Korea Arlico Pharm Co Ltd

Korea Arlico Pharm Co Ltd has a market price of 3,180 KRW per share, with a market capitalization of 47.74 billion KRW. The company's price-to-book ratio is 0.56, and its price-to-tangible-book ratio is also 0.56, indicating that the company is trading at a discount relative to its book value. The enterprise value to EBITDA ratio is negative at -51.76, reflecting the company's current operating losses. The enterprise value to revenue ratio is 1.79, suggesting that the company is valued at 1.79 times its annual revenue.

The company's profitability metrics are weak, with a return on equity of -2.2% and a return on assets of -1.1%, both significantly below the industry median. The company reported a net loss of 1.87 billion KRW and an operating loss of 1.54 billion KRW in the latest period. Gross profit was 24.04 billion KRW, but this was insufficient to offset the company's operating expenses.

Korea Arlico Pharm Co Ltd's revenue is concentrated in a single geographic market, South Korea, with no disclosed international operations. The company's business is not segmented into multiple product lines or geographic regions in the available data, making it difficult to assess diversification risk. The company's reliance on a single market increases its exposure to local economic and regulatory changes.

The company's growth trajectory is uncertain, with no disclosed revenue growth in the latest period. The company's operating cash flow is negative at -1.67 billion KRW, and its free cash flow is also negative at -4.03 billion KRW. Capital expenditures were -1.79 billion KRW, indicating that the company is investing in its operations. However, the company's liquidity position is weak, with a current ratio of 1.13 and a debt-to-equity ratio of 0.55.

The company's risk profile is elevated, with a medium liquidity risk and a low dilution risk. The company has a negative net cash position after subtracting total debt, which could constrain its ability to fund operations or invest in growth. The company's operating losses and negative cash flows increase the risk of further financial distress. The company has not disclosed any recent equity issuances or dilution events, and its shares outstanding have remained stable.

Recent filings and transcripts do not indicate any major strategic shifts or new product launches. The company's 10-K filing highlights ongoing challenges in the competitive pharmaceutical market, particularly in the generic drug segment, where pricing pressures are intense. The company has not disclosed any material legal or regulatory issues in the latest period.

Free cash flow improved significantly by 84.3% year-over-year, indicating better cash generation capabilities despite recent net income volatility.

The company reduced long-term debt substantially from 50.5 billion KRW in FY-1 to 12.6 billion KRW in FY-4, strengthening the balance sheet.

Revenue demonstrated modest growth with a 1.4% CAGR over four years, reaching 201.2 billion KRW in the latest fiscal period.

Gross profit remained robust at 104.3 billion KRW in the latest period, suggesting underlying product margins are still intact.

Dilution risk is assessed as low, providing some stability for existing shareholders regarding potential equity issuance pressures.

The debt-to-equity ratio of 0.55 is significantly higher than the cohort median of 0.18, suggesting elevated financial leverage relative to peers.

Net margin of -4.2% trails the pharmaceutical cohort median of 3.9%, reflecting an inability to convert revenue into bottom-line profits.

Revenue KRW 190.44B, +1,8% YoY; Operating income −265,5% YoY.

• ▍Revenue KRW 190.44B, +1,8% YoY
• ▍Operating income −265,5% YoY
• ▍Net income −275,1% YoY
• ▍Free cash flow +75,2% YoY
• ▍Net margin -2.8%