Hankook & Company Co Ltd

Hankook & Company Co Ltd maintains a strong liquidity position with a current ratio of 1.51, indicating the company can cover its short-term liabilities with its short-term assets. The company's liquidity_fpt score suggests a medium liquidity risk, with cash and equivalents amounting to KRW 246.63 billion, which is slightly less than its long-term debt of KRW 381.57 billion. This suggests the company may need to manage its cash flow carefully to maintain its liquidity position.

In terms of profitability, the company's return on equity (ROE) of 2.54% and return on assets (ROA) of 2.19% are below the industry median for Electrical Components & Equipment, which typically sees ROE and ROA in the 3-4% range. The company's net income of KRW 108.48 billion and operating income of KRW 123.02 billion indicate a solid performance, but the gross profit margin of 41.7% is in line with the industry average.

The company's revenue is primarily concentrated in its domestic market, with no significant international revenue disclosed in the latest financials. This concentration may expose the company to local economic fluctuations and regulatory changes, which could impact its growth trajectory.

Looking ahead, the company's revenue is projected to grow by 4.5% in the current fiscal year and 3.2% in the next fiscal year, based on the outlook data. This growth is expected to be driven by increased demand for industrial machinery and components in the domestic market. However, the company's capital expenditure of KRW 7.98 billion suggests a cautious approach to expansion and investment.

The risk assessment indicates a low dilution risk, with no significant dilution potential identified in the basic shares outstanding. However, the company's net cash position is negative after subtracting total debt, which could be a concern if cash flow from operations does not remain stable. The company's debt-to-equity ratio of 0.09 is relatively low, suggesting a conservative capital structure.

Recent events, including the latest financial filings and transcripts, do not indicate any major operational or financial disruptions. The company's ESG score of 54.60 and a B- grade suggest moderate environmental, social, and governance performance, with room for improvement in the environment pillar.

Hankook & Company Co Ltd (000240.KS) has been formally classified within the Industrials economic sector, specifically under the Industrial Goods activity. This taxonomic update provides a clearer framework for analyzing the company’s operational focus and market positioning. The risk profile for the firm has also been established, with dilution risk assessed as low. This assessment suggests that existing shareholders face minimal threat from equity issuance, a factor that can support valuation stability. Conversely, liquidity risk has been categorized as medium. This designation indicates that while the stock is tradable, investors should remain aware of potential constraints in executing large orders without impacting the price. These structural updates occur against a backdrop of limited analyst coverage, with only four analysts currently tracking the company. The absence of index membership and reported top holders further highlights the niche nature of the stock’s current market presence.

Revenue grew at a 10.9% CAGR over four years, indicating consistent top-line expansion and market share gains for the company.

Debt-to-equity ratio of 0.09 is well below the 0.24 cohort median, reflecting a conservative capital structure with low financial leverage risk.

Net income CAGR of 15.2% over four years outpaces revenue growth, signaling improving operational efficiency and margin expansion trends.

Net income decreased 1.0% year-over-year, showing stagnation in bottom-line results despite significant revenue increases.

Cash conversion ratio of 0.88 is slightly below the 0.89 cohort median, indicating marginally weaker efficiency in converting earnings to cash.

Revenue KRW 1.10T, +13,8% YoY; Operating income +11,0% YoY.

• ▍Revenue KRW 1.10T, +13,8% YoY
• ▍Operating income +11,0% YoY
• ▍Net income −15,8% YoY
• ▍Free cash flow −44,4% YoY
• ▍Net margin 15.2%

Revenue KRW 963.30B; Operating income KRW 223.17B.

• ▍Revenue KRW 963.30B
• ▍Operating income KRW 223.17B
• ▍Net margin 20.5%