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LG Energy Solution (XKRX:373220) Piotroski F-Score : 2 (As of Jul. 24, 2025)


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What is LG Energy Solution Piotroski F-Score?

Warning Sign:

Piotroski F-Score of 2 is low, which usually implies poor business operation.

The zones of discrimination were as such:

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

LG Energy Solution has an F-score of 2. It is a bad or low score, which usually implies poor business operation.

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

XKRX:373220' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 4   Max: 6
Current: 2

During the past 5 years, the highest Piotroski F-Score of LG Energy Solution was 6. The lowest was 2. And the median was 4.


LG Energy Solution Piotroski F-Score Historical Data

The historical data trend for LG Energy Solution'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 Energy Solution Piotroski F-Score Chart

LG Energy Solution Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24
Piotroski F-Score
N/A N/A 4.00 5.00 3.00

LG Energy Solution Quarterly Data
Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 5.00 3.00 2.00 3.00 2.00

Competitive Comparison of LG Energy Solution's Piotroski F-Score

For the Electrical Equipment & Parts subindustry, LG Energy Solution'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 Energy Solution's Piotroski F-Score Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, LG Energy Solution's Piotroski F-Score distribution charts can be found below:

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


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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 (Mar25) TTM:Last Year (Mar24) TTM:
Net Income was -471772 + 133156 + -679661 + -145740 = ₩-1,164,017 Mil.
Cash Flow from Operations was 835947 + 562367 + 3182317 + 1162033 = ₩5,742,664 Mil.
Revenue was 6161866 + 6877843 + 6451162 + 6264995 = ₩25,755,866 Mil.
Gross Profit was 692892 + 1257015 + 532074 + 1012256 = ₩3,494,237 Mil.
Average Total Assets from the begining of this year (Mar24)
to the end of this year (Mar25) was
(49275358 + 51501207 + 56627130 + 60306791 + 62298978) / 5 = ₩56001892.8 Mil.
Total Assets at the begining of this year (Mar24) was ₩49,275,358 Mil.
Long-Term Debt & Capital Lease Obligation was ₩14,466,196 Mil.
Total Current Assets was ₩15,127,910 Mil.
Total Current Liabilities was ₩11,864,962 Mil.
Net Income was 432443 + 327741 + -23599 + -464 = ₩736,121 Mil.

Revenue was 8773487 + 8223542 + 8001324 + 6128714 = ₩31,127,067 Mil.
Gross Profit was 1334076 + 1341569 + 973178 + 923999 = ₩4,572,822 Mil.
Average Total Assets from the begining of last year (Mar23)
to the end of last year (Mar24) was
(40713454 + 42394653 + 45168509 + 45437144 + 49275358) / 5 = ₩44597823.6 Mil.
Total Assets at the begining of last year (Mar23) was ₩40,713,454 Mil.
Long-Term Debt & Capital Lease Obligation was ₩9,571,472 Mil.
Total Current Assets was ₩17,828,801 Mil.
Total Current Liabilities was ₩10,308,490 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 Energy Solution's current Net Income (TTM) was -1,164,017. ==> Negative ==> Score 0.

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 Energy Solution's current Cash Flow from Operations (TTM) was 5,742,664. ==> 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 (Mar24)
=-1164017/49275358
=-0.0236227

ROA (Last Year)=Net Income/Total Assets (Mar23)
=736121/40713454
=0.01808053

LG Energy Solution's return on assets of this year was -0.0236227. LG Energy Solution's return on assets of last year was 0.01808053. ==> 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 Energy Solution's current Net Income (TTM) was -1,164,017. LG Energy Solution's current Cash Flow from Operations (TTM) was 5,742,664. ==> 5,742,664 > -1,164,017 ==> 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: Mar25)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar24 to Mar25
=14466196/56001892.8
=0.2583162

Gearing (Last Year: Mar24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar23 to Mar24
=9571472/44597823.6
=0.21461747

LG Energy Solution's gearing of this year was 0.2583162. LG Energy Solution's gearing of last year was 0.21461747. ==> Last year is lower than this year ==> Score 0.

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: Mar25)=Total Current Assets/Total Current Liabilities
=15127910/11864962
=1.27500703

Current Ratio (Last Year: Mar24)=Total Current Assets/Total Current Liabilities
=17828801/10308490
=1.72952595

LG Energy Solution's current ratio of this year was 1.27500703. LG Energy Solution's current ratio of last year was 1.72952595. ==> 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 Energy Solution's number of shares in issue this year was 234. LG Energy Solution's number of shares in issue last year was 232. ==> 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
=3494237/25755866
=0.13566762

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=4572822/31127067
=0.14690822

LG Energy Solution's gross margin of this year was 0.13566762. LG Energy Solution's gross margin of last year was 0.14690822. ==> 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 (Mar24)
=25755866/49275358
=0.52269262

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar23)
=31127067/40713454
=0.76454007

LG Energy Solution's asset turnover of this year was 0.52269262. LG Energy Solution's asset turnover of last year was 0.76454007. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

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

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

LG Energy Solution has an F-score of 2. It is a bad or low score, which usually implies poor business operation.

LG Energy Solution  (XKRX:373220) 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 Energy Solution Piotroski F-Score Related Terms

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LG Energy Solution Business Description

Traded in Other Exchanges
N/A
Address
Yeongdeungpo-gu, Yeoui-daero, Seoul, KOR
LG Energy Solution is the third-largest battery maker for electric vehicles with about 15% global share in 2023, according to SNE Research. The EV battery segment is the largest revenue contributor, which accounted for more than 60% of total revenue in 2023. LGES also manufactures batteries for mobility, mobile phones, laptops, electrical devices, and energy storage systems. The company was spun off from LG Chem's battery division in December 2020 and listed on the Korea Exchange in January 2022. It has global manufacturing facilities in Korea, China, Poland, and the United States. Key customers include General Motors, Tesla, Volkswagen, Hyundai, and Stellantis.

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