S-Oil (010950) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
S-Oil is a refiner whose largest shareholder is Saudi Aramco; most of its revenue comes from buying crude oil and refining it into petroleum products such as gasoline, diesel, and jet fuel. It adds petrochemicals (paraxylene and others) and lubricant base oils to generate profit. In the first quarter of 2026, an improvement in refining margins overlapped with inventory gains from rising oil prices, producing quarterly operating profit of ₩1,231.1 billion and net profit of ₩721.0 billion — a clear rebound from the weak 2024-2025 period. What stands out lately is that while earnings recover quickly as long as refining margins stay strong, this is a classic cyclical business where the swing in results is large once oil prices and refining margins change direction.
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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 “Oil Refining” (Chemicals, Refining, Steel & Materials), a type typically read first through P/B.
Refining is a cyclical business whose profits swing with crude prices and refining margins, ballooning in good times and often turning to losses in bad ones. That makes price-to-book (P/B) — the price against the value of the large refining asset base — the first lens rather than current-year earnings multiples.
Price against assets alone says little about where the cycle stands. Reading it together with price against this year's expected earnings shows how far profits have recovered.
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 201.7%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 77.2%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue fell 6.5% year over year (3-year trend: mixed).
- Net profit swung from a loss a year earlier back into the black (a turnaround).
- Most recent quarter (Q1 2026) revenue was 0.5% lower than a year earlier.
- ROE is 2.0% (total-net basis). It is below the sector average.
- Operating margin is 0.7%.
- 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 Aramco Overseas Company B.V. 63.41% (corporate)
Controlling bloc incl. related parties 72.18%
With the controlling bloc holding 72%, control is very secure but the free float is thin.
🔎 In-depth analysis Reading
S-Oil is a refiner that refines crude oil into petroleum products such as gasoline, diesel, jet fuel, and naphtha and sells them. Most of its revenue comes from this refining division. In the first quarter of 2026 alone, refining revenue of ₩7,101.3 billion accounted for most of total revenue of ₩8,942.7 billion. To this it adds petrochemical products such as paraxylene and benzene and automotive lubricant base oils, broadening its profit structure. Its largest shareholder is Saudi Arabia's state oil company Aramco, closely connected in crude procurement and business strategy.
The latest close is ₩124,900 and the market capitalization is ₩14.1 trillion. The price sits below its 20-day moving average (₩134,870) and above its 60-day moving average (₩118,343). 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 47.6, a neutral level. The one-month change is -2.0%, the three-month change is +2.4%, and the position relative to the 52-week high is -17.4%. Relative strength versus the KOSPI is 67 (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 68% of all stocks. Over the past three months it outpaced the index by 25.7%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On surface metrics alone it looks expensive. The P/E ratio (how many times one year's earnings the share price represents) is a very high 89x. But this figure is calculated on 2025 (net profit ₩177.0 billion), when earnings were at a bottom, so it is inflated relative to reality. Refining is a business where profit swings sharply from year to year, so a trough-year P/E is no basis for calling the company expensive. The P/B (the price relative to net assets) is 1.47x. EV/EBITDA (enterprise value, which also reflects debt, divided by pre-depreciation operating profit) is 10.0x, a neutral level for the refining sector. The balance sheet is heavy. The debt ratio (debt relative to equity) is 199%, meaning a large part of assets is funded by borrowed money — a trait of a capital-intensive plant industry where refining facilities require large capital. The current ratio (money that can be used right away against debts due within a year) is 71%, below 100%, so short-term liquidity is not ample.
Looking at the flow of earnings, this is now a recovery phase. Operating profit peaked at ₩3,405.2 billion in 2022, then fell to ₩422.2 billion in 2024 and ₩235.6 billion in 2025. Net profit turned to a loss in 2024 (-₩193.0 billion) before barely recovering to a ₩177.0 billion profit in 2025. But the trend shifted dramatically in 2026. First-quarter 2026 operating profit of ₩1,231.1 billion in a single quarter already far exceeded full-year 2025 operating profit. Net profit was ₩721.0 billion in a single quarter. The backdrop is that crude-supply disruptions cut regional refinery utilization and export restrictions in some countries overlapped, widening kerosene/diesel spreads and lifting Asian refining margins. That said, more than half of first-quarter operating profit was inventory-related gains from rising oil prices, and this portion may not repeat every quarter. So rather than treating this year's earnings as a simple 4x of the first quarter, it is right to view the trend net of the inventory effect. Even so, this year's earnings are set to show a recovery of a different order from the weak past two years. Reflecting this earnings recovery, the P/E on the next twelve months' earnings falls into the single digits — an entirely different picture from the 89x calculated on last year's results.
The flow confirmed by disclosures is an earnings rebound and normal shareholder-return activity. In May 2026 the company fairly disclosed preliminary consolidated first-quarter results, posting operating profit of ₩1,231.1 billion and net profit of ₩721.0 billion. In April it held an investor presentation (IR) to explain results and business conditions to the market. Also in April there was a single sales/supply contract disclosure, showing that sales and supply activity beyond the core refining business continues. The annual settlement process wrapped up with the March AGM and the filing of the 2025 business report. That said, with the dividend yield low at 0.24%, the force driving the share price in this phase lies more in the earnings recovery than in the dividend.
S-Oil's current character is 'a cyclical refiner recovering after passing a bottom.' The favorable case is clear: as long as refining margins stay strong and the oil-price environment is favorable, earnings recover quickly, as the first quarter of 2026 attests. The P/E of 89x calculated on last year's results is merely an illusion of an earnings trough; on recovered earnings the valuation burden falls sharply. The cautionary case is just as clear. When refining margins and oil prices change direction, results swing sharply along with them — the essence of the refining business. In particular, because a large part of first-quarter profit was inventory gains from rising oil prices, a fall in oil prices can conversely produce inventory losses. A 199% debt ratio and a 71% current ratio, leaving little financial room, are also a burden in a downturn. In sum, when refining-margin strength continues, undervaluation appeal relative to the earnings recovery comes alive, but if signs of a cycle turn appear, earnings and the share price can retrace together.
🔎 Valuation vs peers Fairly valued
The representative comparison set in the domestic refining/energy sector. SK Innovation combines refining with a battery business and Lotte Chemical is petrochemical-centered, so their business grain differs, but they share the same refining/petrochemical cycle.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| SK Innovation | 0.00x | 0.78x | -15.36% |
| Lotte Chemical | 0.00x | 0.19x | -16.19% |
| OCI Holdings | 0.00x | 1.13x | -2.29% |
The surface P/E of 89x is on a 2025 basis, when earnings were at a bottom, so it is hard to use as a basis for a valuation call. Because refining is a business where profit swings widely, a trough-year P/E comes out much higher than reality. The real picture must be viewed on the next twelve months' earnings. Reflecting the sharp first-quarter 2026 rebound, the earnings-based P/E falls into the single digits. Peers SK Innovation and Lotte Chemical are still loss-making, so a P/E cannot even be calculated, whereas S-Oil's earnings recovery appeared first, giving it a premium at a P/B of 1.78x. EV/EBITDA of 10.0x is neither especially cheap nor expensive for the refining sector. Taken together, the valuation reflecting the earnings recovery is at an undemanding, fair level. That said, the judgment changes if the premise that refining-margin strength sustains these earnings breaks down.
Price history Close · MA20 · MA60
The latest close is ₩124,900 and the market capitalization is ₩14.1 trillion. The price sits below its 20-day moving average (₩134,870) and above its 60-day moving average (₩118,343). 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 47.6, a neutral level. The one-month change is -2.0%, the three-month change is +2.4%, and the position relative to the 52-week high is -17.4%. Relative strength versus the KOSPI is 67 (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 68% of all stocks. Over the past three months it outpaced the index by 25.7%. 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 +25.70% / 6M -2.79% / 12M +2.15%
Key metrics Computed vs whole-market median
Valuation
The P/E of 79.47x is above the whole-market median (12.97x). The P/B of 1.47x is above the whole-market median (0.84x).
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.
Profitability & financials
Return on equity (ROE) is 2.0%, below the whole-market average (3.0%). The operating margin is 0.7%. The debt ratio is 201.7%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $25.1B | $25.7B | $24.1B | -6.52% ↓ slower |
| Operating profit | $951.6M | $296.6M | $165.5M | -44.19% ↑ faster |
| Net profit | $666.6M | -$135.6M | $124.3M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $19.3B | $29.8B | $25.1B | $25.7B | $24.1B |
| Operating profit | $1.5B | $2.4B | $951.6M | $296.6M | $165.5M |
| Net profit | $968.4M | $1.5B | $666.6M | -$135.6M | $124.3M |
| Revenue CAGR | 4-yr avg 5.67% | ||||
Revenue fell 6.5% year over year (2023 ₩35.7 trillion → 2024 ₩36.6 trillion → 2025 ₩34.2 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 44.2% year over year. That said, the decline narrowed. Over the 5 years on record, revenue compound annual growth (CAGR) is 5.7%. The two-year revenue CAGR is -2.1%. In the most recent quarter (Q1 2026), revenue was 0.5% lower than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
Points to watch
- Debt is somewhat higher than equity (debt ratio 201.7%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 77.2%).
- Revenue fell 6.5% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-05-11EarningsFair disclosure of preliminary consolidated Q1 2026 results. Revenue ₩8,942.7 billion, operating profit ₩1,231.1 billion, net profit ₩721.0 billion — a large rebound from the 2024-2025 weakness.A refining-margin recovery and inventory gains from rising oil prices overlapped, sending earnings sharply higher. A key event confirming that the trailing P/E was on an earnings-trough basis. Source
- 2026-05-15FilingFiling of the quarterly report as of March 2026. A regular disclosure with first-quarter results by refining, petrochemical, and lubricant division.Reconfirms the business structure in which refining accounts for most of the profit and petrochemicals turned to a small profit. Source
- 2026-04-27IRNotice of an investor presentation (IR). Explaining results and business conditions directly to the market.An occasion for the company to communicate its business direction directly during the earnings-rebound phase. Source
- 2026-04-20UpdateSingle sales/supply contract disclosure (amended). Content related to petroleum-product sales/supply contracts.Confirms that the core refining sales and supply activity is proceeding normally. Source
- 2026-03-20FilingFiling of the 2025 business report. Annual revenue ₩34,247.0 billion, operating profit ₩235.6 billion, net profit ₩177.0 billion, confirming the earnings bottom.The earnings-trough year that underlies the trailing P/E of 89x. A reference point contrasting with the 2026 recovery. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-06-01Large-business-group status disclosure (amended)
- 2026-05-26Large-business-group status disclosure
- 2026-05-26Large-business-group status disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-12Corporate governance report
- 2026-05-11EarningsFair-disclosure notice
- 2026-04-27Disclosure
- 2026-04-20Single supply/sales contract (amended)
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-30Disclosure
- 2026-03-30Shareholders' meeting notice
- 2026-03-20PeriodicAnnual business 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.