Lotte Chilsung Beverage Co Ltd

Lotte Chilsung Beverage has a debt-to-equity ratio of 1.17, indicating a moderate reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 0.78, suggesting that it may face challenges in meeting short-term obligations without additional liquidity. The company's cash and equivalents amount to 227,090,055,610 KRW, but this is significantly lower than its long-term debt of 1,724,495,045,110 KRW, resulting in a negative net cash position.

In terms of profitability, the company's return on equity (ROE) is 1.32%, and its return on assets (ROA) is 0.45%, both of which are below the typical thresholds for strong performance in the non-alcoholic beverage industry. The operating margin is 5.27% (calculated from operating income of 57,972,714,110 KRW on revenue of 1,099,249,543,260 KRW), which is relatively low compared to industry benchmarks.

The company's revenue is primarily concentrated in South Korea, with no disclosed international segments. This geographic concentration may expose the company to regional economic fluctuations and regulatory changes. The company's revenue concentration in a single market is a notable risk factor, as it limits diversification and exposes the business to local demand volatility.

Looking ahead, the company's growth trajectory is expected to remain stable, with no significant revenue growth projected in the next fiscal year. The company's capital expenditures are negative, indicating a reduction in investment in new assets, which may signal a focus on cost control rather than expansion. The company's free cash flow is 13,397,128,290 KRW, which is modest and may limit its ability to fund new initiatives or return value to shareholders.

The company's risk profile includes a medium liquidity risk and a low dilution risk. The key risk flag is the negative net cash position after subtracting total debt, which could impact the company's ability to meet long-term obligations. The company's debt structure is dominated by long-term debt, which may provide some flexibility in the short term but could become a burden in the long term.

Recent events include analyst estimates that suggest a mean price target of 163,900 KRW and a median price target of 160,000 KRW. The mean recommendation from analysts is 1.65, indicating a generally positive outlook, with 6 strong-buy and 11 buy ratings. No recent filings or transcripts have been disclosed that would significantly alter the company's risk profile or strategic direction.

Lotte Chilsung Beverage Co Ltd (005300.KS) has undergone a significant update to its corporate taxonomy, with its activity now formally classified as "Food & Beverages" and its economic sector identified as "Consumer Non-Cyclicals." This structural clarification provides a clearer framework for understanding the company's operational focus within the broader market landscape. In parallel with these classification updates, the company’s risk profile has been refined. The dilution risk is now assessed as "low," indicating a stable share structure with minimal threat of equity erosion. Conversely, liquidity risk has been categorized as "medium," suggesting that while the company maintains operational stability, investors should remain attentive to its cash flow dynamics and market trading conditions. These changes are particularly relevant given the company's current analyst coverage, which stands at two analysts. The absence of index membership and top holder data in the current snapshot further highlights the importance of these newly established risk and sector metrics for stakeholders seeking to evaluate the firm's standing. The updated taxonomy and risk assessments offer a more precise basis for financial analysis, aligning Lotte Chilsung Beverage’s profile with standard industry classifications. This enhanced clarity supports more accurate comparative analysis within the Consumer Non-Cyclicals sector, aiding investors in making informed decisions based on the company's specific operational and risk characteristics.

Analysts project 64.6% upside to a mean price target of 163,900 KRW, signaling strong market confidence.

Revenue grew at a 12.2% CAGR over four years, demonstrating consistent top-line expansion capabilities.

Cash conversion of 10.03 ranks best-in-class among 52 peers, highlighting superior operational efficiency.

Free cash flow surged 168% year-over-year to 27.7 billion KRW, improving liquidity generation.

Gross profit reached 1.33 trillion KRW in FY2026, maintaining a robust margin base despite revenue dip.

High credit risk flags and a debt-to-equity ratio of 1.17 signal significant financial leverage concerns.

Net margin of 1.76% falls well below the 4.29% cohort median, revealing weak bottom-line performance.

Return on equity of 1.32% lags the 3.85% peer median, showing inefficient capital utilization.

Revenue declined 1.3% year-over-year in FY2026, marking the first annual contraction in the dataset.

Revenue KRW 952.54B, +4,6% YoY; Operating income +104,1% YoY.

• ▍Revenue KRW 952.54B, +4,6% YoY
• ▍Operating income +104,1% YoY
• ▍Net income +247,5% YoY
• ▍Free cash flow +61 010,8% YoY
• ▍Net margin 2.6%

Revenue KRW 894.34B, −3,1% YoY; Operating income −440,4% YoY.

• ▍Revenue KRW 894.34B, −3,1% YoY
• ▍Operating income −440,4% YoY
• ▍Net income −103,7% YoY
• ▍Free cash flow +66,5% YoY
• ▍Net margin -4.9%

Revenue KRW 1.08T, +1,3% YoY; Operating income +23,6% YoY.

• ▍Revenue KRW 1.08T, +1,3% YoY
• ▍Operating income +23,6% YoY
• ▍Net income +35,6% YoY
• ▍Free cash flow +97,6% YoY
• ▍Net margin 5.5%

Revenue KRW 1.09T, −1,1% YoY; Operating income +6,5% YoY.

• ▍Revenue KRW 1.09T, −1,1% YoY
• ▍Operating income +6,5% YoY
• ▍Net income +28,4% YoY
• ▍Free cash flow +121,8% YoY
• ▍Net margin 2.3%

Revenue KRW 910.34B; Operating income KRW 23.58B.

• ▍Revenue KRW 910.34B
• ▍Operating income KRW 23.58B
• ▍Net margin 0.8%

Revenue KRW 923.32B; Operating income KRW 3.99B.

• ▍Revenue KRW 923.32B
• ▍Operating income KRW 3.99B
• ▍Net margin -2.3%

Revenue KRW 1.07T; Operating income KRW 76.17B.

• ▍Revenue KRW 1.07T
• ▍Operating income KRW 76.17B
• ▍Net margin 4.1%

Revenue KRW 1.10T; Operating income KRW 57.97B.

• ▍Revenue KRW 1.10T
• ▍Operating income KRW 57.97B
• ▍Net margin 1.8%

Revenue KRW 3.97T, −1,3% YoY; Operating income −4,7% YoY.

• ▍Revenue KRW 3.97T, −1,3% YoY
• ▍Operating income −4,7% YoY
• ▍Net income −20,1% YoY
• ▍Free cash flow +168,0% YoY
• ▍Net margin 1.2%

Revenue KRW 4.02T, +24,8% YoY; Operating income −37,4% YoY.

• ▍Revenue KRW 4.02T, +24,8% YoY
• ▍Operating income −37,4% YoY
• ▍Net income −64,4% YoY
• ▍Free cash flow −136,0% YoY
• ▍Net margin 1.5%

Revenue KRW 3.22T, +13,5% YoY; Operating income +29,8% YoY.

• ▍Revenue KRW 3.22T, +13,5% YoY
• ▍Operating income +29,8% YoY
• ▍Net income +29,2% YoY
• ▍Free cash flow +2,0% YoY
• ▍Net margin 5.1%

Revenue KRW 2.84T, +13,4% YoY; Operating income +19,6% YoY.

• ▍Revenue KRW 2.84T, +13,4% YoY
• ▍Operating income +19,6% YoY
• ▍Net income −5,2% YoY
• ▍Free cash flow +68,4% YoY
• ▍Net margin 4.5%