NH Investment & Securities Co Ltd

NH Investment & Securities Co Ltd has a price-to-book ratio of 1.5 and a debt-to-equity ratio of 2.83, indicating a capital structure that is moderately leveraged. The company's liquidity position is characterized as medium, with a negative net cash position after subtracting total debt, suggesting potential liquidity constraints. The company's return on equity is 2.97%, which is relatively low compared to industry benchmarks, indicating that it is not generating strong returns for shareholders.

The company's profitability is reflected in its net income of 225,468 million KRW, but its return on assets of 0.38% is significantly below the industry average, suggesting inefficiencies in asset utilization. The company's operating income of 276,530 million KRW is supported by a gross profit of 2,300,811 million KRW, but the low return on assets indicates that the company is not effectively converting its assets into profit.

NH Investment & Securities Co Ltd's revenue is concentrated in a single business segment, with no disclosed geographic diversification, which increases the company's exposure to regional economic fluctuations. The company's revenue of 2,566,899 million KRW is derived from its core investment banking and brokerage services, with no significant diversification into other revenue streams.

The company's growth trajectory is modest, with no significant revenue growth reported in the latest financial period. The company's capital expenditure of -10,044 million KRW indicates a reduction in investment in physical assets, which may affect its long-term growth potential. The company's free cash flow of 236,122 million KRW provides some flexibility for reinvestment or shareholder returns, but the negative net cash position after debt suggests limited financial flexibility.

The company's risk profile is characterized by a medium liquidity risk and a low dilution risk. The negative net cash position after subtracting total debt indicates potential liquidity constraints, which could affect the company's ability to meet short-term obligations. The company's dilution risk is low, with no significant dilution potential in the near term, as indicated by the low dilution score.

Recent events and filings indicate that the company has not issued any significant new shares or raised capital through equity offerings in the latest reporting period. The company's analyst estimates suggest a positive outlook, with a mean price target of 41,450 KRW and a median price target of 41,000 KRW, indicating that analysts expect the stock to appreciate in value. The company's mean recommendation of 1.73 suggests a generally positive sentiment among analysts, with 6 strong-buy ratings and 7 buy ratings.

NH Investment & Securities Co Ltd (005940.KS) has been formally classified within the "Banking & Investment Services" activity and the "Financials" economic sector, marking a significant structural update to its corporate profile. This taxonomy classification, identified as a medium-severity change, establishes the foundational context for analyzing the firm’s operational scope and market positioning within the broader financial industry. Concurrently, the company’s risk assessment framework has been initialized with specific metrics for dilution and liquidity. The dilution risk is now rated as "low," indicating a stable share structure with minimal threat of equity erosion, while the liquidity risk is assessed at "medium." These new fields provide a baseline for evaluating the firm’s capital stability and trading fluidity, both critical factors for investors in the securities sector. The significance of these updates lies in the establishment of a comprehensive risk and classification baseline for NH Investment & Securities. By defining its sectoral identity and quantifying key risks, the company’s profile now offers clearer parameters for comparative analysis against peers in the Financials sector. The low dilution risk suggests disciplined capital management, whereas the medium liquidity risk highlights the need for ongoing monitoring of market depth and trading volumes. Currently, the firm’s profile reflects a lean governance structure with one officer and no reported analyst coverage, index memberships, or top holders. This lack of external analyst consensus and institutional holding data underscores the importance of the newly established internal risk metrics and sector classifications as primary tools for assessing the company’s current standing and potential investment characteristics.

Analysts project 37.7% upside to a mean price target of 41,450 KRW, signaling strong market confidence in future performance.

Revenue surged 34.5% year-over-year to 11.58 trillion KRW in FY2026, demonstrating robust top-line growth momentum.

Net income jumped 50.2% to 1.03 trillion KRW in FY2026, indicating significant improvement in profitability.

Free cash flow increased 66.3% to 752.2 billion KRW in FY2026, reflecting strong cash generation capabilities.

Cash conversion ratio of 3.26 ranks in the top quartile of the investment banking cohort.

Debt-to-equity ratio of 2.83 sits in the bottom quartile of peers, indicating excessive leverage risk.

Return on equity of 2.97% trails the cohort median of 4.0%, suggesting inefficient capital utilization.

The company faces high credit risk, which could lead to significant losses from borrower defaults.

Net margin of 8.78% underperforms the cohort median of 15.68%, indicating weaker bottom-line efficiency.

Revenue KRW 2.15T, +16,3% YoY; Operating income +79,9% YoY.

• ▍Revenue KRW 2.15T, +16,3% YoY
• ▍Operating income +79,9% YoY
• ▍Net income +83,9% YoY
• ▍Free cash flow +77,2% YoY
• ▍Net margin 13.2%

Revenue KRW 2.68T, +56,3% YoY; Operating income +16,4% YoY.

• ▍Revenue KRW 2.68T, +56,3% YoY
• ▍Operating income +16,4% YoY
• ▍Net income +30,2% YoY
• ▍Free cash flow +25,9% YoY
• ▍Net margin 9.6%

Revenue KRW 2.71T, +5,6% YoY; Operating income +1,1% YoY.

• ▍Revenue KRW 2.71T, +5,6% YoY
• ▍Operating income +1,1% YoY
• ▍Net income −7,7% YoY
• ▍Free cash flow −7,2% YoY
• ▍Net margin 7.7%

Revenue KRW 2.48T; Operating income KRW 169.19B.

• ▍Revenue KRW 2.48T
• ▍Operating income KRW 169.19B
• ▍Net margin 4.4%

Revenue KRW 1.85T; Operating income KRW 216.88B.

• ▍Revenue KRW 1.85T
• ▍Operating income KRW 216.88B
• ▍Net margin 8.3%

Revenue KRW 1.72T; Operating income KRW 274.62B.

• ▍Revenue KRW 1.72T
• ▍Operating income KRW 274.62B
• ▍Net margin 11.5%

Revenue KRW 2.57T; Operating income KRW 276.53B.

• ▍Revenue KRW 2.57T
• ▍Operating income KRW 276.53B
• ▍Net margin 8.8%

Revenue KRW 11.58T, +34,5% YoY; Operating income +47,7% YoY.

• ▍Revenue KRW 11.58T, +34,5% YoY
• ▍Operating income +47,7% YoY
• ▍Net income +50,2% YoY
• ▍Free cash flow +66,3% YoY
• ▍Net margin 8.9%

Revenue KRW 8.61T, +0,5% YoY; Operating income +26,4% YoY.

• ▍Revenue KRW 8.61T, +0,5% YoY
• ▍Operating income +26,4% YoY
• ▍Net income +23,4% YoY
• ▍Free cash flow +34,4% YoY
• ▍Net margin 8.0%

Revenue KRW 8.57T, −11,7% YoY; Operating income +43,9% YoY.

• ▍Revenue KRW 8.57T, −11,7% YoY
• ▍Operating income +43,9% YoY
• ▍Net income +83,4% YoY
• ▍Free cash flow +1 405,4% YoY
• ▍Net margin 6.5%

Revenue KRW 9.71T, +6,8% YoY; Operating income −60,5% YoY.

• ▍Revenue KRW 9.71T, +6,8% YoY
• ▍Operating income −60,5% YoY
• ▍Net income −67,4% YoY
• ▍Free cash flow −103,6% YoY
• ▍Net margin 3.1%

Revenue KRW 9.09T; Operating income KRW 1.30T.

• ▍Revenue KRW 9.09T
• ▍Operating income KRW 1.30T
• ▍Net margin 10.2%