Daesang Corp

Daesang Corp maintains a capital structure characterized by significant leverage, with long-term debt of 1.42 trillion KRW against total equity of 1.07 trillion KRW, resulting in a debt-to-equity ratio of 1.32. The company holds 595.6 billion KRW in cash and equivalents, but this is insufficient to cover total liabilities of 2.41 trillion KRW, leading to a negative net cash position. Liquidity is assessed as medium risk, supported by a current ratio of 1.14, which indicates adequate short-term coverage but limited buffer. The market capitalization stands at 608.1 billion KRW, trading at a price-to-book ratio of 0.57, suggesting the market values the company below its book value.

Profitability metrics indicate significant distress, with a net income loss of 304.2 billion KRW on revenues of 4.40 trillion KRW. The return on equity is -28.07%, and return on assets is -8.64%, both reflecting the substantial net loss relative to the capital base. Operating income remains positive at 152.5 billion KRW, indicating that core operations are generating cash before interest and taxes, but the net loss suggests high interest expenses or non-operating charges. The gross profit of 1.18 trillion KRW represents a gross margin of approximately 26.8%, which is a key driver of operational cash flow.

Revenue concentration and segment details are not explicitly provided in the available data, preventing a detailed analysis of geographic or product mix exposure. The company's total revenue of 4.40 trillion KRW serves as the base for valuation multiples, with an EV/Revenue ratio of 0.33, indicating a low valuation relative to sales. Without specific segment data, the revenue stream is treated as a consolidated whole for analysis purposes.

Growth trajectory analysis is limited due to the absence of historical period data in the input. The current financial snapshot shows a negative free cash flow of -323.0 billion KRW, driven by capital expenditures of 140.9 billion KRW against operating cash flow of 188.1 billion KRW. This negative free cash flow highlights the cash burn associated with current investment levels or working capital changes.

Risk factors include medium liquidity risk and low dilution risk. The key flag notes that net cash is negative after subtracting total debt, emphasizing the leverage burden. The debt-to-equity ratio of 1.32 further underscores the financial leverage risk. The low dilution risk suggests that share count stability is not a primary concern, with basic and diluted shares outstanding both at 34.65 million.

Recent events include analyst estimates with a mean price target of 34,000 KRW, significantly higher than the current market price of 17,550 KRW. The mean recommendation is 1.50, indicating a strong buy consensus among analysts. There are no specific filing, news, or transcript observations provided in the input data.

Analysts project 91% upside to a mean price target of 34,000 KRW, rating the stock a strong buy.

Revenue grew at a 6.1% CAGR over four years, reaching 4.4 trillion KRW in fiscal 2026.

Operating income remained positive at 152.5 billion KRW in fiscal 2026, despite a net loss.

Gross profit expanded to 1.18 trillion KRW in fiscal 2026, indicating resilient top-line margins.

Return on invested capital remained positive at 6.1%, suggesting underlying operational efficiency despite net losses.

The company faces high credit risk and medium liquidity risk, exacerbating financial stability concerns.

Debt-to-equity ratio stands at 1.32, significantly higher than the cohort median of 0.4, indicating high leverage.

Revenue KRW 1.11T, −1,8% YoY; Operating income −0,8% YoY.

• ▍Revenue KRW 1.11T, −1,8% YoY
• ▍Operating income −0,8% YoY
• ▍Net income +12,8% YoY
• ▍Free cash flow −89,5% YoY
• ▍Net margin 2.9%

Revenue KRW 1.05T, +0,5% YoY; Operating income −83,0% YoY.

• ▍Revenue KRW 1.05T, +0,5% YoY
• ▍Operating income −83,0% YoY
• ▍Net income −2 580,3% YoY
• ▍Free cash flow −1 410,4% YoY
• ▍Net margin -35.5%

Revenue KRW 1.15T, +3,0% YoY; Operating income −1,3% YoY.

• ▍Revenue KRW 1.15T, +3,0% YoY
• ▍Operating income −1,3% YoY
• ▍Net income −39,9% YoY
• ▍Free cash flow −63,0% YoY
• ▍Net margin 1.9%

Revenue KRW 1.08T, +2,1% YoY; Operating income −13,0% YoY.

• ▍Revenue KRW 1.08T, +2,1% YoY
• ▍Operating income −13,0% YoY
• ▍Net income −22,4% YoY
• ▍Free cash flow +383,9% YoY
• ▍Net margin 1.7%

Revenue KRW 1.13T; Operating income KRW 57.28B.

• ▍Revenue KRW 1.13T
• ▍Operating income KRW 57.28B
• ▍Net margin 2.5%

Revenue KRW 1.04T; Operating income KRW 33.30B.

• ▍Revenue KRW 1.04T
• ▍Operating income KRW 33.30B
• ▍Net margin 1.4%

Revenue KRW 1.11T; Operating income KRW 51.57B.

• ▍Revenue KRW 1.11T
• ▍Operating income KRW 51.57B
• ▍Net margin 3.3%

Revenue KRW 1.05T; Operating income KRW 44.38B.

• ▍Revenue KRW 1.05T
• ▍Operating income KRW 44.38B
• ▍Net margin 2.2%

Revenue KRW 4.40T, +3,4% YoY; Operating income −13,8% YoY.

• ▍Revenue KRW 4.40T, +3,4% YoY
• ▍Operating income −13,8% YoY
• ▍Net income −419,6% YoY
• ▍Free cash flow −644,5% YoY
• ▍Net margin -6.9%

Revenue KRW 4.26T, +3,6% YoY; Operating income +43,0% YoY.

• ▍Revenue KRW 4.26T, +3,6% YoY
• ▍Operating income +43,0% YoY
• ▍Net income +41,9% YoY
• ▍Free cash flow +511,6% YoY
• ▍Net margin 2.2%

Revenue KRW 4.11T, +0,6% YoY; Operating income −11,6% YoY.

• ▍Revenue KRW 4.11T, +0,6% YoY
• ▍Operating income −11,6% YoY
• ▍Net income −19,2% YoY
• ▍Free cash flow −532,4% YoY
• ▍Net margin 1.6%

Revenue KRW 4.08T, +17,7% YoY; Operating income −3,6% YoY.

• ▍Revenue KRW 4.08T, +17,7% YoY
• ▍Operating income −3,6% YoY
• ▍Net income −42,4% YoY
• ▍Free cash flow −103,9% YoY
• ▍Net margin 2.0%