Kumho Engineering & Construction Co Ltd

Kumho Engineering & Construction has a liquidity position that is medium in risk, with a current ratio of 1.17 and negative net cash after subtracting total debt. The company's free cash flow is positive at 422.65 million KRW, but its operating cash flow is negative at -31.51 billion KRW, indicating operational challenges.

The company's profitability is weak, with a return on equity of -0.30% and a return on assets of -0.08%. These metrics fall below the typical expectations for firms in the construction and engineering industry, which often prioritize asset efficiency and project-based returns.

Kumho Engineering & Construction's revenue is concentrated in its core construction and engineering services, with no disclosed geographic diversification. The company's exposure to South Korea's domestic market and its reliance on large-scale infrastructure projects may limit its resilience to regional economic fluctuations.

The company's growth trajectory is uncertain, with no disclosed revenue growth in the most recent period. Analysts have provided a mean price target of 4,100 KRW, with a median of 4,100 KRW and a high of 5,000 KRW, suggesting a cautious outlook.

Kumho Engineering & Construction faces moderate risk from liquidity constraints and potential dilution, though the latter is currently assessed as low. The company's debt-to-equity ratio of 0.62 suggests a relatively conservative capital structure, but its negative net income of 1.4 billion KRW raises concerns about its ability to service debt.

No recent events or filings have been disclosed that would significantly alter the company's risk profile or strategic direction. The absence of recent capital-raising activities or major project announcements suggests a period of operational stability or stagnation.

Kumho Engineering & Construction Co Ltd (002990.KS) has undergone a formal reclassification of its business taxonomy, shifting from an undefined status to being categorized within the "Industrial & Commercial Services" activity and the "Industrials" economic sector. This structural update, identified as a medium-severity change, establishes a clearer framework for analyzing the company’s operational context within the broader industrial landscape. Alongside the sectoral redefinition, the company’s risk profile has been initialized with specific assessments. Dilution risk is now classified as "low," indicating a stable capital structure with minimal threat of share value erosion from new issuances. This assessment provides a baseline for evaluating the company’s equity stability relative to peers in the industrials sector. Conversely, liquidity risk has been assessed as "medium," suggesting that while the company maintains operational fluidity, there are moderate considerations regarding its short-term asset conversion or cash flow management. This distinction between low dilution and medium liquidity risk offers a nuanced view of the firm’s financial health, highlighting areas of strength in capital preservation alongside potential constraints in immediate liquidity. These updates collectively refine the analytical view of Kumho Engineering & Construction, moving it from an unclassified entity to one with defined sectoral and risk parameters. The absence of analyst coverage, index membership, or significant holder data in the current profile underscores that these foundational risk and taxonomy metrics are the primary drivers for understanding the company’s current financial positioning.

Operating income surged 158.6% year-over-year to 106.6 billion KRW in FY2026, signaling a strong operational recovery.

Free cash flow turned positive with 132.9% growth to 72.0 billion KRW, improving liquidity after recent deficits.

Cash conversion ratio of 22.45 ranks best-in-class among 828 construction peers, indicating superior cash generation efficiency.

Net income rebounded 128.3% to 63.9 billion KRW in FY2026, reversing the significant loss recorded in FY2025.

Long-term debt decreased to 174.9 billion KRW in FY2026, reducing leverage compared to the 317.5 billion KRW peak in FY2024.

The company faces high credit risk, posing significant financial stability concerns despite recent operational improvements.

Net margin of -0.28% remains in the bottom quartile, lagging significantly behind the 3.81% industry median.

Return on equity of -0.3% falls in the bottom quartile, underperforming the 4.75% median for construction peers.

Revenue KRW 495.90B, −4,9% YoY; Operating income +1 167,9% YoY.

• ▍Revenue KRW 495.90B, −4,9% YoY
• ▍Operating income +1 167,9% YoY
• ▍Net income +1 775,4% YoY
• ▍Free cash flow +1 134,4% YoY
• ▍Net margin 8.9%

Revenue KRW 523.35B, +35,2% YoY; Operating income +109,8% YoY.

• ▍Revenue KRW 523.35B, +35,2% YoY
• ▍Operating income +109,8% YoY
• ▍Net income +104,3% YoY
• ▍Free cash flow +105,4% YoY
• ▍Net margin 1.6%

Revenue KRW 531.19B, +3,9% YoY; Operating income +151,5% YoY.

• ▍Revenue KRW 531.19B, +3,9% YoY
• ▍Operating income +151,5% YoY
• ▍Net income +127,3% YoY
• ▍Free cash flow +135,8% YoY
• ▍Net margin 1.9%

Revenue KRW 468.05B, −5,3% YoY; Operating income +280,9% YoY.

• ▍Revenue KRW 468.05B, −5,3% YoY
• ▍Operating income +280,9% YoY
• ▍Net income +190,6% YoY
• ▍Free cash flow +691,5% YoY
• ▍Net margin 0.3%

Revenue KRW 521.46B; Operating income KRW 5.47B.

• ▍Revenue KRW 521.46B
• ▍Operating income KRW 5.47B
• ▍Net margin 0.5%

Revenue KRW 387.09B; Operating income -KRW 157.38B.

• ▍Revenue KRW 387.09B
• ▍Operating income -KRW 157.38B
• ▍Net margin -48.9%

Revenue KRW 511.16B; Operating income -KRW 31.42B.

• ▍Revenue KRW 511.16B
• ▍Operating income -KRW 31.42B
• ▍Net margin -7.3%

Revenue KRW 494.49B; Operating income KRW 1.51B.

• ▍Revenue KRW 494.49B
• ▍Operating income KRW 1.51B
• ▍Net margin -0.3%

Revenue KRW 2.02T, +5,5% YoY; Operating income +158,6% YoY.

• ▍Revenue KRW 2.02T, +5,5% YoY
• ▍Operating income +158,6% YoY
• ▍Net income +128,3% YoY
• ▍Free cash flow +132,9% YoY
• ▍Net margin 3.2%

Revenue KRW 1.91T, −13,7% YoY; Operating income −968,9% YoY.

• ▍Revenue KRW 1.91T, −13,7% YoY
• ▍Operating income −968,9% YoY
• ▍Net income −20 468,7% YoY
• ▍Free cash flow −2 280,9% YoY
• ▍Net margin -11.8%

Revenue KRW 2.22T, +8,3% YoY; Operating income −62,6% YoY.

• ▍Revenue KRW 2.22T, +8,3% YoY
• ▍Operating income −62,6% YoY
• ▍Net income −94,8% YoY
• ▍Free cash flow −166,3% YoY
• ▍Net margin 0.0%

Revenue KRW 2.05T, −0,8% YoY; Operating income −49,9% YoY.

• ▍Revenue KRW 2.05T, −0,8% YoY
• ▍Operating income −49,9% YoY
• ▍Net income −85,7% YoY
• ▍Free cash flow −102,5% YoY
• ▍Net margin 1.0%