DN Automotive Corp

DN Automotive Corp maintains a capital structure characterized by significant leverage, with long-term debt of 2,055,638,164,000 KRW against total equity of 2,007,332,574,000 KRW, resulting in a debt-to-equity ratio of 1.02. The company holds 387,735,282,000 KRW in cash and equivalents, which is insufficient to cover total liabilities of 3,268,348,093,000 KRW, leading to a negative net cash position. Liquidity is constrained, evidenced by a current ratio of 0.82, indicating that current liabilities exceed current assets. Despite this, the company generates positive operating cash flow of 259,273,221,000 KRW and free cash flow of 156,176,701,999.999 KRW, supporting its ability to service debt obligations.

Profitability metrics show a return on equity of 14.9% and a return on assets of 5.67%. The company trades at a price-to-earnings ratio of 6.17 and an EV/EBITDA of 6.43, suggesting a valuation that reflects its cyclical nature and leverage profile. The price-to-book ratio stands at 0.92, indicating the market values the company slightly below its book value. Gross profit of 966,452,142,000 KRW on revenue of 3,675,704,255,000 KRW yields a gross margin of approximately 26.3%, while operating income of 527,311,913,000 KRW reflects an operating margin of roughly 14.3%.

Segment and geographic data are not provided in the available input, preventing a detailed analysis of revenue concentration by product line or region. The company’s business activity is broadly defined as automobile manufacturing, with no further breakdown of specific vehicle types or market exposures disclosed in the current dataset.

Growth trajectory analysis is limited due to the absence of historical period data in the input. Without multi-year revenue or net income trends, it is not possible to assess the company’s historical growth rate or momentum. The current financial snapshot provides a static view of performance, lacking the temporal context required for trend reasoning.

Risk assessment indicates medium liquidity risk and low dilution risk. The key flag notes that net cash is negative after subtracting total debt, highlighting the company’s reliance on external financing or cash flow generation to meet obligations. The current ratio of 0.82 further underscores short-term liquidity pressures. However, the low dilution risk suggests that share count stability is maintained, with basic and diluted shares outstanding both at 51,762,270.

Recent events include analyst estimates with a mean price target of 60,000 KRW, representing a significant upside from the current market price of 35,650 KRW. The mean recommendation is 1.00, indicating a strong buy consensus, with two strong-buy ratings and no hold or sell ratings. This positive analyst sentiment contrasts with the company’s liquidity constraints, suggesting expectations of improved financial performance or strategic developments.

Analysts project 62.2% upside to a consensus target price of 60,000 KRW, rating the stock a strong buy.

Debt-to-equity ratio of 1.02 is in the bottom quartile, indicating higher financial leverage and risk than peers.

Cash conversion ratio of 0.11 ranks in the bottom quartile, suggesting poor efficiency in turning earnings into cash.

Revenue KRW 1.02T, +15,8% YoY; Operating income +5,0% YoY.

• ▍Revenue KRW 1.02T, +15,8% YoY
• ▍Operating income +5,0% YoY
• ▍Net income +13,6% YoY
• ▍Free cash flow +196,9% YoY
• ▍Net margin 8.5%