679.23B, −9,2% YoY; Operating income −4,7% YoY.

• ▍Revenue KRW 679.23B, −9,2% YoY
• ▍Operating income −4,7% YoY
• ▍Net income +33,4% YoY
• ▍Free cash flow +827,1% YoY
• ▍Net margin 2.2%

Revenue KRW 747.94B, +18,9% YoY; Operating income +7,5% YoY.

• ▍Revenue KRW 747.94B, +18,9% YoY
• ▍Operating income +7,5% YoY
• ▍Net income −1,9% YoY
• ▍Free cash flow +125,9% YoY
• ▍Net margin 1.5%