Iljin Electric Co Ltd

Iljin Electric maintains a capital structure with a debt-to-equity ratio of 0.29, indicating a relatively conservative leverage position compared to industry norms. The company's liquidity position is characterized by a current ratio of 1.21, suggesting moderate short-term liquidity. However, the firm's net cash position is negative after subtracting total debt, signaling potential liquidity constraints.

Profitability metrics reveal a return on equity (ROE) of 3.42% and a return on assets (ROA) of 1.49%, both of which are below the industry median for electrical equipment manufacturers. The company's operating margin is 5.59% (calculated from operating income of 24,247.31 billion KRW on revenue of 433.76 billion KRW), which is also below the industry median. This suggests that the firm is underperforming in terms of operational efficiency and asset utilization.

Geographically, Iljin Electric's revenue is concentrated in a single market, with no disclosed diversification across regions. This lack of geographic diversification increases the company's exposure to regional economic fluctuations and regulatory changes. The firm's segmental breakdown is also limited, with no detailed disclosures on product lines or regional performance.

The company's growth trajectory is modest, with no disclosed revenue growth in the most recent fiscal year. Analysts have provided a mean price target of 65,333.33 KRW, which is significantly lower than the current market price of 105,900 KRW. This suggests a bearish outlook from the analyst community, with a mean recommendation of 1.50 (on a scale of 1 to 5, where 1 is strong buy and 5 is strong sell).

Risk factors for Iljin Electric include its high price-to-earnings ratio of 303.38 and a price-to-book ratio of 10.37, both of which are well above the industry median. These valuations suggest that the company is currently overvalued relative to its earnings and book value. Additionally, the firm's liquidity risk is rated as medium, and its dilution risk is low, although the negative net cash position after debt is a concern.

Recent events and disclosures indicate that the company has not issued any significant new shares or raised capital through equity offerings in the past year. The firm's capital expenditure of -29.56 billion KRW suggests a reduction in investment in new projects or facilities, which could impact long-term growth. No recent filings or transcripts have been disclosed that would indicate major strategic shifts or operational changes.

Net margin of 3.8% surpasses the 3.76% industry median, demonstrating stronger bottom-line profitability than competitors.

Cash conversion ratio of 0.97 outperforms the 0.89 cohort median, signaling strong earnings quality.

Analysts assign a strong buy recommendation with a mean price target implying 9.3% upside.

The company faces medium liquidity risk, suggesting potential challenges in meeting short-term obligations.

Medium credit risk flags indicate potential concerns regarding the company's debt servicing ability.

Revenue KRW 506.13B, +10,7% YoY.

• ▍Revenue KRW 506.13B, +10,7% YoY

Revenue KRW 614.15B, +30,4% YoY; Operating income +69,7% YoY.

• ▍Revenue KRW 614.15B, +30,4% YoY
• ▍Operating income +69,7% YoY
• ▍Net income +195,7% YoY
• ▍Free cash flow +293,9% YoY
• ▍Net margin 4.4%

Revenue KRW 450.15B, +35,9% YoY; Operating income +137,4% YoY.

• ▍Revenue KRW 450.15B, +35,9% YoY
• ▍Operating income +137,4% YoY
• ▍Net income +256,6% YoY
• ▍Free cash flow +525,0% YoY
• ▍Net margin 6.1%

Revenue KRW 522.82B, +20,5% YoY; Operating income +55,1% YoY.

• ▍Revenue KRW 522.82B, +20,5% YoY
• ▍Operating income +55,1% YoY
• ▍Net income +57,7% YoY
• ▍Free cash flow +270,3% YoY
• ▍Net margin 5.0%

Revenue KRW 457.43B; Operating income KRW 34.04B.

• ▍Revenue KRW 457.43B
• ▍Operating income KRW 34.04B
• ▍Net margin 5.0%

Revenue KRW 470.84B; Operating income KRW 22.28B.

• ▍Revenue KRW 470.84B
• ▍Operating income KRW 22.28B
• ▍Net margin 2.0%

Revenue KRW 331.37B; Operating income KRW 14.95B.

• ▍Revenue KRW 331.37B
• ▍Operating income KRW 14.95B
• ▍Net margin 2.3%

Revenue KRW 433.76B; Operating income KRW 24.25B.

• ▍Revenue KRW 433.76B
• ▍Operating income KRW 24.25B
• ▍Net margin 3.8%

Revenue KRW 2.04T, +29,6% YoY; Operating income +81,8% YoY.

• ▍Revenue KRW 2.04T, +29,6% YoY
• ▍Operating income +81,8% YoY
• ▍Net income +124,9% YoY
• ▍Free cash flow +869,0% YoY
• ▍Net margin 5.1%

Revenue KRW 1.58T, +26,5% YoY; Operating income +42,0% YoY.

• ▍Revenue KRW 1.58T, +26,5% YoY
• ▍Operating income +42,0% YoY
• ▍Net income +33,7% YoY
• ▍Free cash flow −153,7% YoY
• ▍Net margin 2.9%

Revenue KRW 1.25T, +7,0% YoY; Operating income +79,9% YoY.

• ▍Revenue KRW 1.25T, +7,0% YoY
• ▍Operating income +79,9% YoY
• ▍Net income +42,6% YoY
• ▍Free cash flow +68,8% YoY
• ▍Net margin 2.8%

Revenue KRW 1.16T, +24,9% YoY; Operating income +53,0% YoY.

• ▍Revenue KRW 1.16T, +24,9% YoY
• ▍Operating income +53,0% YoY
• ▍Net income +62,1% YoY
• ▍Free cash flow −9,8% YoY
• ▍Net margin 2.1%