Korea Zinc Inc

Korea Zinc Inc maintains a balanced capital structure with a debt-to-equity ratio of 0.54 and a current ratio of 1.97, indicating adequate short-term liquidity. The company holds KRW 3.45 trillion in cash and equivalents against KRW 5.96 trillion in long-term debt, resulting in a net cash position that is negative after subtracting total debt. Despite this, the firm generates a positive free cash flow of KRW 49.4 billion, supported by operating cash flows that turned negative at KRW -628.2 billion, likely due to significant capital expenditures of KRW 943.0 billion. The market capitalization stands at KRW 22.05 trillion, with a price-to-book ratio of 2.02 and an EV/EBITDA of 14.61.

Profitability metrics show a return on equity of 8.84% and a return on assets of 4.74%, reflecting moderate efficiency in asset utilization. The company reported a net income of KRW 775.0 billion on revenues of KRW 16.59 trillion, yielding a net margin of approximately 4.7%. Operating income was KRW 1.20 trillion, indicating a healthy operating margin of roughly 7.3%. These returns are evaluated against the backdrop of a P/E ratio of 22.8, suggesting the market prices in stable earnings growth despite the cyclical nature of the industry.

Revenue concentration and segment details are not explicitly provided in the available data, limiting the analysis of specific business unit contributions. Similarly, geographic exposure is not detailed, preventing an assessment of regional risk factors. The company's primary activity is listed as Integrated Oil & Gas, but sector classification classification aligns it with Metals & Mining, creating ambiguity in its core operational focus.

Growth trajectory analysis is constrained by the absence of historical period data, such as five-year annual or eight-quarter quarterly trends. Without this historical context, it is not possible to determine the momentum of revenue or net income growth. The current financial snapshot provides a static view of performance, lacking the dynamic trend data necessary for robust growth forecasting.

Risk assessment indicates medium liquidity risk and low dilution risk, with a key flag noting that net cash is negative after subtracting total debt. The company's reliance on debt financing, evidenced by the KRW 5.96 trillion long-term debt, poses a potential credit risk if interest rates rise or cash flows deteriorate. The negative operating cash flow of KRW -628.2 billion further highlights the need for careful cash management.

Recent events include analyst estimates with a mean price target of KRW 1,390,000 and a mean recommendation of 2.00, indicating a buy rating. The high price target is KRW 1,730,000, while the low is KRW 1,050,000, reflecting a range of analyst opinions. Competitor context lists Chevron, Shell, and BP, but no specific comparative data is provided.

Analysts project 30.6% upside to a mean price target of 1.39 million KRW, signaling strong institutional confidence.

Net income surged 305.9% year-over-year to 775 billion KRW in FY2026, demonstrating significant earnings recovery.

Revenue grew 37.6% year-over-year to 16.6 trillion KRW in FY2026, reflecting robust top-line expansion momentum.

Debt-to-equity ratio of 0.54 is below the cohort median of 0.49, suggesting a relatively conservative leverage profile.

Cash conversion ratio of -0.65 places the company in the bottom quartile of its peer cohort, indicating poor cash generation.

Free cash flow turned negative to -899 billion KRW in FY2025, highlighting severe liquidity pressures during recent periods.

Long-term debt increased significantly to 5.96 trillion KRW in FY2026, raising concerns about future debt servicing obligations.

Revenue KRW 6.07T, +58,4% YoY; Operating income +176,5% YoY.

• ▍Revenue KRW 6.07T, +58,4% YoY
• ▍Operating income +176,5% YoY
• ▍Net income +118,2% YoY
• ▍Free cash flow +163,1% YoY
• ▍Net margin 5.8%

Revenue KRW 4.77T, +39,8% YoY; Operating income +411,6% YoY.

• ▍Revenue KRW 4.77T, +39,8% YoY
• ▍Operating income +411,6% YoY
• ▍Net income +184,1% YoY
• ▍Free cash flow +92,0% YoY
• ▍Net margin 4.4%

Revenue KRW 4.16T, +29,7% YoY; Operating income +82,1% YoY.

• ▍Revenue KRW 4.16T, +29,7% YoY
• ▍Operating income +82,1% YoY
• ▍Net income −53,8% YoY
• ▍Free cash flow +58,3% YoY
• ▍Net margin 1.7%

Revenue KRW 3.83T, +25,1% YoY; Operating income −10,4% YoY.

• ▍Revenue KRW 3.83T, +25,1% YoY
• ▍Operating income −10,4% YoY
• ▍Net income +87,4% YoY
• ▍Free cash flow +112,3% YoY
• ▍Net margin 8.7%

Revenue KRW 3.83T; Operating income KRW 269.85B.

• ▍Revenue KRW 3.83T
• ▍Operating income KRW 269.85B
• ▍Net margin 4.2%

Revenue KRW 3.41T; Operating income KRW 82.30B.

• ▍Revenue KRW 3.41T
• ▍Operating income KRW 82.30B
• ▍Net margin -7.3%

Revenue KRW 3.21T; Operating income KRW 150.14B.

• ▍Revenue KRW 3.21T
• ▍Operating income KRW 150.14B
• ▍Net margin 4.9%

Revenue KRW 3.06T; Operating income KRW 268.27B.

• ▍Revenue KRW 3.06T
• ▍Operating income KRW 268.27B
• ▍Net margin 5.8%

Revenue KRW 16.59T, +37,6% YoY; Operating income +75,8% YoY.

• ▍Revenue KRW 16.59T, +37,6% YoY
• ▍Operating income +75,8% YoY
• ▍Net income +305,9% YoY
• ▍Free cash flow +105,5% YoY
• ▍Net margin 4.7%

Revenue KRW 12.05T, +24,2% YoY; Operating income +6,0% YoY.

• ▍Revenue KRW 12.05T, +24,2% YoY
• ▍Operating income +6,0% YoY
• ▍Net income −63,8% YoY
• ▍Free cash flow −383,4% YoY
• ▍Net margin 1.6%

Revenue KRW 9.70T, −13,5% YoY; Operating income −29,5% YoY.

• ▍Revenue KRW 9.70T, −13,5% YoY
• ▍Operating income −29,5% YoY
• ▍Net income −32,5% YoY
• ▍Free cash flow −150,7% YoY
• ▍Net margin 5.4%

Revenue KRW 11.22T, +12,4% YoY; Operating income −17,1% YoY.

• ▍Revenue KRW 11.22T, +12,4% YoY
• ▍Operating income −17,1% YoY
• ▍Net income −3,2% YoY
• ▍Free cash flow +6,7% YoY
• ▍Net margin 7.0%