S-Oil is a refiner that turns crude into gasoline, diesel, and jet fuel at its Ulsan refining complex, which processes 669,000 barrels a day; most of its revenue and profit come from refining, with petrochemicals such as paraxylene and benzene and lubricant base oils added on, and it is a cyclical industry in which the price gap between crude and products (the refining margin) drives results. In Q1 2026 it confirmed a return to profit and a step-up in earnings, with refining at about ₩1.04 trillion, petrochemicals turning to a profit of about ₩0.26 trillion, and lubricant base oils at about ₩0.17 trillion, while the Shaheen Project (its largest-ever investment, totaling ₩9.258 trillion) passed a completion rate in the mid-90s% and is set for mechanical completion in the first half. What stands out lately is that two axes, a recovery in refining margins and completion of the Shaheen Project, are lifting results, a strength; on the cautionary side, profit swings widely with refining margins and oil prices in this cyclical business, and liquidity and the debt ratio are still tight in the wake of the large investment.
At-a-glance assessment financial health · growth · profitability · valuation
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 70.6%).
- 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%.
- The forward P/E sits below the sector median.
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
- S-Oil is a refiner that runs an Ulsan refining complex processing 669,000 barrels a day, turning crude into petroleum products such as gasoline, diesel, and jet fuel.
- Most of its revenue and profit come from the refining (fuel oil) business, with petrochemical feedstocks such as paraxylene (PX) and benzene, plus automotive and industrial lubricant base oils (the raw material for engine oil), added on.
- In the Q1 2026 operating-profit mix, refining led the whole at about ₩1.04 trillion, petrochemicals turned to a profit of about ₩0.26 trillion, and lubricant base oils added about ₩0.17 trillion.
- It is a textbook cyclical industry in which the price gap between the crude the company buys and the products it sells (the refining margin) drives results.
- The recent closing price is ₩133,500 and the market cap is ₩15.0 trillion.
- The price sits above its 20-day line (₩110,755) and above its 60-day line (₩113,567).
- Being above both the short- and mid-term moving averages, the trend is on the favorable side.
- The RSI (a supporting gauge that compares upward and downward force over the past 14 days on a 0-100 scale) is 69.8, a neutral level.
- The one-month change is +20.5%, the three-month change is +16.3%, and the position versus the 52-week high is -5.5%.
- Relative strength versus KOSPI is 66 (on a 1-99 scale, calculated from returns against the index over the past year with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 34% for strength among all stocks.
- Over the past three months it lagged the index by 4.1%.
- It helps to read the chart alongside trading volume and the dates of disclosures.
- On the surface the P/E (how many times one year's profit the price is) is 84.94x, which looks very high, but that comes from 2025 being a refining-margin trough where net profit shrank to an extreme ₩0.18 trillion.
- In other words, the trailing P/E on last year's confirmed earnings does not reflect the current earnings strength at all.
- In fact, Q1 2026 operating profit alone (₩1.23 trillion) already exceeded 2025's full-year operating profit (₩0.24 trillion) by more than fivefold.
- The P/B (how many times net assets the price is) is 1.69x and the P/S (how many times revenue the price is) is 0.34x, so against assets and revenue it is not heavy.
- The finances are somewhat tight: a current ratio of 70.6% (fewer assets that can be turned to cash right now than debts due within a year) and a debt ratio of 198.8% (debt relative to equity) stem from investing over ₩9 trillion in the Shaheen Project, items with room to improve once profit normalizes.
- Long-term results trace the refining-margin cycle exactly.
- Net profit fell from a boom of ₩2.10 trillion in 2022 → ₩0.95 trillion in 2023 → -₩0.19 trillion (loss) in 2024 → ₩0.18 trillion in 2025 to hammer out a bottom, then rebounded clearly to ₩0.72 trillion in Q1 2026.
- The basis for the recovery is clear.
- The Q1 blended refining margin was about $19 per barrel, up $4.6 from the prior quarter, and in the second half, with refinery turnarounds overlapping, supply and demand for middle distillates such as diesel and jet fuel are tight, so margins are likely to hold up.
- Reflecting this path, 2026 earnings run from a bottom in Q1 through the second half, and even though last year's trailing P/E looks high, on the earnings the company will make this year (forward) it is actually trading at a low multiple.
- Q1 2026 results confirmed a return to profit and a step-up in earnings, and the Shaheen Project (its largest-ever investment, totaling ₩9.258 trillion) has passed a completion rate in the mid-90s% and is set for mechanical completion in the first half.
- After completion, a long-term agreement follows to supply the basic feedstocks produced at this facility to domestic petrochemical downstream companies by pipeline (an April supply-contract disclosure), an inflection point for broadening the business axis from a refining focus toward petrochemicals.
- An April investor briefing and the May quarterly report officially confirmed this flow.
- The observation point is the earnings inflection.
- On the headline P/E alone it looks expensive, but that owes to last year's trough profit; considering Q1 results and the outlook for margin support in the second half, on a forward basis it is in undervalued territory.
- It is a phase in which two axes, a recovery in refining margins and completion of the Shaheen Project, are lifting results.
- The cautions are that this business is inherently cyclical, with profit swinging widely with refining margins and oil prices, and that liquidity and the debt ratio are still tight in the wake of the large investment.
- If refining margins hold up strongly, profit and financial improvement come together; if margins drop sharply, the earnings volatility is exposed as is.
🔎 Valuation vs peers Undervalued
Large Korean refiners and refining-chemical companies. SK Innovation, which rides the same refining-margin cycle, is the closest peer, taking into account also the axis of broadening into petrochemical feedstocks.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| SK Innovation | 0.00x | 0.77x | -15.36% |
| OCI Holdings | 0.00x | 0.87x | -2.29% |
The headline 67.7x P/E is a distortion produced by extremely low net profit at the 2025 refining-margin trough, and it does not reflect the current earnings strength. Q1 operating profit alone (₩1.23 trillion) already exceeded 2025's full-year operating profit by more than fivefold, and projecting this path onto this year's earnings brings the forward multiple down sharply. At a P/B of 1.35x and P/S of 0.34x, the burden against assets and revenue is not heavy either. SK Innovation, which rides the same cycle, is still in a loss (ROE -15.4%), so S-Oil's earlier return to profit is relatively ahead, and if refining margins hold up through the second half, on this year's earnings it reads as undervalued territory. That said, given the cyclical nature of the industry, one must keep in mind that profit can reverse quickly if margins drop sharply.
Price history Close · MA20 · MA60
The latest close is ₩133,500 and the market capitalization is ₩15.0 trillion. The price sits above its 20-day moving average (₩110,755) and above its 60-day moving average (₩113,567). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 69.8, a neutral level. The one-month change is +20.5%, the three-month change is +16.3%, and the position relative to the 52-week high is -5.5%. Relative strength versus the KOSPI is 66 (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 66% of all stocks. Over the past three months it lagged the index by 4.1%. 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 -4.09% / 6M -2.76% / 12M -9.30%
Key metrics vs whole-market median
Valuation
The P/E of 84.94x is above the whole-market median (13.81x). The P/B of 1.69x is above the whole-market median (1.15x).
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 (5.0%). The operating margin is 0.7%. The debt ratio is 198.8%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $23.7B | $24.3B | $22.7B | -6.52% ↓ slower |
| Operating profit | $897.8M | $279.8M | $156.2M | -44.19% ↑ faster |
| Net profit | $628.9M | -$127.9M | $117.3M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $18.2B | $28.1B | $23.7B | $24.3B | $22.7B |
| Operating profit | $1.4B | $2.3B | $897.8M | $279.8M | $156.2M |
| Net profit | $913.7M | $1.4B | $628.9M | -$127.9M | $117.3M |
| 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 Q1 2026 · vs year-ago
Technical indicators
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
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 70.6%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue fell 6.5% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-05-15EarningsQ1 2026 quarterly report: revenue ₩8.94 trillion, operating profit ₩1.23 trillion, net profit ₩0.72 trillion, a return to profit. Refining operating profit of about ₩1.04 trillion drove results.It surpassed 2025's full-year operating profit (₩0.24 trillion) by more than fivefold in a single quarter, confirming a normalization of earnings strength. It supports reinterpreting the trailing P/E distortion from a forward perspective. Source
- 2026-04-20UpdateSingle sale/supply contract signed (correction): disclosure related to a long-term supply agreement for products such as basic feedstocks produced at the Shaheen Project.The substance of business diversification, adding a stable revenue source of petrochemical feedstock supply to refining-centered revenue. Directly tied to utilization and margins after completion. Source
- 2026-04-27IRInvestor briefing announcement disclosure: explains Q1 results and Shaheen Project progress to the market.Confirms through an official channel the two narratives of an earnings recovery and imminent completion of a large project. Presents the direction of a medium-term business shift. Source
- 2026-05-11FilingFair disclosure related to consolidated financial statements (voluntary disclosure) filed.A regular update to the financial-reporting framework, maintaining accounting-basis consistency during the earnings-recovery phase. Source
Figure cross-check computed ↔ external
Recent filings
- 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.