Automobile & PCB Inc

Automobile & PCB Inc exhibits a challenging capital structure, with a debt-to-equity ratio of 1.33, indicating a relatively high reliance on debt financing. The company's liquidity position is also under pressure, as evidenced by a current ratio of 0.68, which is below 1 and suggests that the company may struggle to meet its short-term obligations with its current assets. Additionally, the company reported negative operating and free cash flows, with operating cash flow at -3,744,054,220 KRW and free cash flow at -2,188,966,660 KRW, further highlighting its liquidity constraints.

Profitability metrics are also concerning, with a return on equity (ROE) of -9.8% and a return on assets (ROA) of -3.02%, both of which are significantly below the industry median for semiconductor firms. These negative returns indicate that the company is not generating sufficient returns to cover its cost of capital, which is a red flag for investors. The company's operating income was -1,350,682,350 KRW, and its net income was -2,876,798,490 KRW, reflecting a substantial decline in profitability.

The company's revenue is primarily concentrated in the automotive and electronics sectors, with a significant portion of its business tied to the production of printed circuit boards. However, the input data does not provide a detailed breakdown of revenue by geographic region or specific product segments, making it difficult to assess the extent of geographic or product diversification. The lack of segment-specific data limits the ability to evaluate the company's exposure to regional economic fluctuations or shifts in demand for specific products.

Looking ahead, the company's growth trajectory appears uncertain. The input data does not provide forward-looking revenue guidance or outlook for the next fiscal year, but the recent financial performance suggests a challenging environment. The company's capital expenditure was -32,575,800 KRW, indicating a reduction in investment in new projects or capacity expansion. This could be a strategic move to conserve cash in the face of declining profitability, but it may also signal a lack of confidence in future growth opportunities.

Risk factors for the company include its high debt load and negative cash flows, which increase the likelihood of liquidity stress. The risk assessment indicates a medium level of liquidity risk and a low level of dilution risk, but the key flag of negative net cash after subtracting total debt is a significant concern. The company's ability to service its debt and maintain operations will depend on its ability to improve cash flow generation or secure additional financing.

Recent events, such as the latest financial filings and analyst estimates, indicate that the company is underperforming relative to expectations. The last actual EPS was -402.04 KRW, and the last actual revenue was 191,312,500,000 KRW, both of which are below the industry median for semiconductor firms. These results suggest that the company is facing headwinds in its core markets and may need to take corrective actions to stabilize its financial position.

Revenue grew at a 15.8% CAGR over three years, indicating historical top-line expansion potential despite recent volatility.

Cash conversion ratio of 1.3 exceeds the semiconductor cohort median of 0.91, suggesting relatively efficient cash generation.

Capex to revenue ratio of -0.0011 is above the 75th percentile, implying lower capital intensity than most peers.

The company carries a high credit risk flag, signaling significant concerns regarding its ability to meet financial obligations.

Debt-to-equity ratio of 1.33 is significantly higher than the cohort median of 0.24, reflecting excessive leverage.

Revenue KRW 117.49B; Operating income -KRW 11.48B.

• ▍Revenue KRW 117.49B
• ▍Operating income -KRW 11.48B
• ▍Net margin -12.0%

Revenue KRW 140.91B, +31,1% YoY; Operating income +85,2% YoY.

• ▍Revenue KRW 140.91B, +31,1% YoY
• ▍Operating income +85,2% YoY
• ▍Net income +67,5% YoY
• ▍Free cash flow +76,0% YoY
• ▍Net margin -7.0%

Revenue KRW 69.29B; Operating income -KRW 11.97B.

• ▍Revenue KRW 69.29B
• ▍Operating income -KRW 11.97B
• ▍Net margin -17.2%