Hyundai Department Store Co Ltd

Hyundai Department Store Co Ltd maintains a capital structure characterized by significant leverage relative to equity, with long-term debt of 2.55 trillion KRW against total equity of 4.55 trillion KRW, resulting in a debt-to-equity ratio of 0.56. The balance sheet shows total assets of 11.25 trillion KRW and total liabilities of 6.70 trillion KRW. Liquidity is constrained, evidenced by a current ratio of 0.83 and cash and equivalents of only 248.3 billion KRW, which is insufficient to cover total debt, leading to a negative net cash position. The company trades at a price-to-book ratio of 0.83, indicating a discount to book value, while the price-to-earnings ratio stands at 18.18. Enterprise value multiples are elevated, with EV/EBITDA at 43.73 and EV/Revenue at 1.49, suggesting the market prices in significant future growth or asset revaluation despite current cash flow constraints.

Profitability metrics indicate modest returns on capital. Return on equity is 4.57%, and return on assets is 1.85%, reflecting the capital-intensive nature of the retail business and the drag of high debt levels. Operating income of 150.0 billion KRW on revenue of 4.23 trillion KRW yields an operating margin of approximately 3.55%. Net income of 207.7 billion KRW suggests some non-operating gains or tax benefits, as it exceeds operating income. Free cash flow is negative at -50.0 billion KRW, driven by capital expenditures of 583.0 billion KRW that exceed operating cash flow of 986.2 billion KRW. This negative free cash flow highlights the ongoing investment requirements for store maintenance or expansion, which pressures liquidity.

The company operates in the broadline and specialty retail segment, with no further segment or geographic breakdown provided in the available data. Revenue concentration risks cannot be quantified due to the absence of segment-specific data, but the broadline classification implies exposure to general consumer spending trends. The lack of geographic detail prevents an assessment of regional economic sensitivities, though the Korean Won denomination suggests primary operations in South Korea.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current revenue base of 4.23 trillion KRW serves as the baseline for future projections. Without historical trends, it is not possible to determine the momentum of revenue growth or the stability of earnings over time. The negative free cash flow suggests that current growth or maintenance strategies are capital-intensive, potentially limiting near-term organic growth without external financing.

Risk factors include medium liquidity risk due to the current ratio below 1.0 and negative net cash position. Dilution risk is assessed as low, with basic and diluted shares outstanding identical at 21.4 million shares, indicating no significant options or convertible securities currently impacting share count. The key flag of negative net cash after subtracting total debt underscores the reliance on operating cash flow and potential debt refinancing to meet obligations. The high EV/EBITDA multiple may also indicate valuation risk if earnings do not improve to justify the premium.

Recent observations from investor relations data show strong analyst sentiment, with a mean recommendation of 1.60 (strong buy) and a mean price target of 186,562.50 KRW, implying upside from the current market price of 176,500.00 KRW. The high price target of 275,000.00 KRW and low of 100,000.00 KRW reflect a wide range of expectations. There are 8 strong buy and 12 buy ratings, with no hold ratings, indicating consensus optimism. No specific filing, news, or transcript observations are provided to detail recent corporate actions or strategic shifts.

Analysts project 44.4% upside to a mean price target of 186,562.5 KRW, reflecting strong market confidence.

Cash conversion of 4.74 is best-in-class compared to the cohort median of 1.37, highlighting efficient operations.

Operating income surged 1,208.4% year-over-year to 150 billion KRW, signaling a robust operational turnaround.

Debt-to-equity ratio of 0.56 is below the cohort median of 0.46, suggesting a manageable leverage position.

High credit risk flags indicate significant potential for financial distress or default issues within the company.

Free cash flow remains negative at -50 billion KRW, raising concerns about liquidity and capital generation.

Medium liquidity risk suggests potential challenges in meeting short-term financial obligations or operational needs.

Revenue KRW 950.06B, −13,5% YoY; Operating income −9,9% YoY.

• ▍Revenue KRW 950.06B, −13,5% YoY
• ▍Operating income −9,9% YoY
• ▍Net income +0,5% YoY
• ▍Free cash flow +181,5% YoY
• ▍Net margin 7.2%

Revenue KRW 1.04T, −11,4% YoY; Operating income −337,9% YoY.

• ▍Revenue KRW 1.04T, −11,4% YoY
• ▍Operating income −337,9% YoY
• ▍Net income +146,8% YoY
• ▍Free cash flow −163,5% YoY
• ▍Net margin 4.7%

Revenue KRW 1.01T, −2,6% YoY; Operating income +17,3% YoY.

• ▍Revenue KRW 1.01T, −2,6% YoY
• ▍Operating income +17,3% YoY
• ▍Net income +113,4% YoY
• ▍Free cash flow +33,2% YoY
• ▍Net margin 4.5%

Revenue KRW 1.08T, +5,5% YoY; Operating income +148,9% YoY.

• ▍Revenue KRW 1.08T, +5,5% YoY
• ▍Operating income +148,9% YoY
• ▍Net income +131,0% YoY
• ▍Free cash flow +208,8% YoY
• ▍Net margin 4.2%

Revenue KRW 1.10T; Operating income KRW 109.64B.

• ▍Revenue KRW 1.10T
• ▍Operating income KRW 109.64B
• ▍Net margin 6.2%

Revenue KRW 1.18T; Operating income KRW 54.48B.

• ▍Revenue KRW 1.18T
• ▍Operating income KRW 54.48B
• ▍Net margin 1.7%

Revenue KRW 1.04T; Operating income KRW 61.99B.

• ▍Revenue KRW 1.04T
• ▍Operating income KRW 61.99B
• ▍Net margin 2.0%

Revenue KRW 1.02T; Operating income -KRW 198.87B.

• ▍Revenue KRW 1.02T
• ▍Operating income -KRW 198.87B
• ▍Net margin -14.2%

Revenue KRW 4.23T, +1,0% YoY; Operating income +1 208,4% YoY.

• ▍Revenue KRW 4.23T, +1,0% YoY
• ▍Operating income +1 208,4% YoY
• ▍Net income +677,7% YoY
• ▍Free cash flow +38,3% YoY
• ▍Net margin 4.9%

Revenue KRW 4.19T, −0,5% YoY; Operating income −131,8% YoY.

• ▍Revenue KRW 4.19T, −0,5% YoY
• ▍Operating income −131,8% YoY
• ▍Net income +54,9% YoY
• ▍Free cash flow −413,8% YoY
• ▍Net margin -0.9%

Revenue KRW 4.21T, −16,1% YoY; Operating income −85,1% YoY.

• ▍Revenue KRW 4.21T, −16,1% YoY
• ▍Operating income −85,1% YoY
• ▍Net income −155,4% YoY
• ▍Free cash flow −106,0% YoY
• ▍Net margin -1.9%

Revenue KRW 5.01T, +40,4% YoY; Operating income +7,8% YoY.

• ▍Revenue KRW 5.01T, +40,4% YoY
• ▍Operating income +7,8% YoY
• ▍Net income −23,9% YoY
• ▍Free cash flow +9,3% YoY
• ▍Net margin 2.9%