Innocean Worldwide Inc

Innocean Worldwide Inc maintains a strong liquidity position, with cash and equivalents amounting to KRW 515.47 billion, which is 20.1% of total assets. The company's liquidity FPT (free cash flow to total liabilities) is 0.021, indicating a low liquidity risk. The current ratio of 1.3 suggests the company can cover its short-term obligations with its current assets.

Profitability metrics show a return on equity (ROE) of 2.4% and a return on assets (ROA) of 0.89%, both below the industry median for advertising and marketing firms. The company's operating margin is 7.03%, and net margin is 4.37%, which are in line with the sector average. However, the company's gross margin of 44.87% is slightly above the industry median, indicating efficient cost management.

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 client concentration risk. The company's largest client accounts for 12.3% of total revenue, according to the latest disclosures.

Looking ahead, the company is projected to grow revenue by 4.2% in the current fiscal year and 3.8% in the next fiscal year. This growth is driven by increased demand for digital marketing services and expansion into new markets. The company's capital expenditure is negative, indicating a reduction in investment in physical assets, which may reflect a shift toward digital and software-based solutions.

The company's risk profile is low, with no immediate filing-based liquidity or dilution flags detected. The debt-to-equity ratio of 0.27 is well below the industry median, and the company has no near-term dilution pressure. The risk assessment indicates a low probability of dilution in the next 12 months, with no recent issuance or shelf registration activity reported.

Recent events include the release of the latest quarterly earnings report, which showed a 3.1% increase in revenue compared to the previous year. The company also announced a new partnership with a major technology firm to enhance its digital marketing capabilities. Analysts have a positive outlook, with a mean price target of KRW 22,800 and a median price target of KRW 23,000.

Analysts project 22.5% upside to a mean price target of 22,800 KRW, reflecting strong market confidence in future performance.

Operating margin of 7.0% significantly exceeds the 3.5% industry median, demonstrating superior profitability within the advertising sector.

Revenue grew at a 9.3% CAGR over four years, indicating consistent top-line expansion and market share gains.

Cash conversion ratio of 6.89 is best-in-class compared to the 0.97 cohort median, highlighting exceptional operational efficiency.

Free cash flow surged 185.1% year-over-year to 84.2 billion KRW, signaling a robust recovery in liquidity generation.

Debt-to-equity ratio of 0.27 is nearly double the 0.14 industry median, indicating higher financial leverage and risk.

Long-term debt increased to 277.4 billion KRW in FY2026, raising concerns about rising financial obligations and interest costs.

Operating income fell 3.6% year-over-year, indicating margin compression pressures despite gross profit growth trends.

Revenue KRW 523.79B, +4,0% YoY; Operating income +33,3% YoY.

• ▍Revenue KRW 523.79B, +4,0% YoY
• ▍Operating income +33,3% YoY
• ▍Net income +188,7% YoY
• ▍Free cash flow +489,9% YoY
• ▍Net margin 6.9%

Revenue KRW 632.08B, +5,5% YoY; Operating income −30,4% YoY.

• ▍Revenue KRW 632.08B, +5,5% YoY
• ▍Operating income −30,4% YoY
• ▍Net income +29,8% YoY
• ▍Free cash flow −51,5% YoY
• ▍Net margin 4.9%

Revenue KRW 491.53B, −4,0% YoY; Operating income +11,8% YoY.

• ▍Revenue KRW 491.53B, −4,0% YoY
• ▍Operating income +11,8% YoY
• ▍Net income +4,4% YoY
• ▍Free cash flow +44,1% YoY
• ▍Net margin 5.8%

Revenue KRW 519.04B, −0,6% YoY; Operating income −1,2% YoY.

• ▍Revenue KRW 519.04B, −0,6% YoY
• ▍Operating income −1,2% YoY
• ▍Net income −14,0% YoY
• ▍Free cash flow −59,1% YoY
• ▍Net margin 3.8%

Revenue KRW 503.39B; Operating income KRW 29.84B.

• ▍Revenue KRW 503.39B
• ▍Operating income KRW 29.84B
• ▍Net margin 2.5%

Revenue KRW 598.97B; Operating income KRW 31.58B.

• ▍Revenue KRW 598.97B
• ▍Operating income KRW 31.58B
• ▍Net margin 4.0%

Revenue KRW 512.02B; Operating income KRW 45.90B.

• ▍Revenue KRW 512.02B
• ▍Operating income KRW 45.90B
• ▍Net margin 5.3%

Revenue KRW 522.07B; Operating income KRW 36.66B.

• ▍Revenue KRW 522.07B
• ▍Operating income KRW 36.66B
• ▍Net margin 4.4%

Revenue KRW 2.15T, +1,2% YoY; Operating income −3,6% YoY.

• ▍Revenue KRW 2.15T, +1,2% YoY
• ▍Operating income −3,6% YoY
• ▍Net income −8,5% YoY
• ▍Free cash flow +185,1% YoY
• ▍Net margin 4.3%

Revenue KRW 2.12T, +1,3% YoY; Operating income +10,8% YoY.

• ▍Revenue KRW 2.12T, +1,3% YoY
• ▍Operating income +10,8% YoY
• ▍Net income −1,5% YoY
• ▍Free cash flow −224,5% YoY
• ▍Net margin 4.7%

Revenue KRW 2.09T, +19,6% YoY; Operating income +10,2% YoY.

• ▍Revenue KRW 2.09T, +19,6% YoY
• ▍Operating income +10,2% YoY
• ▍Net income +44,1% YoY
• ▍Free cash flow +32,1% YoY
• ▍Net margin 4.9%

Revenue KRW 1.75T, +16,5% YoY; Operating income −2,7% YoY.

• ▍Revenue KRW 1.75T, +16,5% YoY
• ▍Operating income −2,7% YoY
• ▍Net income +7,2% YoY
• ▍Free cash flow +21,8% YoY
• ▍Net margin 4.0%