SJG Sejong Co Ltd

SJG Sejong Co Ltd maintains a debt-to-equity ratio of 0.69, indicating a moderate reliance on debt financing relative to equity. The company's liquidity position is characterized as medium risk, with a current ratio of 1.15, suggesting limited short-term liquidity cushion. Free cash flow of 6.26 billion KRW supports operational flexibility, though capital expenditures of -20.4 billion KRW indicate significant reinvestment in the business.

Profitability metrics show a return on equity of 3.51% and a return on assets of 1.24%, both below the industry median for the Auto, Truck & Motorcycle Parts sector. This suggests the company is underperforming in terms of capital efficiency and asset utilization. Gross profit of 42.37 billion KRW represents 9.11% of revenue, which is in line with industry norms, but operating income of 15.72 billion KRW reflects a 3.38% margin, below the sector average.

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 industry-specific risks. No material revenue is attributed to international markets, suggesting a domestic focus.

Growth trajectory is constrained by a negative analyst estimate for EPS of -757.00 KRW, indicating potential earnings pressure in the near term. Historical revenue of 464.83 billion KRW shows no clear upward trend, and no forward-looking guidance is provided for the next fiscal year.

Risk factors include a liquidity risk flagged by negative net cash after subtracting total debt, despite holding 176.18 billion KRW in cash and equivalents. Dilution risk is assessed as low, with no near-term pressure from share issuance or convertible instruments. No recent filings or transcripts disclose material events that would alter the company's risk profile.

No recent events, such as earnings calls, regulatory filings, or strategic announcements, have been disclosed in the available data. This lack of transparency may limit the ability to assess management's response to industry challenges or opportunities.

Net income surged 103.7% year-over-year to 68.7 billion KRW, demonstrating significant profitability recovery.

Free cash flow improved dramatically by 337.6% to 31.0 billion KRW, indicating strong cash generation capabilities.

Capital expenditure intensity is lower than the cohort median, suggesting efficient capital allocation relative to peers.

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

Debt-to-equity ratio of 0.69 is significantly higher than the 0.41 cohort median, implying elevated leverage risk.

Cash conversion ratio of 0.49 is well below the 1.37 industry median, reflecting poor cash flow quality.

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

Revenue KRW 1.79T, −3,5% YoY; Operating income +153,5% YoY.

• ▍Revenue KRW 1.79T, −3,5% YoY
• ▍Operating income +153,5% YoY
• ▍Net income +134,1% YoY
• ▍Free cash flow −1 435,9% YoY
• ▍Net margin 0.2%