GS Engineering & Construction Corp

GS Engineering & Construction Corp maintains a debt-to-equity ratio of 1.38, indicating a moderate reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 1.06, suggesting limited short-term liquidity cushion. Despite holding KRW 1.85 trillion in cash and equivalents, the firm's long-term debt of KRW 5.93 trillion exceeds its cash reserves, resulting in a negative net cash position.

Profitability metrics show a return on equity (ROE) of 0.63% and a return on assets (ROA) of 0.15%, both below the typical thresholds for capital-intensive construction firms. The operating margin is 2.84% (KRW 93.67 billion operating income on KRW 3.30 trillion revenue), and the net margin is 0.82% (KRW 26.89 billion net income on KRW 3.30 trillion revenue). These figures suggest the company is underperforming relative to industry norms in terms of capital efficiency and margin generation.

The company's revenue is concentrated in a few large-scale construction and engineering projects, with no disclosed geographic diversification in the latest financials. This concentration increases exposure to project-specific risks, including delays, cost overruns, and regulatory changes in key markets.

GS Engineering & Construction Corp reported KRW 3.30 trillion in revenue, reflecting a growth trajectory that is not explicitly quantified in the latest data. The company's capital expenditures of KRW 208.72 billion indicate ongoing investment in infrastructure and project development, but the negative free cash flow of KRW 3.38 billion highlights the pressure of sustaining operations while funding these investments.

The risk assessment identifies liquidity as a medium concern, with the company's cash reserves insufficient to cover long-term debt. The dilution risk is assessed as low, with no significant dilution events reported in the latest data. However, the negative operating cash flow of KRW 218.03 billion and the absence of a clear capital structure optimization strategy raise concerns about the company's ability to service its debt obligations.

Recent events include analyst price targets ranging from KRW 16,200 to KRW 63,400, with a mean of KRW 41,561.11 and a median of KRW 44,500. The mean recommendation score of 1.91, based on 21 analyst ratings, suggests a generally positive outlook, with 8 strong-buy and 11 buy ratings.

GS Engineering & Construction Corp (006360.KS) has undergone a formal classification update, now explicitly categorized within the Industrials economic sector and the Industrial & Commercial Services activity group. This structural definition provides a clearer framework for analyzing the company’s operational focus, anchoring its business model within the broader industrial services landscape. Alongside this sectoral alignment, the company’s risk profile has been quantified with specific assessments for dilution and liquidity. The dilution risk is currently rated as low, suggesting a stable capital structure with minimal immediate threat of share value erosion from new issuances. This assessment offers investors a baseline for evaluating the security of their equity position. Conversely, the liquidity risk has been classified as medium, indicating a moderate level of uncertainty regarding the company’s ability to meet short-term financial obligations. This distinction is critical for stakeholders monitoring the firm’s cash flow management and working capital efficiency, highlighting an area that requires ongoing attention amidst its industrial operations. These updates collectively refine the analytical view of GS Engineering & Construction, moving from undefined metrics to specific, actionable risk and sector classifications. By establishing these baselines, the data supports more precise comparisons with peers in the Industrials sector and informs strategic decisions regarding capital allocation and risk management.

Analysts project 36.5% upside to a mean price target of 41,561 KRW, signaling strong market confidence in future performance.

Free cash flow improved by 76.2% year-over-year to -23.6 billion KRW, indicating a significant reduction in cash burn.

The company returned to profitability in FY2025 with 245.6 billion KRW net income, reversing the previous year's substantial loss.

Revenue demonstrated an 8.3% compound annual growth rate over the last four years, showing long-term top-line expansion.

Gross profit increased to 1.35 trillion KRW in FY2026, suggesting improved cost management or favorable project mix.

The company faces high credit risk, posing significant potential for financial distress or default given its leverage profile.

Debt-to-equity ratio stands at 1.38, placing it in the bottom quartile compared to the 0.29 cohort median.

Net margin of 0.82% is well below the 3.81% cohort median, indicating weak profitability relative to peers.

Return on equity of 0.63% significantly underperforms the 4.75% cohort median, reflecting poor capital efficiency.

Revenue KRW 2.40T, −21,6% YoY; Operating income −4,2% YoY.

• ▍Revenue KRW 2.40T, −21,6% YoY
• ▍Operating income −4,2% YoY
• ▍Net income −99,8% YoY
• ▍Free cash flow +3 018,7% YoY
• ▍Net margin 0.0%

Revenue KRW 2.98T, −11,9% YoY; Operating income −106,5% YoY.

• ▍Revenue KRW 2.98T, −11,9% YoY
• ▍Operating income −106,5% YoY
• ▍Net income +208,7% YoY
• ▍Free cash flow +89,2% YoY
• ▍Net margin 1.3%

Revenue KRW 3.21T, +3,2% YoY; Operating income −18,5% YoY.

• ▍Revenue KRW 3.21T, +3,2% YoY
• ▍Operating income −18,5% YoY
• ▍Net income −24,2% YoY
• ▍Free cash flow +340,4% YoY
• ▍Net margin 2.8%

Revenue KRW 3.20T, −3,1% YoY; Operating income −5,2% YoY.

• ▍Revenue KRW 3.20T, −3,1% YoY
• ▍Operating income −5,2% YoY
• ▍Net income −333,2% YoY
• ▍Free cash flow −3 211,8% YoY
• ▍Net margin -2.0%

Revenue KRW 3.06T; Operating income KRW 76.32B.

• ▍Revenue KRW 3.06T
• ▍Operating income KRW 76.32B
• ▍Net margin 0.9%

Revenue KRW 3.39T; Operating income KRW 37.24B.

• ▍Revenue KRW 3.39T
• ▍Operating income KRW 37.24B
• ▍Net margin -1.0%

Revenue KRW 3.11T; Operating income KRW 209.74B.

• ▍Revenue KRW 3.11T
• ▍Operating income KRW 209.74B
• ▍Net margin 3.8%

Revenue KRW 3.30T; Operating income KRW 93.67B.

• ▍Revenue KRW 3.30T
• ▍Operating income KRW 93.67B
• ▍Net margin 0.8%

Revenue KRW 12.45T, −3,2% YoY; Operating income −19,0% YoY.

• ▍Revenue KRW 12.45T, −3,2% YoY
• ▍Operating income −19,0% YoY
• ▍Net income −61,9% YoY
• ▍Free cash flow +76,2% YoY
• ▍Net margin 0.8%

Revenue KRW 12.86T, −4,3% YoY; Operating income +198,9% YoY.

• ▍Revenue KRW 12.86T, −4,3% YoY
• ▍Operating income +198,9% YoY
• ▍Net income +150,9% YoY
• ▍Free cash flow +88,8% YoY
• ▍Net margin 1.9%

Revenue KRW 13.44T, +9,2% YoY; Operating income −177,3% YoY.

• ▍Revenue KRW 13.44T, +9,2% YoY
• ▍Operating income −177,3% YoY
• ▍Net income −242,1% YoY
• ▍Free cash flow −591,4% YoY
• ▍Net margin -3.6%

Revenue KRW 12.30T, +36,1% YoY; Operating income −13,6% YoY.

• ▍Revenue KRW 12.30T, +36,1% YoY
• ▍Operating income −13,6% YoY
• ▍Net income −16,9% YoY
• ▍Free cash flow −37,3% YoY
• ▍Net margin 2.8%