Ecopro BM makes and sells cathode material, one of the four key components of lithium-ion batteries for electric vehicles and energy storage systems (ESS). Its mainstay is high-nickel NCA and NCM, and because the price it sells at is linked to metal prices such as lithium and nickel, earnings swing widely with the metal-price and demand cycle. In April, first-quarter 2026 results of ₩605.4 billion in revenue and ₩20.9 billion in operating profit, an eightfold jump in profit year on year, confirmed a profitability recovery, and it holds growth catalysts in second-quarter Hungary mass production, new European volume, and ESS demand. What stands out recently is that as a domestic leader in high-nickel cathode material passing the bottom of the demand chasm, it is the only one of the three domestic peers holding a positive ROE (2.3%); on the other hand, a tight balance sheet with a debt ratio of 282% and interest coverage of 0.97, and quarterly volatility driven by metal prices and one-off items, are conditions to keep in mind.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 282.4%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 72.3%).
- 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 5.7%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
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
- Ecopro BM makes and sells 'cathode material,' one of the four key components of lithium-ion batteries for electric vehicles and energy storage systems (ESS).
- Cathode material is the most expensive part, accounting for 30-40% of battery cost, and it determines a battery's capacity and driving range.
- The company's mainstay is 'high-nickel' NCA and NCM cathode material; raising the nickel content lets a battery travel farther for the same weight, so it is used mainly in premium EVs.
- Most revenue comes from supplying cathode material to domestic and overseas battery-cell makers, and the selling price is linked to the prices of raw metals such as lithium and nickel.
- In other words, when metal prices rise, revenue increases, but because of inventory valuation and the lag in selling prices, earnings swing widely with the metal-price and demand cycle.
- Recently, beyond EVs, demand for batteries for ESS and AI data centers has emerged as a new growth axis.
- The recent closing price is ₩111,500 and the market cap is ₩10.9 trillion.
- The price sits below its 20-day line (₩147,555) and below its 60-day line (₩184,568).
- Being under both the short- and medium-term moving averages, the trend is on the depressed side.
- The RSI (a supplementary gauge that compares upward and downward force over the past 14 days on a 0-100 scale) is 28.1, close to oversold territory.
- The one-month change is -32.2%, the three-month change is -44.7%, and the position versus the 52-week high is -54.7%.
- Relative strength against the KOSDAQ is 68 (1-99, computed from returns against the index over the past year with more weight on recent periods; higher means stronger than the market).
- That places it in roughly the top 32% of all stocks by strength.
- Over the past three months it lagged the index by 26.6%.
- When reading the chart, it helps to look at trading volume and disclosure dates together.
- Taken at face value, the metrics make this look like a company under heavy strain.
- The P/E ratio (how many times one year's earnings the price represents) is 277.09x, very high; the P/B (how many times book net assets the price represents) is 6.31x; and the ROE (how much is earned in a year on equity) is just 2.3%.
- That high P/E, though, is closer to an optical illusion created by 'last year's earnings trough' than by the stock being 'expensive.' Having only just turned from an operating loss in 2024 (-₩34.1 billion) to a profit in 2025 (operating profit ₩14.3 billion, net profit ₩39.4 billion), it is at the very start of a recovery, so the earnings in the denominator are still thin.
- Financial stability is genuinely a point to note.
- The debt ratio (debt relative to equity) is high at 282%, the current ratio (assets that can be readily turned into cash against debt due within a year) is 72%, below 100%, and the interest coverage ratio (how many times operating profit can cover interest) is 0.97, just under 1.
- In other words, current operating profit barely covers interest, so the speed of the earnings recovery is the key to easing the financial burden.
- Five years of results show this is a classic cyclical industry.
- Revenue soared to ₩6.9 trillion in 2023 at the peak of the EV boom, then fell to ₩2.77 trillion in 2024 and ₩2.53 trillion in 2025 (-8.5%) as the demand chasm and falling metal prices took hold.
- Net profit also fell into losses, from ₩232.3 billion in 2022 to -₩8.7 billion in 2023 and -₩96.5 billion in 2024, before returning to a profit of ₩39.4 billion in 2025.
- The inflection point shows up clearly in the first quarter of 2026.
- Revenue was ₩605.4 billion (-3.9% year on year), still stalled, but operating profit jumped more than eightfold year on year to ₩20.9 billion, reviving profitability.
- The company presented a plan to raise 2026 cathode-material shipments by double digits versus the prior year, and from the second quarter mass production at the new Hungary plant and new volume from a European battery customer are added.
- That said, first-quarter earnings also included one-off factors, so annual operating profit itself may, despite higher shipments, stay similar to 2025 rather than jump dramatically as selling prices and margins normalize.
- This stock's growth story rests less on a 'surge in this year's earnings' than on 'volume growth as shipments rise steeply again from 2027 onward.'
- Recent disclosures center on routine results and IR.
- On April 29 the first-quarter 2026 preliminary results (fair disclosure) revealed revenue of ₩605.4 billion and operating profit of ₩20.9 billion, confirming a profitability recovery, and on May 15 the quarterly report finalized the detailed financials.
- Over May and June it held investor relations sessions several times, communicating the startup of the Hungary plant, European orders, and new ESS demand to the market.
- During this period, 'reports on bulk holdings of stock' were filed repeatedly, which are routine disclosures notifying of stake changes by major shareholders and institutions.
- The dividend of ₩100 per share (a yield of about 0.07%) stays low, as befits a materials company reinvesting in growth.
- The strengths are clear.
- As a domestic leader in high-nickel cathode material, it showed an early-recovery signal with first-quarter 2026 operating profit jumping eightfold year on year while passing the bottom of the demand chasm, and it holds real growth catalysts in second-quarter Hungary mass production, new European volume, and ESS demand.
- Among the three domestic cathode-material peers (Ecopro BM, POSCO Future M, L&F), all of which are in a phase where a trailing P/E is meaningless because earnings are at a trough, this company is the only one holding a positive ROE (2.3%) and it has the smallest revenue decline, so it is relatively ahead.
- The cautions are equally clear.
- With a debt ratio of 282%, a current ratio of 72%, and interest coverage of 0.97, financial headroom is tight, so a delayed earnings recovery could increase the financial burden, and net profit swings widely by quarter as it is heavily influenced by metal prices and one-off items.
- Ultimately, a balanced view treats this as a cyclical materials stock that 'grows stronger with volume growth if EV and ESS demand and metal selling prices stay on a recovery track, but is burdened by a thin balance sheet if demand stalls for longer or metal prices plunge.'
🔎 Valuation vs peers Inconclusive
The three domestic high-nickel/NCM cathode-material companies (Ecopro BM, POSCO Future M, L&F). With the same business essence of manufacturing and supplying battery cathode material, they belong to the direct peer group.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| POSCO Future M | 402.54x | 3.19x | 0.79% |
| L&F | 0.00x | 5.51x | -79.27% |
With all three peers in an earnings-trough phase, trailing P/Es (Ecopro BM 354, POSCO Future M 484, and L&F not calculable due to losses) are hard to use as a basis for a valuation judgment. On a P/B basis, Ecopro BM's 8.1x is the highest of the three, which reads as reflecting a premium for turning to profit and for market position. Trailing metrics alone make it look expensive, but that is an illusion from having only just returned to profit after 2024 losses. On a forward view, too, 2026 net profit may, despite higher shipments, stay near 2025 levels as selling prices and margins normalize and one-off items fade, so the forward P/E is likely to remain high. In short, 'passing the earnings trough' is correct, but it is too early to conclude 'undervalued on a surge in this year's earnings,' and the real value depends on whether volume growth is confirmed from 2027 onward, so 'inconclusive' is appropriate at this point.
Price history Close · MA20 · MA60
The latest close is ₩111,500 and the market capitalization is ₩10.9 trillion. The price sits below its 20-day moving average (₩147,555) and below its 60-day moving average (₩184,568). 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 28.1, near oversold territory. The one-month change is -32.2%, the three-month change is -44.7%, and the position relative to the 52-week high is -54.7%. Relative strength versus the KOSDAQ is 68 (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 lagged the index by 26.6%. 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 -26.60% / 6M -9.54% / 12M +4.90%
Key metrics vs whole-market median
Valuation
The P/E of 277.09x is above the whole-market median (13.81x). The P/B of 6.31x is above the whole-market median (1.15x). 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 (5.0%). The operating margin is 5.7%. The debt ratio is 282.4%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $4.6B | $1.8B | $1.7B | -8.50% ↑ faster |
| Operating profit | $103.4M | -$22.6M | $95.0M | — |
| Net profit | -$5.8M | -$64.0M | $26.1M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $984.6M | $3.6B | $4.6B | $1.8B | $1.7B |
| Operating profit | $76.2M | $252.3M | $103.4M | -$22.6M | $95.0M |
| Net profit | $66.8M | $154.0M | -$5.8M | -$64.0M | $26.1M |
| 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 Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Debt is somewhat higher than equity (debt ratio 282.4%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 72.3%).
- 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
- 2026-04-29EarningsQ1 2026 consolidated preliminary results (fair disclosure) — revenue of ₩605.4 billion and operating profit of ₩20.9 billion (up more than eightfold year on year), confirming a profitability recovery.Short term: a signal of passing the earnings trough, positive for sentiment. Medium term: the first quarterly checkpoint for whether the recovery continues. Source
- 2026-05-15FilingSubmitted the quarterly report for the March 2026 close — finalized detailed first-quarter financial statements (disclosing the financial structure such as debt ratio and liquidity).Medium term: a basis for checking financial stability. Interest coverage near 1 and a current ratio below 100% were confirmed. Source
- 2026-06-02IRHeld an investor relations (IR) session — explained second-half growth strategy including mass production at the Hungary cathode plant, new volume from a European battery customer, and expanding ESS demand.Medium term: presented to the market the real catalysts for higher shipments from the second quarter onward. Source
- 2026-05-29FilingLarge-business-group status disclosure (for the first quarter) — routine disclosure of the Ecopro group's affiliate structure and governance.Medium term: confirms the company's position as a materials-business subsidiary within the group (routine disclosure). Source
Figure cross-check computed ↔ external
Recent filings
- 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.