Clean & Science Co Ltd

Clean & Science Co Ltd exhibits a leveraged capital structure with a debt-to-equity ratio of 2.52, significantly above the industry median, and a current ratio of 0.95, indicating limited short-term liquidity. The company's price-to-book ratio of 1.2 suggests a modest premium to its tangible book value, but its negative return on equity (-19.98%) and return on assets (-4.5%) highlight operational underperformance relative to industry benchmarks. The company's operating income of -965.31 million KRW and net loss of -3.37 billion KRW in the latest period underscore a challenging profitability profile. Gross profit of 12.78 billion KRW represents 14.8% of revenue, below the industry median for environmental services, which typically exceeds 20%. The negative EBITDA multiple of -62.93 further signals a lack of earnings power and weak cash flow generation. Revenue is concentrated across two segments: Filter and Media. The Filter segment focuses on air purifier and air conditioner filters, while the Media segment sells filter materials for various industrial applications. No geographic breakdown is provided, but the company is based in Korea, suggesting regional concentration risk. Outlook for the current fiscal year is negative, with operating income and net income expected to remain in deficit. Free cash flow of -727.76 million KRW and capital expenditures of -1.32 billion KRW indicate ongoing investment in operations despite negative cash flow from operations. The company's liquidity risk is elevated due to negative net cash after subtracting total debt, and while dilution risk is currently low, the absence of diluted shares suggests no recent equity issuance. Recent filings and transcripts have not disclosed material events, but the company's operating losses and high leverage suggest potential near-term pressure to secure additional financing or restructure debt. No recent regulatory or geopolitical events are cited as direct risks, though the environmental services industry is subject to evolving standards.