KG DongbuSteel Co Ltd

KG DongbuSteel maintains a market price of 6,850 KRW per share, with a market capitalization of 662.96 billion KRW. The company's price-to-earnings ratio is 17.36, and its price-to-book ratio is 0.35, indicating a relatively low valuation compared to its book value. The company's debt-to-equity ratio is 0.51, suggesting a moderate level of leverage, while its current ratio of 2.0 indicates a strong short-term liquidity position. However, the company's free cash flow is negative at -173.30 billion KRW, which may signal potential liquidity constraints.

In terms of profitability, KG DongbuSteel's return on equity is 1.99%, and its return on assets is 1.17%, both of which are below the industry average for the Iron & Steel sector. The company's operating income of 74.47 billion KRW and net income of 38.19 billion KRW reflect a relatively modest profit margin, which may be influenced by the competitive nature of the industry and the volatility of raw material prices.

KG DongbuSteel's revenue is primarily concentrated in its domestic operations, with a significant portion derived from the sale of iron ore and steel products. The company's exposure to the South Korean market is a key factor in its revenue generation, and any economic downturn in the region could impact its financial performance. The company's capital expenditure of -220.56 billion KRW indicates a substantial investment in its mining operations, which is necessary to maintain and expand its production capacity.

Looking ahead, the company's revenue is expected to grow, driven by increased demand for steel products in the construction and manufacturing sectors. Analysts have set a mean price target of 8,000 KRW per share, reflecting a positive outlook on the company's future performance. However, the company must navigate the challenges posed by fluctuating commodity prices and the need for continuous investment in its operations to remain competitive.

The risk assessment for KG DongbuSteel highlights a medium liquidity risk and a low dilution risk. The company's net cash position is negative after accounting for total debt, which could affect its ability to meet short-term obligations. Additionally, the company's reliance on a single market and the cyclical nature of the steel industry pose potential risks to its financial stability.

Recent events, including analyst estimates and price targets, indicate a strong buy recommendation for the company. The mean recommendation of 1.00 suggests that analysts are optimistic about the company's future prospects, with two strong-buy ratings and no buy or hold ratings. These positive signals may influence investor sentiment and drive further interest in the company's stock.

Analysts project 57.8% upside to a consensus target price of 8,000 KRW, rating the stock a strong buy.

Net margin of 4.4% is more than double the industry median of 2.1%, demonstrating strong cost control.

Cash conversion ratio of 2.47 places the company in the top quartile of its 433-peer cohort.

Debt-to-equity ratio of 0.51 is below the cohort median of 0.34, suggesting a conservative leverage profile.

The company faces high credit risk, posing a significant threat to financial stability and debt servicing capabilities.

Return on equity of 2.0% trails the Iron & Steel cohort median of 2.3%, indicating inefficient capital utilization.

Medium liquidity risk suggests potential difficulties in meeting short-term financial obligations without significant asset liquidation.

Revenue declined from 3.82 trillion KRW in FY-3 to 3.19 trillion KRW in FY0, showing contraction.

Revenue KRW 805.29B, −0,9% YoY; Net income −2,8% YoY.

• ▍Revenue KRW 805.29B, −0,9% YoY
• ▍Net income −2,8% YoY
• ▍Net margin 5.6%

Revenue KRW 745.22B, −5,6% YoY; Operating income −105,0% YoY.

• ▍Revenue KRW 745.22B, −5,6% YoY
• ▍Operating income −105,0% YoY
• ▍Net income −29,1% YoY
• ▍Free cash flow +151,8% YoY
• ▍Net margin 4.3%

Revenue KRW 830.58B, −0,5% YoY; Operating income +26,1% YoY.

• ▍Revenue KRW 830.58B, −0,5% YoY
• ▍Operating income +26,1% YoY
• ▍Net income −67,3% YoY
• ▍Free cash flow +10,3% YoY
• ▍Net margin 1.8%

Revenue KRW 805.07B, −6,2% YoY; Operating income −47,8% YoY.

• ▍Revenue KRW 805.07B, −6,2% YoY
• ▍Operating income −47,8% YoY
• ▍Net income +8,8% YoY
• ▍Free cash flow +111,3% YoY
• ▍Net margin 5.2%

Revenue KRW 812.57B; Operating income KRW 66.75B.

• ▍Revenue KRW 812.57B
• ▍Operating income KRW 66.75B
• ▍Net margin 5.7%

Revenue KRW 789.07B; Operating income KRW 104.03B.

• ▍Revenue KRW 789.07B
• ▍Operating income KRW 104.03B
• ▍Net margin 5.8%

Revenue KRW 834.92B; Operating income KRW 42.70B.

• ▍Revenue KRW 834.92B
• ▍Operating income KRW 42.70B
• ▍Net margin 5.5%

Revenue KRW 858.43B; Operating income KRW 74.47B.

• ▍Revenue KRW 858.43B
• ▍Operating income KRW 74.47B
• ▍Net margin 4.4%

Revenue KRW 3.19T, −3,3% YoY; Operating income −43,5% YoY.

• ▍Revenue KRW 3.19T, −3,3% YoY
• ▍Operating income −43,5% YoY
• ▍Net income +1,3% YoY
• ▍Free cash flow +145,8% YoY
• ▍Net margin 4.2%

Revenue KRW 3.30T, −3,8% YoY; Operating income −2,5% YoY.

• ▍Revenue KRW 3.30T, −3,8% YoY
• ▍Operating income −2,5% YoY
• ▍Net income −43,1% YoY
• ▍Free cash flow −196,9% YoY
• ▍Net margin 4.0%

Revenue KRW 3.43T, −10,2% YoY; Operating income −38,1% YoY.

• ▍Revenue KRW 3.43T, −10,2% YoY
• ▍Operating income −38,1% YoY
• ▍Net income −56,3% YoY
• ▍Free cash flow −58,9% YoY
• ▍Net margin 6.8%