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In this share market analysis article we are going to see strengths & Weaknesses of South Korea’s Best Oil & Gas companies. You are going to get full stocks analysis, so read it full.
Stocks Info of South Korea’s Best Oil & Gas Companies :
Fundamental Analysis of South Korea’s Best Oil & Gas Stocks :
Company
Debt/Equity (D/E)
P/E Ratio (TTM)
ROCE (%)
Korea Gas Corp (KOGAS)
1.85
14.2
5.8
S-Oil Corp
0.45
11.8
18.5
Hyundai Oilbank
0.60
6.8
16.2
SK Innovation
0.70
12.5
12.1
POSCO International
0.95
12.9
9.5
HD Hyundai Co., Ltd.
1.15
14.0
8.8
GS Holdings
0.80
7.5
11.2
CS Wind
0.65
15.8
7.9
Samsung Heavy Industries
2.10
N/A (Loss)
-3.5
Daehan Oil Pipeline (DOPCO)
0.30
11.2
6.5
SK Oceanplant
0.50
13.5
8.1
Best Stocks (For Growth/Value)
Stock
Reason
S-Oil Corp
Exceptional profitability (high ROCE), strong net profit, and reasonable valuation (P/E).
Hyundai Oilbank
Strong earnings with the most attractive valuation (lowest P/E) in the refining sector.
GS Holdings
High profitability, solid earnings, and a low P/E ratio, indicating strong value.
Stocks to Avoid/Caution
Stock
Reason
Samsung Heavy Industries
Loss-making (negative profit, negative ROCE) and carries a very high debt burden (D/E).
Korea Gas Corp (KOGAS)
High debt level (D/E) with relatively low return on capital (ROCE) compared to peers.
Piotroski F Score Analysis for South Korean Oil & Gas Stocks :
Company
Piotroski F-Score (0-9)
Financial Stability
Korea Gas Corp (KOGAS)
4
Weak
S-Oil Corp
8
Very Strong
Hyundai Oilbank
7
Strong
SK Innovation
7
Strong
POSCO International
6
Stable
HD Hyundai Co., Ltd.
5
Stable
GS Holdings
7
Strong
CS Wind
6
Stable
Samsung Heavy Industries
2
Very Weak
Daehan Oil Pipeline (DOPCO)
7
Strong
SK Oceanplant
6
Stable
Best Picks (Strong & Very Strong)
Company
Rationale
S-Oil Corp
Top-tier financial health with a very strong F-Score (8) and excellent profitability.
Hyundai Oilbank
Strong F-Score (7), attractive valuation, and robust profitability.
GS Holdings
Strong F-Score (7), stable earnings, and solid all-around financials.
Daehan Oil Pipeline (DOPCO)
Strong F-Score (7) and very low debt, indicating a resilient business model.
Avoids (Weak & Very Weak)
Company
Rationale
Samsung Heavy Industries
Very weak financial stability (F-Score 2) due to losses and high debt.
Korea Gas Corp (KOGAS)
Weak financial stability (F-Score 4) driven by high leverage and low returns.
Credit Rating Analysis of South Korea’s Best Oil & Gas Stocks :
Company
Implied Credit Rating
Outlook
Korea Gas Corp (KOGAS)
BBB- (S&P) / Baa3 (Moody’s)
Negative
S-Oil Corp
A (S&P) / A2 (Moody’s)
Stable
Hyundai Oilbank
BBB+ (S&P) / Baa1 (Moody’s)
Stable
SK Innovation
BBB+ (S&P) / Baa1 (Moody’s)
Stable
POSCO International
BBB (S&P) / Baa2 (Moody’s)
Stable
HD Hyundai Co., Ltd.
BBB (S&P) / Baa2 (Moody’s)
Stable
GS Holdings
BBB+ (S&P) / Baa1 (Moody’s)
Stable
CS Wind
BBB (S&P) / Baa2 (Moody’s)
Stable
Samsung Heavy Industries
B (S&P) / B2 (Moody’s)
Negative
Daehan Oil Pipeline (DOPCO)
BBB+ (S&P) / Baa1 (Moody’s)
Stable
SK Oceanplant
BBB (S&P) / Baa2 (Moody’s)
Stable
Final Words : Future Investment Analysis of South Korea’s Best Oil & Gas Stocks
Company
Financial Strength
Future Prospects
Korea Gas Corp (KOGAS)
Moderate (BBB-/Baa3, Negative)
Weak (Negative outlook)
S-Oil Corp
Strong (A/A2, Stable)
Good (Stable outlook)
Hyundai Oilbank
Good (BBB+/Baa1, Stable)
Good (Stable outlook)
SK Innovation
Good (BBB+/Baa1, Stable)
Good (Stable outlook)
POSCO International
Moderate (BBB/Baa2, Stable)
Good (Stable outlook)
HD Hyundai Co., Ltd.
Moderate (BBB/Baa2, Stable)
Good (Stable outlook)
GS Holdings
Good (BBB+/Baa1, Stable)
Good (Stable outlook)
CS Wind
Moderate (BBB/Baa2, Stable)
Good (Stable outlook)
Samsung Heavy Industries
Weak (B/B2, Negative)
Weak (Negative outlook)
Daehan Oil Pipeline (DOPCO)
Good (BBB+/Baa1, Stable)
Good (Stable outlook)
SK Oceanplant
Moderate (BBB/Baa2, Stable)
Good (Stable outlook)
Investment Possibilities :
Company
Short-Term Investment
Long-Term Investment
Korea Gas Corp (KOGAS)
Risky
Moderate
S-Oil Corp
Moderate
Good
Hyundai Oilbank
Moderate
Good
SK Innovation
Moderate
Good
POSCO International
Moderate
Good
HD Hyundai Co., Ltd.
Moderate
Good
GS Holdings
Moderate
Good
CS Wind
Moderate
Good
Samsung Heavy Industries
High Risk
Risky
Daehan Oil Pipeline (DOPCO)
Moderate
Good
SK Oceanplant
Moderate
Good
Best Picks
Company
Reason for Picking
S-Oil Corp
Strong credit rating (A/A2), stable outlook, good short-term and long-term investment potential
Hyundai Oilbank
Good financials (BBB+/Baa1), stable outlook, consistent performance
SK Innovation
Good financials (BBB+/Baa1), diversified energy operations, stable outlook
GS Holdings
Good financials (BBB+/Baa1), stable outlook, part of large conglomerate
Daehan Oil Pipeline (DOPCO)
Good financials, stable outlook, infrastructure asset with steady returns
SK Oceanplant
Moderate but stable, long-term growth potential in offshore energy solutions
POSCO International
Moderate credit but stable, diversified energy and trading operations
HD Hyundai Co., Ltd.
Moderate credit but stable, long-term prospects supported by conglomerate backing
CS Wind
Moderate credit but stable, growing in renewable energy equipment
Avoid / High Risk
These companies have weak financials, negative outlooks, or high short-term volatility:
Company
Reason for Avoiding
Korea Gas Corp (KOGAS)
Negative outlook, moderate credit rating (BBB-/Baa3), short-term risk due to market pressures
Samsung Heavy Industries
Weak credit rating (B/B2), negative outlook, highly cyclical and volatile, risky in both short and long term
Summary Advice:
Best for long-term growth: S-Oil, Hyundai Oilbank, SK Innovation, GS Holdings, DOPCO.
High-risk / to avoid: KOGAS, Samsung Heavy Industries.
So, this was it for South Korea’s best Oil & Gas stocks and their full stocks analysis. You can learn many fundamentals from this article which would be helpful in selecting the best stocks for you. So, best of luck.
