LG Uplus Corp 032640

Morningstar Rating
₩9,700.00 0.00 (0.00%)
View Full Chart

Company Report

LG Uplus Looking to Transform Its Company With AI

We expect LG Uplus to continue to grow its core business through the expansion of its wireless/wireline network, specifically its 5G broadband network, and expansion into targeted noncore businesses such as its smart home and enterprise infrastructure business segments. As LG Uplus expands its wireless network, it attracts premium 5G subscribers directly but also mobile virtual network operator subscribers. In addition, LG Uplus is investing in physical storefronts to drive its MVNO business. Revenue from roaming data usage is now back to prepandemic levels, due to the easing of covid-19 restrictions in Korea.

Price vs Fair Value

032640 is trading at a 600% premium.
Price
₩9,700.00
Fair Value
₩9,716.00
Uncertainty
Medium
1-Star Price
₩74,848.00
5-Star Price
₩7,373.00
Economic Moat
Xpfr
Capital Allocation
Flplqgm

Bulls Say, Bears Say

Bulls

The relaxation of the government’s covid mandates has increased cross-border travel and changed customer spending habits. We expect trends that show increases in data roaming revenue as well as mobile traffic to continue.

Bears

South Korea’s telecom market is highly competitive, and the core business is not significantly differentiated among competitors.

Trading Information

Previous Close Price
₩9,700.00
Day Range
₩9,700.009,760.00
52-Week Range
₩9,510.0010,580.00
Bid/Ask
₩9,700.00 / ₩9,720.00
Market Cap
₩4.17 Tril
Volume/Avg
1.0 Mil / 879,598

Key Statistics

Price/Earnings (Normalized)
8.33
Price/Sales
0.29
Dividend Yield (Trailing)
6.70%
Dividend Yield (Forward)
5.15%
Total Yield
6.70%

Company Profile

LG Uplus is a Korean telecommunications operator selling mobile and fixed-line products. It entered the Korean mobile market in 1996 as LG Telecom by acquiring a mobile license, then building out a mobile network. Parent company LG Corp. merged LG Telecom with LG Dacom and LG Powercom in 2010 to add fixed-line and internet capabilities to the existing mobile business and changed its name to LG Uplus that same year. The firm competes against KT and SK Telecom, which were formed from the previously state-owned monopoly, Korea Telecom. Given that KT and SKT had incumbent telecom businesses before LG Uplus started its business, LG Uplus has lower market shares than the other two in the key telecom services.
Sector
Communication Services
Industry
Telecom Services
Stock Style Box
Mid Value
Total Number of Employees
10,695

Competitors

Valuation

Metric
032640
00728
SKM
Price/Earnings (Normalized)
8.3311.3111.08
Price/Book Value
0.480.871.08
Price/Sales
0.290.750.67
Price/Cash Flow
0.72
Price/Earnings
032640
00728
SKM

Financial Strength

Metric
032640
00728
SKM
Quick Ratio
0.700.560.62
Current Ratio
1.000.610.97
Interest Coverage
3.3317.08
Quick Ratio
032640
00728
SKM

Profitability

Metric
032640
00728
SKM
Return on Assets (Normalized)
3.11%4.23%
Return on Equity (Normalized)
7.50%8.01%
Return on Invested Capital (Normalized)
5.10%6.94%
Return on Assets
032640
00728
SKM

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