EcoPro BM Co Ltd

EcoPro BM's capital structure is characterized by a high debt-to-equity ratio of 1.45, indicating a significant reliance on debt financing. The company's liquidity position is assessed as medium, with a current ratio of 0.92, suggesting limited short-term liquidity to cover immediate liabilities. Despite holding KRW 412.04 billion in cash and equivalents, the company's free cash flow is negative at KRW -284.31 billion, reflecting substantial capital expenditures of KRW -649.58 billion.

Profitability metrics show a challenging performance, with a return on equity of -0.27% and a return on assets of -0.09%, both significantly below the industry median for electrical components and equipment. The company reported a net loss of KRW -3.81 billion, despite generating KRW 40.18 billion in gross profit, indicating high operating costs or one-time charges.

Geographically, EcoPro BM's revenue is concentrated in a few key markets, with no detailed breakdown provided in the available data. However, the company's exposure to the electric vehicle and energy storage sectors suggests a high dependency on global demand for lithium-ion battery materials. This concentration could pose risks in the event of market volatility or regulatory changes in these sectors.

The company's growth trajectory appears mixed. While revenue reached KRW 809.52 billion, the net loss and negative free cash flow suggest operational inefficiencies or strategic investments that have yet to yield returns. Analysts have provided a range of price targets, from KRW 76,000 to KRW 300,000, with a mean of KRW 177,847.83 and a median of KRW 154,000, indicating a generally cautious outlook.

Risk factors include a high debt load and negative net cash position, which could limit the company's flexibility in responding to market changes or funding new projects. The risk of dilution is assessed as low, but the company's capital structure and liquidity position suggest potential for future equity issuance to manage debt or fund operations.

Recent events include the publication of the latest financial data, which highlights the company's financial challenges and the mixed analyst sentiment. No recent filings or transcripts were provided in the available data, so the narrative is based on the most recent financial snapshot.

Operating income surged 520.1% year-over-year to 143.3 billion KRW, signaling a strong operational turnaround in FY2026.

Net income improved by 140.8% to 39.4 billion KRW, marking a return to profitability after recent losses.

Free cash flow improved by 67.5% year-over-year, reducing the cash burn rate significantly compared to the prior fiscal year.

Revenue maintained a 14.3% four-year CAGR, demonstrating long-term top-line growth momentum despite recent quarterly volatility.

Dilution risk is assessed as low, providing some stability for existing shareholders amidst financial restructuring efforts.

Long-term debt ballooned to 2.45 trillion KRW, creating a debt-to-equity ratio of 1.45 that far exceeds the cohort median.

The company faces high credit risk, reflecting severe concerns regarding its ability to service its massive debt obligations.

Net margin of -0.47% places the company in the bottom quartile of its electrical components peer group.

Revenue KRW 605.36B, −3,9% YoY; Operating income +822,6% YoY.

• ▍Revenue KRW 605.36B, −3,9% YoY
• ▍Operating income +822,6% YoY
• ▍Net income +128,0% YoY
• ▍Free cash flow +48,8% YoY
• ▍Net margin 0.6%

Revenue KRW 497.01B, +6,9% YoY; Operating income +1 302,6% YoY.

• ▍Revenue KRW 497.01B, +6,9% YoY
• ▍Operating income +1 302,6% YoY
• ▍Net income +209,1% YoY
• ▍Free cash flow +35,9% YoY
• ▍Net margin 3.8%

Revenue KRW 625.06B, +19,8% YoY; Operating income +222,4% YoY.

• ▍Revenue KRW 625.06B, +19,8% YoY
• ▍Operating income +222,4% YoY
• ▍Net income +139,8% YoY
• ▍Free cash flow +95,6% YoY
• ▍Net margin 3.7%

Revenue KRW 779.72B, −3,7% YoY; Operating income +1 159,1% YoY.

• ▍Revenue KRW 779.72B, −3,7% YoY
• ▍Operating income +1 159,1% YoY
• ▍Net income +400,5% YoY
• ▍Free cash flow +112,6% YoY
• ▍Net margin 1.5%

Revenue KRW 629.79B; Operating income KRW 2.27B.

• ▍Revenue KRW 629.79B
• ▍Operating income KRW 2.27B
• ▍Net margin -2.2%

Revenue KRW 464.93B; Operating income -KRW 3.46B.

• ▍Revenue KRW 464.93B
• ▍Operating income -KRW 3.46B
• ▍Net margin -3.7%

Revenue KRW 521.94B; Operating income -KRW 41.23B.

• ▍Revenue KRW 521.94B
• ▍Operating income -KRW 41.23B
• ▍Net margin -11.0%

Revenue KRW 809.52B; Operating income KRW 3.89B.

• ▍Revenue KRW 809.52B
• ▍Operating income KRW 3.89B
• ▍Net margin -0.5%

Revenue KRW 2.53T, −8,5% YoY; Operating income +520,1% YoY.

• ▍Revenue KRW 2.53T, −8,5% YoY
• ▍Operating income +520,1% YoY
• ▍Net income +140,8% YoY
• ▍Free cash flow +67,5% YoY
• ▍Net margin 1.6%

Revenue KRW 2.77T, −59,9% YoY; Operating income −123,7% YoY.

• ▍Revenue KRW 2.77T, −59,9% YoY
• ▍Operating income −123,7% YoY
• ▍Net income −1 004,9% YoY
• ▍Free cash flow −49,0% YoY
• ▍Net margin -3.5%

Revenue KRW 6.90T, +28,8% YoY; Operating income −60,6% YoY.

• ▍Revenue KRW 6.90T, +28,8% YoY
• ▍Operating income −60,6% YoY
• ▍Net income −103,8% YoY
• ▍Free cash flow −370,0% YoY
• ▍Net margin -0.1%

Revenue KRW 5.36T, +260,6% YoY; Operating income +218,4% YoY.

• ▍Revenue KRW 5.36T, +260,6% YoY
• ▍Operating income +218,4% YoY
• ▍Net income +130,4% YoY
• ▍Free cash flow −33,3% YoY
• ▍Net margin 4.3%