CS Bearing Co Ltd

The company's capital structure is characterized by a debt-to-equity ratio of 0.53, indicating a moderate reliance on debt financing. However, its liquidity position is under pressure, as evidenced by a negative net cash position after subtracting total debt. The company's cash and equivalents amount to 23,254,161,530 KRW, but this is insufficient to cover its long-term debt of 45,109,466,750 KRW. The liquidity risk is further compounded by a negative operating cash flow of -4,872,326,600 KRW and a free cash flow of -2,200,635,300 KRW, both of which suggest a lack of internal cash generation to service obligations.

Profitability metrics are deeply negative, with a return on equity (ROE) of -2.65% and a return on assets (ROA) of -1.54%. These figures indicate that the company is not only failing to generate returns for shareholders but is also underperforming in utilizing its asset base effectively. The operating income of -2,112,025,970 KRW and a net loss of -2,247,337,990 KRW further underscore the company's financial distress.

The company's revenue concentration is not explicitly detailed in the available data, but the absence of segment or geographic breakdowns suggests a lack of diversification in its revenue streams. This could pose a risk if demand for its products is regionally or sectorally concentrated.

The company's growth trajectory is currently negative, with a net loss and declining cash flows. While the industry_config for Industrial Machinery & Equipment typically emphasizes metrics like EBITDA margins and revenue growth, CS Bearing Co Ltd is performing below the median in these areas. The outlook for the current fiscal year is not explicitly provided, but the negative operating and free cash flows suggest a challenging environment.

Risk factors include a medium liquidity risk and a low dilution risk. The company's negative net cash position and reliance on external financing increase its vulnerability to market volatility. The dilution risk is low, but the company's financial position may necessitate future equity issuance to fund operations or reduce debt, which could dilute existing shareholders.

Recent events, such as the company's financial performance and analyst estimates, indicate a cautious outlook. Analysts have assigned a mean price target of 9,800 KRW, which is significantly higher than the current market price of 5,830 KRW, suggesting potential for recovery. However, the absence of strong-buy recommendations and the presence of only two buy ratings indicate a lack of strong investor confidence.

Analysts project 120.5% upside to a mean price target of 9,800 KRW, significantly above the current market price of 4,445 KRW.

Cash conversion ratio of 2.17 places the company in the top quartile, outperforming the cohort median of 0.95.

Projected fiscal 2026 revenue of 126.1 billion KRW represents a substantial increase from the 76.6 billion KRW recorded in fiscal 2024.

Long-term debt is projected to decrease to 18.5 billion KRW in fiscal 2025, down from 62.8 billion KRW in fiscal 2022.

The company is expected to generate positive free cash flow of 7.6 billion KRW in fiscal 2026, reversing previous negative trends.

The company faces high credit risk, signaling significant potential for financial distress or default according to risk flag assessments.

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

Revenue KRW 33.66B, −7,8% YoY; Operating income +115,2% YoY.

• ▍Revenue KRW 33.66B, −7,8% YoY
• ▍Operating income +115,2% YoY
• ▍Net income +996,6% YoY
• ▍Free cash flow +29,4% YoY
• ▍Net margin 12.3%

Revenue KRW 32.16B, +12,7% YoY; Operating income +89,0% YoY.

• ▍Revenue KRW 32.16B, +12,7% YoY
• ▍Operating income +89,0% YoY
• ▍Net income +222,4% YoY
• ▍Free cash flow +177,8% YoY
• ▍Net margin 13.6%

Revenue KRW 31.98B, +29,2% YoY; Operating income +126,3% YoY.

• ▍Revenue KRW 31.98B, +29,2% YoY
• ▍Operating income +126,3% YoY
• ▍Net income −43,4% YoY
• ▍Free cash flow −33,1% YoY
• ▍Net margin 5.3%

Revenue KRW 28.35B, +81,2% YoY; Operating income +158,6% YoY.

• ▍Revenue KRW 28.35B, +81,2% YoY
• ▍Operating income +158,6% YoY
• ▍Net income +145,2% YoY
• ▍Free cash flow +167,6% YoY
• ▍Net margin 3.6%

Revenue KRW 36.49B; Operating income KRW 1.73B.

• ▍Revenue KRW 36.49B
• ▍Operating income KRW 1.73B
• ▍Net margin 1.0%

Revenue KRW 28.53B; Operating income KRW 1.77B.

• ▍Revenue KRW 28.53B
• ▍Operating income KRW 1.77B
• ▍Net margin 4.8%

Revenue KRW 24.75B; Operating income KRW 1.22B.

• ▍Revenue KRW 24.75B
• ▍Operating income KRW 1.22B
• ▍Net margin 12.2%

Revenue KRW 15.64B; Operating income -KRW 2.11B.

• ▍Revenue KRW 15.64B
• ▍Operating income -KRW 2.11B
• ▍Net margin -14.4%

Revenue KRW 126.15B, +19,7% YoY; Operating income +323,6% YoY.

• ▍Revenue KRW 126.15B, +19,7% YoY
• ▍Operating income +323,6% YoY
• ▍Net income +347,9% YoY
• ▍Free cash flow +360,5% YoY
• ▍Net margin 8.9%

Revenue KRW 105.41B, +37,6% YoY; Operating income +1 727,0% YoY.

• ▍Revenue KRW 105.41B, +37,6% YoY
• ▍Operating income +1 727,0% YoY
• ▍Net income +255,8% YoY
• ▍Free cash flow +366,2% YoY
• ▍Net margin 2.4%

Revenue KRW 76.61B, +56,3% YoY; Operating income +100,9% YoY.

• ▍Revenue KRW 76.61B, +56,3% YoY
• ▍Operating income +100,9% YoY
• ▍Net income +90,7% YoY
• ▍Free cash flow +101,5% YoY
• ▍Net margin -2.1%

Revenue KRW 95.56B; Operating income KRW 499.1M.

• ▍Revenue KRW 95.56B
• ▍Operating income KRW 499.1M
• ▍Net margin -1.2%