EcoPro Materials mainly produces 'precursor' (a powder synthesized from nickel, cobalt, and manganese), the material used in the step just before battery cathode material; a large axis is the volume it supplies to affiliates such as EcoPro BM, and through stakes in Indonesian nickel smelting it is building vertical integration running from 'ore to nickel, nickel to precursor.' Its May 15 Q1 quarterly report confirmed a swing back to operating profit for the first time in eight quarters, and with the raw-material segment consolidated, profitability improved noticeably entering 2026. What stands out lately is an earnings inflection in which the operating profit, raw-material internalization, and expansion of external sales all worked at once, leaving its P/B and headline multiples actually lower than peers (EcoPro BM, POSCO Future M); on the other hand, results swing sharply with downstream battery demand and nickel prices, and non-operating items mixed into the results give quarterly earnings a wide amplitude.
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 75.0%).
- Revenue rose 30.9% year over year, and the pace is quickening (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 22.4% higher than a year earlier.
- ROE is 2.1% (total-net basis). It is below the sector average.
- Operating margin is -16.7%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder EcoPro 43.7% (corporate)
Controlling bloc incl. related parties 46.05%
With the controlling bloc holding 46%, the ownership structure is stable.
🔎 In-depth analysis
- EcoPro Materials mainly produces the 'precursor' that goes into the step just before making the cathode material (the core material that governs battery capacity) for EV and energy-storage batteries.
- Precursor is a powder made by precipitating and synthesizing nickel, cobalt, and manganese in set proportions; react it again with lithium and it becomes cathode material.
- In other words, this company sells not a finished product but a 'semi-finished' battery material.
- A large axis of revenue is the volume it supplies to cathode makers such as its group affiliate EcoPro BM, and it has recently been quickly raising the share of customers outside the group (external sales).
- Another axis is raw-material internalization: to source the nickel intermediate that is the core raw material for precursor on its own, it has secured stakes in Indonesian nickel smelting, building vertical integration running from 'ore to nickel, nickel to precursor.' As this raw-material segment was consolidated, profitability improved noticeably entering 2026.
- The latest close is ₩35,500 and the market cap is ₩2.5 trillion.
- The price sits below both the 20-day line (₩46,905) and the 60-day line (₩62,131).
- Trading below both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supporting indicator that weighs upward versus downward strength over the past 14 days on a 0-100 scale) is 27.3, close to depressed territory.
- The one-month change is -32.8%, the three-month change is -51.4%, and the position relative to the 52-week high is -58.9%.
- Relative strength versus the KOSPI is 11 (1-99, computed 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 90% of all stocks by strength.
- Over the past three months it lagged the index by 62.7%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- On last year's (2025) results, the P/E ratio (how many times a year's earnings the share price is) is 104.14x, the P/B (how many times book net assets) is 2.19x, and the P/S (how many times revenue) is 7.55x, so the headline figures look high.
- But these trailing (last year's confirmed) multiples carry a trap.
- In 2025 the operating result was a loss of -₩65.4 billion, and the net profit of ₩24.1 billion was the result of non-operating items mixed in, so multiples in a phase where earnings have just bottomed and turned tend to look far more expensive than they really are.
- In fact, in Q1 2026 operating profit swung to a positive ₩15.7 billion (operating margin +9.4%) and net profit was ₩24.6 billion, exceeding last year's full-year net profit (₩24.1 billion) in a single quarter.
- The ROE (how much is earned in a year on shareholders' equity) is still low at 2.1%, but this is a figure just emerging from a loss phase, and the debt ratio (debt to equity) of 151%, while heavy given the materials/manufacturing nature, is within a manageable range.
- In short, on last year's multiples alone it looks expensive, but this is a textbook case where a stock whose earnings have turned direction should be judged on future results rather than past ones.
- The revenue trajectory shows the battery cycle plainly.
- After peaking at ₩952.5 billion in 2023, it plunged to ₩299.8 billion in 2024, then rebounded to ₩392.5 billion in 2025 (+30.9%).
- Q1 2026 revenue also grew +22.4% year over year to ₩166.5 billion, continuing the recovery.
- The more important change is profitability.
- What had been an operating loss throughout 2024-2025 swung to profit in Q1 2026, the combined result of rising precursor-plant utilization easing fixed-cost burden, growing external sales outside the group, and the Indonesian nickel-smelting segment being reflected in earnings in earnest.
- These three axes are moving in a stronger direction through the year, so rather than simply extending Q1 by four, it is closer to reality to see a trajectory in which volume and raw-material margin both expand toward the second half.
- On that basis, this year's net profit has room to normalize to a level incomparable with last year, and on future earnings the multiple works out far lower than the headline.
- Recent disclosures are dominated by the earnings recovery and governance/stake matters.
- The May 15 Q1 2026 quarterly report confirmed the swing to operating profit, and on May 29 a large-business-group status disclosure and a corporate governance report were issued, updating its affiliation and governance within the EcoPro group.
- Through May-June, major shareholders' large-holding and specific-securities transaction plans and their withdrawals followed, showing that stake changes were frequent.
- No large new order or supply-contract disclosures stood out in this window, and the swing to profit in the results themselves is the most weighty event.
- This is a stock with relatively clear strong and weak conditions.
- The strength is the earnings inflection.
- The swing to operating profit for the first time in eight quarters, raw-material (nickel) internalization, and an expanding external-sales share all began working at once, so even though last year's multiples look high, on this year's earnings they actually work out lower.
- Compared with peers in the same battery-materials group (EcoPro BM, POSCO Future M, EcoPro), its P/B and headline multiples are actually on the lower side, so given that earnings have turned direction, this can be read as a spot leaning toward undervalued.
- The caution is cycle dependence.
- Results swing sharply with downstream battery and cathode demand and nickel prices, and net profit tends to carry non-operating swings, giving quarterly earnings a wide amplitude.
- In short, when battery-material demand and raw-material margin are favorable, the pace of earnings normalization is quick, but if downstream demand or metal prices weaken again, the recovery can be delayed.
🔎 Valuation vs peers Undervalued
Materials companies in the same battery cathode-material value chain. EcoPro Materials sits at the precursor and raw-material stage, supplying and linking materials to these peers.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Ecopro BM | 277.09x | 6.31x | 2.28% |
| POSCO Future M | 402.54x | 3.19x | 0.79% |
| Ecopro | 0.00x | 5.48x | -7.62% |
Compared with peer battery-materials companies (EcoPro BM P/B 7.51, P/E 330; POSCO Future M P/B 3.72, P/E 469; EcoPro P/B 6.42), EcoPro Materials' P/B of 2.59x and P/E of 122.9x actually sit on the lower side. On top of that, its revenue growth of +30.9% is the highest in this peer set and the only double-digit growth. The last-year P/E of 122.9x is an optical distortion coming from having just emerged from a loss phase, and a stock whose earnings have turned direction is better judged on future results than past ones. Calculated on future earnings, the multiple comes down far below the headline value, and the gap versus peers widens further. Taking this position together, factoring in the earnings inflection, the reasonable read is toward undervalued. That said, the characteristic that results swing sharply with the cycle and metal prices is the precondition for interpreting these multiples.
Price history Close · MA20 · MA60
The latest close is ₩35,500 and the market capitalization is ₩2.5 trillion. The price sits below its 20-day moving average (₩46,905) and below its 60-day moving average (₩62,131). 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 27.3, near oversold territory. The one-month change is -32.8%, the three-month change is -51.4%, and the position relative to the 52-week high is -58.9%. Relative strength versus the KOSPI is 11 (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 11% of all stocks. Over the past three months it lagged the index by 62.7%. 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 -62.68% / 6M -59.57% / 12M -71.80%
Key metrics vs whole-market median
Valuation
The P/E of 104.14x is above the whole-market median (13.81x). The P/B of 2.19x 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.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 9.8%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 2.1%, below the whole-market average (5.0%). The operating margin is -16.7%. The debt ratio is 151.0%, so the financial structure is moderate.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $631.3M | $198.7M | $260.1M | +30.90% ↑ faster |
| Operating profit | $5.8M | -$42.9M | -$43.3M | — |
| Net profit | $3.3M | -$28.3M | $16.0M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $227.3M | $440.9M | $631.3M | $198.7M | $260.1M |
| Operating profit | $10.8M | $25.8M | $5.8M | -$42.9M | -$43.3M |
| Net profit | -$15.2M | $10.3M | $3.3M | -$28.3M | $16.0M |
| Revenue CAGR | 4-yr avg 3.44% | ||||
Revenue rose 30.9% year over year (2023 ₩952.5 billion → 2024 ₩299.8 billion → 2025 ₩392.5 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating results are in the red, so a swing back to profit matters more than the growth rate here. Over the 5 years on record, revenue compound annual growth (CAGR) is 3.4%. The two-year revenue CAGR is -35.8%. In the most recent quarter (Q1 2026), revenue was 22.4% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 30.9% year over year, a sign of growth.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-15EarningsQ1 2026 quarterly report, revenue ₩166.5 billion (+22.4% year over year), operating profit +₩15.7 billion (swing to profit), net profit ₩24.6 billion.The first operating profit in eight quarters confirms the earnings inflection. Grounds for future results offsetting the limits of last year's multiples. Source
- 2026-05-29FilingCorporate governance report and large-business-group status disclosure, updating affiliation and governance within the EcoPro group.Reconfirms the group's vertically integrated (precursor-cathode) structure and intra-group transaction relationships. Governance transparency information. Source
- 2026-06-05FilingExecutives and major shareholders' withdrawal report on specific-securities transaction plans, withdrawing a previously filed stake-transaction plan.The withdrawal of major shareholders' stake-transaction plans partly eases short-term supply-demand uncertainty. Source
- 2026-05-08FilingMultiple executives and major shareholders' specific-securities transaction plan filings and large-holding reports (corrections), filings on major shareholders' stake changes.Frequent major-shareholder stake changes affect short-term supply-demand. A stake event separate from business results. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-05OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-29Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-13Disclosure
- 2026-05-08OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-08OwnershipAmended filing
- 2026-05-08OwnershipAmended filing
- 2026-05-08OwnershipAmended filing
- 2026-05-08OwnershipAmended filing
- 2026-05-06OwnershipOwnership-change filing
- 2026-05-04Disclosure
📖 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.