Lotte Shopping Co Ltd

Lotte Shopping Co Ltd maintains a capital structure characterized by significant leverage and constrained liquidity. The company reports total assets of 37.9 trillion KRW against total liabilities of 22.7 trillion KRW, resulting in total equity of 15.2 trillion KRW. Long-term debt stands at 13.8 trillion KRW, while cash and equivalents are limited to 557.2 billion KRW, creating a net cash position that is negative after subtracting total debt. The debt-to-equity ratio is 0.91, and the current ratio is 0.52, indicating medium liquidity risk. Operating cash flow is 1.64 trillion KRW, but free cash flow is compressed to 213.7 billion KRW due to capital expenditures of 697.8 billion KRW.

Profitability metrics reveal thin returns on capital. The company generated revenue of 13.7 trillion KRW with a gross profit of 6.66 trillion KRW, yielding an operating income of 375.2 billion KRW and net income of 51.6 billion KRW. Return on equity is 1.08%, and return on assets is 0.43%, suggesting inefficient capital utilization relative to the asset base. The valuation snapshot shows a price-to-earnings ratio of 29.88 and an EV/EBITDA of 37.83, which appear elevated given the low absolute returns, though the price-to-book ratio is depressed at 0.32.

Segment and geographic revenue mix data is not provided in the available source documents. Consequently, specific insights into revenue concentration by business unit or region cannot be derived from the current dataset. The analysis relies solely on consolidated financial figures.

Growth trajectory analysis is limited by the absence of historical period data in the input. Without 5-year annual or 8-quarter quarterly revenue and net income trends, it is not possible to assess the directionality of top-line or bottom-line performance over time. The current snapshot provides a static view of financial health without temporal context.

Risk assessment highlights medium liquidity risk and low dilution risk. Key flags indicate that net cash is negative after subtracting total debt, emphasizing the reliance on debt financing. The current ratio of 0.52 further underscores short-term liquidity pressures. Dilution risk is assessed as low, with basic and diluted shares outstanding being identical at 28.27 million shares, indicating no immediate options or convertible securities impacting share count.

Recent events and market sentiment are reflected in analyst estimates. The mean price target is 187,000 KRW, with a median of 190,000 KRW, suggesting modest upside from the current market price of 172,900 KRW. The mean recommendation is 2.00 (Buy), supported by 4 strong buys and 8 buys against 2 holds. No specific filing, news, or transcript observations are provided in the input data to detail recent corporate actions or strategic shifts.

Analysts project 42.6% upside to a mean price target of 187,000 KRW, signaling strong market confidence in future performance.

Free cash flow surged 122.7% year-over-year to 213.7 billion KRW, demonstrating significant improvement in cash generation capabilities.

Operating income jumped 149.4% to 375.2 billion KRW, indicating a robust recovery in core operational profitability.

Cash conversion ratio of 10.02 ranks as best-in-class, significantly outperforming the cohort median of 1.2.

Long-term debt decreased to 13.8 trillion KRW, reflecting a continued trend of deleveraging over the past four years.

The company faces high credit risk, suggesting potential vulnerabilities in its financial stability or counterparty exposures.

Net margin of 1.18% remains well below the cohort median of 5.27%, highlighting thin profitability relative to peers.

Debt-to-equity ratio of 0.91 is more than double the cohort median of 0.4, indicating elevated leverage risk.

Revenue KRW 3.58T, +3,6% YoY; Operating income +70,0% YoY.

• ▍Revenue KRW 3.58T, +3,6% YoY
• ▍Operating income +70,0% YoY
• ▍Net income +691,8% YoY
• ▍Free cash flow +266,2% YoY
• ▍Net margin 3.6%

Revenue KRW 3.52T, +1,3% YoY; Operating income +112,0% YoY.

• ▍Revenue KRW 3.52T, +1,3% YoY
• ▍Operating income +112,0% YoY
• ▍Net income +111,5% YoY
• ▍Free cash flow +117,6% YoY
• ▍Net margin 3.2%

Revenue KRW 3.41T, −4,4% YoY; Operating income −57,2% YoY.

• ▍Revenue KRW 3.41T, −4,4% YoY
• ▍Operating income −57,2% YoY
• ▍Net income −51 253,9% YoY
• ▍Free cash flow +126,5% YoY
• ▍Net margin -1.7%

Revenue KRW 3.35T, −2,3% YoY; Operating income +265,0% YoY.

• ▍Revenue KRW 3.35T, −2,3% YoY
• ▍Operating income +265,0% YoY
• ▍Net income +77,6% YoY
• ▍Free cash flow +63,6% YoY
• ▍Net margin -0.6%

Revenue KRW 3.46T; Operating income KRW 148.85B.

• ▍Revenue KRW 3.46T
• ▍Operating income KRW 148.85B
• ▍Net margin 0.5%

Revenue KRW 3.48T; Operating income -KRW 1.07T.

• ▍Revenue KRW 3.48T
• ▍Operating income -KRW 1.07T
• ▍Net margin -28.1%

Revenue KRW 3.57T; Operating income KRW 155.48B.

• ▍Revenue KRW 3.57T
• ▍Operating income KRW 155.48B
• ▍Net margin -0.0%

Revenue KRW 3.43T; Operating income -KRW 19.33B.

• ▍Revenue KRW 3.43T
• ▍Operating income -KRW 19.33B
• ▍Net margin -2.6%

Revenue KRW 13.74T, −1,8% YoY; Operating income +149,4% YoY.

• ▍Revenue KRW 13.74T, −1,8% YoY
• ▍Operating income +149,4% YoY
• ▍Net income +105,3% YoY
• ▍Free cash flow +122,7% YoY
• ▍Net margin 0.4%

Revenue KRW 13.99T, −3,9% YoY; Operating income −291,1% YoY.

• ▍Revenue KRW 13.99T, −3,9% YoY
• ▍Operating income −291,1% YoY
• ▍Net income −655,0% YoY
• ▍Free cash flow −370,8% YoY
• ▍Net margin -6.9%

Revenue KRW 14.56T, −6,0% YoY; Operating income +198,1% YoY.

• ▍Revenue KRW 14.56T, −6,0% YoY
• ▍Operating income +198,1% YoY
• ▍Net income +153,7% YoY
• ▍Free cash flow +68,6% YoY
• ▍Net margin 1.2%

Revenue KRW 15.48T, −0,6% YoY; Operating income +12,8% YoY.

• ▍Revenue KRW 15.48T, −0,6% YoY
• ▍Operating income +12,8% YoY
• ▍Net income −11,1% YoY
• ▍Free cash flow +317,2% YoY
• ▍Net margin -2.1%