Wooshin Systems Co Ltd

Wooshin Systems has a liquidity risk profile marked by a debt-to-equity ratio of 1.24 and a current ratio of 0.88, indicating that its short-term liabilities exceed its short-term assets. The company's price-to-book ratio of 0.78 suggests that the market values its equity at a discount to its book value, while the price-to-tangible-book ratio is identical, implying no intangible asset premium. The negative operating cash flow of -25.47 billion KRW and free cash flow of -10.02 billion KRW highlight a cash outflow from operations, which could pressure liquidity in the near term.

Profitability metrics show a return on equity (ROE) of 3.26% and a return on assets (ROA) of 0.8%, both below the industry median for automotive parts manufacturers. The gross profit margin of 16.7% is in line with the sector, but the operating margin of 3.5% is below the median, indicating inefficiencies in cost control or pricing power. The net income of 3.27 billion KRW is modest relative to revenue of 57.47 billion KRW, suggesting limited profitability leverage.

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 downturns or supply chain disruptions. The absence of segment or geographic breakdown in the financials limits visibility into potential growth or risk areas.

Growth expectations for the current fiscal year are modest, with analysts forecasting an EPS of 1,004 KRW compared to the actual 985 KRW. The mean recommendation of 1.00 (strong buy) reflects optimism, but the absence of buy or hold ratings suggests a polarized view among analysts. The company's capital expenditure of -16.10 billion KRW indicates a significant investment in infrastructure or expansion, which could support future growth but may also strain short-term liquidity.

Risk factors include a medium liquidity risk due to negative net cash after subtracting total debt, and a low dilution risk as the company has not issued additional shares recently. The debt-to-equity ratio of 1.24 suggests a moderate reliance on debt financing, which could increase financial risk if interest rates rise or credit conditions tighten. No dilution sources are identified in the latest filings, and the dilution near-term probability is assessed as low.

Recent events include a strong buy recommendation from one analyst, with no other analyst ratings provided. The company's financial performance in the latest quarter shows a slight improvement in EPS, but the operating cash flow remains negative. No major regulatory or geopolitical events are disclosed in the latest filings, and the company's exposure to geopolitical drivers is not specified.

Free cash flow surged 219.2% year-over-year, demonstrating significant improvement in cash generation capabilities.

Net income grew 121.3% year-over-year, indicating strong profitability recovery and operational efficiency gains.

Operating income increased 152.1% year-over-year, reflecting substantial expansion in core business profitability.

Analyst recommendation is strong buy, suggesting positive market sentiment despite limited coverage.

Debt-to-equity ratio of 1.24 is significantly higher than the cohort median of 0.41, indicating high leverage risk.

Credit risk is flagged as high, posing potential challenges for financing and operational stability.

Revenue declined 3.0% year-over-year, signaling weakening top-line growth momentum in the current period.

Operating margin of 3.5% trails the cohort median of 4.4%, suggesting lower operational efficiency than peers.

Revenue KRW 90.85B, −34,1% YoY; Operating income +3,0% YoY.

• ▍Revenue KRW 90.85B, −34,1% YoY
• ▍Operating income +3,0% YoY
• ▍Net income −66,0% YoY
• ▍Free cash flow −78,9% YoY
• ▍Net margin 6.1%

Revenue KRW 101.04B, −64,0% YoY; Operating income −79,0% YoY.

• ▍Revenue KRW 101.04B, −64,0% YoY
• ▍Operating income −79,0% YoY
• ▍Net income −32,9% YoY
• ▍Free cash flow −46,6% YoY
• ▍Net margin 6.6%

Revenue KRW 94.25B, +7,6% YoY; Operating income −82,5% YoY.

• ▍Revenue KRW 94.25B, +7,6% YoY
• ▍Operating income −82,5% YoY
• ▍Net income −157,2% YoY
• ▍Free cash flow −140,4% YoY
• ▍Net margin -2.7%

Revenue KRW 102.47B, +78,3% YoY; Operating income +348,2% YoY.

• ▍Revenue KRW 102.47B, +78,3% YoY
• ▍Operating income +348,2% YoY
• ▍Net income +64,0% YoY
• ▍Free cash flow +117,2% YoY
• ▍Net margin 5.2%

Revenue KRW 137.95B; Operating income KRW 5.91B.

• ▍Revenue KRW 137.95B
• ▍Operating income KRW 5.91B
• ▍Net margin 11.8%

Revenue KRW 280.60B; Operating income KRW 20.82B.

• ▍Revenue KRW 280.60B
• ▍Operating income KRW 20.82B
• ▍Net margin 3.5%

Revenue KRW 87.58B; Operating income KRW 7.30B.

• ▍Revenue KRW 87.58B
• ▍Operating income KRW 7.30B
• ▍Net margin 5.1%

Revenue KRW 57.47B; Operating income KRW 2.04B.

• ▍Revenue KRW 57.47B
• ▍Operating income KRW 2.04B
• ▍Net margin 5.7%

Revenue KRW 388.61B, −31,1% YoY; Operating income −42,2% YoY.

• ▍Revenue KRW 388.61B, −31,1% YoY
• ▍Operating income −42,2% YoY
• ▍Net income −55,7% YoY
• ▍Free cash flow −78,8% YoY
• ▍Net margin 3.9%

Revenue KRW 563.60B, +132,7% YoY; Operating income +190,6% YoY.

• ▍Revenue KRW 563.60B, +132,7% YoY
• ▍Operating income +190,6% YoY
• ▍Net income +356,2% YoY
• ▍Free cash flow +980,1% YoY
• ▍Net margin 6.0%

Revenue KRW 242.20B, −4,8% YoY; Operating income +55,7% YoY.

• ▍Revenue KRW 242.20B, −4,8% YoY
• ▍Operating income +55,7% YoY
• ▍Net income +168,4% YoY
• ▍Free cash flow −132,4% YoY
• ▍Net margin 3.1%