NextBioMedical Co Ltd

NextBioMedical operates with a highly leveraged capital structure, as evidenced by its total liabilities of 3.56 trillion KRW and total equity of -572.71 billion KRW, resulting in a negative debt-to-equity ratio of -5.9. The company's liquidity position is also concerning, with cash and equivalents of 469 billion KRW and a current ratio of 0.54, indicating that it does not have sufficient current assets to cover its current liabilities. The negative free cash flow of -298.75 million KRW and operating cash flow of -566.62 million KRW further highlight the company's cash flow challenges.

Profitability metrics are mixed, with a gross profit of 1.43 billion KRW but a net loss of 354.97 million KRW and an operating loss of 563.73 million KRW. The return on equity of 6.2% is positive but misleading due to the negative equity base, while the return on assets of -1.19% indicates that the company is not generating returns on its asset base. The company's EV/EBITDA ratio is negative at -729.74, and its EV/Revenue ratio is 173.51, both of which are unfavorable compared to industry norms.

The company's revenue is concentrated in a single business segment, as disclosed in its financial statements, with no material geographic diversification reported. This lack of diversification increases the company's exposure to sector-specific risks and limits its ability to offset losses in one area with gains in another.

Looking ahead, the company's growth trajectory is uncertain. Analysts have provided a mean price target of 97,333.33 KRW, which is significantly higher than the current market price of 46,600 KRW, but the mean recommendation of 1.67 suggests a cautious outlook. The company's operating income and net income are both negative, and there is no indication of a turnaround in the near term.

The company faces several risk factors, including liquidity constraints and a high debt burden. The risk assessment indicates a medium liquidity risk and a low dilution risk, but the key flag of negative net cash after subtracting total debt is a red flag for investors. The company has not disclosed any recent dilutive events, and there are no indications of near-term share issuance.

Recent events, including the company's latest financial filings, show continued losses and a deteriorating balance sheet. The company has not issued any material earnings transcripts or press releases that would suggest a strategic shift or operational improvement.

Analysts project 133% upside to a mean price target of 97,333 KRW, signaling strong market confidence in future performance.

Revenue surged 74.7% year-over-year to 16.5 billion KRW in FY2026, demonstrating significant top-line growth momentum.

Long-term debt decreased to 7.7 billion KRW in FY2026, reducing leverage compared to the 33.9 billion KRW recorded in FY-2.

Gross profit expanded to 11.5 billion KRW in FY2026, nearly doubling from 5.8 billion KRW in the prior fiscal year.

The company faces high credit risk and reported a net loss of 311 million KRW in FY2026, undermining financial stability.

Free cash flow turned negative at -2.9 billion KRW in FY2026, reversing the positive 2.9 billion KRW generated in FY2025.

Net margin of -15.0% remains well below the cohort median of 2.2%, indicating persistent inability to convert revenue into profit.

Medium liquidity risk flags potential difficulties in meeting short-term obligations, compounded by negative free cash flow generation.

Revenue KRW 3.80B, +70,6% YoY; Operating income +60,3% YoY.

• ▍Revenue KRW 3.80B, +70,6% YoY
• ▍Operating income +60,3% YoY
• ▍Net income −134,7% YoY
• ▍Free cash flow −1 075,0% YoY
• ▍Net margin -1.3%

Revenue KRW 4.93B, +125,1% YoY; Operating income +136,6% YoY.

• ▍Revenue KRW 4.93B, +125,1% YoY
• ▍Operating income +136,6% YoY
• ▍Net income +179,4% YoY
• ▍Free cash flow +151,4% YoY
• ▍Net margin 21.5%

Revenue KRW 3.97B, +44,2% YoY; Operating income +102,3% YoY.

• ▍Revenue KRW 3.97B, +44,2% YoY
• ▍Operating income +102,3% YoY
• ▍Net income −32,2% YoY
• ▍Free cash flow −371,3% YoY
• ▍Net margin -22.7%

Revenue KRW 3.77B, +59,2% YoY; Operating income −18,5% YoY.

• ▍Revenue KRW 3.77B, +59,2% YoY
• ▍Operating income −18,5% YoY
• ▍Net income −18,5% YoY
• ▍Free cash flow −42,5% YoY
• ▍Net margin -11.1%

Revenue KRW 16.48B, +72,7% YoY; Operating income −147,5% YoY.

• ▍Revenue KRW 16.48B, +72,7% YoY
• ▍Operating income −147,5% YoY
• ▍Net income −110,9% YoY
• ▍Free cash flow −201,1% YoY
• ▍Net margin -1.9%

Revenue KRW 9.54B, +95,5% YoY; Operating income +119,8% YoY.

• ▍Revenue KRW 9.54B, +95,5% YoY
• ▍Operating income +119,8% YoY
• ▍Net income +138,0% YoY
• ▍Free cash flow +140,9% YoY
• ▍Net margin 30.0%