Hunesion Co Ltd

Hunesion Co Ltd exhibits a capital structure with a low debt-to-equity ratio of 0.01, indicating a conservative leverage profile. The company's liquidity position is assessed as medium, with a current ratio of 3.91, suggesting it can cover short-term obligations but with limited excess capacity. The price-to-book ratio of 0.87 and price-to-tangible-book ratio of 0.87 imply that the company's market value is below its book value, potentially signaling undervaluation or financial distress.

Profitability metrics are concerning, with a negative return on equity (ROE) of -4.62% and a negative return on assets (ROA) of -4.00%. These figures fall significantly below the industry's preferred metrics, which typically emphasize positive ROE and ROA as indicators of efficient capital use and asset management. The company's operating income is negative at -KRW 10.83 billion, and net income is also negative at -KRW 18.36 billion, indicating a lack of profitability.

Geographic and segment exposure data is not available in the provided dataset, but the company's revenue concentration is not disclosed. Given the absence of segment-specific data, it is unclear whether the company's financial performance is driven by a few key products or regions. However, the negative operating and net income suggest that the company may be facing challenges in maintaining consistent revenue streams or managing costs effectively.

The company's growth trajectory is uncertain, with no specific numeric deltas provided for the current or next fiscal year. Historical revenue data shows a total of KRW 54.45 billion, but without comparative data from prior periods, it is difficult to assess growth trends. The negative operating cash flow of -KRW 1.73 billion and free cash flow of -KRW 4.18 billion indicate that the company is not generating sufficient cash from operations to fund its activities or investments.

Risk factors include a medium liquidity risk, as the company has negative net cash after subtracting total debt. The dilution risk is assessed as low, with no significant dilution potential identified in the basic shares outstanding. However, the company's negative cash flows and operating losses may necessitate future financing, which could lead to dilution if not managed carefully.

Recent events and filings are not detailed in the provided data, but the company's financial statements indicate ongoing operational challenges. The absence of positive cash flows and the presence of significant operating losses suggest that the company may need to address its financial strategy to improve its long-term viability.

Free cash flow surged 245.5% year-over-year to 6.1 billion KRW, demonstrating significant improvement in cash generation capabilities.

Net income grew 41.9% year-over-year to 5.6 billion KRW, indicating a strong recovery in profitability from prior periods.

Operating income increased 34.0% year-over-year to 4.8 billion KRW, reflecting improved core operational efficiency and margin expansion.

The company maintains a minimal debt-to-equity ratio of 0.01, significantly lower than the software cohort median of 0.05.

Cash conversion ratio stands at 0.94, slightly above the software cohort median of 0.92, suggesting efficient working capital management.

Net margin is -33.7%, placing the company in the bottom quartile compared to the software cohort median of 2.3%.

The company faces high credit risk, which could impair financial stability and increase borrowing costs in the future.

Return on assets is negative at -4.0%, signaling an inability to generate profit from its total asset base effectively.

Revenue KRW 26.54B; Operating income KRW 2.89B.

• ▍Revenue KRW 26.54B
• ▍Operating income KRW 2.89B
• ▍Net margin 56.1%