SK Hynix Inc

SK Hynix maintains a debt-to-equity ratio of 0.59, indicating a moderate reliance on debt financing, while its current ratio of 1.41 suggests adequate short-term liquidity to cover obligations. However, the company's net cash position is negative after subtracting total debt, signaling potential liquidity constraints. Free cash flow of 1.9 trillion KRW supports operational flexibility, though capital expenditures of -3.2 trillion KRW reflect ongoing investment in production capacity.

Profitability metrics show a return on equity of 3.46% and a return on assets of 1.86%, both below the industry median for semiconductors. Gross profit of 4.8 trillion KRW and operating income of 2.9 trillion KRW indicate strong pricing power but face downward pressure from cyclical demand and competitive pricing in the memory market.

The company's revenue is concentrated in a few key segments, with DRAM and NAND flash accounting for the majority of sales. Geographically, SK Hynix is heavily exposed to the Asia-Pacific region, where it operates manufacturing facilities and serves major OEMs. This concentration increases vulnerability to regional supply chain disruptions and regulatory shifts.

Revenue growth is projected to remain stable in the current fiscal year, with a modest increase expected in the next fiscal year. Historical revenue trends show volatility due to the cyclical nature of the semiconductor industry, with demand fluctuating based on macroeconomic conditions and technological adoption cycles.

Risk factors include liquidity constraints due to the negative net cash position and the potential for dilution, though the risk of dilution is currently assessed as low. The company's capital structure and ongoing investments in R&D and manufacturing capacity are key drivers of long-term value.

Recent filings and transcripts highlight the company's focus on expanding its product portfolio and improving yield rates in production. Management has also emphasized the importance of maintaining a strong balance sheet amid industry-wide challenges, including rising material costs and geopolitical tensions affecting supply chains.

SK Hynix Inc (000660.KS) has undergone a significant update to its risk and classification profile, with the most material changes being the formal assignment of its economic sector to "Technology" and its primary activity to "Semiconductors." These taxonomy classifications, previously unrecorded, are now established as medium-severity updates, providing a clearer structural definition of the company’s operational focus within the broader market landscape. Alongside these sectoral definitions, the company’s risk assessment framework has been populated with new baseline metrics. Dilution risk is now classified as "low," while liquidity risk is assessed as "medium." Both of these risk indicators represent new fields in the analysis, shifting from null values to defined states, which offers investors a more granular view of the capital structure and financial flexibility risks associated with the stock. The significance of these updates lies in the establishment of a comprehensive baseline for SK Hynix’s financial and operational profile. By defining the company’s core activity in semiconductors and its sector in technology, analysts and investors can better contextualize performance metrics against industry peers. The simultaneous introduction of low dilution and medium liquidity risk assessments provides a foundational understanding of the company’s capital management and short-term financial health. Currently, there is no recent news dispatch activity recorded for the company over the past 30 days, with zero reports logged from late May through mid-June 2026. Despite the lack of recent news flow, the company remains under the coverage of 16 analysts, suggesting that the recent structural updates to its risk and taxonomy data are part of a broader, ongoing analytical review rather than a reaction to immediate market events.

Net income surged 116.9% year-over-year to 42.9 trillion KRW in FY2026, demonstrating robust profitability recovery.

Free cash flow improved 78.8% year-over-year to 26.6 trillion KRW, indicating strong cash generation capabilities.

Revenue grew 46.8% year-over-year to 97.1 trillion KRW in FY2026, reflecting significant top-line expansion.

Cash conversion ratio of 2.79 is above the 75th percentile of the semiconductor cohort, highlighting efficient cash management.

High credit risk is flagged, potentially impacting borrowing costs and financial stability despite recent profitability improvements.

Debt-to-equity ratio of 0.59 places the company in the bottom quartile of the semiconductor cohort, indicating higher leverage.

Capex to revenue ratio of -25.8% is in the bottom quartile, suggesting heavy capital intensity relative to peers.

Return on equity of 3.46% remains modest compared to peer NVIDIA's 29.84%, indicating lower efficiency in generating shareholder returns.

Revenue KRW 32.83T, +66,1% YoY; Operating income +135,2% YoY.

• ▍Revenue KRW 32.83T, +66,1% YoY
• ▍Operating income +135,2% YoY
• ▍Net income +90,2% YoY
• ▍Free cash flow +79,8% YoY
• ▍Net margin 46.4%

Revenue KRW 24.45T, +39,1% YoY; Operating income +62,0% YoY.

• ▍Revenue KRW 24.45T, +39,1% YoY
• ▍Operating income +62,0% YoY
• ▍Net income +119,1% YoY
• ▍Free cash flow +119,2% YoY
• ▍Net margin 51.5%

Revenue KRW 22.23T, +35,4% YoY; Operating income +68,5% YoY.

• ▍Revenue KRW 22.23T, +35,4% YoY
• ▍Operating income +68,5% YoY
• ▍Net income +69,8% YoY
• ▍Free cash flow +15,7% YoY
• ▍Net margin 31.5%

Revenue KRW 17.64T, +41,9% YoY; Operating income +158,1% YoY.

• ▍Revenue KRW 17.64T, +41,9% YoY
• ▍Operating income +158,1% YoY
• ▍Net income +322,4% YoY
• ▍Free cash flow +162,8% YoY
• ▍Net margin 46.0%

Revenue KRW 19.77T; Operating income KRW 8.11T.

• ▍Revenue KRW 19.77T
• ▍Operating income KRW 8.11T
• ▍Net margin 40.5%

Revenue KRW 17.57T; Operating income KRW 7.02T.

• ▍Revenue KRW 17.57T
• ▍Operating income KRW 7.02T
• ▍Net margin 32.7%

Revenue KRW 16.42T; Operating income KRW 5.46T.

• ▍Revenue KRW 16.42T
• ▍Operating income KRW 5.46T
• ▍Net margin 25.1%

Revenue KRW 12.43T; Operating income KRW 2.88T.

• ▍Revenue KRW 12.43T
• ▍Operating income KRW 2.88T
• ▍Net margin 15.4%

Revenue KRW 97.15T, +46,8% YoY; Operating income +100,6% YoY.

• ▍Revenue KRW 97.15T, +46,8% YoY
• ▍Operating income +100,6% YoY
• ▍Net income +116,9% YoY
• ▍Free cash flow +78,8% YoY
• ▍Net margin 44.2%

Revenue KRW 66.19T, +102,0% YoY; Operating income +403,2% YoY.

• ▍Revenue KRW 66.19T, +102,0% YoY
• ▍Operating income +403,2% YoY
• ▍Net income +317,2% YoY
• ▍Free cash flow +393,7% YoY
• ▍Net margin 29.9%

Revenue KRW 32.77T, −26,6% YoY; Operating income −248,6% YoY.

• ▍Revenue KRW 32.77T, −26,6% YoY
• ▍Operating income −248,6% YoY
• ▍Net income −508,7% YoY
• ▍Free cash flow −0,7% YoY
• ▍Net margin -27.8%

Revenue KRW 44.62T, +3,8% YoY; Operating income −57,9% YoY.

• ▍Revenue KRW 44.62T, +3,8% YoY
• ▍Operating income −57,9% YoY
• ▍Net income −76,8% YoY
• ▍Free cash flow −183,8% YoY
• ▍Net margin 5.0%