CJ Freshway Corp

CJ Freshway Corp maintains a capital structure characterized by significant leverage and tight liquidity. The company reports total assets of 1,589.1 billion KRW against total liabilities of 1,133.9 billion KRW, resulting in total equity of 455.2 billion KRW. Long-term debt stands at 460.1 billion KRW, while cash and equivalents are 130.9 billion KRW, leading to a negative net cash position as flagged in the risk assessment. The debt-to-equity ratio is 1.01, indicating that debt equals equity in magnitude. Liquidity is constrained, evidenced by a current ratio of 0.76, which is below the standard threshold of 1.0, suggesting potential short-term coverage challenges. The market capitalization is 268.9 billion KRW, implying the market values the equity at less than half the book value, with a price-to-book ratio of 0.59.

Profitability metrics indicate efficient use of equity but modest asset returns. The company generated net income of 50.1 billion KRW on revenue of 3,481.1 billion KRW, yielding a net margin of approximately 1.44%. Return on equity (ROE) is 11.34%, which is a solid return for a retail distribution business, while return on assets (ROA) is 3.25%. Operating income is 89.2 billion KRW, and gross profit is 634.2 billion KRW, reflecting a gross margin of roughly 18.2%. The valuation multiples are compressed, with a price-to-earnings (P/E) ratio of 5.21 and an EV/EBITDA of 6.68, suggesting the market prices the stock at a deep discount relative to earnings. The EV/Revenue ratio is 0.17, further highlighting the low valuation multiple.

Segment and geographic data are not provided in the available input, preventing a detailed analysis of revenue concentration or regional exposure. The company’s activity is broadly classified under Consumer Staples Distribution & Retail, implying a diversified retail footprint, but specific segment contributions cannot be quantified from the current data.

Growth trajectory analysis is limited due to the absence of historical period data in the input. The current financial snapshot provides a single-period view of revenue and net income, but year-over-year trends or quarterly progression cannot be assessed without the historical periods table.

Risk factors are primarily centered on liquidity and leverage. The risk assessment flags medium liquidity risk and low dilution risk. The key flag notes that net cash is negative after subtracting total debt, which aligns with the high long-term debt relative to cash holdings. The current ratio of 0.76 reinforces the liquidity concern, as the company may face pressure in meeting short-term obligations without additional financing or cash flow generation. Dilution risk is assessed as low, with basic and diluted shares outstanding being identical at 11.87 million shares, indicating no immediate options or convertible securities impacting share count.

Recent events and analyst sentiment are positive. The mean analyst recommendation is 1.40, indicating a strong buy consensus, with 3 strong buy and 2 buy ratings and no hold ratings. The mean price target is 46,000 KRW, with a median of 47,000 KRW, representing a significant upside from the current market price of 22,650 KRW. The high price target is 50,000 KRW and the low is 40,000 KRW, showing a tight range of analyst expectations well above the current trading price.

Analysts project 91.3% upside to a mean price target of 46,000 KRW, reflecting strong buy consensus.

Revenue grew at an 11.0% CAGR over four years, demonstrating consistent top-line expansion for the company.

Free cash flow surged 135.6% year-over-year to 59.7 billion KRW, indicating significant improvement in cash generation.

Return on equity of 11.34% exceeds the cohort median of 7.87%, highlighting superior capital efficiency relative to peers.

Cash conversion ratio of 2.46 ranks in the top quartile, suggesting robust ability to turn earnings into cash.

Operating income declined 4.8% year-over-year to 89.2 billion KRW, signaling weakening core profitability despite revenue growth.

Net margin of 1.47% and operating margin of 2.55% both fall significantly below cohort medians of 5.27% and 7.51%.

Debt-to-equity ratio of 1.01 is more than double the cohort median of 0.40, indicating higher financial leverage risk.

Medium liquidity and credit risk flags suggest potential challenges in meeting short-term obligations or servicing debt.

Revenue KRW 833.92B, +4,4% YoY; Operating income +3,8% YoY.

• ▍Revenue KRW 833.92B, +4,4% YoY
• ▍Operating income +3,8% YoY
• ▍Net income +95,8% YoY
• ▍Free cash flow +17,0% YoY
• ▍Net margin 0.4%

Revenue KRW 897.97B, +5,6% YoY; Operating income −30,5% YoY.

• ▍Revenue KRW 897.97B, +5,6% YoY
• ▍Operating income −30,5% YoY
• ▍Net income −40,8% YoY
• ▍Free cash flow −34,4% YoY
• ▍Net margin 1.1%

Revenue KRW 901.16B, +8,3% YoY; Operating income +19,3% YoY.

• ▍Revenue KRW 901.16B, +8,3% YoY
• ▍Operating income +19,3% YoY
• ▍Net income +370,8% YoY
• ▍Free cash flow +1 997,1% YoY
• ▍Net margin 2.6%

Revenue KRW 883.32B, +8,9% YoY; Operating income −8,9% YoY.

• ▍Revenue KRW 883.32B, +8,9% YoY
• ▍Operating income −8,9% YoY
• ▍Net income −5,7% YoY
• ▍Free cash flow +68,2% YoY
• ▍Net margin 1.7%

Revenue KRW 798.64B; Operating income KRW 10.63B.

• ▍Revenue KRW 798.64B
• ▍Operating income KRW 10.63B
• ▍Net margin 0.2%

Revenue KRW 850.16B; Operating income KRW 25.17B.

• ▍Revenue KRW 850.16B
• ▍Operating income KRW 25.17B
• ▍Net margin 2.0%

Revenue KRW 831.89B; Operating income KRW 28.20B.

• ▍Revenue KRW 831.89B
• ▍Operating income KRW 28.20B
• ▍Net margin -1.0%

Revenue KRW 811.28B; Operating income KRW 30.11B.

• ▍Revenue KRW 811.28B
• ▍Operating income KRW 30.11B
• ▍Net margin 2.0%

Revenue KRW 3.48T, +8,0% YoY; Operating income −4,8% YoY.

• ▍Revenue KRW 3.48T, +8,0% YoY
• ▍Operating income −4,8% YoY
• ▍Net income +93,2% YoY
• ▍Free cash flow +135,6% YoY
• ▍Net margin 1.4%

Revenue KRW 3.22T, +4,9% YoY; Operating income −5,6% YoY.

• ▍Revenue KRW 3.22T, +4,9% YoY
• ▍Operating income −5,6% YoY
• ▍Net income −52,4% YoY
• ▍Free cash flow −51,6% YoY
• ▍Net margin 0.8%

Revenue KRW 3.07T, +11,9% YoY; Operating income +7,7% YoY.

• ▍Revenue KRW 3.07T, +11,9% YoY
• ▍Operating income +7,7% YoY
• ▍Net income +11,0% YoY
• ▍Free cash flow +4,6% YoY
• ▍Net margin 1.8%

Revenue KRW 2.75T, +19,9% YoY; Operating income +78,1% YoY.

• ▍Revenue KRW 2.75T, +19,9% YoY
• ▍Operating income +78,1% YoY
• ▍Net income +84,2% YoY
• ▍Free cash flow −8,6% YoY
• ▍Net margin 1.8%