Hyosung Corp

Hyosung Corp maintains a capital structure with a debt-to-equity ratio of 0.7, indicating a moderate reliance on debt financing. The company's liquidity position is characterized by a current ratio of 0.87, suggesting potential short-term liquidity constraints. Free cash flow is negative at -26,910.48 million KRW, reflecting capital expenditure outpacing operating cash flow.

Profitability metrics reveal a return on equity (ROE) of 0.08% and a return on assets (ROA) of 0.02%, both significantly below typical thresholds for healthy returns in the consumer goods sector. The company's operating income of 38,199.99 million KRW and net income of 1,269.17 million KRW indicate a narrow margin profile, with gross profit at 104,655.78 million KRW.

Geographically and segment-wise, Hyosung Corp's revenue is concentrated in South Korea, with no disclosed international revenue breakdown in the latest financials. The company's business is diversified across textiles, chemicals, and construction materials, but no specific segment revenue figures are available in the provided data.

Looking ahead, the company's revenue is expected to grow, supported by analyst estimates of 17,753 KRW per share in EPS for the current fiscal year, compared to the actual 19,734 KRW per share in the previous period. However, the free cash flow remains negative, which may limit reinvestment and dividend capacity.

Risk factors include a medium liquidity risk, as the company's cash and equivalents of 147,704.85 million KRW are insufficient to cover long-term debt of 1,188,124.62 million KRW. The risk of dilution is assessed as low, with no significant dilution events reported in the latest filings.

Recent events include the release of the latest financial snapshot, which shows a net income of 1,269.17 million KRW and a total equity of 1,688,778.52 million KRW. Analysts have provided a mean recommendation of 2.00, indicating a "buy" rating, with three analysts recommending a "buy" and none recommending a "strong buy" or "sell".

Hyosung Corporation (004800.KS) has undergone a significant update to its corporate taxonomy, now formally classified as a "Consumer Goods Conglomerate" within the "Consumer Non-Cyclicals" economic sector. This reclassification represents a medium-severity change in the company's profile, shifting the understanding of its primary business activities and market positioning. The updated classification provides a clearer framework for analyzing Hyosung's operational focus, aligning it with the broader consumer non-cyclical landscape. This structural definition is crucial for investors and analysts seeking to benchmark the company against peers in the consumer goods conglomerate space, offering a more precise context for its revenue streams and market dynamics. In addition to the sectoral redefinition, Hyosung's risk assessment profile has been established with specific metrics. The company is now assessed as having "low" dilution risk, indicating a stable capital structure with minimal threat of share value erosion from new issuances. This low dilution risk is a positive signal for existing shareholders, suggesting disciplined capital management. Conversely, the risk assessment identifies "medium" liquidity risk, highlighting a moderate level of concern regarding the company's ability to meet short-term financial obligations. This medium-severity liquidity risk, combined with the low dilution risk, paints a nuanced picture of Hyosung's financial health, balancing stable equity conditions with manageable but present liquidity challenges. These updates collectively refine the investment thesis for Hyosung, emphasizing its role in the consumer non-cyclicals sector while flagging specific financial risk parameters.

Operating income surged 115.1% year-over-year to KRW 475.7 billion in FY2026, signaling strong operational recovery.

Free cash flow more than doubled to KRW 283.8 billion, reflecting a 101.4% year-over-year improvement in cash generation.

Cash conversion ratio of 77.55% ranks as best-in-class among 44 consumer goods conglomerate peers.

Three analysts maintain a buy recommendation, suggesting positive sentiment despite the lack of specific price targets.

Dilution risk is assessed as low, providing stability for existing shareholders amidst financial restructuring efforts.

Net margin of 0.22% places the company in the bottom quartile of its 44-peer consumer goods cohort.

Return on equity of 0.08% significantly underperforms the cohort median of 6.72%, ranking in the bottom quartile.

Revenue CAGR of -8.9% over four years highlights a long-term structural decline in top-line growth.

High credit risk flags potential solvency concerns, exacerbated by a debt-to-equity ratio of 0.7.

Revenue KRW 663.73B, −6,5% YoY; Operating income +33,6% YoY.

• ▍Revenue KRW 663.73B, −6,5% YoY
• ▍Operating income +33,6% YoY
• ▍Net income +10,6% YoY
• ▍Free cash flow −41,6% YoY
• ▍Net margin 19.6%

Revenue KRW 612.17B, +6,0% YoY; Operating income +157,0% YoY.

• ▍Revenue KRW 612.17B, +6,0% YoY
• ▍Operating income +157,0% YoY
• ▍Net income −81,0% YoY
• ▍Free cash flow +102,8% YoY
• ▍Net margin 10.3%

Revenue KRW 601.91B, +6,7% YoY; Operating income +159,5% YoY.

• ▍Revenue KRW 601.91B, +6,7% YoY
• ▍Operating income +159,5% YoY
• ▍Net income +5 543,4% YoY
• ▍Free cash flow +222,4% YoY
• ▍Net margin 11.9%

Revenue KRW 553.90B; Operating income KRW 81.82B.

• ▍Revenue KRW 553.90B
• ▍Operating income KRW 81.82B
• ▍Net margin 11.7%

Revenue KRW 710.13B; Operating income KRW 129.45B.

• ▍Revenue KRW 710.13B
• ▍Operating income KRW 129.45B
• ▍Net margin 16.6%

Revenue KRW 577.70B; Operating income KRW 47.44B.

• ▍Revenue KRW 577.70B
• ▍Operating income KRW 47.44B
• ▍Net margin 57.5%

Revenue KRW 564.29B; Operating income KRW 38.20B.

• ▍Revenue KRW 564.29B
• ▍Operating income KRW 38.20B
• ▍Net margin 0.2%

Revenue KRW 2.43T, +7,0% YoY; Operating income +115,1% YoY.

• ▍Revenue KRW 2.43T, +7,0% YoY
• ▍Operating income +115,1% YoY
• ▍Net income −27,2% YoY
• ▍Free cash flow +101,5% YoY
• ▍Net margin 13.6%

Revenue KRW 2.27T, +23,0% YoY; Operating income +277,1% YoY.

• ▍Revenue KRW 2.27T, +23,0% YoY
• ▍Operating income +277,1% YoY
• ▍Net income +664 034,9% YoY
• ▍Free cash flow +272,0% YoY
• ▍Net margin 19.9%

Revenue KRW 1.85T, −50,3% YoY; Operating income −4,4% YoY.

• ▍Revenue KRW 1.85T, −50,3% YoY
• ▍Operating income −4,4% YoY
• ▍Net income −99,6% YoY
• ▍Free cash flow +39,0% YoY
• ▍Net margin 0.0%

Revenue KRW 3.72T, +5,2% YoY; Operating income −90,5% YoY.

• ▍Revenue KRW 3.72T, +5,2% YoY
• ▍Operating income −90,5% YoY
• ▍Net income −96,4% YoY
• ▍Free cash flow −134,2% YoY
• ▍Net margin 0.4%

Revenue KRW 3.54T; Operating income KRW 645.24B.

• ▍Revenue KRW 3.54T
• ▍Operating income KRW 645.24B
• ▍Net margin 12.3%