STI Co Ltd

The company maintains a strong liquidity position with KRW 11.69 trillion in cash and equivalents, supporting a current ratio of 2.78. Despite this, the firm reported negative operating cash flow of KRW -22.89 billion and free cash flow of KRW -1.61 billion, indicating operational cash generation challenges. The debt-to-equity ratio of 0.01 reflects minimal leverage, with long-term debt at KRW 1.20 billion against total equity of KRW 238.80 billion.

Profitability metrics show a return on equity of 1.69% and return on assets of 1.28%, both below the industry median for Semiconductor Equipment & Testing. Gross profit of KRW 10.75 billion and operating income of KRW 1.99 billion suggest margin compression, with net income of KRW 4.05 billion representing 6.19% of revenue. These returns lag behind the industry's preferred metrics of ROIC and EBITDA margins, which are typically higher for firms in this capital-intensive sector.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification in the latest financials. This lack of segment or geographic diversification increases exposure to sector-specific demand fluctuations and regional economic risks.

Outlook data indicates a projected revenue decline in the current fiscal year, with no recovery expected in the next fiscal year. The price-to-earnings ratio of 125.79 and price-to-book of 2.13 suggest the market is pricing in long-term growth expectations despite current operational cash flow challenges.

Risk assessment shows low liquidity and dilution risk, with no immediate filing-based flags detected. The firm has not issued additional shares recently, and the dilution potential remains low given the alignment of basic and diluted shares outstanding. However, the negative free cash flow and operating cash flow could pressure liquidity if capital expenditures remain high.

Recent filings and transcripts do not show material events affecting the company's operations or strategy. Analysts have assigned a mean price target of KRW 49,000, with a median and high target also at KRW 49,000, suggesting a consensus view of moderate upside potential.

Analysts project 51.7% upside to KRW 49,000, rating the stock a strong buy based on current market price.

The company maintains a negligible debt-to-equity ratio of 0.01, significantly above the 75th percentile of its semiconductor cohort.

Long-term debt decreased substantially from KRW 36.2 billion in 2022 to KRW 2.2 billion in 2026, strengthening the balance sheet.

Revenue demonstrated resilience with a 4-year CAGR of 0.7%, maintaining stability despite recent annual fluctuations.

The company faces low dilution, liquidity, and credit risks, indicating a stable operational and financial risk profile.

Return on equity of 1.69% is well below the cohort median of 3.99%, indicating inefficient capital utilization.

Free cash flow declined 28.1% year-over-year to KRW 7.5 billion, reducing financial flexibility and shareholder return potential.

Cash conversion metrics place the company in the bottom quartile of its peer group, highlighting operational inefficiencies.

Revenue KRW 86.53B, −34,3% YoY; Operating income −62,6% YoY.

• ▍Revenue KRW 86.53B, −34,3% YoY
• ▍Operating income −62,6% YoY
• ▍Net income −57,1% YoY
• ▍Free cash flow −62,5% YoY
• ▍Net margin 8.6%

Revenue KRW 70.26B, +14,1% YoY; Operating income −5,6% YoY.

• ▍Revenue KRW 70.26B, +14,1% YoY
• ▍Operating income −5,6% YoY
• ▍Net income +145,9% YoY
• ▍Free cash flow +200,9% YoY
• ▍Net margin 3.6%

Revenue KRW 87.19B, +15,8% YoY; Operating income +17,5% YoY.

• ▍Revenue KRW 87.19B, +15,8% YoY
• ▍Operating income +17,5% YoY
• ▍Net income −48,3% YoY
• ▍Free cash flow +251,9% YoY
• ▍Net margin 2.8%

Revenue KRW 84.07B, +28,4% YoY; Operating income +163,9% YoY.

• ▍Revenue KRW 84.07B, +28,4% YoY
• ▍Operating income +163,9% YoY
• ▍Net income −25,1% YoY
• ▍Free cash flow +6,6% YoY
• ▍Net margin 3.6%

Revenue KRW 131.68B; Operating income KRW 18.21B.

• ▍Revenue KRW 131.68B
• ▍Operating income KRW 18.21B
• ▍Net margin 13.1%

Revenue KRW 61.57B; Operating income KRW 2.37B.

• ▍Revenue KRW 61.57B
• ▍Operating income KRW 2.37B
• ▍Net margin 1.7%

Revenue KRW 75.27B; Operating income KRW 4.58B.

• ▍Revenue KRW 75.27B
• ▍Operating income KRW 4.58B
• ▍Net margin 6.3%

Revenue KRW 65.50B; Operating income KRW 1.99B.

• ▍Revenue KRW 65.50B
• ▍Operating income KRW 1.99B
• ▍Net margin 6.2%

Revenue KRW 328.06B, −1,8% YoY; Operating income −27,5% YoY.

• ▍Revenue KRW 328.06B, −1,8% YoY
• ▍Operating income −27,5% YoY
• ▍Net income −43,2% YoY
• ▍Free cash flow −28,1% YoY
• ▍Net margin 4.7%

Revenue KRW 334.02B, +4,6% YoY; Operating income +13,4% YoY.

• ▍Revenue KRW 334.02B, +4,6% YoY
• ▍Operating income +13,4% YoY
• ▍Net income +12,7% YoY
• ▍Free cash flow −51,7% YoY
• ▍Net margin 8.1%

Revenue KRW 319.46B, −24,4% YoY; Operating income −31,1% YoY.

• ▍Revenue KRW 319.46B, −24,4% YoY
• ▍Operating income −31,1% YoY
• ▍Net income −19,3% YoY
• ▍Free cash flow −28,4% YoY
• ▍Net margin 7.5%

Revenue KRW 422.42B, +32,2% YoY; Operating income +36,0% YoY.

• ▍Revenue KRW 422.42B, +32,2% YoY
• ▍Operating income +36,0% YoY
• ▍Net income +28,6% YoY
• ▍Free cash flow +22,1% YoY
• ▍Net margin 7.1%