Risk factor
Very poor trading liquidity
Profitability factor
Greatly undervalued vs peers
About
Michang Oil Industries Co., Ltd., a petrochemical enterprise based in South Korea, provides an extensive range of specialized oil products. Its offerings include various automotive lubricants, covering oils for motors, gasoline engines, diesel engines, gears, and automatic transmissions, in addition to other application-specific formulations and transformer oils. The company also supplies industrial lubricants, such as hydraulic, gear, turbine, and heat transfer oils, alongside rubber process oils, which comprise paraffinic, naphthenic, and aromatic types. Furthermore, Michang Oil manufactures technical grade white oils and white mineral oils, available in food, cosmetic, and pharmaceutical specifications. Established in 1962, the firm's main operations are directed from its headquarters in Busan, South Korea.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. In particular, the stock is underpriced on P/E, 'cheap' on EV/EBIT