Lotte Tour Development Co Ltd

Lotte Tour Development maintains a capital structure with a debt-to-equity ratio of 3.62, indicating a high reliance on debt financing relative to equity. The company's liquidity position is assessed as medium, with cash and equivalents amounting to 53,864,758,780 KRW, which is significantly lower than its long-term debt of 1,309,903,343,250 KRW. The negative operating cash flow of -1,419,106,050 KRW and capital expenditure of -5,123,380,740 KRW further highlight the company's liquidity constraints.

In terms of profitability, Lotte Tour Development reported operating income of 28,784,836,990 KRW on revenue of 156,181,531,200 KRW, yielding an operating margin of 18.43%. This margin is above the industry median for Leisure & Recreation, which typically ranges between 12% and 16%. However, the company's return on invested capital (ROIC) is not disclosed, and its debt load may limit its ability to sustain high returns in the long term.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic fluctuations and regulatory changes, particularly in South Korea, where the company is headquartered. No material international revenue streams are reported, and the company does not disclose segment-specific performance metrics.

Looking ahead, Lotte Tour Development is projected to experience modest revenue growth in the current fiscal year, with a year-over-year increase of approximately 2.5%. The next fiscal year is expected to see a similar growth rate, driven by seasonal demand in the leisure and recreation sector. However, the company's capital expenditure and operating cash flow trends suggest that growth may be constrained by liquidity pressures.

The company's risk profile is characterized by medium liquidity risk and low dilution potential. The key risk flag is the negative net cash position after subtracting total debt, which could limit the company's ability to fund operations or pursue growth opportunities without external financing. No significant dilution events are currently expected, and the company's shares outstanding have remained stable.

Recent investor relations activity includes analyst price targets ranging from 26,000 KRW to 32,000 KRW, with a mean recommendation of 1.70, indicating a generally positive outlook from analysts. No recent filings or transcripts have been disclosed that would suggest material changes in the company's strategic direction or financial health.

Revenue surged 38.6% year-over-year to 653.4 billion KRW in FY2026, demonstrating strong top-line growth momentum.

Operating income jumped 246.3% to 139.8 billion KRW, marking a significant turnaround from previous operating losses.

Free cash flow improved by 360.1% to 104.7 billion KRW, indicating substantial improvement in cash generation capabilities.

Analysts project 150.8% upside to a mean price target of 29,167 KRW, reflecting strong market confidence.

The company carries a high credit risk flag, signaling potential difficulties in meeting financial obligations or debt servicing.

Debt-to-equity ratio of 3.62 places the company in the bottom quartile compared to the 0.3 cohort median.

Long-term debt remains elevated at 1.29 trillion KRW, creating significant leverage pressure despite recent profitability improvements.

The company faces medium liquidity risk, which could constrain its ability to manage short-term financial obligations effectively.

Revenue KRW 156.18B; Operating income KRW 28.78B.

• ▍Revenue KRW 156.18B
• ▍Operating income KRW 28.78B
• ▍Operating margin 18.4%

Revenue KRW 653.45B, +38,6% YoY; Operating income +246,3% YoY.

• ▍Revenue KRW 653.45B, +38,6% YoY
• ▍Operating income +246,3% YoY
• ▍Net income +123,8% YoY
• ▍Free cash flow +360,1% YoY
• ▍Net margin 4.2%

Revenue KRW 471.47B, +50,4% YoY; Operating income +139,8% YoY.

• ▍Revenue KRW 471.47B, +50,4% YoY
• ▍Operating income +139,8% YoY
• ▍Net income +42,4% YoY
• ▍Free cash flow +68,0% YoY
• ▍Net margin -24.7%

Revenue KRW 313.55B, +70,7% YoY; Operating income +20,9% YoY.

• ▍Revenue KRW 313.55B, +70,7% YoY
• ▍Operating income +20,9% YoY
• ▍Net income +10,0% YoY
• ▍Free cash flow +19,5% YoY
• ▍Net margin -64.5%

Revenue KRW 183.67B, +71,5% YoY; Operating income +5,8% YoY.

• ▍Revenue KRW 183.67B, +71,5% YoY
• ▍Operating income +5,8% YoY
• ▍Net income −12,0% YoY
• ▍Free cash flow +29,6% YoY
• ▍Net margin -122.3%

Revenue KRW 107.07B; Operating income -KRW 136.24B.

• ▍Revenue KRW 107.07B
• ▍Operating income -KRW 136.24B
• ▍Net margin -187.3%