LS Eco Energy Ltd

LS Eco Energy Ltd maintains a debt-to-equity ratio of 1.16, indicating a moderate reliance on debt financing. The company's liquidity position is characterized as medium, with a current ratio of 1.27, suggesting it can cover short-term obligations but with limited buffer. Despite a negative operating cash flow of -18,027.28 million KRW, the firm generates free cash flow of 14,263.46 million KRW, which supports operational flexibility.

Profitability metrics show a return on equity (ROE) of 7.32% and a return on assets (ROA) of 2.54%. These figures are below the industry median for ROE and ROA, indicating that LS Eco Energy is underperforming its peers in terms of capital efficiency and asset utilization. The company's operating margin of 6.33% (calculated from operating income of 14,729.81 million KRW on revenue of 232,581.53 million KRW) is also below the industry median, suggesting cost management or pricing pressures.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification in the latest financial report. This lack of diversification increases exposure to regional economic fluctuations and regulatory changes. No material revenue is attributed to international markets, which limits the firm's ability to hedge against domestic economic risks.

Looking ahead, the company is projected to grow revenue by 12.5% in the current fiscal year and 8.2% in the next fiscal year. These growth rates are in line with the industry median, but the firm's capital expenditure of -886.18 million KRW suggests a conservative approach to reinvestment. The risk assessment indicates a low probability of dilution, with no near-term pressure from share issuance or convertible debt. However, the negative net cash position after subtracting total debt raises concerns about liquidity risk.

Recent filings and transcripts show no material changes in the company's strategic direction or operational performance. Analysts have assigned a mean recommendation of 1.86, with a median price target of 65,000 KRW and a mean price target of 68,333 KRW. The consensus suggests a positive outlook, but the absence of "hold" or "sell" ratings indicates a relatively narrow range of expectations.

Analysts project 44.5% upside to a mean price target of 68,333 KRW, reflecting strong buy consensus.

Operating income is forecast to grow 42.9% year-over-year to 63.97 billion KRW in fiscal 2026.

Free cash flow is expected to surge 36.8% to 44.99 billion KRW, indicating robust liquidity generation.

Operating margin of 6.33% outperforms the 5.25% cohort median, demonstrating superior profitability efficiency.

The company faces high credit risk, signaling potential difficulties in meeting debt obligations or servicing liabilities.

Debt-to-equity ratio of 1.16 places the firm in the bottom quartile, indicating excessive leverage relative to peers.

Cash conversion metric of -1.53 ranks in the bottom quartile, suggesting poor efficiency in generating cash from operations.

Medium liquidity risk flags potential challenges in meeting short-term financial obligations without significant asset liquidation.

Revenue KRW 285.48B, +25,0% YoY; Operating income +31,1% YoY.

• ▍Revenue KRW 285.48B, +25,0% YoY
• ▍Operating income +31,1% YoY
• ▍Net income +10,9% YoY
• ▍Free cash flow +5,8% YoY
• ▍Net margin 4.4%

Revenue KRW 248.70B, +6,7% YoY; Operating income +31,9% YoY.

• ▍Revenue KRW 248.70B, +6,7% YoY
• ▍Operating income +31,9% YoY
• ▍Net income +4,8% YoY
• ▍Free cash flow +9,6% YoY
• ▍Net margin 2.0%

Revenue KRW 232.78B, +4,2% YoY; Operating income +17,7% YoY.

• ▍Revenue KRW 232.78B, +4,2% YoY
• ▍Operating income +17,7% YoY
• ▍Net income +33,0% YoY
• ▍Free cash flow +23,0% YoY
• ▍Net margin 4.2%

Revenue KRW 250.24B, +7,6% YoY; Operating income +60,2% YoY.

• ▍Revenue KRW 250.24B, +7,6% YoY
• ▍Operating income +60,2% YoY
• ▍Net income +35,1% YoY
• ▍Free cash flow +36,0% YoY
• ▍Net margin 6.4%

Revenue KRW 228.34B; Operating income KRW 15.34B.

• ▍Revenue KRW 228.34B
• ▍Operating income KRW 15.34B
• ▍Net margin 4.9%

Revenue KRW 233.11B; Operating income KRW 7.79B.

• ▍Revenue KRW 233.11B
• ▍Operating income KRW 7.79B
• ▍Net margin 2.1%

Revenue KRW 223.39B; Operating income KRW 12.55B.

• ▍Revenue KRW 223.39B
• ▍Operating income KRW 12.55B
• ▍Net margin 3.3%

Revenue KRW 232.58B; Operating income KRW 14.73B.

• ▍Revenue KRW 232.58B
• ▍Operating income KRW 14.73B
• ▍Net margin 5.1%

Revenue KRW 960.06B, +10,5% YoY; Operating income +42,9% YoY.

• ▍Revenue KRW 960.06B, +10,5% YoY
• ▍Operating income +42,9% YoY
• ▍Net income +34,7% YoY
• ▍Free cash flow +36,8% YoY
• ▍Net margin 4.4%

Revenue KRW 868.97B, +18,9% YoY; Operating income +66,9% YoY.

• ▍Revenue KRW 868.97B, +18,9% YoY
• ▍Operating income +66,9% YoY
• ▍Net income +656,4% YoY
• ▍Free cash flow +36 308,8% YoY
• ▍Net margin 3.6%

Revenue KRW 731.07B, −10,7% YoY; Operating income +139,2% YoY.

• ▍Revenue KRW 731.07B, −10,7% YoY
• ▍Operating income +139,2% YoY
• ▍Net income +315,5% YoY
• ▍Free cash flow +100,5% YoY
• ▍Net margin 0.6%

Revenue KRW 818.49B, +9,0% YoY; Operating income −60,2% YoY.

• ▍Revenue KRW 818.49B, +9,0% YoY
• ▍Operating income −60,2% YoY
• ▍Net income −113,0% YoY
• ▍Free cash flow −228,7% YoY
• ▍Net margin -0.2%