S&W Corp

S&W Corp's capital structure is characterized by a debt-to-equity ratio of 0.31, indicating a relatively conservative leverage position. The company's liquidity is assessed as medium, with a current ratio of 2.44, suggesting it can cover short-term obligations but with limited excess cash. Free cash flow is negative at -13.64 billion KRW, driven by capital expenditures of -18.92 billion KRW, which may signal ongoing investment in operations or expansion. Profitability metrics show a return on equity (ROE) of 6.79% and a return on assets (ROA) of 4.26%, both below the typical thresholds for high-performing industrial firms. Gross profit of 6.16 billion KRW represents 12.6% of revenue, which is in line with industry norms but leaves room for improvement in cost control and pricing power. The company's revenue is derived from three main segments: diesel engine parts, industrial components, and forging parts. While the breakdown of revenue by segment is not disclosed, the geographic exposure is not specified in the input data. However, the company operates in both domestic and overseas markets, suggesting a moderate level of diversification. Growth trajectory appears mixed. The company's revenue for the latest period is 48.8 billion KRW, but no year-over-year growth rate is provided. Analysts have reported an actual EPS of 87.00 KRW, which may indicate stable earnings performance. However, the negative free cash flow and high capital expenditures suggest that growth is being funded through operational cash flow rather than surplus liquidity. Risk factors include a medium liquidity risk, as the company has a negative net cash position after subtracting total debt. The dilution risk is assessed as low, with no significant dilution potential reported. However, the company's capital expenditures and negative free cash flow may signal financial strain if revenue growth does not accelerate. Recent events include the latest financial filing, which shows a net income of 3.63 billion KRW and a total equity of 53.48 billion KRW. No recent earnings call transcripts or major regulatory filings are disclosed in the input data, so the narrative is based on the latest financial snapshot and analyst estimates.