KNJ Co Ltd

KNJ Co Ltd maintains a debt-to-equity ratio of 0.66 and a current ratio of 1.52, indicating moderate leverage and adequate short-term liquidity. However, the company reported negative net cash after subtracting total debt, signaling potential liquidity constraints. The price-to-book ratio of 3.24 and price-to-tangible-book ratio of 3.24 suggest the market values the company at a premium to its book value.

The company's return on equity of 8.64% and return on assets of 4.83% fall below the industry's median ROIC of 12.1% and median ROA of 6.4%, indicating underperformance in capital efficiency and asset utilization. Gross margin of 39.2% (8.57T / 21.86T) is in line with the industry median of 38.5%, but operating margin of 25.8% (5.64T / 21.86T) lags behind the median of 28.3%.

KNJ Co Ltd's revenue is concentrated in a single business segment, with no disclosed geographic diversification in the latest financials. This lack of segment and geographic diversification increases exposure to sector-specific and regional risks.

The company's revenue growth outlook for FY2024 is 12.3% year-over-year, driven by increased demand for semiconductor testing equipment in the AI and automotive sectors. However, capital expenditures of -17.35T KRW indicate significant reinvestment in production capacity, which may pressure near-term free cash flow.

Risk assessment identifies liquidity as a medium concern due to negative net cash and a debt load of 57.15T KRW, or 66% of total equity. Dilution risk is assessed as low, with no recent share issuance and diluted shares outstanding equal to basic shares. The valuation has been adjusted for currency conversion and calendar alignment, with no material non-GAAP adjustments applied.

Recent 10-K filings disclose ongoing litigation with a major supplier and a 2026-04 regulatory review of semiconductor equipment safety standards in South Korea. No material earnings call transcripts were available in the latest reporting period.

Cash conversion ratio of 1.58 surpasses the cohort median of 0.96, highlighting robust cash generation capabilities.

Dilution risk is assessed as low, providing stability for existing shareholders against equity erosion.

Credit risk is flagged as high, signaling potential difficulties in meeting debt obligations or servicing liabilities.

Debt-to-equity ratio of 0.66 places the company in the bottom quartile of its peer cohort, indicating excessive leverage.

Liquidity risk is rated as medium, suggesting potential challenges in meeting short-term financial obligations.

Revenue KRW 23.35B; Operating income KRW 5.88B.

• ▍Revenue KRW 23.35B
• ▍Operating income KRW 5.88B
• ▍Net margin 42.6%

Revenue KRW 21.86B; Operating income KRW 5.64B.

• ▍Revenue KRW 21.86B
• ▍Operating income KRW 5.64B
• ▍Net margin 34.2%

Revenue KRW 84.44B, +35,7% YoY; Operating income +89,9% YoY.

• ▍Revenue KRW 84.44B, +35,7% YoY
• ▍Operating income +89,9% YoY
• ▍Net income +186,8% YoY
• ▍Free cash flow +20,6% YoY
• ▍Net margin 30.3%

Revenue KRW 62.22B, +31,4% YoY; Operating income +35,5% YoY.

• ▍Revenue KRW 62.22B, +31,4% YoY
• ▍Operating income +35,5% YoY
• ▍Net income −17,2% YoY
• ▍Free cash flow +1,8% YoY
• ▍Net margin 14.3%

Revenue KRW 47.36B, −24,0% YoY; Operating income −21,1% YoY.

• ▍Revenue KRW 47.36B, −24,0% YoY
• ▍Operating income −21,1% YoY
• ▍Net income +8,1% YoY
• ▍Free cash flow +102,0% YoY
• ▍Net margin 22.7%

Revenue KRW 62.31B, +34,0% YoY; Operating income +202,5% YoY.

• ▍Revenue KRW 62.31B, +34,0% YoY
• ▍Operating income +202,5% YoY
• ▍Net income +80,2% YoY
• ▍Free cash flow +121,7% YoY
• ▍Net margin 16.0%