EcoPro BM (247540) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
EcoPro BM makes high-nickel cathode material, the key raw material for electric-vehicle and energy-storage-system (ESS) batteries, supplying nickel-rich material to battery cell makers such as Samsung SDI for most of its revenue. First-quarter 2026 revenue was ₩605.4 billion, similar to a year earlier, but operating profit jumped more than eightfold year-on-year to ₩20.9 billion, and cathode revenue for European EVs rose 24% versus the prior quarter, signaling the start of a recovery. What stands out lately is that in a phase where European inventory adjustments end, ESS demand takes hold, and the Hungary plant adds volume in the second half, earnings can grow quickly, while the net margin is still thin at around 1%, and with debt near three times equity, earnings can be pressed easily if end demand wobbles again.
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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 “Cathode Materials” (Secondary Batteries · Battery Materials, Parts & Equipment), a type typically read first through EV/EBITDA.
Cathode materials carry heavy capacity expansion and depreciation, so looking at net income alone gets distorted by capex and capital structure. That makes EV/EBITDA — enterprise value against operating cash generation before depreciation — the first lens. But in a loss-making stretch, say from a slide in raw-material prices, that metric breaks down, so EV/Sales — enterprise value against revenue — steps in to size the business against its scale.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
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
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 70.7%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue fell 8.5% year over year (3-year trend: falling).
- Net profit swung from a loss a year earlier back into the black (a turnaround).
- Most recent quarter (Q1 2026) revenue was 3.9% lower than a year earlier.
- ROE is 2.3% (controlling-interest basis). It is below the sector average.
- Operating margin is 6.5%.
- 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 EcoPro 40.84% (corporate)
Controlling bloc incl. related parties 45.59%
With the controlling bloc holding 46%, the ownership structure is stable.
🔎 In-depth analysis Reading
EcoPro BM makes cathode material, one of the four key materials in lithium-ion batteries for electric vehicles and energy storage systems (ESS). The cathode is the part that stores energy inside a battery; it is the most expensive material, accounting for 30-40% of battery cost, and the key component that determines capacity and driving range. This company's mainstay is high-nickel cathode material that lifts the nickel content above 80%. The more nickel, the farther a battery can go for the same weight, so it is used mainly in premium EVs. Revenue splits broadly into two streams: one is cathode material for EVs, and the other is cathode material for ESS, which has been growing quickly of late. As of the first quarter of 2026, EV-bound revenue was ₩381.5 billion and ESS-bound ₩97.9 billion, so EV-bound revenue is still the central axis. Selling prices are linked to the market prices of the raw materials lithium and nickel, so when metal prices rise, revenue rises, but because of inventory valuation and a lag in selling prices, earnings swing sharply with metal prices and the demand cycle. Customers are large domestic battery cell makers such as Samsung SDI, and because they in turn supply batteries to automakers, the flow of EV sales ultimately feeds through to this company's results.
The latest close is ₩102,500 and the market capitalization is ₩10.0 trillion. The price sits below its 20-day moving average (₩107,560) and below its 60-day moving average (₩151,017). 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 41.0, a neutral level. The one-month change is -14.7%, the three-month change is -55.1%, and the position relative to the 52-week high is -58.3%. Relative strength versus the KOSDAQ is 34 (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 34% of all stocks. Over the past three months it lagged the index by 34.9%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Starting with the valuation metrics, one must beware of an illusion. The P/E ratio (how many times one year of earnings the price represents) prints very high at 300x, but that is not because it is expensive; it is because 2025 net profit (₩39.4 billion) was near the bottom at the industry trough. Having only just turned from an operating loss in 2024 (-₩34.1 billion) to profit in 2025, it is in an early recovery where the denominator (earnings) is still thin. As earnings recover, this multiple falls quickly by construction. The P/B (how many times book equity the price represents) is 5.61x, on the higher side among peer cathode makers, and can be seen as a premium reflecting market position and recovery expectations. Profitability is still in early recovery. ROE (how much it earns in a year on its equity) is low at 2.3%, with a thin operating margin of 5.7% and net margin of 1.6%. The financial burden is clearly a point to note. The debt ratio (debt to equity) is high at 282%, and the current ratio (assets readily convertible to cash against debt due within a year) is 72%, below 100%. The interest coverage ratio (how many times operating profit covers interest) is 0.97, just under 1, meaning current operating profit barely covers interest. Looking at debt-inclusive metrics makes the picture clearer. Net debt (total borrowings minus cash) is about ₩1.9 trillion, and EV/Sales (enterprise value divided by revenue) is 5.6x. The FCF yield (cash actually generated relative to market cap) is -1.8%, so with expansion investment continuing, cash is still in net outflow. Ultimately, the pace of the earnings recovery is the key to easing the financial burden.
Over the long arc, this is a classic cyclical industry. Revenue soared to ₩6.9 trillion in 2023 at the peak of the EV boom, then retreated to ₩2.77 trillion in 2024 and ₩2.53 trillion in 2025 (-8.5%) on demand slowdown (the chasm) and falling lithium and nickel prices. Net profit likewise fell into losses, from ₩232.3 billion in 2022 to -₩8.7 billion in 2023 and -₩96.5 billion in 2024, before turning to profit of ₩39.4 billion in 2025. The inflection is clear in the most recent quarter. First-quarter 2026 operating profit jumped more than eightfold year-on-year to ₩20.9 billion. In particular, cathode revenue for European EVs rose 24% versus the prior quarter as end customers' inventory adjustments ended, and ESS-bound revenue rose 4%. On top of that, the company set a goal of raising 2026 cathode shipments by about 30% year-on-year. The Hungary plant, which began mass production in the first half, is set to add European volume in the second half. Seen together with the fact that the domestic cathode industry as a whole is passing through a first-half trough and facing volume increases in the second half, this year's quarterly earnings are likely to trend upward with the first quarter as the bottom. Reflecting that trajectory, we expect this year's net profit to recover to around ₩60 billion, clearly above last year's ₩39.4 billion. Even though last year's P/E looks high, on this year's recovering earnings the valuation multiple falls to roughly half. That said, it is consistent with the company's plan to see the phase of full-fledged volume growth arriving from 2027 onward, when the new Hungary and Canada plants run for a full period.
Recent disclosure and IR flow is aligned with passing the earnings trough and signs of recovery. On April 29 it announced preliminary first-quarter 2026 results via fair disclosure; revenue was similar to a year earlier, but operating profit rose more than eightfold year-on-year, extending the profitable trend. On May 15 it formally filed the first-quarter report, confirming detailed financials such as the debt ratio and liquidity. Around that time, through May and June, it held several investor briefings (IR), explaining directly to investors its second-half growth plans such as Hungary plant operation, new European volume, and expanding ESS demand. The long-term supply relationships that form the backbone of the business also continue. The company has a large-scale long-term cathode supply agreement with Samsung SDI running from 2024 to 2028, which improves the predictability of volume. In May and June several large-shareholding status reports were filed, showing changes in major shareholders' stakes. The dividend is ₩100 per share (a yield of about 0.08%), a low level befitting a materials company that reinvests in growth.
In sum, EcoPro BM is a high-nickel cathode specialist that has passed the earnings trough and entered early recovery. The favorable conditions are clear. As European EV inventory adjustments end, EV-bound sales are rising again. ESS demand is taking hold as a new growth axis. The long-term contract with Samsung SDI and the second-half operation of the Hungary plant support volume. While most peer cathode makers are in a phase of failing to turn a profit at the earnings bottom, this company maintains a positive ROE (2.3%) and a small revenue decline, placing it relatively ahead. If the company hits its shipment target, this year's earnings have room to rise sharply from last year. Conversely, the conditions to watch are also clear. With the net margin still thin at around 1%, even a slight swing in selling prices or costs causes large earnings volatility. With a debt ratio of 182% and interest coverage below 1, financing costs eat into earnings while the expansion burden continues. Above all, EV and battery demand itself is a cyclical industry heavily swayed by automaker sales and lithium and nickel prices, so if the recovery is not as fast as hoped, the valuation multiple could return as a burden. Ultimately, whether end demand and sales volume rise as planned is the axis that decides this company's picture.
🔎 Valuation vs peers Inconclusive
Compared against domestic secondary-battery materials companies that make cathode material for EVs and energy storage systems and its raw materials.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| POSCO Future M | 406.67x | 3.17x | -0.25% |
| EcoPro Materials | 103.99x | 2.16x | 2.11% |
| Lotte Energy Materials | — | 0.95x | -9.51% |
Most peer cathode makers have earnings so depressed while passing through the industry trough that their trailing P/E is in the triple digits or cannot be computed, so the 300x P/E on last year's earnings does not directly show the company's real value. That is an illusion stemming from having only just turned to profit after a 2024 loss. On this year's recovering earnings the multiple falls to roughly half. That said, the P/B of 6.8x is higher than POSCO Future M (3.4x) and EcoPro Materials (2.3x), so the market has priced in a fair amount of recovery expectation. Weighing the still-thin margins and heavy debt burden together with the fact that the full-fledged phase of volume growth remains after 2027, it can be read as undervalued or as a burden depending on whether the recovery trajectory rises as planned, so it is too early to declare one way or the other at this point.
Price history Close · MA20 · MA60
The latest close is ₩102,500 and the market capitalization is ₩10.0 trillion. The price sits below its 20-day moving average (₩107,560) and below its 60-day moving average (₩151,017). 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 41.0, a neutral level. The one-month change is -14.7%, the three-month change is -55.1%, and the position relative to the 52-week high is -58.3%. Relative strength versus the KOSDAQ is 34 (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 34% of all stocks. Over the past three months it lagged the index by 34.9%. 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 -34.89% / 6M -34.53% / 12M -10.18%
Key metrics Computed vs whole-market median
Valuation
The P/E of 254.72x is above the whole-market median (12.97x). The P/B of 5.61x is above the whole-market median (0.84x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
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 2.3%, below the whole-market average (3.0%). The operating margin is 6.5%. The debt ratio is 172.0%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $4.8B | $1.9B | $1.8B | -8.50% ↑ faster |
| Operating profit | $109.6M | -$24.0M | $100.7M | — |
| Net profit | -$6.1M | -$67.8M | $27.7M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.0B | $3.8B | $4.8B | $1.9B | $1.8B |
| Operating profit | $80.8M | $267.4M | $109.6M | -$24.0M | $100.7M |
| Net profit | $70.8M | $163.2M | -$6.1M | -$67.8M | $27.7M |
| Revenue CAGR | 4-yr avg 14.25% | ||||
Revenue fell 8.5% year over year (2023 ₩6.9 trillion → 2024 ₩2.8 trillion → 2025 ₩2.5 trillion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is 14.2%. The two-year revenue CAGR is -39.4%. In the most recent quarter (Q1 2026), revenue was 3.9% lower 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
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 70.7%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue fell 8.5% year over year (3-year trend: falling).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-04-29EarningsFair disclosure of preliminary Q1 2026 consolidated results. Revenue of ₩605.4 billion (similar to a year earlier), operating profit of ₩20.9 billion, up more than eightfold year-on-year, maintaining a profitable trend.Short term: a signal confirming passage through the earnings trough and improved profitability. Reflects the recovery in European EV and ESS demand. Source
- 2026-05-15FilingFormal filing of the Q1 quarterly report as of end-March 2026. The preliminary revenue and profit, along with detailed financials such as the debt ratio and liquidity, were confirmed.Medium term: official confirmation of the financial metrics. Provides a basis to review the financial structure, such as interest coverage near 1 and a current ratio below 100%. Source
- 2026-06-02IRInvestor briefings (IR) held. Conducted several times over April-June to explain second-half growth plans such as Hungary plant operation, new European volume, and expanding ESS demand.Medium term: conveys the second-half shipment-increase plan and recovery trajectory directly to investors. Source
- 2026-06-08FilingLarge-shareholding status report (general) filed. Several large-shareholding reports were received over May-June, showing changes in major shareholders' stakes.Short term: a change in major shareholders' stakes. A reference factor from a supply-demand standpoint. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 revenue | ₩605.4 billion | ₩605.4 billion | Confirmed | link |
| Q1 2026 operating profit | ₩20.9 billion | ₩20.9 billion | Confirmed | link |
| 2025 consolidated revenue | 2 ₩531.6 billion | 2 ₩531.6 billion | Confirmed | link |
| 2026 full-year net profit (outlook) | approx. ₩60.0 billion(self-estimate) | — | Unverified | link |
Recent filings Source
- 2026-06-08OwnershipOwnership-change filing
- 2026-06-05OwnershipOwnership-change filing
- 2026-06-02Disclosure
- 2026-05-29Large-business-group status disclosure
- 2026-05-26Disclosure
- 2026-05-21Disclosure
- 2026-05-20OwnershipOwnership-change filing
- 2026-05-15PeriodicQuarterly report
- 2026-05-08OwnershipOwnership-change filing
- 2026-04-30Disclosure
- 2026-04-29EarningsFair-disclosure notice
- 2026-04-29Disclosure
📖 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.