N Tels Co Ltd

N Tels Co Ltd exhibits a conservative capital structure with a low debt-to-equity ratio of 0.02, indicating minimal reliance on debt financing. The company maintains a strong liquidity position, as evidenced by a current ratio of 10.83, which is well above the industry median. However, the company's operating cash flow is negative at -5,028,462,430 KRW, and free cash flow is also negative at -1,269,920,050 KRW, suggesting operational inefficiencies or high reinvestment needs.

Profitability metrics are concerning, with a net loss of -1,445,778,570 KRW and an operating loss of -2,352,480,900 KRW. The return on equity (ROE) is -2.91%, and return on assets (ROA) is -2.66%, both significantly below the industry median for software firms. Gross profit of 2,347,681,710 KRW is insufficient to cover operating expenses, contributing to the negative net income.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to market-specific risks. The absence of segment or geographic breakdown in the financial data limits the ability to assess the resilience of different parts of the business.

Growth prospects appear muted, with no disclosed revenue growth in the most recent fiscal year. Analyst estimates for revenue and EPS are based on the last actual results, with no forward-looking guidance provided. The company's operating losses and negative cash flows suggest a need for strategic cost management or revenue diversification to achieve sustainable growth.

Risk factors include the company's negative operating and free cash flows, which could pressure liquidity if not managed. The risk assessment indicates low dilution potential, but the absence of disclosed dilution sources or recent equity issuance suggests the company may need to raise capital in the future. No immediate filing-based liquidity or dilution flags were detected.

Recent events include the latest financial filing, which shows a continued operating loss and negative cash flows. No recent earnings call transcripts or material events were disclosed in the available data. The company's performance remains under pressure, with no clear turnaround in sight.

Free cash flow surged 203.2% year-over-year, demonstrating significant improvement in cash generation capabilities compared to the prior period.

Net income increased by 195.1% year-over-year, indicating a strong recovery in profitability from the previous fiscal period.

Cash conversion ratio of 3.48 ranks as best-in-class within the software cohort, highlighting superior efficiency in generating cash from earnings.

Operating income grew 92.4% year-over-year, signaling a substantial turnaround in core operational profitability relative to the previous year.

Debt-to-equity ratio of 0.02 is above the cohort median, suggesting a conservative capital structure with minimal leverage risk.

The company carries a high credit risk flag, suggesting potential difficulties in meeting financial obligations or maintaining creditworthiness.

Revenue declined at a 4.5% compound annual growth rate over four years, indicating a long-term contraction in top-line sales.

Return on equity of -2.91% falls below the cohort median, demonstrating poor generation of returns for shareholders relative to peers.

Revenue KRW 20.11B, +8,1% YoY; Operating income −79,1% YoY.

• ▍Revenue KRW 20.11B, +8,1% YoY
• ▍Operating income −79,1% YoY
• ▍Net income −75,2% YoY
• ▍Free cash flow −77,2% YoY
• ▍Net margin 4.4%

Revenue KRW 17.12B, +33,9% YoY; Operating income +53,0% YoY.

• ▍Revenue KRW 17.12B, +33,9% YoY
• ▍Operating income +53,0% YoY
• ▍Net income +512,7% YoY
• ▍Free cash flow +398,2% YoY
• ▍Net margin 5.5%

Revenue KRW 66.76B, +39,4% YoY; Operating income +990,1% YoY.

• ▍Revenue KRW 66.76B, +39,4% YoY
• ▍Operating income +990,1% YoY
• ▍Net income +150,0% YoY
• ▍Free cash flow +97,5% YoY
• ▍Net margin 4.7%

Revenue KRW 57.50B; Operating income KRW 2.45B.

• ▍Revenue KRW 57.50B
• ▍Operating income KRW 2.45B
• ▍Net margin 7.3%