SG Co Ltd

SG Co Ltd's capital structure is characterized by a debt-to-equity ratio of 0.8, indicating a moderate reliance on debt financing. The company holds 33,570,137,850 KRW in cash and equivalents, but this is offset by 67,888,481,670 KRW in long-term debt, resulting in a net cash position of -34,318,343,820 KRW. The liquidity risk is moderate, with a current ratio of 0.9, suggesting limited short-term liquidity cushion.

Profitability metrics show significant underperformance relative to industry norms. The company reported a net loss of 3,871,158,590 KRW and an operating loss of 1,077,032,020 KRW, resulting in a negative return on equity of -4.54% and a negative return on assets of -1.91%. These figures are well below the typical performance of construction materials firms, which usually maintain positive ROE and ROA in the mid-single digits.

Geographically, SG Co Ltd's revenue is concentrated in South Korea, with no disclosed international operations. The company's business is entirely within the domestic construction materials segment, with no diversification across product lines or geographic regions. This concentration increases exposure to local economic cycles and regulatory changes.

The company's growth trajectory is negative, with a net loss in the most recent fiscal year. Historical revenue data is not provided, but the current operating and net losses suggest a contraction in earnings power. The free cash flow is negative at -2,651,072,030 KRW, indicating that the company is not generating sufficient cash to fund operations and capital expenditures without external financing.

Risk factors include liquidity constraints and the potential for further dilution if the company requires additional capital. The risk assessment indicates a low probability of dilution in the near term, but the negative free cash flow and operating losses could necessitate capital raising in the future. The company's debt load and negative cash flow from operations also contribute to its moderate liquidity risk.

Recent events include the disclosure of a net loss in the latest financial filing, with an actual EPS of 130.31 KRW. No recent earnings call transcripts or major corporate actions are disclosed in the available data. The company's financial performance has deteriorated, and there is no indication of a turnaround in the near term.

Free cash flow turned positive to 3.0 billion KRW, marking a 107.2% improvement from the prior period.

Operating income improved by 92.3% year-over-year, narrowing the operating loss to 1.4 billion KRW.

Revenue grew 26.4% year-over-year to 102.2 billion KRW, demonstrating top-line expansion momentum.

Dilution risk is assessed as low, suggesting limited immediate threat to existing shareholder equity value.

The company carries high credit risk, indicating significant potential for financial distress or default events.

Debt-to-equity ratio of 0.8 is in the bottom quartile, signaling high leverage relative to peers.

Return on equity of -4.5% ranks in the bottom quartile, showing poor capital efficiency versus peers.

Revenue declined at a 3.7% CAGR over four years, indicating a long-term downward trend.

Revenue KRW 30.85B, −25,1% YoY; Operating income +210,1% YoY.

• ▍Revenue KRW 30.85B, −25,1% YoY
• ▍Operating income +210,1% YoY
• ▍Net income +55,1% YoY
• ▍Free cash flow +63,6% YoY
• ▍Net margin -20.3%

Revenue KRW 21.98B, −24,4% YoY; Operating income −113,1% YoY.

• ▍Revenue KRW 21.98B, −24,4% YoY
• ▍Operating income −113,1% YoY
• ▍Net income +79,3% YoY
• ▍Free cash flow +102,7% YoY
• ▍Net margin -5.2%

Revenue KRW 35.14B, +5,3% YoY; Operating income +297,6% YoY.

• ▍Revenue KRW 35.14B, +5,3% YoY
• ▍Operating income +297,6% YoY
• ▍Net income +192,3% YoY
• ▍Free cash flow +282,4% YoY
• ▍Net margin 10.2%

Revenue KRW 14.27B; Operating income -KRW 2.45B.

• ▍Revenue KRW 14.27B
• ▍Operating income -KRW 2.45B
• ▍Net margin 11.8%

Revenue KRW 118.94B, +47,0% YoY; Operating income +49,8% YoY.

• ▍Revenue KRW 118.94B, +47,0% YoY
• ▍Operating income +49,8% YoY
• ▍Net income −19,9% YoY
• ▍Free cash flow +24,6% YoY
• ▍Net margin -30.0%