Korea Petroleum (004090) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
As its name suggests, Korea Petroleum's revenue backbone is asphalt and construction and industrial materials made by processing petroleum-based feedstock — a materials-processing company with annual revenue around ₩700 billion but an operating margin of roughly 1.7%, so its margins swing with crude and raw-material prices and with road and construction demand. Earnings that bottomed last year rebounded quickly in the first quarter, with operating profit up 335%, and in August-September 2025 the company raised ₩20 billion of convertible bonds at a conversion price of ₩15,409. What stands out is that if the first-quarter earnings recovery carries into the remaining quarters and raw-material prices stabilize, the undervaluation appeal of a 0.66x P/B and a below-peer forward P/E stands out strongly; but because the operating margin is thin, that appeal can weaken if crude and raw-material prices rise again or if the share count grows as the convertible bonds convert.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Building Materials” (Construction & Building Materials), a type typically read first through P/E.
Building-materials makers see results rise and fall with construction activity and new project starts, but the underlying make-and-sell profit structure is fairly clear. That makes price-to-earnings (P/E) — the share price against the profits earned — the first lens.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue fell 4.0% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 7.6% higher than a year earlier.
- ROE is 2.5% (controlling-interest basis). It is above the sector average.
- Operating margin is 2.1%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2021-12-31
Largest shareholder Kang Seung-mo 33.32% (individual)
Controlling bloc incl. related parties 46.45%
With the controlling bloc holding 46%, the ownership structure is stable.
🔎 In-depth analysis Reading
As its name suggests, the revenue backbone is asphalt and construction and industrial materials made by processing petroleum-based feedstock. Annual revenue is around ₩700 billion, so the scale is not small, but as the roughly 1.7% operating margin shows, this is a materials-processing business whose margins swing with crude and raw-material prices and with downstream demand such as roads and construction. With a market capitalization of ₩134.8 billion, which is not large, it is worth watching both the flow of the business itself and how a single disclosure can affect the finances and the share count.
The latest close is ₩10,520 and the market capitalization is ₩133.5 billion. The price sits below its 20-day moving average (₩11,044) and below its 60-day moving average (₩11,826). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 43.3, a neutral level. The one-month change is -3.6%, the three-month change is -30.6%, and the position relative to the 52-week high is -62.6%. Relative strength versus the KOSPI is 10 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 9% of all stocks. Over the past three months it lagged the index by 15.4%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Recent annual revenue was ₩696.9 billion, operating profit ₩11.8 billion and net profit ₩5.2 billion, with an operating margin of 1.7% and an ROE (how much is earned in a year on shareholders' equity) of 2.5%, above the peer average. The debt-to-equity ratio is 101.3%, not an unreasonable level for a materials sector. The headline P/E of 25.86x looks high only because last year's profit temporarily bottomed out; on this year's basis, as profit normalizes, the forward P/E comes down. A P/B of 0.66x means the share price is about two-thirds of the company's book value, so it is on the cheap side relative to assets as well. For a stock in a stretch where profit is turning up from a bottom, this year's earnings-based metrics are closer to the real picture than last year's confirmed P/E.
Revenue held in the ₩700 billion range without much fluctuation — ₩682.3 billion in 2023, ₩726.2 billion in 2024 and ₩696.9 billion in 2025 — while operating profit was pressed from ₩18.8 billion in 2024 to ₩11.8 billion in 2025 over one year. The inflection shows clearly in the quarterly figures. First-quarter 2026 revenue was ₩171.2 billion, up 7.6% year on year, and operating profit was ₩4.1 billion, up 335.0%, as margins normalize quickly. If this recovery continues while raw-material pressure eases and downstream demand holds, this year's operating profit of ₩28.1 billion and net profit of ₩27.3 billion is a natural path — a recovery reversing last year's temporary weakness, not a figure forced higher. Set against the current share price, that profit brings the forward P/E down.
Financing disclosures that touch the finances and share count directly are at the center of the recent flow. On August 29 and September 5, 2025 (a correction), the company decided to issue convertible bonds, raising ₩20 billion at a conversion price of ₩15,409, and on September 8 a disclosure of the issuance result closed out the payment. Convertible bonds bring in funds but can increase the share count if the share price rises above the conversion price and they convert, so it is worth watching both where the proceeds are used — facilities or operations — and whether that flows into revenue and profit, along with any change in the share count from conversion.
The strengths are clear. Earnings that bottomed last year rebounded quickly in the first quarter, with operating profit up 335%, and this year's forward P/E reflecting that recovery is even lower than the peer set (such as Sungshin Cement at 7.17x), making the undervaluation signal clear on both earnings and assets. The asset backstop of a 0.66x P/B also supports it. On the weaker side, the operating margin is a thin 1.7%, so margins can easily wobble if crude and raw-material prices rise again, and the share count can grow if the convertible bonds convert. In short, the undervaluation appeal stands out most strongly when the first-quarter earnings recovery carries into the remaining quarters and raw-material prices stabilize, and it weakens when raw-material prices spike again or the conversion overhang becomes a burden.
🔎 Valuation vs peers Undervalued
A peer set within non-metallic mineral products (cement and glass) with adjacent market capitalization.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Sungshin Cement | 7.50x | 0.34x | 4.43% |
| CR Holdings | — | 0.38x | -3.57% |
| SG | — | 1.38x | -2.03% |
Within non-metallic mineral products (cement and glass), a public-data peer set with nearby market capitalization was looked at first. The current P/E ratio (how many times a year's profit the share price represents) is 25.61x and the P/B (how many times book value the share price represents) is 0.66x. That said, smaller-cap names are heavily affected by earnings swings and financing disclosures, so no conclusion was drawn from last year's confirmed-results metrics alone. The forecast box is based on a DART seasonality approximation.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩737.8 billion | ₩28.1 billion | ₩27.3 billion |
| Next quarter | Q2 2026 | ₩195.7 billion | ₩10.2 billion | ₩7.5 billion |
Price history Close · MA20 · MA60
The latest close is ₩10,520 and the market capitalization is ₩133.5 billion. The price sits below its 20-day moving average (₩11,044) and below its 60-day moving average (₩11,826). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 43.3, a neutral level. The one-month change is -3.6%, the three-month change is -30.6%, and the position relative to the 52-week high is -62.6%. Relative strength versus the KOSPI is 10 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 9% of all stocks. Over the past three months it lagged the index by 15.4%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -15.39% / 6M -42.57% / 12M -61.49%
Key metrics Computed vs sector median
Valuation
The P/E of 25.61x is above the sector median (17.22x). The P/B of 0.66x is above the sector median (0.42x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
DCF (discounted cash flow) estimate — discount rate 10.1%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 2.5%, above the sector average (2.0%). The operating margin is 2.1%. The debt ratio is 115.9%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $479.3M | $510.2M | $489.6M | -4.03% ↓ slower |
| Operating profit | $12.6M | $13.2M | $8.3M | -36.91% ↓ slower |
| Net profit | $10.4M | $9.2M | $3.7M | -60.06% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $441.8M | $525.4M | $479.3M | $510.2M | $489.6M |
| Operating profit | $10.9M | $12.6M | $12.6M | $13.2M | $8.3M |
| Net profit | $8.0M | $7.8M | $10.4M | $9.2M | $3.7M |
| Revenue CAGR | 4-yr avg 2.60% | ||||
Revenue fell 4.0% year over year (2023 ₩682.3 billion → 2024 ₩726.2 billion → 2025 ₩696.9 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 36.9% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 2.6%. The two-year revenue CAGR is 1.1%. In the most recent quarter (Q1 2026), revenue was 7.6% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- —
Points to watch
- Revenue fell 4.0% year over year (3-year trend: mixed).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2025-09-08UpdateResult of a rights offering or issuance of stock-related bonds (voluntary disclosure): -08-29 actual shares issued - actual issuance amount (won) 20,000,000,000, payment date 2025-09-08. 4. Other matters material to an investment decision: the company's 2nd unregistered, non-interest-bearing, unguaranteed private-placement convertible bonds resolved by the board on August 29, 2025 and September 5, 2025This is a disclosure where the purpose of the inflow of funds and the change in share count must be viewed together. Where a facilities or operating purpose is stated, the key is whether the investment is actually executed and linked to revenue. Source
- 2025-09-05Update[Correction] Report on material matters (decision to issue convertible bonds): conversion price ₩15,409This is a disclosure where the purpose of the inflow of funds and the change in share count must be viewed together. Where a facilities or operating purpose is stated, the key is whether the investment is actually executed and linked to revenue. Source
- 2025-08-29UpdateReport on material matters (decision to issue convertible bonds): conversion price ₩15,409This is a disclosure where the purpose of the inflow of funds and the change in share count must be viewed together. Where a facilities or operating purpose is stated, the key is whether the investment is actually executed and linked to revenue. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩10,520 | ₩10,520 | Confirmed | link |
| Latest quarterly results | revenue ₩171.2 billion, operating profit ₩4.1 billion | revenue ₩171.2 billion, operating profit ₩4.1 billion | Confirmed | link |
| Annual results | revenue ₩696.9 billion, operating profit ₩11.8 billion | revenue ₩696.9 billion, operating profit ₩11.8 billion | Confirmed | link |
| Financing disclosure source text | -08-29 - 20,000,000,000 2025-09-08 4. 2025 08 29,2025 09 05 2 | -08-29 - 20,000,000,000 2025-09-08 4. 2025 08 29,2025 09 05 2 | Confirmed | link |
| Financing disclosure source text | [amended] : ₩15,409 | [amended] : ₩15,409 | Confirmed | link |
| Financing disclosure source text | ₩15,409 | ₩15,409 | Confirmed | link |
| Forecast box basis | DART | DART | Confirmed | link |
Recent filings Source
- 2026-06-10Disclosure
- 2026-06-10OwnershipOwnership-change filing
- 2026-06-01Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-05-11EarningsFair-disclosure notice
- 2026-04-30OwnershipLargest-shareholder ownership change report
- 2026-03-30OwnershipLargest-shareholder ownership change report
- 2026-03-27Shareholders' meeting notice
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Audit report
- 2026-03-13TreasuryTreasury-stock disposal decision (amended)
- 2026-03-13OwnershipLargest-shareholder ownership change report
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.