CJ Corp

CJ Corp maintains a highly leveraged capital structure, with total liabilities of 41.76 trillion KRW against total equity of 5.21 trillion KRW, resulting in a debt-to-equity ratio of 3.55. The company holds 2.59 trillion KRW in cash and equivalents, which is insufficient to cover its 18.51 trillion KRW in long-term debt, leading to a negative net cash position. Liquidity is constrained, evidenced by a current ratio of 0.77, indicating that current liabilities exceed current assets. The firm generates 4.88 trillion KRW in operating cash flow, but heavy capital expenditures of 3.37 trillion KRW reduce free cash flow to a marginal 147.33 billion KRW.

Profitability metrics are weak relative to the capital base, with a return on equity of 2.9% and a return on assets of 0.32%. The company reports a net income of 143.33 billion KRW on revenue of 45.02 trillion KRW, yielding a net margin of approximately 0.32%. The price-to-earnings ratio stands at 27.14, while the price-to-book ratio is 0.79, suggesting the market values the equity below its book value despite the earnings multiple. The enterprise value to EBITDA ratio is 8.15, and EV to revenue is 0.44, reflecting a low valuation relative to sales.

Segment and geographic revenue breakdowns are not provided in the available data, preventing an analysis of revenue concentration or specific business unit performance. The company operates as an industrial conglomerate, implying diversified revenue streams, but specific contributions from individual segments or regions cannot be quantified from the current input.

Historical revenue and net income trends are not available in the provided data, limiting the ability to assess growth trajectory or earnings stability over time. Without multi-year data, it is not possible to determine if the current profitability levels represent an improvement, deterioration, or steady state.

The risk assessment indicates medium liquidity risk and low dilution risk. A key flag notes that net cash is negative after subtracting total debt, highlighting the company's reliance on external financing or operating cash flow to service obligations. The low dilution risk suggests that share count stability is maintained, with basic and diluted shares outstanding both at 27.06 million.

Recent analyst observations show a mean price target of 251,000 KRW and a median target of 245,000 KRW, significantly above the current market price of 151,500 KRW. The mean recommendation is 1.73, with 3 strong buy and 8 buy ratings, and no hold ratings, indicating strong analyst confidence in future upside. The high price target is 310,000 KRW, and the low is 210,000 KRW, suggesting a consensus view of substantial undervaluation.

Analysts project 89.9% upside to a mean price target of 251,000 KRW, signaling strong market confidence.

Revenue grew at a 6.9% CAGR over four years, demonstrating consistent top-line expansion despite margin pressures.

Cash conversion of 32.3% ranks best-in-class among peers, indicating superior efficiency in generating cash from operations.

Net income surged 52.0% year-over-year in the latest period, showing significant recent profitability improvement.

Gross profit reached 12.97 trillion KRW in FY2026, maintaining a robust buffer before operating expenses are deducted.

The debt-to-equity ratio of 3.55 sits in the bottom quartile, signaling excessive leverage and elevated credit risk.

Net margin of 0.33% ranks in the bottom quartile, reflecting extremely thin profitability compared to industry peers.

Return on equity of 2.9% falls below the median, suggesting inefficient use of shareholder capital to generate profits.

Revenue KRW 11.45T, +8,0% YoY; Operating income −13,2% YoY.

• ▍Revenue KRW 11.45T, +8,0% YoY
• ▍Operating income −13,2% YoY
• ▍Net income +11,4% YoY
• ▍Free cash flow +77,0% YoY
• ▍Net margin 0.7%

Revenue KRW 11.87T, +1,6% YoY; Operating income +13,6% YoY.

• ▍Revenue KRW 11.87T, +1,6% YoY
• ▍Operating income +13,6% YoY
• ▍Net income −3 945,6% YoY
• ▍Free cash flow −269,5% YoY
• ▍Net margin -2.0%

Revenue KRW 11.43T, +5,4% YoY; Operating income −0,7% YoY.

• ▍Revenue KRW 11.43T, +5,4% YoY
• ▍Operating income −0,7% YoY
• ▍Net income +185,0% YoY
• ▍Free cash flow +342,7% YoY
• ▍Net margin 1.3%

Revenue KRW 11.12T, +4,1% YoY; Operating income −7,1% YoY.

• ▍Revenue KRW 11.12T, +4,1% YoY
• ▍Operating income −7,1% YoY
• ▍Net income −12,6% YoY
• ▍Free cash flow −68,0% YoY
• ▍Net margin 1.5%

Revenue KRW 10.60T; Operating income KRW 530.97B.

• ▍Revenue KRW 10.60T
• ▍Operating income KRW 530.97B
• ▍Net margin 0.6%

Revenue KRW 11.68T; Operating income KRW 626.99B.

• ▍Revenue KRW 11.68T
• ▍Operating income KRW 626.99B
• ▍Net margin 0.1%

Revenue KRW 10.85T; Operating income KRW 670.13B.

• ▍Revenue KRW 10.85T
• ▍Operating income KRW 670.13B
• ▍Net margin -1.6%

Revenue KRW 10.68T; Operating income KRW 666.35B.

• ▍Revenue KRW 10.68T
• ▍Operating income KRW 666.35B
• ▍Net margin 1.8%

Revenue KRW 45.02T, +3,1% YoY; Operating income −20,8% YoY.

• ▍Revenue KRW 45.02T, +3,1% YoY
• ▍Operating income −20,8% YoY
• ▍Net income +52,0% YoY
• ▍Free cash flow −86,5% YoY
• ▍Net margin 0.3%

Revenue KRW 43.65T, +5,5% YoY; Operating income +5,3% YoY.

• ▍Revenue KRW 43.65T, +5,5% YoY
• ▍Operating income +5,3% YoY
• ▍Net income −51,6% YoY
• ▍Free cash flow +120,1% YoY
• ▍Net margin 0.2%

Revenue KRW 41.35T, +1,1% YoY; Operating income +6,1% YoY.

• ▍Revenue KRW 41.35T, +1,1% YoY
• ▍Operating income +6,1% YoY
• ▍Net income −3,6% YoY
• ▍Free cash flow +67,7% YoY
• ▍Net margin 0.5%

Revenue KRW 40.92T, +18,7% YoY; Operating income +4,5% YoY.

• ▍Revenue KRW 40.92T, +18,7% YoY
• ▍Operating income +4,5% YoY
• ▍Net income −26,5% YoY
• ▍Free cash flow −63,6% YoY
• ▍Net margin 0.5%