Silicon 2 Co Ltd

Silicon 2 Co Ltd maintains a capital structure with a debt-to-equity ratio of 0.81, indicating a moderate reliance on debt financing. The company's liquidity position is characterized by a current ratio of 1.62, suggesting it has sufficient short-term assets to cover its short-term liabilities. However, the operating cash flow is negative at -15,275,239,470 KRW, which may raise concerns about its ability to fund operations from core business activities.

In terms of profitability, the company demonstrates a return on equity (ROE) of 17% and a return on assets (ROA) of 8.49%. These figures are strong indicators of efficient use of equity and assets to generate profits. The operating income of 38,843,184,860 KRW and net income of 33,348,953,170 KRW further support the company's profitability. However, the gross profit margin of 34% (61,590,979,460 KRW out of 181,360,484,750 KRW in revenue) suggests that the company is managing its production costs effectively.

The company's revenue is concentrated in a single business segment, as no specific segments are disclosed. Geographically, the company's exposure is not detailed in the provided data, but the lack of segmental breakdown implies a potential concentration risk. The company's total assets amount to 392,711,498,890 KRW, with total liabilities of 196,516,422,100 KRW, indicating a balanced capital structure.

The company's growth trajectory is supported by a strong revenue base of 181,360,484,750 KRW. While the outlook for the current fiscal year is not explicitly provided, the company's free cash flow of 33,091,804,530 KRW and capital expenditure of -2,490,254,020 KRW suggest that it is generating sufficient cash to support operations and potentially fund growth initiatives. The company's liquidity position is rated as medium, and the risk of dilution is considered low.

The company faces a key risk related to its liquidity, as net cash is negative after subtracting total debt. This could impact its ability to meet short-term obligations without additional financing. The company's dilution risk is low, but the negative operating cash flow and reliance on debt financing could pose challenges in the future.

Recent events and filings do not provide specific details on the company's recent activities. However, the company's financial performance and risk profile suggest that it is maintaining a stable position in the market. The company's free cash flow and capital expenditure indicate that it is managing its resources effectively to support operations and growth.

Analysts project 64.1% upside to a mean price target of 58,100 KRW, signaling strong market confidence.

Revenue grew 26.2% year-over-year in the latest period, showing robust top-line expansion momentum.

Debt-to-equity ratio of 0.81 is in the bottom quartile, indicating significantly higher leverage than peers.

Cash conversion of -0.46 is in the bottom quartile, suggesting poor cash generation relative to earnings.

Medium liquidity risk flags potential challenges in meeting short-term obligations or trading constraints.

Four-year revenue CAGR of -16.7% indicates a long-term historical decline despite recent growth.

Revenue KRW 346.56B, +41,1% YoY; Operating income +35,2% YoY.

• ▍Revenue KRW 346.56B, +41,1% YoY
• ▍Operating income +35,2% YoY
• ▍Net income +40,1% YoY
• ▍Free cash flow −8,6% YoY
• ▍Net margin 15.7%

Revenue KRW 305.95B, +76,3% YoY; Operating income +99,3% YoY.

• ▍Revenue KRW 305.95B, +76,3% YoY
• ▍Operating income +99,3% YoY
• ▍Net income +11,9% YoY
• ▍Free cash flow +14,2% YoY
• ▍Net margin 11.7%

Revenue KRW 299.38B, +60,4% YoY; Operating income +48,1% YoY.

• ▍Revenue KRW 299.38B, +60,4% YoY
• ▍Operating income +48,1% YoY
• ▍Net income +95,6% YoY
• ▍Free cash flow +242,5% YoY
• ▍Net margin 19.5%

Revenue KRW 265.29B, +46,3% YoY; Operating income +34,3% YoY.

• ▍Revenue KRW 265.29B, +46,3% YoY
• ▍Operating income +34,3% YoY
• ▍Net income +6,8% YoY
• ▍Free cash flow +4,4% YoY
• ▍Net margin 13.4%

Revenue KRW 245.68B; Operating income KRW 47.73B.

• ▍Revenue KRW 245.68B
• ▍Operating income KRW 47.73B
• ▍Net margin 15.8%

Revenue KRW 173.56B; Operating income KRW 24.66B.

• ▍Revenue KRW 173.56B
• ▍Operating income KRW 24.66B
• ▍Net margin 18.4%

Revenue KRW 186.67B; Operating income KRW 42.60B.

• ▍Revenue KRW 186.67B
• ▍Operating income KRW 42.60B
• ▍Net margin 16.0%

Revenue KRW 181.36B; Operating income KRW 38.84B.

• ▍Revenue KRW 181.36B
• ▍Operating income KRW 38.84B
• ▍Net margin 18.4%

Revenue KRW 1.12T, +61,4% YoY; Operating income +56,5% YoY.

• ▍Revenue KRW 1.12T, +61,4% YoY
• ▍Operating income +56,5% YoY
• ▍Net income +39,6% YoY
• ▍Free cash flow +241,6% YoY
• ▍Net margin 15.1%

Revenue KRW 691.52B, +101,7% YoY; Operating income +185,6% YoY.

• ▍Revenue KRW 691.52B, +101,7% YoY
• ▍Operating income +185,6% YoY
• ▍Net income +217,6% YoY
• ▍Free cash flow +118,6% YoY
• ▍Net margin 17.5%

Revenue KRW 342.86B, +107,5% YoY; Operating income +239,6% YoY.

• ▍Revenue KRW 342.86B, +107,5% YoY
• ▍Operating income +239,6% YoY
• ▍Net income +240,8% YoY
• ▍Free cash flow +356,1% YoY
• ▍Net margin 11.1%