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LG Uplus (XKRX:032640) Piotroski F-Score : 5 (As of May. 07, 2024)


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What is LG Uplus Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

LG Uplus has an F-score of 5 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for LG Uplus's Piotroski F-Score or its related term are showing as below:

XKRX:032640' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 8
Current: 5

During the past 13 years, the highest Piotroski F-Score of LG Uplus was 8. The lowest was 3. And the median was 6.


LG Uplus Piotroski F-Score Historical Data

The historical data trend for LG Uplus's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

LG Uplus Piotroski F-Score Chart

LG Uplus Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.00 6.00 8.00 6.00 5.00

LG Uplus Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 5.00 6.00 7.00 5.00

Competitive Comparison of LG Uplus's Piotroski F-Score

For the Telecom Services subindustry, LG Uplus's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


LG Uplus's Piotroski F-Score Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, LG Uplus's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where LG Uplus's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Net Income was 151797 + 213097 + 156956 + 100923 = ₩622,773 Mil.
Cash Flow from Operations was 740715 + 1071296 + 528124 + 634855 = ₩2,974,990 Mil.
Revenue was 3541343 + 3429331 + 3581077 + 3820875 = ₩14,372,626 Mil.
Gross Profit was 2809860 + 2889424 + 2893839 + 2907228 = ₩11,500,351 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was
(19774800 + 20017786 + 20419292 + 20313483 + 20100605) / 5 = ₩20125193.2 Mil.
Total Assets at the begining of this year (Dec22) was ₩19,774,800 Mil.
Long-Term Debt & Capital Lease Obligation was ₩4,868,576 Mil.
Total Current Assets was ₩4,964,158 Mil.
Total Current Liabilities was ₩5,606,861 Mil.
Net Income was 169866 + 161862 + 167228 + 164099 = ₩663,055 Mil.

Revenue was 3409981 + 3384255 + 3501145 + 3610609 = ₩13,905,990 Mil.
Gross Profit was 2747834 + 2825259 + 2821450 + 2860232 = ₩11,254,775 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was
(19370515 + 19166281 + 19664307 + 19378022 + 19774800) / 5 = ₩19470785 Mil.
Total Assets at the begining of last year (Dec21) was ₩19,370,515 Mil.
Long-Term Debt & Capital Lease Obligation was ₩5,400,682 Mil.
Total Current Assets was ₩5,043,422 Mil.
Total Current Liabilities was ₩4,817,824 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

LG Uplus's current Net Income (TTM) was 622,773. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

LG Uplus's current Cash Flow from Operations (TTM) was 2,974,990. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec22)
=622773/19774800
=0.03149326

ROA (Last Year)=Net Income/Total Assets (Dec21)
=663055/19370515
=0.03423012

LG Uplus's return on assets of this year was 0.03149326. LG Uplus's return on assets of last year was 0.03423012. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

LG Uplus's current Net Income (TTM) was 622,773. LG Uplus's current Cash Flow from Operations (TTM) was 2,974,990. ==> 2,974,990 > 622,773 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=4868576/20125193.2
=0.2419145

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=5400682/19470785
=0.27737361

LG Uplus's gearing of this year was 0.2419145. LG Uplus's gearing of last year was 0.27737361. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Dec23)=Total Current Assets/Total Current Liabilities
=4964158/5606861
=0.88537205

Current Ratio (Last Year: Dec22)=Total Current Assets/Total Current Liabilities
=5043422/4817824
=1.0468257

LG Uplus's current ratio of this year was 0.88537205. LG Uplus's current ratio of last year was 1.0468257. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

LG Uplus's number of shares in issue this year was 429.695. LG Uplus's number of shares in issue last year was 429.58. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=11500351/14372626
=0.80015656

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=11254775/13905990
=0.80934727

LG Uplus's gross margin of this year was 0.80015656. LG Uplus's gross margin of last year was 0.80934727. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec22)
=14372626/19774800
=0.72681524

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=13905990/19370515
=0.7178947

LG Uplus's asset turnover of this year was 0.72681524. LG Uplus's asset turnover of last year was 0.7178947. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+0+0+0+1
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

LG Uplus has an F-score of 5 indicating the company's financial situation is typical for a stable company.

LG Uplus  (XKRX:032640) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


LG Uplus Piotroski F-Score Related Terms

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LG Uplus (XKRX:032640) Business Description

Traded in Other Exchanges
N/A
Address
LG Uplus Tower, 82, Namdaemunno 5-ga, Seoul, KOR, 100-095
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 Corporation 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 Corp and SK Telecom, which were formed from the previously state-owned monopoly, Korea Telecom. Given 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.

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