Lotte Corp

Lotte Corp's capital structure is characterized by a debt-to-equity ratio of 1.39, indicating a moderate reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 0.82, suggesting potential short-term liquidity constraints. Despite holding KRW 1.37 trillion in cash and equivalents, the firm's long-term debt of KRW 9.55 trillion results in a negative net cash position when total debt is subtracted.

Profitability metrics reveal a challenging operating environment for Lotte Corp. The company reported a net loss of KRW 179.99 billion for the period, with a return on equity of -2.63% and a return on assets of -0.76%. These figures fall significantly below the industry median for profitability, indicating underperformance relative to peers in the department store sector.

Geographically, Lotte Corp's revenue is concentrated in its domestic market, with no disclosed international segments in the provided data. The firm's exposure to regional economic conditions and consumer spending trends is therefore a key risk factor, as the data does not indicate diversification across multiple geographic regions.

The company's growth trajectory appears to be under pressure, with no disclosed revenue growth rates in the input data. Analysts have assigned a mean price target of KRW 37,000 and a median of KRW 40,000, with a mean recommendation of 1.50 (leaning toward "buy"). However, the absence of positive net income and the negative return on equity suggest that the firm may need to address operational inefficiencies to sustain growth.

Risk factors for Lotte Corp include its high debt load and negative net cash position, which could limit financial flexibility and increase vulnerability to interest rate fluctuations. The firm's dilution risk is assessed as low, with no significant changes in shares outstanding between basic and diluted measures. However, the negative free cash flow of KRW -138.53 billion and capital expenditures of KRW -660.07 billion indicate ongoing investment in operations, which may require further debt financing or equity issuance in the future.

Recent events, including the latest financial filing, highlight the company's current financial challenges. The absence of disclosed earnings call transcripts or regulatory filings beyond the financial snapshot limits the ability to assess management's strategic response to these challenges.

Lotte Corp (004990.KS) has undergone a significant update to its corporate taxonomy, with its primary activity now formally classified as "Department Stores" and its economic sector identified as "Consumer Cyclicals." This reclassification represents a medium-severity change in the company's profile, establishing a clearer framework for understanding its operational focus within the broader retail landscape. In parallel with these sectoral adjustments, the company’s risk assessment metrics have been initialized. Dilution risk is now rated as "low," indicating a stable share structure with minimal threat of equity dilution. Conversely, liquidity risk has been assessed at a "medium" level, suggesting that while the company maintains operational stability, investors should monitor its cash flow and short-term asset management capabilities more closely than in a low-risk scenario. These structural updates provide a foundational baseline for analyzing Lotte Corp’s financial health and market positioning. The distinction between low dilution risk and medium liquidity risk offers a nuanced view of the company's capital management, highlighting that while shareholder value is protected from dilution, liquidity remains a key area of observation. Currently, there is no active analyst coverage or index membership data available for Lotte Corp, and recent news dispatches have been minimal, with only a single dispatch recorded on July 13, 2026. This lack of immediate external commentary underscores the importance of the internal taxonomy and risk assessments as the primary sources of insight into the company's current status.

Analysts project 57.1% upside to a mean price target of 37,000 KRW, rating the stock a strong buy.

Revenue grew at an 11.9% CAGR over four years, demonstrating consistent top-line expansion despite recent volatility.

Net income improved by 36.4% year-over-year in FY2026, indicating a recovery in profitability trends.

Operating income increased 8.5% year-over-year to 366.6 billion KRW, showing resilience in core operational earnings.

Free cash flow improved by 25.6% year-over-year, suggesting better cash generation capabilities in the latest period.

The company faces high credit risk, signaling significant concerns regarding its ability to meet financial obligations.

Net margin of -4.4% places Lotte Corp in the bottom quartile of the Department Stores cohort.

Debt-to-equity ratio of 1.39 is significantly higher than the cohort median of 0.52, implying elevated leverage risk.

Free cash flow turned negative to -1.5 trillion KRW in FY2025, highlighting severe cash flow deterioration.

Revenue KRW 3.62T, +1,0% YoY.

• ▍Revenue KRW 3.62T, +1,0% YoY

Revenue KRW 3.76T, −0,3% YoY; Operating income +216,6% YoY.

• ▍Revenue KRW 3.76T, −0,3% YoY
• ▍Operating income +216,6% YoY
• ▍Net income +49,7% YoY
• ▍Free cash flow +43,0% YoY
• ▍Net margin -9.7%

Revenue KRW 4.15T, +0,3% YoY; Operating income −20,0% YoY.

• ▍Revenue KRW 4.15T, +0,3% YoY
• ▍Operating income −20,0% YoY
• ▍Net income −9,2% YoY
• ▍Free cash flow −34,0% YoY
• ▍Net margin -1.9%

Revenue KRW 4.04T, −1,6% YoY; Operating income +0,3% YoY.

• ▍Revenue KRW 4.04T, −1,6% YoY
• ▍Operating income +0,3% YoY
• ▍Net income +47,1% YoY
• ▍Free cash flow −12,9% YoY
• ▍Net margin -2.4%

Revenue KRW 3.59T; Operating income -KRW 8.47B.

• ▍Revenue KRW 3.59T
• ▍Operating income -KRW 8.47B
• ▍Net margin -3.1%

Revenue KRW 3.77T; Operating income -KRW 64.81B.

• ▍Revenue KRW 3.77T
• ▍Operating income -KRW 64.81B
• ▍Net margin -19.2%

Revenue KRW 4.14T; Operating income KRW 181.67B.

• ▍Revenue KRW 4.14T
• ▍Operating income KRW 181.67B
• ▍Net margin -1.7%

Revenue KRW 4.11T; Operating income KRW 153.70B.

• ▍Revenue KRW 4.11T
• ▍Operating income KRW 153.70B
• ▍Net margin -4.4%

Revenue KRW 15.54T, −1,4% YoY; Operating income +8,5% YoY.

• ▍Revenue KRW 15.54T, −1,4% YoY
• ▍Operating income +8,5% YoY
• ▍Net income +36,4% YoY
• ▍Free cash flow +25,6% YoY
• ▍Net margin -4.2%

Revenue KRW 15.76T, +3,9% YoY; Operating income −34,0% YoY.

• ▍Revenue KRW 15.76T, +3,9% YoY
• ▍Operating income −34,0% YoY
• ▍Net income −6 533,7% YoY
• ▍Free cash flow −3 967,6% YoY
• ▍Net margin -6.5%

Revenue KRW 15.16T, +7,4% YoY; Operating income +15,4% YoY.

• ▍Revenue KRW 15.16T, +7,4% YoY
• ▍Operating income +15,4% YoY
• ▍Net income −109,0% YoY
• ▍Free cash flow −70,1% YoY
• ▍Net margin -0.1%

Revenue KRW 14.11T, +42,2% YoY; Operating income +588,8% YoY.

• ▍Revenue KRW 14.11T, +42,2% YoY
• ▍Operating income +588,8% YoY
• ▍Net income −44,7% YoY
• ▍Free cash flow −7,5% YoY
• ▍Net margin 1.2%