Cosmo Chemical (005420) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Cosmo Chemical earns money along two lines: titanium dioxide (TiO2), a white pigment that makes paints, inks and plastics white, is the long-standing core business, while making cobalt sulfate (a cathode-material feedstock) and recovering cobalt and nickel from spent batteries form its battery-materials growth axis - and it can be understood as handling the upstream feedstock and recycling for group affiliate Cosmo AM&T. On June 9 two single-supply-contract disclosures went up in a single day, extending the order flow, and preliminary results on May 6 plus the quarterly and business reports on May 15 and June 2 confirmed a Q1 that turned to profit. The point worth watching is that after a 2025 loss it turned to a Q1 operating profit and revenue grew 13.6% year on year, adding a battery-materials growth axis on top of pigments; against that, the debt ratio of 431% and a current ratio below 100% make the financial burden heavy, and since the full year is still in the red, whether the Q1 profit carries through the year needs confirming.
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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 “Chemicals” (Chemicals, Refining, Steel & Materials), a type typically read first through P/B.
Chemicals is a cyclical business where profits swing with feedstock prices and product spreads, ballooning in upturns and often slipping into losses in downturns. That makes earnings-based multiples unreliable, so price-to-book (P/B) — the share price against the value of the company's heavy asset base — is the first lens.
That said, earnings are swinging with the industry cycle right now, so this metric is best viewed alongside asset value and the demand backdrop.
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
- Debt is somewhat higher than equity (debt ratio 277.5%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 90.6%).
- The most recent full-year net result was a loss.
- Revenue fell 11.4% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 13.6% higher than a year earlier.
- ROE is -13.8% (controlling-interest basis). It is below the sector average.
- Operating margin is -1.6%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder Cosmo & Company 27.4% (corporate)
Controlling bloc incl. related parties 30.65%
With the controlling bloc holding 31%, the ownership structure is stable.
🔎 In-depth analysis Reading
Cosmo Chemical earns money along two broad lines. The first is the company's long-standing core business, titanium dioxide (TiO2), a white pigment that makes paints, inks, plastics and paper white and opaque. As one of the few companies in Korea that makes this pigment directly, its revenue moves with the economy and with construction and coatings demand. The second is the battery-materials business, where it has built up lines that make cobalt sulfate - a feedstock for cathode materials - and recover metals such as cobalt and nickel from spent batteries (recycling). Since group affiliate Cosmo AM&T (005070) makes cathode active materials, Cosmo Chemical is easiest to understand as handling the upstream feedstock and recycling ahead of it. In other words, it layers a battery-materials growth axis on top of the cash flow of traditional chemicals (pigments).
The latest close is ₩9,940 and the market capitalization is ₩381.8 billion. The price sits above its 20-day moving average (₩9,175) and below its 60-day moving average (₩11,474). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 52.2, a neutral level. The one-month change is -0.5%, the three-month change is -45.6%, and the position relative to the 52-week high is -52.7%. Relative strength versus the KOSPI is 4 (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 3% of all stocks. Over the past three months it lagged the index by 35.5%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On a 2025 annual basis net profit was in the red, so the trailing P/E (how many times last year's confirmed profit the price is) does not compute, and the P/B (how many times the company's net assets the price is) is 1.65x. That said, this company is at an inflection where earnings have bottomed and just turned up, so looking only at trailing numbers tied to last year's loss makes it easy to miss the company's current shape. In fact, in Q1 2026 operating profit turned positive at ₩6.0 billion, and the forward P/B reflecting this is 1.66x, lower than trailing. The forward P/E is not in an outright cheap zone, but the key is that, as a company that has just swung from loss to profit, this multiple has room to fall quickly as earnings build. The financial structure, by contrast, is clearly heavy: the debt ratio (debt against equity) is 531.5% - debt more than five times equity - and the current ratio (assets that can be turned to cash right away against debt due within a year) is 60.7%, below 100%. This is a stock to weigh together the earnings recovery and the financial burden.
Revenue grew from ₩512.6 billion in 2021 to ₩799.0 billion in 2023, then fell two years running to ₩749.3 billion in 2024 and ₩664.2 billion in 2025, and operating profit retreated from ₩30.5 billion in 2021 to -₩16.0 billion in 2025. But the most recent quarter, Q1 2026, was clearly different. Revenue rose 13.6% year on year to ₩183.5 billion, and operating profit jumped more than fivefold to ₩6.0 billion from about ₩0.95 billion in the same quarter last year. With the battery-materials lines (cobalt sulfate and recycling) running at higher utilization and pigment shipments providing support, top line and profitability recovered together. On the premise that this profitable flow continues, a P/E on this year's forward earnings can be set - a number that, unlike trailing, which could not even be computed given the 2025 loss, shows the company has returned to making a profit. Whether the Q1 profit lasts through the year is something to confirm in the next quarter's results, but with revenue growth and a swing to operating profit appearing together, the basis for the earnings inflection is clearly present in the data.
On June 9, 2026 two single-supply-contract disclosures (voluntary) went up in a single day. A supply contract in voluntary-disclosure form is the company announcing that an order above a certain size has been booked, and the point to watch is how the contract size and revenue-recognition timing feed into results from the next quarter onward. On May 6 it announced preliminary operating results via fair disclosure first, and across May 15 and June 2 the confirmed and amended versions of the Q1 2026 quarterly report and 2025 business report were filed, so the Q1 swing to profit can be confirmed in official material. Through May and June several large-holding reports went up, showing that major shareholders' stakes are also moving.
The strengths are clear. It swung from a 2025 loss to a Q1 2026 operating profit, revenue grew 13.6% year on year, and the June supply-contract disclosures extended the order flow. Holding a battery-materials and spent-battery-recycling growth axis alongside pigments, a traditional cash source, broadens the business, and as an inflection where earnings have just turned, there is room for the forward multiple to fall as results build. At the same time the cautions are just as clear. The debt ratio is high at 431% and the current ratio is below 100%, so the financial burden is heavy, and since the full year is still in the red, whether the Q1 profit carries through the year needs confirming. In short, if quarterly profit continues and the financial structure improves alongside it, the stock is strong; if the profit stops at one quarter or borrowing pressure flares again, it weakens. Rather than settling on either side, the key is to watch the two conditions of 'results durability' and 'financial improvement' together.
🔎 Valuation vs peers Inconclusive
In keeping with its reality of having broadened from pigments into battery materials, the peer set was set as fellow Cosmo group cathode-material maker Cosmo AM&T and leading cathode-material maker POSCO Future M. For all three the P/B is a base-calculated value within the site.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Cosmo AM&T | 0.00x | 2.21x | -0.11% |
| POSCO Future M | 406.67x | 3.17x | -0.25% |
| KCC | 2.40x | 0.46x | 21.13% |
(a) Within the peer set Cosmo Chemical's P/B of 2.14x is lower than the cathode-focused companies (Cosmo AM&T 2.86x, POSCO Future M 4.04x) and higher than pure-chemical and building-materials name KCC (0.54x), a middle position. (b) This means the stability of the traditional pigment business and the growth expectation of battery materials are both blended into the price, so it is hard to settle on a clear premium or discount. (c) With 2025 in the red, the trailing P/E is meaningless, and while the Q1 2026 swing to profit and the seasonal forward revenue (about ₩734.4 billion) show recovery potential, whether an annual profit carries through is unconfirmed. Being at an earnings inflection where the trailing figure is sharply limited, we hold off on the valuation verdict until more quarterly results build up.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩215.3 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩9,940 and the market capitalization is ₩381.8 billion. The price sits above its 20-day moving average (₩9,175) and below its 60-day moving average (₩11,474). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 52.2, a neutral level. The one-month change is -0.5%, the three-month change is -45.6%, and the position relative to the 52-week high is -52.7%. Relative strength versus the KOSPI is 4 (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 3% of all stocks. Over the past three months it lagged the index by 35.5%. 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 -35.49% / 6M -50.98% / 12M -69.27%
Key metrics Computed vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 1.65x is above the sector median (0.90x).
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 9.8%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is -13.8%, below the sector average (4.0%). The operating margin is -1.6%. The debt ratio is 277.5%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $561.3M | $526.4M | $466.6M | -11.36% ↓ slower |
| Operating profit | $2.1M | -$1.4M | -$11.2M | — |
| Net profit | -$18.8M | -$45.4M | -$21.3M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $360.1M | $504.5M | $561.3M | $526.4M | $466.6M |
| Operating profit | $21.4M | $29.1M | $2.1M | -$1.4M | -$11.2M |
| Net profit | $7.6M | $7.9M | -$18.8M | -$45.4M | -$21.3M |
| Revenue CAGR | 4-yr avg 6.69% | ||||
Revenue fell 11.4% year over year (2023 ₩799.0 billion → 2024 ₩749.3 billion → 2025 ₩664.2 billion), and the three-year trend is 'falling'. The rate of decline widened from the prior year. Operating results are in the red, so a swing back to profit matters more than the growth rate here. Over the 5 years on record, revenue compound annual growth (CAGR) is 6.7%. The two-year revenue CAGR is -8.8%. In the most recent quarter (Q1 2026), revenue was 13.6% 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
- Debt is somewhat higher than equity (debt ratio 277.5%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 90.6%).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 11.4% year over year (3-year trend: falling).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-06-09UpdateAnnounced conclusion of a single-supply contract via voluntary disclosure (two on the same day).Short term it is a signal of secured orders; medium term the point is whether the contract size and revenue-recognition timing feed into later quarters' results. Source
- 2026-06-09UpdateFiled an additional amendment (voluntary disclosure) to a supply contract of the same type.An amendment to an existing contract; the amended size and term need checking in the original text. Source
- 2026-05-06EarningsPre-disclosed operating (preliminary) results via fair disclosure.Announcing preliminary results ahead of the confirmed quarterly report, this is first-pass material for gauging the direction of the Q1 swing to profit. Source
- 2026-06-02FilingFiled amended versions of the Q1 2026 quarterly report and the 2025 business report.Allows a side-by-side check of the confirmed figures for the Q1 that turned to profit and the 2025 full year that was in the red. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-06-09Single supply/sales contract (amended)
- 2026-06-09Single supply/sales contract
- 2026-06-05OwnershipOwnership-change filing
- 2026-06-02PeriodicQuarterly report (amended)
- 2026-06-02PeriodicAnnual business report (amended)
- 2026-06-02PeriodicQuarterly report (amended)
- 2026-06-02PeriodicAnnual business report (amended)
- 2026-05-29Corporate governance report
- 2026-05-15OwnershipOwnership-change filing
- 2026-05-15PeriodicQuarterly report
- 2026-05-06EarningsFair-disclosure notice
- 2026-04-27OwnershipOwnership-change filing
📖 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.