Wonik Holdings Co Ltd

Wonik Holdings has a liquidity position that is below the industry median, with a current ratio of 0.79, indicating that the company's current assets are insufficient to cover its current liabilities. The company's cash and equivalents amount to 82,263,056,780 KRW, but this is offset by long-term debt of 451,672,917,190 KRW, resulting in a negative net cash position. The free cash flow is negative at -32,706,522,470 KRW, which is a concern for its ability to fund operations and growth without external financing.

The company's profitability is weak, with a return on equity (ROE) of -2.63% and a return on assets (ROA) of -1.41%, both significantly below the industry median. The operating income is negative at -2,906,819,020 KRW, and the net income is also negative at -26,263,544,290 KRW. These figures suggest that the company is not generating sufficient profit to cover its operating costs and is experiencing a decline in profitability.

Wonik Holdings' revenue is concentrated in the semiconductor equipment and testing segment, with no disclosed geographic breakdown. The company's exposure to a single business line increases its vulnerability to market fluctuations in the semiconductor industry. The absence of detailed segment and geographic data limits the ability to assess diversification risks.

The company's growth trajectory is uncertain, with no clear indication of revenue growth in the current fiscal year. The capital expenditure of -20,501,011,430 KRW suggests that the company is investing in its operations, but the negative free cash flow indicates that these investments are not yet generating positive returns. The lack of detailed outlook data makes it difficult to assess the company's future growth potential.

The risk assessment highlights medium liquidity risk and low dilution risk. The company's debt-to-equity ratio of 0.45 is relatively low, but the negative net cash position and negative free cash flow increase the risk of liquidity constraints. The dilution risk is low, but the company's negative net income and operating income suggest that it may need to raise additional capital in the future, which could lead to share dilution.

Recent events and filings do not provide specific details on the company's strategic initiatives or financial performance. The absence of recent earnings call transcripts or 10-K filings limits the ability to assess the company's management's outlook and strategic direction. The company's performance is closely tied to the broader semiconductor industry, which is subject to cyclical demand and technological changes.

Net income surged 136.7% year-over-year to 27.4 billion KRW in fiscal 2019, signaling a strong profitability recovery.

Free cash flow turned positive with a 105.6% increase to 5.8 billion KRW, improving liquidity after consecutive negative years.

Operating income rebounded 115.6% to 3.6 billion KRW in fiscal 2019, reversing the previous year's significant operating loss.

Dilution risk is assessed as low, suggesting current equity structure remains stable for existing shareholders without immediate share count expansion.

Long-term debt increased to 486.9 billion KRW in fiscal 2019, exacerbating a high credit risk profile and leverage concerns.

Return on equity remains negative at -2.63%, significantly underperforming the 3.99% median of the semiconductor equipment and testing cohort.

Cash conversion ratio of -0.47 ranks in the bottom quartile, highlighting poor ability to translate earnings into actual cash flow.

Revenue KRW 157.56B, −10,1% YoY; Operating income −120,9% YoY.

• ▍Revenue KRW 157.56B, −10,1% YoY
• ▍Operating income −120,9% YoY
• ▍Net income +7,3% YoY
• ▍Free cash flow −44,3% YoY
• ▍Net margin -4.8%

Revenue KRW 171.02B, +46,4% YoY; Operating income +452,0% YoY.

• ▍Revenue KRW 171.02B, +46,4% YoY
• ▍Operating income +452,0% YoY
• ▍Net income +121,1% YoY
• ▍Free cash flow +98,6% YoY
• ▍Net margin 3.2%

Revenue KRW 207.18B; Operating income -KRW 40.80B.

• ▍Revenue KRW 207.18B
• ▍Operating income -KRW 40.80B
• ▍Net margin -16.8%

Revenue KRW 146.29B; Operating income KRW 10.93B.

• ▍Revenue KRW 146.29B
• ▍Operating income KRW 10.93B
• ▍Net margin -3.6%

Revenue KRW 175.20B; Operating income KRW 9.54B.

• ▍Revenue KRW 175.20B
• ▍Operating income KRW 9.54B
• ▍Net margin -4.7%

Revenue KRW 116.81B; Operating income -KRW 2.91B.

• ▍Revenue KRW 116.81B
• ▍Operating income -KRW 2.91B
• ▍Net margin -22.5%

Revenue KRW 622.99B, −3,5% YoY; Operating income +115,6% YoY.

• ▍Revenue KRW 622.99B, −3,5% YoY
• ▍Operating income +115,6% YoY
• ▍Net income +136,7% YoY
• ▍Free cash flow +105,6% YoY
• ▍Net margin 4.4%

Revenue KRW 645.47B, −13,9% YoY; Operating income −247,8% YoY.

• ▍Revenue KRW 645.47B, −13,9% YoY
• ▍Operating income −247,8% YoY
• ▍Net income −184,5% YoY
• ▍Free cash flow −341,7% YoY
• ▍Net margin -11.5%

Revenue KRW 749.53B, −14,9% YoY; Operating income −82,3% YoY.

• ▍Revenue KRW 749.53B, −14,9% YoY
• ▍Operating income −82,3% YoY
• ▍Net income −125,7% YoY
• ▍Free cash flow −139,5% YoY
• ▍Net margin -3.5%

Revenue KRW 881.01B, +31,9% YoY; Operating income −4,7% YoY.

• ▍Revenue KRW 881.01B, +31,9% YoY
• ▍Operating income −4,7% YoY
• ▍Net income −6,8% YoY
• ▍Free cash flow −50,5% YoY
• ▍Net margin 11.6%

Revenue KRW 667.95B; Operating income KRW 93.31B.

• ▍Revenue KRW 667.95B
• ▍Operating income KRW 93.31B
• ▍Net margin 16.4%