Zeus Co Ltd

ZeusCo maintains a conservative capital structure with a debt-to-equity ratio of 0.4 and a current ratio of 1.9, indicating strong short-term liquidity. However, the company reported negative operating cash flow of -967.39 million KRW, contrasting with free cash flow of 6.18 billion KRW, which suggests capital expenditure management is offsetting operational cash outflows.

Profitability metrics show ZeusCo underperforming relative to industry benchmarks. Return on equity of 1.61% and return on assets of 0.75% fall below the median ROE of 5.2% and ROA of 2.1% for semiconductor equipment firms. Gross margin of 32.9% (29.01 billion KRW gross profit on 88.22 billion KRW revenue) aligns with industry norms but operating margin of 8.56% (7.56 billion KRW operating income) lags behind the sector median of 12.3%.

Geographic and segment exposure remains opaque in the latest disclosures, with no breakdown of revenue by region or product line. This lack of transparency limits assessment of concentration risk, though the company's single-product focus on semiconductor testing equipment suggests high exposure to cyclical demand in the tech sector.

Revenue growth appears to be decelerating. While the company reported 88.22 billion KRW in revenue, this represents a 12.4% year-over-year decline from the 100.73 billion KRW revenue in the prior period. Analysts expect further contraction, forecasting 383.13 billion KRW in revenue for the current fiscal year, a 61.7% decrease from the trailing twelve months.

Risk factors include liquidity constraints, as net cash is negative after subtracting total debt. The company holds 71.82 billion KRW in cash and equivalents but has 123.93 billion KRW in long-term debt. Dilution risk remains low with no difference between basic and diluted shares outstanding, though the negative operating cash flow raises concerns about debt servicing capacity.

Recent filings show ZeusCo maintaining capital expenditures at -1.98 billion KRW, consistent with its strategy to invest in production capacity. No material events were disclosed in the latest 10-K equivalent filing, though the company's revenue guidance suggests ongoing pressure from the global semiconductor downturn.

Operating income surged 517.8% year-over-year, signaling a dramatic recovery in core profitability despite recent revenue volatility.

Free cash flow increased by 127.7% year-over-year, demonstrating significantly improved cash generation capabilities in the latest period.

Analysts project a 32.5% upside to a mean price target of 16,000 KRW, suggesting significant undervaluation at current levels.

Debt-to-equity ratio of 0.4 is below the cohort median of 0.23, reflecting a conservative leverage position relative to peers.

Net income turned negative with a loss of 5.8 billion KRW in FY2026, marking a severe deterioration from prior profitability.

Free cash flow swung to a negative 22.4 billion KRW in FY2026, indicating substantial cash burn and liquidity pressure.

Cash conversion ratio sits in the bottom quartile at -0.2, significantly underperforming the 0.96 cohort median.

Revenue KRW 98.79B, −32,7% YoY; Operating income −114,4% YoY.

• ▍Revenue KRW 98.79B, −32,7% YoY
• ▍Operating income −114,4% YoY
• ▍Net income −100,1% YoY
• ▍Free cash flow −100,5% YoY
• ▍Net margin -0.0%

Revenue KRW 86.79B, −30,6% YoY; Operating income −114,8% YoY.

• ▍Revenue KRW 86.79B, −30,6% YoY
• ▍Operating income −114,8% YoY
• ▍Net income −117,7% YoY
• ▍Free cash flow −143,8% YoY
• ▍Net margin -2.3%

Revenue KRW 116.16B, −11,2% YoY; Operating income −92,7% YoY.

• ▍Revenue KRW 116.16B, −11,2% YoY
• ▍Operating income −92,7% YoY
• ▍Net income −195,4% YoY
• ▍Free cash flow −337,4% YoY
• ▍Net margin -5.6%

Revenue KRW 81.56B, −7,5% YoY; Operating income −105,2% YoY.

• ▍Revenue KRW 81.56B, −7,5% YoY
• ▍Operating income −105,2% YoY
• ▍Net income −45,5% YoY
• ▍Free cash flow −148,5% YoY
• ▍Net margin 3.3%

Revenue KRW 146.75B; Operating income KRW 15.47B.

• ▍Revenue KRW 146.75B
• ▍Operating income KRW 15.47B
• ▍Net margin 12.7%

Revenue KRW 125.01B; Operating income KRW 16.97B.

• ▍Revenue KRW 125.01B
• ▍Operating income KRW 16.97B
• ▍Net margin 9.2%

Revenue KRW 130.80B; Operating income KRW 9.24B.

• ▍Revenue KRW 130.80B
• ▍Operating income KRW 9.24B
• ▍Net margin 5.2%

Revenue KRW 88.22B; Operating income KRW 7.56B.

• ▍Revenue KRW 88.22B
• ▍Operating income KRW 7.56B
• ▍Net margin 5.6%

Revenue KRW 383.31B, −21,9% YoY; Operating income −109,1% YoY.

• ▍Revenue KRW 383.31B, −21,9% YoY
• ▍Operating income −109,1% YoY
• ▍Net income −113,9% YoY
• ▍Free cash flow −151,9% YoY
• ▍Net margin -1.5%

Revenue KRW 490.79B, +21,8% YoY; Operating income +602,0% YoY.

• ▍Revenue KRW 490.79B, +21,8% YoY
• ▍Operating income +602,0% YoY
• ▍Net income +321,1% YoY
• ▍Free cash flow +184,0% YoY
• ▍Net margin 8.5%

Revenue KRW 402.87B, −20,9% YoY; Operating income −84,8% YoY.

• ▍Revenue KRW 402.87B, −20,9% YoY
• ▍Operating income −84,8% YoY
• ▍Net income −71,6% YoY
• ▍Free cash flow −60,9% YoY
• ▍Net margin 2.5%

Revenue KRW 509.02B, +27,0% YoY; Operating income +148,2% YoY.

• ▍Revenue KRW 509.02B, +27,0% YoY
• ▍Operating income +148,2% YoY
• ▍Net income +119,2% YoY
• ▍Free cash flow +526,9% YoY
• ▍Net margin 6.9%