Sungshin Cement Co Ltd

Sungshin Cement maintains a debt-to-equity ratio of 0.88, indicating a moderate reliance on debt financing relative to equity. The company's liquidity position is characterized as medium risk, with a current ratio of 0.74, suggesting that current liabilities exceed current assets. Free cash flow is minimal at 1.25 billion KRW, which may limit the company's ability to reinvest or return capital to shareholders.

Profitability metrics show a return on equity (ROE) of 4.3% and a return on assets (ROA) of 1.74%. These figures are below the industry median for Construction Materials companies, indicating that Sungshin Cement is underperforming in terms of capital efficiency and asset utilization.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to regional economic fluctuations and regulatory changes. The company's operating income of 36.99 billion KRW is supported by a gross profit of 72.36 billion KRW, but the net income of 23.87 billion KRW reflects the high cost of debt servicing.

Looking ahead, Sungshin Cement is projected to maintain a stable revenue trajectory, with analysts reporting a last actual revenue of 1.22 trillion KRW. However, the company's capital expenditure of -36.92 billion KRW indicates a reduction in investment, which may affect long-term growth potential. The company's free cash flow is insufficient to support significant reinvestment or shareholder returns.

The company's risk profile is marked by a medium liquidity risk and a low dilution risk. The key flag of negative net cash after subtracting total debt highlights the company's leverage risk. The dilution risk is low, with no near-term pressure for additional equity issuance.

Recent financial filings and transcripts indicate that Sungshin Cement is managing its debt obligations and maintaining operational efficiency. The company's last actual EPS was 1,044.00 KRW, reflecting a stable earnings performance. However, the company's capital expenditure and free cash flow suggest a conservative approach to reinvestment.

Sungshin Cement Co Ltd (004980.KS) has undergone a significant structural update in its corporate taxonomy, now formally classified under the "Mineral Resources" activity and the "Basic Materials" economic sector. This reclassification represents a medium-severity change in the company's profile, establishing a clearer framework for understanding its operational focus within the broader industrial landscape. Alongside these sectoral adjustments, the company’s risk assessment profile has been initialized with specific metrics. Dilution risk is now assessed as "low," indicating a stable share structure with minimal threat of equity erosion. Conversely, liquidity risk has been flagged as "medium," suggesting that while the company maintains operational stability, investors should monitor its cash flow dynamics and short-term financial flexibility more closely than in a low-risk scenario. These updates provide a more granular view of Sungshin Cement’s financial health and market positioning. The distinction between low dilution risk and medium liquidity risk offers a nuanced perspective for stakeholders, highlighting that while ownership stakes are secure, the company’s ability to meet immediate financial obligations remains a key area of observation. The synthesis of these changes aligns with the company’s current market presence, which includes coverage by one analyst and one officer, though it currently holds no index memberships or disclosed top holders. This foundational data update serves as a critical baseline for future financial analysis and investment decision-making regarding Sungshin Cement.

Revenue grew 9.9% annually over four years, demonstrating consistent top-line expansion for Sungshin Cement.

Free cash flow surged 232.7% year-over-year, indicating a strong recovery in cash generation capabilities.

Return on equity of 4.3% outperforms the 2.9% median, suggesting efficient use of shareholder capital.

Net income plummeted 42.5% year-over-year, signaling a sharp deterioration in bottom-line profitability.

The company faces high credit risk, indicating potential difficulties in meeting financial obligations.

Debt-to-equity ratio of 0.88 is in the bottom quartile, implying higher leverage than peers.

Medium liquidity risk suggests potential challenges in managing short-term financial obligations effectively.

Revenue KRW 1.22T, +4,6% YoY; Operating income −35,9% YoY.

• ▍Revenue KRW 1.22T, +4,6% YoY
• ▍Operating income −35,9% YoY
• ▍Net income −42,5% YoY
• ▍Free cash flow +232,7% YoY
• ▍Net margin 2.1%

Revenue KRW 1.16T, +4,4% YoY; Operating income −9,1% YoY.

• ▍Revenue KRW 1.16T, +4,4% YoY
• ▍Operating income −9,1% YoY
• ▍Net income −32,2% YoY
• ▍Free cash flow −68,4% YoY
• ▍Net margin 3.9%

Revenue KRW 1.11T, +8,0% YoY; Operating income +620,9% YoY.

• ▍Revenue KRW 1.11T, +8,0% YoY
• ▍Operating income +620,9% YoY
• ▍Net income +351,2% YoY
• ▍Free cash flow +134,0% YoY
• ▍Net margin 6.0%

Revenue KRW 1.03T, +23,6% YoY; Operating income −157,4% YoY.

• ▍Revenue KRW 1.03T, +23,6% YoY
• ▍Operating income −157,4% YoY
• ▍Net income −512,3% YoY
• ▍Free cash flow −2 423,9% YoY
• ▍Net margin -2.6%

Revenue KRW 833.54B; Operating income KRW 22.87B.

• ▍Revenue KRW 833.54B
• ▍Operating income KRW 22.87B
• ▍Net margin 0.8%