WatosCorea Co Ltd

WatosCorea maintains a strong liquidity position, with a current ratio of 15.61, indicating a significant buffer of current assets relative to current liabilities. The company's cash and equivalents amount to KRW 2,866,705,750, which is a substantial portion of its total assets. The liquidity_fpt metric confirms that the company is not facing immediate liquidity constraints, and its free cash flow of KRW 559,859,590 supports ongoing operations and potential reinvestment.

Profitability metrics for WatosCorea show mixed results. The company reported a net income of KRW 476,707,920, but its operating income was negative at KRW -276,992,000, indicating operational inefficiencies or cost overruns. The return on equity (ROE) is 0.61%, and the return on assets (ROA) is 0.57%, both of which are below the industry median for construction supplies and fixtures. This suggests that the company is underperforming in terms of capital efficiency and asset utilization.

The company's revenue is concentrated in a single business segment, as disclosed in its financial statements, with no material geographic diversification reported. This lack of diversification increases exposure to regional economic fluctuations and regulatory changes. The absence of multiple revenue streams or geographic markets could limit the company's ability to buffer against downturns in the construction sector.

Looking ahead, WatosCorea's revenue is expected to remain relatively flat in the current fiscal year, with a marginal increase projected for the following year. The company's capital expenditure of KRW -199,186,610 indicates a reduction in investment in physical assets, which may signal a strategic shift or a response to current market conditions. The operating cash flow of KRW 829,816,170 supports the company's ability to fund operations and potentially reduce debt.

Risk factors for WatosCorea include the cyclical nature of the construction industry, which is sensitive to macroeconomic conditions and government infrastructure spending. The company's debt-to-equity ratio is low at 0.01, indicating minimal leverage and a conservative capital structure. However, the negative operating income raises concerns about the sustainability of its current operations. The risk assessment indicates low liquidity and dilution risk, with no immediate filing-based flags detected.

Recent events, including the latest financial filing, show a last actual EPS of KRW 437.00, which is in line with the company's net income. No recent earnings call transcripts or material regulatory filings have been disclosed that would suggest a significant change in the company's strategic direction or financial health.

The company maintains a negligible debt-to-equity ratio of 0.01, significantly lower than the cohort median of 0.29.

Cash conversion of 1.74 exceeds the cohort median of 1.01, suggesting efficient translation of earnings into cash.

Low dilution and liquidity risks provide a stable capital structure foundation despite recent operational volatility.

Book value stands at 78.3 billion KRW, providing a substantial asset base relative to recent revenue levels.

High credit risk flags indicate potential solvency concerns despite the low leverage ratio.

Revenue KRW 4.57B; Operating income KRW 96.8M.

• ▍Revenue KRW 4.57B
• ▍Operating income KRW 96.8M
• ▍Net margin 16.9%

Revenue KRW 4.21B; Operating income -KRW 67.4M.

• ▍Revenue KRW 4.21B
• ▍Operating income -KRW 67.4M
• ▍Net margin 8.7%

Revenue KRW 4.31B; Operating income KRW 369.8k.

• ▍Revenue KRW 4.31B
• ▍Operating income KRW 369.8k
• ▍Net margin 10.4%