LG Uplus is a company whose revenue backbone is the monthly telecom bills people pay, with 5G and LTE mobile fees the largest share, backed by fixed-line and media services such as broadband and IPTV and a growth axis in enterprise leased lines, IDC, cloud, and AI. In a March 2026 value-up disclosure it formalized a policy of paying out at least 40% of separate net profit and a total shareholder-return ratio of up to 60%, and in April it decided to retire treasury shares; Q1 net profit improved 8.4%, and the 2025 dividend was raised to ₩660 per share from a year earlier. The strengths to note are that, on stable telecom cash flow, profit is recovering faster than revenue, with a P/B of 0.68x and a forward P/E of about 10x supported by a 4%-range dividend, share retirement, and an officially backed dividend floor. The cautions are that Korean telecom revenue growth is gentle at around 5% a year with subscribers saturated, and that its ROE of 5.9% trails KT's (9.8%).
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue rose 5.7% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 1.5% higher than a year earlier.
- Even versus the prior quarter (Q4 2025), revenue was 1.2% lower.
- ROE is 5.9% (controlling-interest basis). It is below the sector average.
- Operating margin is 5.8%.
Ownership & governance As of 2025-12-31
Largest shareholder LG 38.25% (corporate)
Controlling bloc incl. related parties 38.25%
With the controlling bloc holding 38%, the ownership structure is stable.
🔎 In-depth analysis
- LG Uplus's revenue backbone is the monthly telecom bills people pay.
- Mobile (5G and LTE) fees make up the largest share, backed by fixed-line and media fees such as home broadband and IPTV (U+tv).
- Added to this is a business serving corporate clients — leased lines, internet data centers (IDC), cloud, and AI — a growth axis the company is cultivating as its core telecom business saturates.
- In short, 'fees that come in steadily every month from subscribers plus IT infrastructure for enterprises' are this company's income stream, and subscriber counts and average revenue per user (ARPU) are the key drivers of results.
- The latest close is ₩15,200 and the market cap is ₩6.5 trillion.
- The price sits above its 20-day line (₩14,735) and below its 60-day line (₩15,608).
- With short- and mid-term trends diverging, the direction should be read separately.
- The RSI (a supplementary gauge that weighs up-days against down-days over the past 14 days on a 0-100 scale) is 54.0, a neutral reading.
- The one-month change is +3.2%, the three-month change is -4.3%, and the price is -14.6% from its 52-week high.
- Relative strength versus the KOSPI is 31 (on a 1-99 scale that converts the past year's return against the index with more weight on recent moves; higher means stronger than the market).
- That places it in roughly the top 69% of all stocks by strength.
- Over the past three months it lagged the index by 24.1%.
- It is best to read the chart alongside trading volume and disclosure dates.
- On last year's (2025) confirmed full-year results, the P/E (how many times a year's profit the price trades at) is 12.31x and the P/B (price against the company's net asset value) is 0.73x.
- A P/B below 1x means the stock is priced below even the net assets the company holds.
- ROE (how much it earns in a year on its equity) is 5.9% and the operating margin is 5.8% — not flashy, but steady given the nature of the telecom business.
- A debt ratio (debt against equity) of 119.7% is typical for telecom, which carries debt to fund heavy network investment, and with an interest-coverage ratio of 3.2x there is ample capacity to service interest.
- One important point is that this P/E is on a trailing basis, last year's confirmed profit.
- As shown below, profit is in a recovery phase, so the P/E on this year's expected profit (about 10.0x) is lower still — a place to read the trailing multiple as cheap rather than as a burden.
- Over five years, revenue rose steadily to ₩15.5 trillion in 2025, up 5.7% from the prior year, with the pace itself gradually quickening (from +1.8% the prior year to +5.7% this year).
- With the core telecom business saturated, enterprise and media revenue underpinned the top line.
- The profit side shows a clearer inflection: net profit dropped sharply once to ₩374.5 billion in 2024, then recovered 39.9% to ₩523.9 billion in 2025.
- That recovery continues this year.
- Cumulative Q1 2026 revenue was ₩3.8 trillion (+1.5%), while operating profit was ₩272.3 billion (+6.6%) and net profit ₩176.0 billion (+8.4%), with the profit growth rate clearly outpacing revenue growth.
- In other words, even without a large rise in the top line, cost efficiency and enterprise and media margins support faster profit growth.
- The P/E on this year's expected profit falling to about 10.0x, below last year's confirmed 11.5x, likewise reflects this year's profit rising above last year's.
- Telecom is an industry where fees come in steadily every month from a subscriber base, so profit tends to follow a recovery trend rather than swinging abruptly.
- Recent disclosures read along two threads: confirmed results and shareholder returns.
- In a March 24 value-up voluntary disclosure, the company formalized a policy of paying out at least 40% of separate net profit (excluding one-off items) and, in years of good cash flow, adding share buybacks to widen the total shareholder-return ratio to as much as 60%.
- It followed through on April 30 by deciding to retire treasury shares, reducing the share count.
- A May 7 preliminary-results disclosure and the May 15 quarterly report officially confirmed the Q1 profit improvement (net profit +8.4%), and repeated May IR notices showed the company active in investor communication.
- The dividend is split into interim and year-end payments each half, and for 2025 it was raised to ₩660 per share (₩250 interim, ₩410 year-end) from ₩650 the prior year.
- The strengths are clear.
- On the stable cash flow of monthly telecom fees, profit that bottomed last year is recovering faster than revenue through Q1 this year; the P/B of 0.68x prices the stock below net assets; and the P/E on this year's expected profit (about 10.0x) is also below the confirmed basis.
- On top of this, shareholder returns such as a 4%-range dividend, share retirement, and the value-up disclosure are backed by actual filings, not words, and the company's formalization of a dividend floor (at least 40% of separate net profit) raises predictability.
- There are things to watch too.
- Korean telecom is already saturated on subscribers, so revenue growth is gentle at around 5% a year and explosive growth is hard to expect, and an ROE of 5.9% trails KT's (9.8%) — though it exceeds SK Telecom's 3.2%, placing capital efficiency in the middle of the three carriers.
- In sum, this stock is about 'stable cash flow, profit recovery, and dividends and returns' rather than 'high growth.' It is strong as long as dividends and returns hold and enterprise and media fill in for a stagnant core business, and weaker if intensifying telecom competition shakes fees or subscribers or if return capacity shrinks.
🔎 Valuation vs peers Undervalued
The peer set is KT and SK Telecom, the same three Korean mobile carriers whose business structures compare directly; all three run mobile, fixed-line, media, and enterprise IT together, making it apt to line up their P/E, P/B, ROE, and dividend.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| KT | 8.44x | 0.83x | 9.80% |
| SK Telecom | 44.18x | 1.40x | 3.18% |
(a) Position versus peers: a P/B of 0.68x is below KT (0.77) and SK Telecom (1.48), the most undervalued spot on net assets among the three. The P/E of 11.5x is above KT's (7.8x), but KT's higher ROE (9.8%) reflects a difference in earnings strength, while SK Telecom's P/E of 46x is a distorted figure with profit depressed by one-off costs, making a simple comparison difficult. (b) Premium/discount: on dividend (4.7%) and P/B it is the most favorable of the three, while on the earnings multiple it carries a slight premium to KT, so the directions diverge, but the undervaluation on the asset and dividend axes is more pronounced. (c) Trailing limits and forward: as an inflection point where last year's net profit recovered 39.9%, the confirmed trailing P/E looks somewhat high, but with this year's profit continuing to rise the forward P/E falls to about 10.0x. Taking the low P/B, industry-leading dividend, and the company's official return floor together, we judge it undervalued among the three carriers.
Price history Close · MA20 · MA60
The latest close is ₩15,200 and the market capitalization is ₩6.5 trillion. The price sits above its 20-day moving average (₩14,735) and below its 60-day moving average (₩15,608). 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 54.0, a neutral level. The one-month change is +3.2%, the three-month change is -4.3%, and the position relative to the 52-week high is -14.6%. Relative strength versus the KOSPI is 31 (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 31% of all stocks. Over the past three months it lagged the index by 24.1%. 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 -24.11% / 6M -36.17% / 12M -55.51%
Key metrics vs sector median
Valuation
The P/E is 12.31x. The P/B of 0.73x is in line with the sector median (0.83x).
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)
DCF (discounted cash flow) estimate — discount rate 10.1%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.146x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 5.9%, below the sector average (9.0%). The operating margin is 5.8%. The debt ratio is 119.7%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $9.5B | $9.7B | $10.2B | +5.65% ↑ faster |
| Operating profit | $661.5M | $572.1M | $591.3M | +3.36% ↑ faster |
| Net profit | $412.8M | $248.2M | $347.2M | +39.90% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $9.2B | $9.2B | $9.5B | $9.7B | $10.2B |
| Operating profit | $648.9M | $716.6M | $661.5M | $572.1M | $591.3M |
| Net profit | $472.1M | $439.5M | $412.8M | $248.2M | $347.2M |
| Revenue CAGR | 4-yr avg 2.77% | ||||
Revenue rose 5.7% year over year (2023 ₩14.4 trillion → 2024 ₩14.6 trillion → 2025 ₩15.5 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 3.4% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 2.8%. The two-year revenue CAGR is 3.7%. In the most recent quarter (Q1 2026), revenue was 1.5% higher than the same period a year earlier. Because quarterly results are relatively even in this industry, revenue also came in 1.2% lower than the prior quarter (Q4 2025), so the recent trend looks soft.
Latest quarterly results Q1 2026 · vs year-ago + prior quarter
Technical indicators
What stands out
- The dividend yield, at 4.3%, is on the high side.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-03-24FilingValue-up voluntary disclosure — a policy of paying out at least 40% of separate net profit (excluding one-off items) and widening the total shareholder-return ratio, including buybacks, to as much as 60%Medium term: the company formalizes a shareholder-return floor, a signal that raises the predictability of dividends and buybacks. Source
- 2026-04-30DividendDecision to retire shares (treasury-share retirement) — a step that lifts per-share value by eliminating treasury shares to reduce the share countMedium term: a lower share count is favorable to existing shareholders on a per-share earnings and per-share net-asset basis. A signal of commitment to returns. Source
- 2026-05-07EarningsQ1 2026 consolidated preliminary-results disclosure — cumulative revenue ₩3.8 trillion (+1.5%), operating profit ₩272.3 billion (+6.6%), net profit ₩176.0 billion (+8.4%), all up year on yearShort term: profit growth outpacing revenue growth confirms improving profitability in official figures. Evidence that last year's recovery carried into the first quarter of this year. Source
- 2026-05-20IRIR event notice — the company holds a session to explain Q1 results, shareholder returns, and growth strategy to investorsShort and medium term: an official channel where the company explains its business direction and return plans directly. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Dividend per share (DPS) 2025 | ₩660(base) | ₩660 | Confirmed | link |
| Shareholder-return policy (payout ratio / return ratio) | 53.7%(base) | net profit 40% , 60%(FY2024~2026) | Confirmed | link |
| Q1 2026 net profit | ₩176.0 billion(+8.4% YoY) | 1 (DART) | Confirmed | link |
| 2026 full-year net profit outlook | approx. ₩600.0 billion(self-estimate) | — | Unverified | link |
Recent filings
- 2026-06-01Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-20Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-08Disclosure
- 2026-05-07Disclosure
- 2026-05-07EarningsFair-disclosure notice
- 2026-05-07EarningsFair-disclosure notice
- 2026-04-30Disclosure
- 2026-04-30Disclosure
- 2026-03-24Dividend disclosure
- 2026-03-24Disclosure
📖 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.