Coreana Cosmetics Co Ltd

Capital Structure and Liquidity Coreana Cosmetics has a market price of 1,843 KRW and a market cap of 59.34 billion KRW, with a price-to-book ratio of 0.71 and a price-to-tangible-book ratio of 0.71, indicating a discount to book value. The company maintains a strong liquidity position, with a current ratio of 3.21 and cash and equivalents of 8.6 billion KRW, despite a negative operating cash flow of -1.55 billion KRW and a free cash flow of -5.45 billion KRW. The debt-to-equity ratio is 0.02, reflecting a conservative capital structure. ### Profitability and Returns The company reported a net loss of 7.74 billion KRW and an operating loss of 5.61 billion KRW, resulting in a negative return on equity of -9.25% and a return on assets of -7.82%, both significantly below the industry median for profitability metrics. Gross profit of 26.01 billion KRW on revenue of 73.68 billion KRW yields a gross margin of 35.3%, which is in line with the industry median for gross margin. ### Segments and Geographic Exposure Coreana Cosmetics operates in cosmetics, rental businesses, beauty academies, and skincare shops, with disclosed revenue concentration in domestic and overseas markets. No specific segment revenue breakdown is available, but the company's exposure to both domestic and international markets suggests moderate diversification. ### Growth Trajectory Analysts estimate a mean revenue of 158.6 billion KRW for the current fiscal year, compared to actual revenue of 111.53 billion KRW, indicating a projected growth of 42.2%. However, the company reported a net loss in the last reporting period, with a negative return on equity, suggesting challenges in translating revenue growth into profitability. ### Risk Factors The company faces low liquidity and dilution risk, with no immediate filing-based flags detected. The negative operating and free cash flows, however, indicate potential near-term liquidity pressures. No dilution sources were identified in the latest filings, and the dilution potential is assessed as low. ### Recent Events Recent financial results show a net loss of 7.74 billion KRW and an operating loss of 5.61 billion KRW, with a negative return on equity of -9.25%. Analysts have set a mean EPS estimate of 205 KRW, compared to an actual EPS of -312 KRW, highlighting the gap between expectations and performance.