Woosung Materials Co Ltd

The company's capital structure is highly leveraged, with a debt-to-equity ratio of 2.17, indicating significant reliance on debt financing. Despite a negative net income of -1,459,677,460 KRW, the firm maintains a positive operating cash flow of 3,191,123,090 KRW, which partially offsets the liquidity risk. However, the free cash flow is negative at -1,797,474,730 KRW, suggesting that capital expenditures are outpacing operating cash inflows.

Profitability metrics are weak, with a return on equity of -4.9% and a return on assets of -1.16%, both significantly below the industry median for Textiles & Leather Goods. The operating loss of -612,259,580 KRW highlights the company's inability to generate sufficient operating income to cover its costs.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic fluctuations and supply chain disruptions.

The company's growth trajectory is uncertain, with a recent operating loss and negative net income. Analysts reported a last actual revenue of 233,538,000,000 KRW, but no forward-looking guidance is available to assess future performance.

Risk factors include a medium liquidity risk due to a current ratio of 0.53 and a negative net cash position after subtracting total debt. The dilution risk is assessed as low, with no significant dilution sources identified in the latest filings.

Recent events include a reported operating loss and negative net income, which may signal underlying operational challenges. No recent filings or transcripts have been disclosed that provide additional insight into the company's strategic direction or financial health.

Woosung Materials Co Ltd (011300.KS) has been formally classified within the Textiles & Leather Goods activity and the broader Consumer Cyclicals economic sector. This taxonomic update provides a clearer framework for understanding the company’s operational context, aligning its business profile with industry-specific benchmarks and peer groups relevant to consumer discretionary spending. In terms of risk assessment, the company now carries a "low" dilution risk rating, indicating a stable capital structure with minimal threat of share count expansion impacting existing equity value. This assessment suggests that management is likely maintaining disciplined capital allocation practices, which can be a positive signal for long-term shareholders concerned about ownership erosion. Conversely, the liquidity risk has been assessed as "medium," highlighting potential constraints in the company’s ability to meet short-term obligations or trade efficiently without significant price impact. This moderate liquidity profile warrants attention from investors, as it may affect the ease of entering or exiting positions and could reflect tighter cash flow dynamics or lower trading volumes relative to market standards. Currently, the company shows no recorded analyst coverage, index membership, or disclosed top holders, suggesting it may be a smaller-cap or less followed entity in the market. The absence of these external validation metrics means that the newly established risk and sector classifications serve as primary reference points for investors evaluating Woosung Materials’ fundamental standing and investment characteristics.

Net income improved 76.3% year-over-year in 2009, signaling a potential stabilization after years of significant losses.

Free cash flow surged 80.7% year-over-year in 2009, indicating improved operational cash generation capabilities.

Long-term debt decreased to 48.6 billion KRW in 2009, reflecting a reduction in leverage from previous years.

Operating income improved 76.3% year-over-year in 2009, suggesting core business operations are recovering.

Dilution risk is assessed as low, providing some protection for existing shareholders against equity erosion.

The company carries a high credit risk flag, indicating significant concerns regarding its ability to meet obligations.

Debt-to-equity ratio stands at 2.17, placing it in the bottom quartile compared to 355 cohort peers.

Return on equity is negative 4.9%, falling into the bottom quartile relative to 352 cohort companies.

Revenue KRW 24.69B, −3,1% YoY; Operating income +76,3% YoY.

• ▍Revenue KRW 24.69B, −3,1% YoY
• ▍Operating income +76,3% YoY
• ▍Net income +76,3% YoY
• ▍Free cash flow +80,8% YoY
• ▍Net margin -31.1%

Revenue KRW 25.49B, −24,6% YoY; Operating income −9,3% YoY.

• ▍Revenue KRW 25.49B, −24,6% YoY
• ▍Operating income −9,3% YoY
• ▍Net income +23,1% YoY
• ▍Free cash flow −31,3% YoY
• ▍Net margin -127.0%

Revenue KRW 33.79B, −35,7% YoY; Operating income −236,1% YoY.

• ▍Revenue KRW 33.79B, −35,7% YoY
• ▍Operating income −236,1% YoY
• ▍Net income −1 350,6% YoY
• ▍Free cash flow −2 887,4% YoY
• ▍Net margin -124.6%

Revenue KRW 52.52B, −33,4% YoY; Operating income −115,0% YoY.

• ▍Revenue KRW 52.52B, −33,4% YoY
• ▍Operating income −115,0% YoY
• ▍Net income −113,4% YoY
• ▍Free cash flow −95,7% YoY
• ▍Net margin -5.5%

Revenue KRW 78.89B; Operating income KRW 18.52B.

• ▍Revenue KRW 78.89B
• ▍Operating income KRW 18.52B
• ▍Net margin 27.4%