Il Dong Pharmaceutical Co Ltd

Il Dong Pharmaceutical has a market price of 22,300 KRW and a market capitalization of 702.63 billion KRW, with a price-to-book ratio of 4.29 and a price-to-tangible-book ratio of 4.29. The company's enterprise value to EBITDA ratio is 861.97, and its enterprise value to revenue ratio is 5.76, indicating a relatively high valuation compared to earnings and revenue. The company's liquidity position is characterized by a current ratio of 0.76, suggesting that it has less than one unit of current assets for every unit of current liabilities. Additionally, the company has a negative net cash position after subtracting total debt, which raises concerns about its short-term liquidity.

In terms of profitability, Il Dong Pharmaceutical reported a net loss of 3.24 billion KRW and an operating income of 1.02 billion KRW in the latest period. The company's return on equity is -1.98%, and its return on assets is -0.54%, both of which are significantly below the industry median for pharmaceutical companies. The gross profit margin is 38.05%, which is in line with the industry average, but the operating margin is only 0.67%, indicating that the company is struggling to convert revenue into operating profit.

The company's revenue is concentrated in a single geographic market, South Korea, with no disclosed international operations. This lack of geographic diversification increases the company's exposure to local economic and regulatory risks. The company's revenue concentration in a single market is a significant risk factor, as it limits its ability to mitigate regional downturns or regulatory changes.

Looking at the company's growth trajectory, there is no disclosed revenue growth in the latest period, and the company is currently reporting a net loss. The company's capital expenditures were -5.91 billion KRW, indicating a reduction in investment in physical assets. The free cash flow is negative at -350.17 million KRW, which suggests that the company is not generating sufficient cash from operations to cover its capital expenditures. The company's operating cash flow is 3.35 billion KRW, which is positive but not enough to offset the negative free cash flow.

The company's risk profile is characterized by a medium liquidity risk and a low dilution risk. The company's debt-to-equity ratio is 1.36, indicating a relatively high level of leverage. The company's long-term debt is 222.11 billion KRW, which is a significant portion of its total liabilities. The company's cash and equivalents are 48.28 billion KRW, which is less than its long-term debt, raising concerns about its ability to meet long-term obligations. The company's negative net cash position after subtracting total debt is a key flag in its risk assessment.

Recent events and disclosures indicate that the company is facing financial challenges, as evidenced by its net loss and negative free cash flow. The company's financial performance has not met analyst expectations, as reflected in the mean price target of 36,000 KRW, which is higher than the current market price of 22,300 KRW. The company's mean recommendation is 1.00, indicating a strong buy rating from analysts, but the company's financial performance does not support this recommendation. The company's financial disclosures suggest that it is not currently in a position to sustain positive earnings or cash flow.

Analysts project 162.8% upside to a 36,000 KRW target price, rating the stock a strong buy.

The company generated 28.9 billion KRW in free cash flow in fiscal 2026, indicating improved liquidity.

Fiscal 2026 net income turned positive at 27.7 billion KRW, reversing previous years of significant losses.

Long-term debt decreased to 150.3 billion KRW in fiscal 2026, reducing leverage compared to prior periods.

Revenue maintained a stable 1.8% CAGR over four years, demonstrating consistent top-line performance.

The company faces high credit risk, signaling potential difficulties in meeting financial obligations or debt servicing.

Debt-to-equity ratio of 1.36 places the company in the bottom quartile of its pharmaceutical cohort.

Net margin of -2.1% and ROE of -1.98% remain significantly below the pharmaceutical industry medians.

Cash conversion ratio of -1.03 ranks in the bottom quartile, indicating poor efficiency in generating cash.

Revenue KRW 147.02B, −5,6% YoY; Operating income +359,6% YoY.

• ▍Revenue KRW 147.02B, −5,6% YoY
• ▍Operating income +359,6% YoY
• ▍Net income −3,5% YoY
• ▍Free cash flow +50,8% YoY
• ▍Net margin 4.9%

Revenue KRW 145.46B, −6,7% YoY; Operating income +322,9% YoY.

• ▍Revenue KRW 145.46B, −6,7% YoY
• ▍Operating income +322,9% YoY
• ▍Net income +380,1% YoY
• ▍Free cash flow +391,9% YoY
• ▍Net margin 15.4%

Revenue KRW 138.48B, −9,0% YoY; Operating income −290,8% YoY.

• ▍Revenue KRW 138.48B, −9,0% YoY
• ▍Operating income −290,8% YoY
• ▍Net income +7,2% YoY
• ▍Free cash flow −907,9% YoY
• ▍Net margin -2.2%

Revenue KRW 135.98B; Operating income KRW 4.19B.

• ▍Revenue KRW 135.98B
• ▍Operating income KRW 4.19B
• ▍Net margin 0.8%

Revenue KRW 155.74B; Operating income -KRW 3.57B.

• ▍Revenue KRW 155.74B
• ▍Operating income -KRW 3.57B
• ▍Net margin 4.8%

Revenue KRW 155.95B; Operating income -KRW 3.03B.

• ▍Revenue KRW 155.95B
• ▍Operating income -KRW 3.03B
• ▍Net margin -5.1%

Revenue KRW 152.15B; Operating income KRW 1.02B.

• ▍Revenue KRW 152.15B
• ▍Operating income KRW 1.02B
• ▍Net margin -2.1%

Revenue KRW 566.93B, −7,8% YoY; Operating income +1 489,6% YoY.

• ▍Revenue KRW 566.93B, −7,8% YoY
• ▍Operating income +1 489,6% YoY
• ▍Net income +704,5% YoY
• ▍Free cash flow +4 948,4% YoY
• ▍Net margin 4.9%

Revenue KRW 614.94B, +2,4% YoY; Operating income +102,0% YoY.

• ▍Revenue KRW 614.94B, +2,4% YoY
• ▍Operating income +102,0% YoY
• ▍Net income +94,2% YoY
• ▍Free cash flow +99,2% YoY
• ▍Net margin -0.7%

Revenue KRW 637.71B, +13,8% YoY; Operating income −62,2% YoY.

• ▍Revenue KRW 637.71B, +13,8% YoY
• ▍Operating income −62,2% YoY
• ▍Net income −42,0% YoY
• ▍Free cash flow −44,7% YoY
• ▍Net margin -22.2%

Revenue KRW 560.13B; Operating income -KRW 56.57B.

• ▍Revenue KRW 560.13B
• ▍Operating income -KRW 56.57B
• ▍Net margin -17.8%