SK Innovation (096770) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
SK Innovation is an intermediate holding company that spans SK Group's energy and chemicals businesses, with most of its earnings coming from oil refining (SK Energy) and a stable of subsidiaries beneath it in petrochemicals, lubricants and batteries (SK On). In 2025 the company posted an annual net loss of ₩3.3 trillion, weighed down by battery losses and heavy interest costs, but it swung back to profit in the first quarter of 2026 with revenue of ₩24.2 trillion and operating profit of ₩2.1622 trillion. What stands out lately is that a large part of that Q1 profit came from refining inventory gains tied to a sharp rise in oil prices; if oil stabilizes, that effect can reverse, while at the same time narrowing losses at SK On and a large capital raise are strengthening the balance sheet. The pivot points for earnings, then, are refining margins and the pace of the battery recovery.
This page organises public market and filing data for information purposes. It is not a recommendation to buy or sell, nor investment advice. Metrics labelled “forward” are our own unverified estimates. Please verify with the original DART filings and decide at your own responsibility.
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.
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 far exceeds equity (debt ratio 304.3%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full-year net result was a loss.
- Revenue rose 8.1% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 15.2% higher than a year earlier.
- ROE is -15.4% (controlling-interest basis). It is below the sector average.
- Operating margin is 0.6%.
- 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 SK 52.09% (corporate)
Controlling bloc incl. related parties 52.09%
With the controlling bloc holding 52%, control is very secure but the free float is thin.
Net asset value (NAV) assessment
💡 How to read a holding company · A holding company owns stakes in several subsidiaries. Its P/E swings with equity-method gains and losses on those stakes, so read it only as a rough guide. P/B is more meaningful because subsidiary stakes sit in equity, but book value carries them at low historical cost (so P/B looks higher than reality). The most accurate view is the price against the market value of those stakes (NAV) ↓
Valued against the net asset value (NAV) of its listed holdings rather than a consolidated P/E — see the in-depth valuation for the detailed basis.
Listed subsidiaries ownership
| SK IE Technology | 53.35% |
🔎 In-depth analysis Reading
Rather than a company that sells products directly, SK Innovation is an intermediate holding company that bundles together SK Group's energy and chemicals operations. The actual money is earned by its subsidiaries. The center of gravity for earnings is the refining unit, SK Energy: it buys crude oil and refines it into gasoline, diesel and jet fuel, and the wider the refining margin (the gap between the crude price and the product price), the larger the profit. Below that sit SK Geo Centric in petrochemicals, SK Enmove in premium lubricant base oils, SK On in electric-vehicle batteries, and SK Earthon in resource development. Consolidated 2025 revenue was roughly ₩80 trillion, of which refining is the largest slice. In effect, the money made in refining keeps the whole company running, and because the battery unit (SK On) is not yet profitable, refining earnings cover its losses.
The latest close is ₩108,600 and the market capitalization is ₩18.4 trillion. The price sits below its 20-day moving average (₩113,620) and below its 60-day moving average (₩110,655). 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 47.7, a neutral level. The one-month change is +4.6%, the three-month change is -26.0%, and the position relative to the 52-week high is -27.5%. Relative strength versus the KOSPI is 21 (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 21% of all stocks. Over the past three months it lagged the index by 6.2%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
This is a phase where valuation has to be judged by assets rather than earnings. Because of the 2025 net loss, the P/E ratio (how many times one year's earnings the price represents) cannot be calculated. Instead, the P/B (how many times book net assets the price represents) is 0.78x, meaning the shares trade below book net assets. The P/S (how many times revenue the price represents) is a very low 0.22x, which reflects the thin margins on large revenue that are typical of refining. The balance sheet is heavy: the debt ratio (debt against equity) is a high 317.6%, and the interest coverage ratio (how many times operating profit can cover interest) is well below 1, so in 2025 operating profit alone could not cover interest. The picture shifts somewhat when debt is factored in: net debt (total borrowings minus cash) is roughly ₩25 trillion, EV/Sales (enterprise value divided by revenue) is 0.51x, and EV/EBITDA (enterprise value divided by pre-depreciation operating profit) is around 11x. The FCF yield (actual cash generated relative to market cap) is negative, meaning that battery capital spending and interest costs are still causing a net cash outflow.
The past few years' results trace the refining, chemicals and battery cycle directly. Operating profit fell from ₩3.9 trillion in 2022 to ₩1.9 trillion in 2023 and ₩355.7 billion in 2024, and came to just ₩448.7 billion in 2025. Net profit was worse still, with losses of ₩2.3 trillion in 2024 and ₩3.3 trillion in 2025, two straight years in the red. Losses at the battery subsidiary SK On and heavy interest costs were the main drags on net profit. Then, in the first quarter of 2026, the trend turned: revenue of ₩24.2 trillion (up 15.2% year on year) and operating profit of ₩2.1622 trillion marked a swing to profit, with net profit of ₩896.1 billion. The nature of those earnings deserves scrutiny, however. A large part of the quarter's refining operating profit came from inventory-related gains driven by a sharp rise in oil prices. When oil rises, inventory bought cheaply is sold dear, temporarily inflating profit; when oil falls again, that effect reverses. So simply multiplying the Q1 profit by four to project the full year would overstate it. With no official annual guidance published by the company, this year's net profit will vary widely depending on refining margins, the path of oil prices, and how quickly SK On narrows its losses.
The biggest recent development is a restructuring of capital and business lines. In July 2025 the board resolved that the battery subsidiary SK On would absorb the lubricant subsidiary SK Enmove and would pursue a large capital raise of roughly ₩8 trillion. The merged entity launched on November 1, 2025. The broad aim is to pair a steadily profitable lubricant business with the loss-making battery unit to shore up SK On's financial strength, and to lighten the heavy debt burden through measures such as a rights offering and perpetual bond issuance. In May 2026, alongside the Q1 report, a series of holding-company-style disclosures followed, covering large business group status, acquisitions and disposals of subsidiary stakes, and transactions among affiliates. These filings, confirmed in the electronic disclosure system, show that SK Innovation runs less like a single-product company and more as a holding structure driven by subsidiary stakes and intra-group transactions.
SK Innovation is strongest when a recovery in refining earnings coincides with improvement in its batteries and balance sheet. The strengths are clear: it owns cash-generating businesses in refining, chemicals and lubricants, and the shares trade around a P/B of 0.9x, below book net assets. The swing to profit in the first quarter of 2026 confirmed that refining remains the group's earnings engine. The cautions are equally clear. A large part of the Q1 profit was a temporary inventory gain from a sharp rise in oil prices, so if oil stabilizes it can reverse to that extent. SK On is narrowing its losses but is not yet profitable, and as the 317% debt ratio and low interest coverage show, the financial burden is large. In the end, the company is strong when refining margins hold, SK On keeps narrowing losses, and the capital raise lightens the debt; it is weak when oil and refining margins turn down and the battery recovery is delayed. Given its holding structure, approaching it through the sum of its subsidiaries' values comes closer to the substance than the headline results alone.
🔎 Valuation vs peers Inconclusive
Compared with large refining and petrochemical peers, with S-Oil for refining and Lotte Chemical and LG Chem for petrochemicals, though as a holding structure spanning refining, chemicals and batteries, SK Innovation is best used only as a reference rather than compared directly on single-industry multiples.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| S-Oil | 79.47x | 1.47x | 1.99% |
| Lotte Chemical | 0.00x | 0.19x | -16.19% |
| LG Chem | 0.00x | 0.53x | -5.54% |
It is hard to judge this company as cheap or expensive on a P/E basis. There is no P/E for 2025 because of the net loss, and even the Q1 2026 profit was largely a temporary inventory gain, so earnings-based multiples are distorted. On an asset basis the P/B is 0.91x, below book net assets, which is lower than the 1.78x of the pure refiner S-Oil but higher than the 0.21x of the loss-making chemical maker Lotte Chemical. However, in a holding structure book equity can be understated relative to true net asset value because subsidiary stakes are carried at their original acquisition cost, so the P/B is only a reference and not a precise yardstick. Ultimately the fair value shifts substantially with refining margins, the narrowing of SK On's losses, and progress on the capital raise, so at this point it is closer to the substance to approach it through the sum of its subsidiaries' values than to declare it under- or overvalued.
Price history Close · MA20 · MA60
The latest close is ₩108,600 and the market capitalization is ₩18.4 trillion. The price sits below its 20-day moving average (₩113,620) and below its 60-day moving average (₩110,655). 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 47.7, a neutral level. The one-month change is +4.6%, the three-month change is -26.0%, and the position relative to the 52-week high is -27.5%. Relative strength versus the KOSPI is 21 (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 21% of all stocks. Over the past three months it lagged the index by 6.2%. 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 -6.25% / 6M -20.14% / 12M -52.10%
Key metrics Computed vs whole-market median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.78x is in line with 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 -15.4%, below the whole-market average (3.0%). The operating margin is 0.6%. The debt ratio is 304.3%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $53.9B | $52.2B | $56.4B | +8.11% ↑ faster |
| Operating profit | $1.3B | $249.9M | $315.2M | +26.14% ↑ faster |
| Net profit | $180.0M | -$1.6B | -$2.4B | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $32.9B | $54.8B | $53.9B | $52.2B | $56.4B |
| Operating profit | $1.2B | $2.8B | $1.3B | $249.9M | $315.2M |
| Net profit | $343.2M | $1.3B | $180.0M | -$1.6B | -$2.4B |
| Revenue CAGR | 4-yr avg 14.42% | ||||
Revenue rose 8.1% year over year (2023 ₩76.8 trillion → 2024 ₩74.3 trillion → 2025 ₩80.3 trillion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 26.1% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 14.4%. The two-year revenue CAGR is 2.3%. In the most recent quarter (Q1 2026), revenue was 15.2% 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 far exceeds equity (debt ratio 304.3%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
Recent news & events searched · sourced
- 2026-05-13EarningsQ1 2026 revenue of ₩24.2121 trillion and operating profit of ₩2.1622 trillion marked a swing to profit. Inventory-related refining gains from a sharp rise in oil prices led the improvement, while the battery unit SK On posted an operating loss of ₩349.2 billion, narrowing its loss by ₩91.6 billion from the prior quarter.Reconfirmed refining as the group's earnings engine. However, a large part of the profit was a temporary inventory effect that can reverse if oil stabilizes. A short-term rebound catalyst, with the medium-term direction hinging on oil prices and refining margins. Source
- 2025-07-30FilingThe board resolved on SK On's absorption of SK Enmove and a capital raise of roughly ₩8 trillion, pairing the profitable lubricant business with the loss-making battery unit and rebalancing the balance sheet through a rights offering, perpetual bonds and the like. The merged entity launched on November 1, 2025.Over the medium term, shores up SK On's financial strength and eases the borrowing burden. Whether the capital raise dilutes existing shareholders is the variable. Source
- 2026-05-29FilingAlongside the Q1 large business group status disclosure, numerous holding-company-style filings were submitted, covering acquisitions and disposals of subsidiary stakes, contingent liabilities for third parties, and goods and services transactions among affiliates.Confirms a holding structure driven by subsidiary stakes and intra-group transactions rather than a single-product company. Subsidiary results effectively are the holding company's value. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 operating profit | 2₩162.2 billion(base quarter op_income) | 2₩162.2 billion | Confirmed | link |
| Q1 2026 revenue | 24₩212.1 billion(base quarter revenue) | 24₩212.1 billion | Confirmed | link |
| Full-year 2025 net profit | -3₩347.9 billion(base fundamentals net_income) | — | Unverified | link |
| P/B | 0.91x(base valuation.pbr) | — | Unverified | link |
Recent filings Source
- 2026-05-29Large-business-group status disclosure
- 2026-05-28Amended filing
- 2026-05-28Amended filing
- 2026-05-22Corporate governance report
- 2026-05-21Amended filing
- 2026-05-21Amended filing
- 2026-05-21Amended filing
- 2026-05-21Amended filing
- 2026-05-21Amended filing
- 2026-05-15Disclosure
- 2026-05-15Disclosure
- 2026-05-15Disclosure
📖 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.