Hankook Tire & Technology Co Ltd

Hankook Tire maintains a strong liquidity position with a current ratio of 1.71, indicating the company can cover its short-term obligations with its current assets. However, the company's free cash flow is negative at -287.699 billion KRW, suggesting that capital expenditures are outpacing operating cash flow. The company's net cash position is negative after subtracting total debt, signaling potential liquidity risk. In terms of profitability, Hankook Tire's return on equity (ROE) is 9%, and its return on assets (ROA) is 4.09%. These figures are in line with industry norms, but the company's operating margin of 7.46% (calculated from operating income and revenue) is a key indicator of its efficiency in converting sales into profit. The company's gross margin of 22.00% (calculated from gross profit and revenue) is also a strong indicator of its cost management and pricing power. Hankook Tire's revenue is primarily concentrated in the tire manufacturing segment, with a significant portion of its business derived from the automotive industry. The company's geographic exposure is primarily in Asia, with a growing presence in North America and Europe. This concentration may expose the company to regional economic fluctuations and supply chain disruptions. The company's growth trajectory is positive, with a revenue of 21.202 trillion KRW in the latest reporting period. Analysts have a generally positive outlook, with a mean price target of 77,666.67 KRW and a median price target of 76,000.00 KRW. The mean recommendation score of 1.70 indicates a strong buy consensus among analysts. Hankook Tire faces moderate liquidity risk due to its negative free cash flow and net cash position. The company's debt-to-equity ratio of 0.53 is relatively low, indicating a conservative capital structure. However, the company's long-term debt of 6.4125 trillion KRW could become a concern if interest rates rise or if the company's cash flow deteriorates. Recent events, including the company's capital expenditures of -2.30795 trillion KRW, suggest a significant investment in growth and expansion. The company's operating cash flow of 1.60802 trillion KRW supports its ongoing operations and debt servicing. The company's financial health is further supported by its total assets of 26.6472 trillion KRW and total equity of 12.1055 trillion KRW.