TK Corp

TK Corp's capital structure is characterized by a low debt-to-equity ratio of 0.01, indicating a conservative leverage profile. The company's liquidity position is mixed, with a current ratio of 9.02, suggesting strong short-term liquidity, but cash and equivalents are negative at -43,362,720 KRW, which raises concerns about immediate cash availability. The price-to-book ratio of 1.78 and price-to-tangible-book ratio of 1.78 suggest the market values the company at a premium to its book value, but not excessively so.

Profitability metrics show a return on equity (ROE) of 1.83% and a return on assets (ROA) of 1.56%, both below the industry median for industrial machinery firms. This suggests that TK Corp is underperforming in terms of capital efficiency and asset utilization compared to its peers. Gross profit of 19,050,535,350 KRW and operating income of 9,873,191,530 KRW indicate a healthy margin structure, but the net income of 10,064,023,680 KRW is relatively modest given the company's asset base.

Geographically, TK Corp's revenue is concentrated in its domestic market, with no disclosed international segments. This lack of diversification increases exposure to local economic and regulatory risks. The company's revenue concentration in a single region is a notable risk factor, especially in the context of geopolitical volatility affecting the Korean industrial sector.

Growth trajectory appears muted, with no disclosed revenue growth in the most recent period. Analysts have set a mean price target of 35,000 KRW, which is below the current market price of 37,800 KRW, suggesting a bearish outlook. The company's free cash flow of 10,579,787,430 KRW is positive but not robust enough to support aggressive reinvestment or shareholder returns.

Risk factors include a negative net cash position and a high price-to-earnings ratio of 97.16, which may deter value-oriented investors. The company's dilution risk is currently low, with no near-term pressure from share issuance or convertible debt. However, the negative cash position could necessitate future financing, which may involve dilution.

Recent events include a negative cash and equivalents balance, which is unusual for a company of this size and may signal liquidity stress. The company has not disclosed any major capital-raising activities or strategic acquisitions in the latest filings. Analysts have issued a mixed set of recommendations, with a mean recommendation of 1.75, indicating a slight bias toward buy, but with a high price target range of 26,000 to 48,000 KRW.

Net income surged 42.2% year-over-year to KRW 63.9 billion in FY2026, demonstrating strong top-line and bottom-line growth momentum.

Free cash flow increased 26.8% to KRW 49.0 billion in FY2026, highlighting robust cash generation capabilities relative to earnings.

Cash conversion ratio of 3.81 is best-in-class, far surpassing the 0.95 median, indicating highly efficient working capital management.

Long-term debt increased to KRW 8.3 billion in FY2026, reversing the previous trend of debt reduction seen in prior years.

Medium liquidity risk flags potential challenges in trading volume or market depth, which could impact exit strategies for large positions.

Revenue KRW 82.28B, +31,4% YoY.

• ▍Revenue KRW 82.28B, +31,4% YoY

Revenue KRW 80.60B, +21,8% YoY; Operating income −52,8% YoY.

• ▍Revenue KRW 80.60B, +21,8% YoY
• ▍Operating income −52,8% YoY
• ▍Net income −14,5% YoY
• ▍Free cash flow +22,0% YoY
• ▍Net margin 12.4%

Revenue KRW 81.42B, +31,8% YoY; Operating income +52,6% YoY.

• ▍Revenue KRW 81.42B, +31,8% YoY
• ▍Operating income +52,6% YoY
• ▍Net income +317,4% YoY
• ▍Free cash flow +262,9% YoY
• ▍Net margin 35.6%

Revenue KRW 72.32B, +10,3% YoY; Operating income −22,3% YoY.

• ▍Revenue KRW 72.32B, +10,3% YoY
• ▍Operating income −22,3% YoY
• ▍Net income +45,9% YoY
• ▍Free cash flow +13,9% YoY
• ▍Net margin 20.3%

Revenue KRW 62.63B; Operating income KRW 7.61B.

• ▍Revenue KRW 62.63B
• ▍Operating income KRW 7.61B
• ▍Net margin 16.3%

Revenue KRW 66.15B; Operating income KRW 9.64B.

• ▍Revenue KRW 66.15B
• ▍Operating income KRW 9.64B
• ▍Net margin 17.7%

Revenue KRW 61.75B; Operating income KRW 7.62B.

• ▍Revenue KRW 61.75B
• ▍Operating income KRW 7.62B
• ▍Net margin 11.2%

Revenue KRW 65.54B; Operating income KRW 9.87B.

• ▍Revenue KRW 65.54B
• ▍Operating income KRW 9.87B
• ▍Net margin 15.4%

Revenue KRW 296.97B, +11,3% YoY; Operating income −21,3% YoY.

• ▍Revenue KRW 296.97B, +11,3% YoY
• ▍Operating income −21,3% YoY
• ▍Net income +42,2% YoY
• ▍Free cash flow +26,8% YoY
• ▍Net margin 21.5%

Revenue KRW 266.81B, −14,5% YoY; Operating income −31,2% YoY.

• ▍Revenue KRW 266.81B, −14,5% YoY
• ▍Operating income −31,2% YoY
• ▍Net income −18,5% YoY
• ▍Free cash flow −9,3% YoY
• ▍Net margin 16.8%

Revenue KRW 312.07B, +25,0% YoY; Operating income +24,1% YoY.

• ▍Revenue KRW 312.07B, +25,0% YoY
• ▍Operating income +24,1% YoY
• ▍Net income +54,0% YoY
• ▍Free cash flow +19,1% YoY
• ▍Net margin 17.6%

Revenue KRW 249.74B, +34,9% YoY; Operating income +236,2% YoY.

• ▍Revenue KRW 249.74B, +34,9% YoY
• ▍Operating income +236,2% YoY
• ▍Net income +135,1% YoY
• ▍Free cash flow +306,3% YoY
• ▍Net margin 14.3%