Hwaseung Enterprise Co Ltd

Hwaseung Enterprise Co Ltd maintains a capital structure with a debt-to-equity ratio of 1.29, indicating a moderate reliance on debt financing. The company's liquidity position is characterized by a current ratio of 0.82, suggesting that its current liabilities exceed its current assets. This is further supported by the negative net cash position after subtracting total debt, which highlights potential liquidity constraints.

In terms of profitability, the company's return on equity (ROE) is 1.31%, and its return on assets (ROA) is 0.44%. These figures are below the typical thresholds for strong performance in the footwear industry, indicating that the company is not generating robust returns relative to its equity and asset base.

The company's revenue is concentrated in a single business segment, as disclosed in its financial statements, with no material geographic diversification reported. This lack of diversification may expose the company to higher operational and market risks, particularly in the event of regional economic downturns or supply chain disruptions.

Looking at the company's growth trajectory, there is no specific outlook provided for the current or next fiscal year. However, the company's operating cash flow of 58,957,208,260 KRW and free cash flow of 12,884,268,000 KRW suggest that it is generating positive cash from operations, which could support future growth initiatives.

The company's risk profile is marked by a medium liquidity risk and a low dilution risk. The key financial flag of negative net cash after subtracting total debt underscores the need for careful liquidity management. Additionally, the company's capital structure and financial leverage should be monitored for any signs of increased financial stress.

Recent events and disclosures do not indicate any significant changes in the company's operations or financial strategy. The company's financial statements and analyst estimates provide a stable but not particularly dynamic picture of its current position in the market.

Analysts project 145.8% upside to a mean price target of 7,533 KRW, significantly above the current 3,065 KRW market price.

The company achieved a record net income of 33.1 billion KRW in FY2025, marking a sharp turnaround from prior losses.

Free cash flow turned positive to 48.1 billion KRW in FY2025, reversing the negative cash flow trends seen in previous years.

Revenue demonstrated an 8.3% compound annual growth rate over the four-year period ending in FY2026.

Cash conversion efficiency is rated best-in-class at 9.63, significantly outperforming the footwear cohort median of 0.82.

The company faces high credit risk and carries a debt-to-equity ratio of 1.29, well above the cohort median of 0.4.

Revenue KRW 350.91B, −17,1% YoY; Operating income −136,1% YoY.

• ▍Revenue KRW 350.91B, −17,1% YoY
• ▍Operating income −136,1% YoY
• ▍Net income −4 215,8% YoY
• ▍Free cash flow +112,1% YoY
• ▍Net margin -2.9%

Revenue KRW 355.77B, −7,9% YoY; Operating income −99,2% YoY.

• ▍Revenue KRW 355.77B, −7,9% YoY
• ▍Operating income −99,2% YoY
• ▍Net income −161,8% YoY
• ▍Free cash flow −89,6% YoY
• ▍Net margin -1.4%

Revenue KRW 386.98B, −1,2% YoY; Operating income −41,3% YoY.

• ▍Revenue KRW 386.98B, −1,2% YoY
• ▍Operating income −41,3% YoY
• ▍Net income −270,0% YoY
• ▍Free cash flow −129,1% YoY
• ▍Net margin -2.7%

Revenue KRW 423.43B; Operating income KRW 13.42B.

• ▍Revenue KRW 423.43B
• ▍Operating income KRW 13.42B
• ▍Net margin 0.1%

Revenue KRW 386.11B; Operating income KRW 17.76B.

• ▍Revenue KRW 386.11B
• ▍Operating income KRW 17.76B
• ▍Net margin 2.1%

Revenue KRW 391.68B; Operating income KRW 15.85B.

• ▍Revenue KRW 391.68B
• ▍Operating income KRW 15.85B
• ▍Net margin 1.6%

Revenue KRW 1.56T, −2,8% YoY; Operating income −68,0% YoY.

• ▍Revenue KRW 1.56T, −2,8% YoY
• ▍Operating income −68,0% YoY
• ▍Net income −187,3% YoY
• ▍Free cash flow −126,1% YoY
• ▍Net margin -1.8%

Revenue KRW 1.61T, +32,6% YoY; Operating income +474,3% YoY.

• ▍Revenue KRW 1.61T, +32,6% YoY
• ▍Operating income +474,3% YoY
• ▍Net income +226,0% YoY
• ▍Free cash flow +432,1% YoY
• ▍Net margin 2.1%

Revenue KRW 1.21T, −26,6% YoY; Operating income −75,5% YoY.

• ▍Revenue KRW 1.21T, −26,6% YoY
• ▍Operating income −75,5% YoY
• ▍Net income −162,7% YoY
• ▍Free cash flow +79,4% YoY
• ▍Net margin -2.2%

Revenue KRW 1.65T, +45,3% YoY; Operating income +805,1% YoY.

• ▍Revenue KRW 1.65T, +45,3% YoY
• ▍Operating income +805,1% YoY
• ▍Net income −53,6% YoY
• ▍Free cash flow −48,1% YoY
• ▍Net margin -0.6%

Revenue KRW 1.14T; Operating income KRW 5.83B.

• ▍Revenue KRW 1.14T
• ▍Operating income KRW 5.83B
• ▍Net margin -0.6%