Kumho Tire Co Inc

Kumho Tire maintains a debt-to-equity ratio of 0.92, indicating a moderate reliance on debt financing. The company's liquidity position is characterized as medium, with a current ratio of 1.14, suggesting it can cover its short-term obligations but with limited buffer. Free cash flow stands at 368.34 billion KRW, supporting operational flexibility and potential reinvestment. Profitability metrics show a return on equity (ROE) of 17.12% and a return on assets (ROA) of 6.27%, both exceeding the industry median for Tires & Rubber Products. This suggests Kumho Tire is generating strong returns relative to its equity and asset base. The company's revenue is concentrated in the automotive tire segment, with disclosed exposure to key markets in Asia and North America. No specific geographic revenue breakdown is provided, but the company's operations are heavily tied to global automotive demand. Kumho Tire reported revenue of 4.7 trillion KRW in the latest period, with a gross profit margin of 30.9% and an operating margin of 8.7%. Analysts project continued growth, with a mean price target of 8,120 KRW and a median of 7,600 KRW. The company faces moderate liquidity risk due to a negative net cash position after subtracting total debt. Dilution risk is assessed as low, with no near-term pressure from share issuance or convertible debt. Capital expenditures of -313.34 billion KRW indicate a net outflow, likely related to plant and equipment upgrades. Recent filings and transcripts highlight Kumho Tire's focus on cost optimization and supply chain resilience amid inflationary pressures. The company has also emphasized its R&D investments in sustainable tire technologies to meet evolving regulatory and consumer demands.