STO Co Ltd

Capital Structure and Liquidity STO Co. has a market price of 1,753 KRW and a market cap of 21.28 billion KRW, with a price-to-book ratio of 0.95 and a price-to-tangible-book ratio of 0.95, indicating a valuation below book value [doc:HA-latest]. The company's liquidity position is characterized by a current ratio of 0.99 and negative net cash after subtracting total debt, suggesting a medium liquidity risk [doc:HA-latest]. The debt-to-equity ratio of 1.82 highlights a leveraged capital structure, with long-term debt of 40.79 billion KRW against total equity of 22.40 billion KRW [doc:HA-latest]. ### Profitability and Returns The company reported a net loss of 4.80 billion KRW and an operating loss of 1.56 billion KRW, with a return on equity of -21.41% and a return on assets of -6.66%, both significantly below the industry median for Apparel & Accessories [doc:HA-latest]. Gross profit of 43.64 billion KRW on revenue of 71.49 billion KRW yields a gross margin of 60.99%, which is in line with the industry median but is not sufficient to offset operating and net losses [doc:HA-latest]. ### Segments and Geographic Exposure According to disclosed segments, STO Co. operates in a single business segment focused on men's clothing. The company's geographic exposure is concentrated in South Korea, with no material international revenue disclosed in the latest financials [doc:HA-latest]. This concentration increases exposure to domestic economic conditions and regulatory changes. ### Growth Trajectory The company's revenue of 71.49 billion KRW is flat compared to the prior year, with no significant growth in operating cash flow or free cash flow. The capital expenditure of -1.71 billion KRW indicates a reduction in investment, which may signal a defensive posture or financial constraints [doc:HA-latest]. Analysts have recorded a last actual EPS of 270.00 KRW, but this does not reflect the net loss reported in the financial snapshot [doc:]. ### Risk Factors The company faces a medium liquidity risk due to a current ratio of 0.99 and negative net cash after subtracting total debt. The dilution risk is assessed as low, with no near-term pressure from share issuance or ATM programs [doc:HA-latest]. Adjustments in the custom valuations reflect the company's operating losses and high leverage, which impact the valuation multiples [doc:custom_valuations]. ### Recent Events Recent filings and transcripts have not disclosed material events that would significantly alter the company's financial position or strategic direction. The absence of recent capital raises or major contracts suggests a stable but stagnant operating environment [doc:HA-latest].