Sono Square Co Ltd

Sono Square's capital structure shows a debt-to-equity ratio of 0.27, indicating a relatively conservative leverage position. The company holds 21,287,962,180 KRW in cash and equivalents, but with 31,182,626,730 KRW in long-term debt, its net cash position is negative. The current ratio of 2.87 suggests strong short-term liquidity, with current assets comfortably covering current liabilities.

Profitability metrics are concerning, with a return on equity of -0.77% and a return on assets of -0.54%, both significantly below the industry median for online services. The company reported a net loss of 878,508,280 KRW and an operating loss of 1,025,042,920 KRW, indicating ongoing operational challenges.

Geographically, Sono Square's revenue concentration is not disclosed in the available data, but the company's exposure to the software and IT services sector suggests a global customer base. No specific segment breakdown is available in the provided data.

The company's growth trajectory is uncertain, with no specific revenue growth projections provided in the available data. However, the operating cash flow of 4,777,889,270 KRW suggests some level of cash generation, though free cash flow is negative at -173,267,180 KRW, indicating that capital expenditures are outpacing operating cash flow.

Risk factors include a medium liquidity risk due to the negative net cash position and the potential for dilution, though the risk is currently assessed as low. No dilution sources are explicitly cited in the available data, and no adjustments have been applied to the valuation metrics.

Recent events include the latest actual EPS of 633.00 KRW, as reported by analysts. No recent filings or transcripts are available in the provided data to further contextualize the company's performance or strategic direction.

Sono Square Co Ltd (007720.KQ) has been formally classified within the Technology economic sector, specifically operating in Online Services. This new taxonomy classification provides a clearer definition of the company’s business activities, establishing its identity within the broader technology landscape. The risk profile for the company has also been updated with new assessments. Dilution risk is now rated as low, indicating a reduced likelihood of share value erosion through new issuance. Conversely, liquidity risk has been assessed as medium, suggesting potential challenges in trading volume or market depth that investors should monitor. These changes represent the first tracked updates to the company’s profile, with the taxonomy classification carrying medium severity. The establishment of these baseline metrics allows for more consistent future comparisons and risk evaluation. Currently, Sono Square operates with a single officer and lacks coverage from analysts, index memberships, or disclosed top holders. This limited market presence underscores the importance of the newly established risk and sector classifications for understanding the company’s current standing.

Net income improved by 88.2% year-over-year, signaling a significant recovery in profitability despite ongoing operational challenges.

Operating income surged 102.4% year-over-year, demonstrating strong operational leverage and improved core business efficiency.

Free cash flow increased by 90.1% year-over-year, indicating better cash generation capabilities from recent operations.

Revenue grew 8.3% year-over-year, showing top-line expansion in a challenging market environment for online services.

The debt-to-equity ratio of 0.27 is below the cohort median of 0.1, suggesting a conservative capital structure.

The company faces high credit risk, posing a significant threat to financial stability and potential default scenarios.

Operating margin of -3.6% trails the cohort median of 3.72%, highlighting structural inefficiencies in core operations.

Return on equity of -0.77% significantly underperforms the cohort median of 3.51%, destroying shareholder value.

Cash conversion ratio of -5.44 sits in the bottom quartile, reflecting poor ability to convert earnings into cash.

Revenue KRW 33.02B; Operating income KRW 275.3M.

• ▍Revenue KRW 33.02B
• ▍Operating income KRW 275.3M
• ▍Net margin -37.8%

Revenue KRW 36.98B; Operating income KRW 1.13B.

• ▍Revenue KRW 36.98B
• ▍Operating income KRW 1.13B
• ▍Net margin 1.2%

Revenue KRW 34.98B; Operating income KRW 522.8M.

• ▍Revenue KRW 34.98B
• ▍Operating income KRW 522.8M
• ▍Net margin 6.4%

Revenue KRW 28.48B; Operating income -KRW 1.03B.

• ▍Revenue KRW 28.48B
• ▍Operating income -KRW 1.03B
• ▍Net margin -3.1%

Revenue KRW 133.46B, −15,9% YoY; Operating income +126,1% YoY.

• ▍Revenue KRW 133.46B, −15,9% YoY
• ▍Operating income +126,1% YoY
• ▍Net income −20 806,4% YoY
• ▍Free cash flow −1 680,0% YoY
• ▍Net margin -7.6%

Revenue KRW 158.79B, −7,1% YoY; Operating income +84,1% YoY.

• ▍Revenue KRW 158.79B, −7,1% YoY
• ▍Operating income +84,1% YoY
• ▍Net income +99,7% YoY
• ▍Free cash flow +102,9% YoY
• ▍Net margin -0.0%

Revenue KRW 170.97B, +13,7% YoY; Operating income −1,3% YoY.

• ▍Revenue KRW 170.97B, +13,7% YoY
• ▍Operating income −1,3% YoY
• ▍Net income +21,6% YoY
• ▍Free cash flow +7,2% YoY
• ▍Net margin -10.5%