Doosan Enerbility Co Ltd

Doosan Enerbility maintains a capital structure characterized by significant leverage and tight liquidity metrics. The company reports total assets of 27.5 trillion KRW against total liabilities of 19.7 trillion KRW, resulting in a debt-to-equity ratio of 0.8. Long-term debt stands at 6.2 trillion KRW, while cash and equivalents total 3.1 trillion KRW, leading to a negative net cash position as flagged in the risk assessment. The current ratio is 1.07, indicating minimal short-term liquidity buffer. Operating cash flow is 751.8 billion KRW, but free cash flow is negative at -50.2 billion KRW due to capital expenditures of 698.1 billion KRW.

Profitability metrics are exceptionally low relative to the valuation multiples. Return on equity is 1.98% and return on assets is 0.56%, reflecting thin margins on a large asset base. Net income is 84.8 billion KRW on revenue of 17.1 trillion KRW, yielding a net margin of approximately 0.5%. The company trades at a price-to-earnings ratio of 303.68 and an EV/EBITDA of 60.14, suggesting the market is pricing in significant future growth or a turnaround rather than current earnings power. The price-to-book ratio is 6.02, which is high for a utility sector company, implying investors expect substantial re-rating of the asset base or earnings expansion.

Revenue concentration and geographic exposure details are not provided in the available data, preventing a specific analysis of segment or regional risk. The company operates within the Electric Utilities industry, but without segment breakdowns, the specific drivers of the 17.1 trillion KRW revenue remain opaque in this snapshot. The absence of segment data limits the ability to assess diversification benefits or concentration risks within the utility business lines.

Growth trajectory analysis is constrained by the absence of historical period data in the input. Without 5-year annual or 8-quarter quarterly revenue and net income trends, it is not possible to quantify the momentum or deceleration of the business. The current financial snapshot shows a large revenue base, but the lack of historical context prevents a definitive statement on whether the company is in a growth, maturity, or decline phase.

Risk factors include medium liquidity risk and low dilution risk. The key flag notes that net cash is negative after subtracting total debt, highlighting reliance on external financing or operating cash flow to service obligations. The high valuation multiples amplify the risk if earnings do not materialize as expected. The low dilution risk suggests that share count stability is not a primary concern, with basic and diluted shares outstanding both at 640.5 million.

Recent events and analyst sentiment indicate strong bullish expectations. The mean analyst price target is 138,920.78 KRW, significantly higher than the current market price of 73,200.00 KRW. The mean recommendation is 1.62, with 9 strong buys and 15 buys, and no holds, reflecting unanimous positive sentiment among covering analysts. This divergence between current price and analyst targets suggests the market may be underpricing the company's future potential or that the current earnings base is viewed as temporary.

Analysts project 93.2% upside to a mean price target of 138,921 KRW, signaling strong market confidence.

Revenue grew at a 10.9% CAGR over four years, demonstrating consistent top-line expansion capabilities.

Cash conversion of 4.87 ranks best-in-class among 338 electric utility peers, highlighting superior efficiency.

Debt-to-equity ratio of 0.8 is below the cohort median of 0.75, indicating manageable leverage levels.

Operating income recovered to 1.24 trillion KRW in FY2024, showing resilience after a significant prior-year loss.

Net margin of 0.88% sits in the bottom quartile of the electric utility cohort, showing weak pricing power.

Revenue KRW 4.26T, +13,7% YoY; Operating income +62,7% YoY.

• ▍Revenue KRW 4.26T, +13,7% YoY
• ▍Operating income +62,7% YoY
• ▍Net income +101,1% YoY
• ▍Free cash flow +274,5% YoY
• ▍Net margin 0.0%

Revenue KRW 4.86T, +5,9% YoY; Operating income +2 301,2% YoY.

• ▍Revenue KRW 4.86T, +5,9% YoY
• ▍Operating income +2 301,2% YoY
• ▍Net income +163,9% YoY
• ▍Free cash flow +93,7% YoY
• ▍Net margin 1.5%

Revenue KRW 3.88T, +14,3% YoY; Operating income +22,6% YoY.

• ▍Revenue KRW 3.88T, +14,3% YoY
• ▍Operating income +22,6% YoY
• ▍Net income +9,0% YoY
• ▍Free cash flow −31,1% YoY
• ▍Net margin -1.3%

Revenue KRW 4.57T, +10,1% YoY; Operating income −12,9% YoY.

• ▍Revenue KRW 4.57T, +10,1% YoY
• ▍Operating income −12,9% YoY
• ▍Net income −3,9% YoY
• ▍Free cash flow +6,4% YoY
• ▍Net margin 2.9%

Revenue KRW 3.75T; Operating income KRW 142.94B.

• ▍Revenue KRW 3.75T
• ▍Operating income KRW 142.94B
• ▍Net margin -1.8%

Revenue KRW 4.59T; Operating income KRW 8.24B.

• ▍Revenue KRW 4.59T
• ▍Operating income KRW 8.24B
• ▍Net margin -2.5%

Revenue KRW 3.40T; Operating income KRW 108.12B.

• ▍Revenue KRW 3.40T
• ▍Operating income KRW 108.12B
• ▍Net margin -1.6%

Revenue KRW 4.15T; Operating income KRW 309.18B.

• ▍Revenue KRW 4.15T
• ▍Operating income KRW 309.18B
• ▍Net margin 3.3%

Revenue KRW 17.06T, +5,1% YoY; Operating income −5,3% YoY.

• ▍Revenue KRW 17.06T, +5,1% YoY
• ▍Operating income −5,3% YoY
• ▍Net income −23,9% YoY
• ▍Free cash flow −136,0% YoY
• ▍Net margin 0.5%

Revenue KRW 16.23T, −7,7% YoY; Operating income −36,6% YoY.

• ▍Revenue KRW 16.23T, −7,7% YoY
• ▍Operating income −36,6% YoY
• ▍Net income +100,3% YoY
• ▍Free cash flow −52,8% YoY
• ▍Net margin 0.7%

Revenue KRW 17.59T, +14,1% YoY; Operating income +160,6% YoY.

• ▍Revenue KRW 17.59T, +14,1% YoY
• ▍Operating income +160,6% YoY
• ▍Net income +107,2% YoY
• ▍Free cash flow +158,9% YoY
• ▍Net margin 0.3%

Revenue KRW 15.42T, +36,7% YoY; Operating income −44,4% YoY.

• ▍Revenue KRW 15.42T, +36,7% YoY
• ▍Operating income −44,4% YoY
• ▍Net income −256,0% YoY
• ▍Free cash flow −197,0% YoY
• ▍Net margin -5.0%