SKC Co Ltd

SKC Co Ltd has a price-to-book ratio of 5.04 and a debt-to-equity ratio of 2.63, indicating a capital structure that is significantly leveraged. The company's liquidity position is assessed as medium, with a current ratio of 0.82, suggesting that it may struggle to meet short-term obligations with its current assets. The company's free cash flow is negative at -274,386,872,660 KRW, and its operating cash flow is also negative at -49,649,167,300 KRW, indicating a lack of liquidity from core operations.

Profitability metrics for SKC are weak, with a return on equity of -8.4% and a return on assets of -1.62%. These figures are below the typical performance of the Commodity Chemicals industry, which is characterized by thin margins and high volatility. The company's operating income is negative at -68,464,616,780 KRW, and its net income is also negative at -116,333,016,210 KRW, reflecting a challenging operating environment.

SKC's revenue is concentrated in a few key markets, with the majority of its sales coming from the construction, electronics, and packaging industries. The company's exposure to these sectors makes it vulnerable to shifts in demand and supply chain disruptions. The company's geographic exposure is not explicitly detailed in the available data, but its operations are primarily based in South Korea.

The company's growth trajectory is uncertain, with no specific revenue growth projections provided in the available data. However, the company's capital expenditure of -480,732,143,860 KRW suggests a significant investment in infrastructure and production capacity, which could support future growth. The company's operating income and net income are both negative, indicating a need for operational improvements to achieve profitability.

Risk factors for SKC include its high debt load and negative free cash flow, which could lead to liquidity constraints. The company's dilution potential is assessed as low, but its capital structure is heavily leveraged, which could increase financial risk in the event of a downturn. The company's risk assessment indicates that it faces medium liquidity risk and low dilution risk.

Recent events affecting SKC include the release of its latest financial results, which show a significant decline in profitability. The company's stock price is currently at 152,400 KRW, with a market capitalization of 6,979,704,658,800 KRW. Analysts have provided a range of price targets, with a mean of 112,822.20 KRW and a median of 116,095.90 KRW, indicating a generally bearish outlook.

SKC Co Ltd (011790.KS) has been formally classified within the Chemicals activity and Basic Materials economic sector, marking a significant structural update to its corporate profile. This taxonomy classification provides a clearer framework for understanding the company's operational focus and industry positioning, which is essential for accurate peer comparison and sector-specific analysis. Alongside this sectoral definition, the company’s risk assessment has been updated to reflect specific financial characteristics. Dilution risk is now assessed as low, indicating a stable share structure with minimal threat of equity dilution for current shareholders. This assessment offers reassurance regarding the preservation of ownership value amidst potential capital raising activities. Conversely, liquidity risk has been categorized as medium, suggesting that while the company maintains operational stability, there may be moderate constraints or variability in its short-term cash flow management or market trading depth. This distinction is crucial for investors evaluating the company's ability to meet immediate financial obligations and navigate market fluctuations within the basic materials space. The analysis is supported by coverage from six analysts, providing a baseline of professional scrutiny on the company's performance and outlook. With no index memberships or disclosed top holders currently tracked, the focus remains on these fundamental risk and classification metrics to guide investment decisions for SKC Co Ltd.

Analysts project 41.2% upside to a mean price target of 112,822 KRW, suggesting significant undervaluation relative to current market price.

Free cash flow improved by 10.5% year-over-year in FY2026, indicating a potential stabilization in cash generation despite ongoing losses.

Revenue grew 7.1% year-over-year in FY2026, demonstrating top-line resilience and growth momentum amidst challenging operating conditions.

Dilution risk is assessed as low, providing some protection for existing shareholders against equity value erosion from new issuances.

Net losses widened significantly to 734.4 billion KRW in FY2026, reflecting a severe deterioration in profitability and bottom-line performance.

The company carries a high credit risk flag, indicating substantial concerns regarding its ability to meet financial obligations and service debt.

Debt-to-equity ratio stands at 2.63, far exceeding the cohort median of 0.31, highlighting extreme leverage and financial fragility.

Revenue KRW 496.64B, +13,3% YoY; Operating income +60,8% YoY.

• ▍Revenue KRW 496.64B, +13,3% YoY
• ▍Operating income +60,8% YoY
• ▍Net income +22,2% YoY
• ▍Free cash flow +31,1% YoY
• ▍Net margin -16.4%

Revenue KRW 428.26B, +1,5% YoY; Operating income −117,2% YoY.

• ▍Revenue KRW 428.26B, +1,5% YoY
• ▍Operating income −117,2% YoY
• ▍Net income −108,5% YoY
• ▍Free cash flow −51,4% YoY
• ▍Net margin -126.6%

Revenue KRW 506.02B, +14,1% YoY; Operating income −1,1% YoY.

• ▍Revenue KRW 506.02B, +14,1% YoY
• ▍Operating income −1,1% YoY
• ▍Net income −122,6% YoY
• ▍Free cash flow −7,9% YoY
• ▍Net margin -17.9%

Revenue KRW 467.30B, +3,1% YoY; Operating income −2,8% YoY.

• ▍Revenue KRW 467.30B, +3,1% YoY
• ▍Operating income −2,8% YoY
• ▍Net income +102,9% YoY
• ▍Free cash flow +37,7% YoY
• ▍Net margin 0.7%

Revenue KRW 438.46B; Operating income -KRW 74.48B.

• ▍Revenue KRW 438.46B
• ▍Operating income -KRW 74.48B
• ▍Net margin -23.9%

Revenue KRW 422.00B; Operating income -KRW 174.07B.

• ▍Revenue KRW 422.00B
• ▍Operating income -KRW 174.07B
• ▍Net margin -61.6%

Revenue KRW 443.67B; Operating income -KRW 59.87B.

• ▍Revenue KRW 443.67B
• ▍Operating income -KRW 59.87B
• ▍Net margin -9.2%

Revenue KRW 453.43B; Operating income -KRW 68.46B.

• ▍Revenue KRW 453.43B
• ▍Operating income -KRW 68.46B
• ▍Net margin -25.7%

Revenue KRW 1.84T, +7,1% YoY; Operating income −55,7% YoY.

• ▍Revenue KRW 1.84T, +7,1% YoY
• ▍Operating income −55,7% YoY
• ▍Net income −65,6% YoY
• ▍Free cash flow +10,6% YoY
• ▍Net margin -39.9%

Revenue KRW 1.72T, +15,0% YoY; Operating income −69,6% YoY.

• ▍Revenue KRW 1.72T, +15,0% YoY
• ▍Operating income −69,6% YoY
• ▍Net income −61,0% YoY
• ▍Free cash flow +10,9% YoY
• ▍Net margin -25.8%

Revenue KRW 1.49T, −37,4% YoY; Operating income −189,0% YoY.

• ▍Revenue KRW 1.49T, −37,4% YoY
• ▍Operating income −189,0% YoY
• ▍Net income −303,1% YoY
• ▍Free cash flow −184,1% YoY
• ▍Net margin -18.4%

Revenue KRW 2.39T, +5,4% YoY; Operating income −37,7% YoY.

• ▍Revenue KRW 2.39T, +5,4% YoY
• ▍Operating income −37,7% YoY
• ▍Net income −130,9% YoY
• ▍Free cash flow −706,7% YoY
• ▍Net margin -2.9%