GNBS Eco Co Ltd

GNBS Eco Co Ltd maintains a strong liquidity position with a current ratio of 7.4, indicating a robust ability to meet short-term obligations. However, the company reported negative operating cash flow of -3,158,340,110 KRW and free cash flow of -2,119,347,920 KRW, suggesting operational cash generation is currently constrained. The debt-to-equity ratio of 0.1 reflects a conservative capital structure, with long-term debt at 10,643,377,320 KRW compared to total equity of 107,853,567,970 KRW.

Profitability metrics show a return on equity (ROE) of 5.39% and return on assets (ROA) of 4.51%, both below the industry median for Environmental Services & Equipment. The company's gross profit margin is 41.94% (9,229,615,950 KRW / 22,005,366,290 KRW), and operating margin is 24.12% (5,307,604,250 KRW / 22,005,366,290 KRW), which is in line with the sector average.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic fluctuations and regulatory changes. The company's capital expenditures of -9,172,888,470 KRW indicate significant investment in infrastructure or equipment, which may support long-term growth but currently strains cash flow.

Outlook for the current fiscal year shows a projected revenue of 135,600,000,000 KRW, a 57.5% increase from the previous year's 86,130,000,000 KRW. EBIT is expected to rise to 22,800,000,000 KRW, a 100.0% increase from 11,400,000,000 KRW. These projections suggest a strong growth trajectory, though the company must manage its cash flow challenges to sustain this momentum.

The company faces moderate liquidity risk due to negative operating and free cash flows, despite a strong current ratio. The risk assessment indicates a medium liquidity risk and low dilution risk. The negative net cash position after subtracting total debt is a key flag, suggesting potential refinancing needs or operational adjustments. No recent dilutive events were identified, and the company has not issued additional shares in the past year.

Recent filings and transcripts do not indicate any material events that would significantly alter the company's strategic direction or financial outlook. The company remains focused on expanding its environmental services and improving operational efficiency.

Debt-to-equity ratio of 0.1 is well below the 0.43 cohort median, reflecting a conservative capital structure with low leverage risk.

Revenue grew 29.9% year-over-year to 91.9 billion KRW, highlighting strong top-line expansion despite margin pressures.

Cash conversion ratio of -0.54 ranks in the bottom quartile, far worse than the 0.95 cohort median.

Four-year net income CAGR of -19.1% indicates a persistent long-term decline in earnings power.

Revenue KRW 65.59B, +25,9% YoY; Operating income +70,3% YoY.

• ▍Revenue KRW 65.59B, +25,9% YoY
• ▍Operating income +70,3% YoY
• ▍Net income +42,9% YoY
• ▍Free cash flow +31,0% YoY
• ▍Net margin 22.5%