Korea Aerospace Industries Ltd

Korea Aerospace Industries Ltd maintains a capital structure characterized by significant leverage, with a debt-to-equity ratio of 1.19 and a current ratio of 1.2. The balance sheet reflects total assets of 10.37 trillion KRW against total liabilities of 8.54 trillion KRW, resulting in total equity of 1.83 trillion KRW. Long-term debt stands at 2.18 trillion KRW, while cash and equivalents are limited to 60.94 billion KRW, leading to a negative net cash position. The company generated 59.80 billion KRW in free cash flow despite a negative operating cash flow of -9.03 trillion KRW, driven by capital expenditures of -1.89 trillion KRW.

Profitability metrics indicate a return on equity of 10.81% and a return on assets of 1.91%. The company reported net income of 185.89 billion KRW on revenue of 3.70 trillion KRW, yielding a gross profit of 608.05 billion KRW and operating income of 268.21 billion KRW. Valuation multiples are elevated, with a price-to-earnings ratio of 77.8, a price-to-book ratio of 8.41, and an EV/EBITDA of 60.52. The EV/Revenue multiple stands at 4.28, reflecting high market expectations relative to current sales.

Revenue concentration and segment details are not explicitly provided in the available data, preventing a detailed analysis of geographic or product mix exposure. The company's primary activity is identified as Aerospace & Defense, suggesting reliance on government contracts and large-scale industrial projects typical of the sector.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current financial snapshot provides a single-period view, with no year-over-year or quarterly trend data available to assess revenue or earnings momentum. The lack of historical context prevents a definitive statement on the direction of growth.

Risk assessment indicates medium liquidity risk and low dilution risk. A key flag notes that net cash is negative after subtracting total debt, highlighting potential refinancing or cash flow management pressures. The current ratio of 1.2 suggests adequate short-term liquidity but limited buffer against unexpected obligations. The low dilution risk is supported by the equality of basic and diluted shares outstanding at 97.48 million shares.

Recent observations include analyst estimates with a mean price target of 198,176.47 KRW and a median target of 191,000.00 KRW. The mean recommendation is 2.09, indicating a moderate buy sentiment, with 4 strong buys, 12 buys, and 6 holds. No specific filing, news, or transcript observations were provided in the input data.

Analysts project 37.1% upside to the mean price target of 198,176 KRW, reflecting strong market confidence in future performance.

Operating income surged 21.8% year-over-year to 268.2 billion KRW in FY2026, demonstrating significant operational leverage and profitability growth.

Net income grew at a robust 30.6% CAGR over four years, highlighting consistent and accelerating bottom-line expansion for shareholders.

Free cash flow improved dramatically by 381.1% year-over-year to 59.8 billion KRW, signaling a major turnaround in cash generation capabilities.

Debt-to-equity ratio of 1.19 places the company in the bottom quartile of its cohort, indicating excessive leverage compared to peers.

Long-term debt more than doubled to 2.18 trillion KRW in FY2026, raising significant concerns regarding solvency and financial flexibility.

The company faces a high credit risk flag, suggesting potential difficulties in meeting financial obligations or securing favorable financing terms.

Cash conversion ratio of -4.57 ranks in the bottom quartile of the aerospace cohort, revealing poor efficiency in turning earnings into cash.

Revenue growth slowed to just 1.7% year-over-year in FY2026, indicating a potential plateau in top-line expansion despite profit gains.

Revenue KRW 1.09T, +56,3% YoY; Operating income +43,4% YoY.

• ▍Revenue KRW 1.09T, +56,3% YoY
• ▍Operating income +43,4% YoY
• ▍Net income +39,7% YoY
• ▍Free cash flow +137,2% YoY
• ▍Net margin 3.8%

Revenue KRW 1.47T, +34,0% YoY; Operating income +256,9% YoY.

• ▍Revenue KRW 1.47T, +34,0% YoY
• ▍Operating income +256,9% YoY
• ▍Net income +412,3% YoY
• ▍Free cash flow +256,0% YoY
• ▍Net margin 4.1%

Revenue KRW 702.12B, −22,6% YoY; Operating income −21,1% YoY.

• ▍Revenue KRW 702.12B, −22,6% YoY
• ▍Operating income −21,1% YoY
• ▍Net income −43,2% YoY
• ▍Free cash flow −26,7% YoY
• ▍Net margin 5.5%

Revenue KRW 828.34B, −7,1% YoY; Operating income +14,7% YoY.

• ▍Revenue KRW 828.34B, −7,1% YoY
• ▍Operating income +14,7% YoY
• ▍Net income +2,0% YoY
• ▍Free cash flow +14 158,0% YoY
• ▍Net margin 6.8%

Revenue KRW 699.26B; Operating income KRW 46.81B.

• ▍Revenue KRW 699.26B
• ▍Operating income KRW 46.81B
• ▍Net margin 4.3%

Revenue KRW 1.09T; Operating income KRW 21.54B.

• ▍Revenue KRW 1.09T
• ▍Operating income KRW 21.54B
• ▍Net margin 1.1%

Revenue KRW 907.21B; Operating income KRW 76.28B.

• ▍Revenue KRW 907.21B
• ▍Operating income KRW 76.28B
• ▍Net margin 7.5%

Revenue KRW 891.81B; Operating income KRW 74.30B.

• ▍Revenue KRW 891.81B
• ▍Operating income KRW 74.30B
• ▍Net margin 6.2%

Revenue KRW 3.70T, +1,7% YoY; Operating income +21,9% YoY.

• ▍Revenue KRW 3.70T, +1,7% YoY
• ▍Operating income +21,9% YoY
• ▍Net income +8,0% YoY
• ▍Free cash flow +381,1% YoY
• ▍Net margin 5.0%

Revenue KRW 3.63T, −4,9% YoY; Operating income −5,1% YoY.

• ▍Revenue KRW 3.63T, −4,9% YoY
• ▍Operating income −5,1% YoY
• ▍Net income −23,2% YoY
• ▍Free cash flow −115,0% YoY
• ▍Net margin 4.7%

Revenue KRW 3.82T, +37,0% YoY; Operating income +64,2% YoY.

• ▍Revenue KRW 3.82T, +37,0% YoY
• ▍Operating income +64,2% YoY
• ▍Net income +89,1% YoY
• ▍Free cash flow +7 320,7% YoY
• ▍Net margin 5.9%

Revenue KRW 2.79T, +8,8% YoY; Operating income +219,3% YoY.

• ▍Revenue KRW 2.79T, +8,8% YoY
• ▍Operating income +219,3% YoY
• ▍Net income +85,4% YoY
• ▍Free cash flow +102,2% YoY
• ▍Net margin 4.3%