KG Financial Co Ltd

KG Financial Co Ltd maintains a strong liquidity position, with a current ratio of 2.43, indicating the company can cover its short-term liabilities more than twice over. The company's cash and equivalents amount to 53,874,080,790 KRW, which is significantly higher than its long-term debt of 57,494,288,710 KRW, suggesting a relatively conservative capital structure. However, the risk assessment notes that net cash is negative after subtracting total debt, which could signal potential liquidity constraints if short-term obligations increase.

In terms of profitability, the company's return on equity (ROE) is 2.6%, and its return on assets (ROA) is 1.75%. These figures are below the industry median for Business Support Services, indicating that the company is underperforming its peers in terms of capital efficiency and asset utilization. The operating margin, calculated as operating income divided by revenue, is 11.73%, which is a moderate level of profitability but not exceptional within the industry.

KG Financial Co Ltd's revenue is not segmented by geographic region or business line in the provided data, making it difficult to assess the geographic or product concentration of its revenue. However, the company's primary business activity is in the Business Support Services industry, which is likely to be concentrated in its domestic market. The lack of detailed segment data limits the ability to evaluate the diversification of its revenue streams.

The company's growth trajectory is not explicitly outlined in the provided data, but the absence of a clear growth strategy or significant capital expenditure suggests a stable, rather than aggressive, growth approach. The capital expenditure for the period is negative, indicating that the company is not investing in new assets, which could be a sign of a mature business with limited expansion plans. The company's revenue for the period is 82,085,548,470 KRW, and without specific growth targets or projections, it is challenging to determine the direction of future revenue performance.

The risk assessment highlights a medium liquidity risk, primarily due to the negative net cash position after accounting for total debt. The company's debt-to-equity ratio is 0.17, which is relatively low, suggesting that it is not heavily leveraged. However, the risk of dilution is assessed as low, indicating that the company is not expected to issue additional shares in the near term, which could affect shareholder value. The company's financial structure appears to be stable, but the negative net cash position is a concern that could impact its ability to meet short-term obligations.

Recent events and filings do not provide specific details on the company's operations or strategic initiatives. The absence of recent significant events or filings suggests that the company is operating in a stable environment without major disruptions. The company's financial performance and risk profile are consistent with a mature business that is not currently facing significant challenges or opportunities for rapid growth.

Net income surged 87.7% year-over-year to 43.6 billion KRW, demonstrating strong recent profitability momentum.

Cash conversion ratio of 3.33 is best-in-class compared to the 1.15 cohort median.

Analyst consensus implies 18.8% upside potential, with a mean price target of 5,000 KRW.

Net income CAGR of 10.6% over four years indicates consistent long-term earnings growth.

Long-term debt increased to 92.0 billion KRW in FY2025, up from 71.8 billion in FY2022.

Free cash flow dropped sharply to 4.4 billion KRW in FY2025 from 25.2 billion in FY2022.

The company faces medium liquidity risk, which could constrain operational flexibility during market stress.

Revenue KRW 233.77B, −12,2% YoY; Operating income +1 585,8% YoY.

• ▍Revenue KRW 233.77B, −12,2% YoY
• ▍Operating income +1 585,8% YoY
• ▍Net income +139,1% YoY
• ▍Free cash flow +189,0% YoY
• ▍Net margin 9.9%

Revenue KRW 266.11B, −4,8% YoY; Operating income −96,6% YoY.

• ▍Revenue KRW 266.11B, −4,8% YoY
• ▍Operating income −96,6% YoY
• ▍Net income −77,7% YoY
• ▍Free cash flow −88,5% YoY
• ▍Net margin 3.7%

Revenue KRW 276.12B, −9,9% YoY; Operating income −13,7% YoY.

• ▍Revenue KRW 276.12B, −9,9% YoY
• ▍Operating income −13,7% YoY
• ▍Net income −3,9% YoY
• ▍Free cash flow −1,2% YoY
• ▍Net margin 10.1%

Revenue KRW 306.46B; Operating income KRW 44.85B.

• ▍Revenue KRW 306.46B
• ▍Operating income KRW 44.85B
• ▍Net margin 9.5%