Korean Air Lines Co Ltd

Korean Air Lines maintains a capital structure characterized by high leverage and constrained liquidity. The company reports total assets of 50.4 trillion KRW against total liabilities of 39.5 trillion KRW, resulting in a debt-to-equity ratio of 2.05. Long-term debt stands at 22.5 trillion KRW, significantly exceeding cash and equivalents of 1.9 trillion KRW, which creates a negative net cash position. The current ratio is 0.64, indicating that current liabilities exceed current assets, a typical structural feature for airlines but one that necessitates careful cash flow management. Operating cash flow is robust at 4.1 trillion KRW, yet free cash flow is negative at -1.1 trillion KRW due to substantial capital expenditures of 4.3 trillion KRW, reflecting ongoing fleet investment or maintenance cycles.

Profitability metrics indicate modest returns on capital. The company generated net income of 780 billion KRW on revenue of 25.2 trillion KRW, yielding a net margin of approximately 3.1%. Return on equity is 5.63%, and return on assets is 1.22%, suggesting efficient but not exceptional capital utilization relative to the asset-heavy nature of the industry. The price-to-earnings ratio is 15.97, while the price-to-book ratio is 0.9, implying the market values the company slightly below its book value. The EV/EBITDA multiple is 25.61, which is elevated, potentially reflecting high leverage or transitional earnings power.

Segment and geographic data are not explicitly detailed in the provided financial snapshot, but the classification as a Passenger Airline implies revenue concentration in air transport services. The company’s activity is unclassified in terms of specific sub-segments, limiting granular analysis of revenue mix.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current financial snapshot provides a single-period view, preventing year-over-year or quarter-over-quarter trend analysis. However, the substantial capital expenditure of 4.3 trillion KRW suggests active investment in capacity or efficiency, which may support future revenue growth.

Risk assessment highlights medium liquidity risk and low dilution risk. The key flag notes that net cash is negative after subtracting total debt, reinforcing the leverage concerns. The current ratio of 0.64 further underscores liquidity constraints, requiring reliance on operating cash flow to meet short-term obligations. Dilution risk is low, with basic and diluted shares outstanding identical at 368.2 million, indicating no significant convertible securities or options impacting share count.

Recent events include analyst estimates suggesting a positive outlook. The mean price target is 34,090.91 KRW, with a median of 34,000.00 KRW, implying upside from the current market price of 26,750.00 KRW. The mean recommendation is 1.62, with 7 strong buys and 8 buys, indicating strong analyst confidence in the company’s near-term prospects.

Revenue surged 41.2% year-over-year to KRW 25.2 trillion, demonstrating strong top-line growth momentum.

Analysts project 17.6% upside to a mean price target of KRW 31,400, signaling positive market sentiment.

Cash conversion of 6.61 ranks best-in-class, significantly outperforming the cohort median of 1.21.

Revenue CAGR of 29.3% over four years indicates robust long-term expansion capabilities for the airline.

Net income CAGR of 7.8% over four years suggests underlying profitability growth despite recent volatility.

Net income dropped 40.8% year-over-year to KRW 780 billion, reflecting significant earnings compression.

Debt-to-equity ratio of 2.05 sits in the bottom quartile, highlighting excessive leverage compared to peers.

Revenue KRW 6.66T, +2,6% YoY; Operating income −22,3% YoY.

• ▍Revenue KRW 6.66T, +2,6% YoY
• ▍Operating income −22,3% YoY
• ▍Net income −57,2% YoY
• ▍Free cash flow −117,2% YoY
• ▍Net margin 1.8%

Revenue KRW 6.50T, +44,3% YoY; Operating income −66,6% YoY.

• ▍Revenue KRW 6.50T, +44,3% YoY
• ▍Operating income −66,6% YoY
• ▍Net income −56,5% YoY
• ▍Free cash flow −77,5% YoY
• ▍Net margin 2.0%

Revenue KRW 6.03T, +28,9% YoY; Operating income −76,3% YoY.

• ▍Revenue KRW 6.03T, +28,9% YoY
• ▍Operating income −76,3% YoY
• ▍Net income −140,8% YoY
• ▍Free cash flow −539,2% YoY
• ▍Net margin -2.0%

Revenue KRW 6.21T, +41,1% YoY; Operating income −18,7% YoY.

• ▍Revenue KRW 6.21T, +41,1% YoY
• ▍Operating income −18,7% YoY
• ▍Net income +37,6% YoY
• ▍Free cash flow +122,5% YoY
• ▍Net margin 7.8%

Revenue KRW 6.49T; Operating income KRW 665.68B.

• ▍Revenue KRW 6.49T
• ▍Operating income KRW 665.68B
• ▍Net margin 4.4%

Revenue KRW 4.50T; Operating income KRW 464.08B.

• ▍Revenue KRW 4.50T
• ▍Operating income KRW 464.08B
• ▍Net margin 6.6%

Revenue KRW 4.68T; Operating income KRW 665.66B.

• ▍Revenue KRW 4.68T
• ▍Operating income KRW 665.66B
• ▍Net margin 6.2%

Revenue KRW 4.40T; Operating income KRW 442.93B.

• ▍Revenue KRW 4.40T
• ▍Operating income KRW 442.93B
• ▍Net margin 8.0%

Revenue KRW 25.23T, +41,2% YoY; Operating income −47,7% YoY.

• ▍Revenue KRW 25.23T, +41,2% YoY
• ▍Operating income −47,7% YoY
• ▍Net income −40,8% YoY
• ▍Free cash flow −8 109,2% YoY
• ▍Net margin 3.1%

Revenue KRW 17.87T, +10,9% YoY; Operating income +18,6% YoY.

• ▍Revenue KRW 17.87T, +10,9% YoY
• ▍Operating income +18,6% YoY
• ▍Net income +24,1% YoY
• ▍Free cash flow −102,1% YoY
• ▍Net margin 7.4%

Revenue KRW 16.11T, +14,3% YoY; Operating income −37,4% YoY.

• ▍Revenue KRW 16.11T, +14,3% YoY
• ▍Operating income −37,4% YoY
• ▍Net income −38,6% YoY
• ▍Free cash flow −75,2% YoY
• ▍Net margin 6.6%

Revenue KRW 14.10T, +56,3% YoY; Operating income +148,8% YoY.

• ▍Revenue KRW 14.10T, +56,3% YoY
• ▍Operating income +148,8% YoY
• ▍Net income +199,2% YoY
• ▍Free cash flow +37,0% YoY
• ▍Net margin 12.3%