Korean Air Lines Co., Ltd. (003490.KS) stock analysis

In our weekly check, Korean Air Lines Co., Ltd. is graded D (A to F). Of 23 checks on debt, profit, cash flow and trend: 9 pass, warnings: 3, red flags: 11.

About Korean Air Lines Co., Ltd.

Korean Air Lines Co., Ltd. is an Industrials company (Airlines, Airports & Air Services) based in South Korea, listed on KSC as 003490.KS.

What our checks show for 003490.KS

Red flags

• Net debt is 6.7x a year of EBITDA (debt/equity 2.34). That limits room in a downturn and raises refinancing risk.
• Operating profit does not cover the interest bill (0.7x): interest is paid from cash or new debt.
• The net margin fell by 7.4 points over 5 years, to -1%: the company keeps less of each sale as profit.
• The gross margin fell by 11.7 points, to 11.6%: costs are rising faster than prices.
• Earnings per share fell 47.9% a year over the last 3 years.
• The company is losing money: the net margin is -1%.
• Free cash flow is negative (-3.3% of revenue): the business spends more cash than it brings in.
• Korean Air Lines Co., Ltd. pays a dividend while losing money: it is funded from reserves or debt.
• The stock has fallen as much as 84% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 1.7%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Analysts expect only about 4% a year of growth in revenue.
• The price swings a lot: 48% annual volatility. Expect large ups and downs.
• The stock is still below its previous peak.

Strengths

• Operating cash flow is 14.61x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 105% a year over the next years.
• Analysts expect the net margin to improve by 6.2 points from today's -1%.
• Revenue grew 23.3% a year over the last 3 years.
• Actively traded: about 2.6 million shares a day.

Similar companies

INDIGO.NS · 247540.KQ · 267250.KS · 047810.KS · 6503.T · 000720.KS

Questions

What grade does Korean Air Lines Co., Ltd. (003490.KS) have?

In our weekly check, Korean Air Lines Co., Ltd. is graded D (A to F). Of 23 checks on debt, profit, cash flow and trend: 9 pass, warnings: 3, red flags: 11. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 003490.KS stock?

This week's biggest flags for Korean Air Lines Co., Ltd.: High debt, Weak interest cover, Margins falling. In total 14 of 23 checks show a warning or a red flag.

What does Korean Air Lines Co., Ltd. do?

Korean Air Lines Co., Ltd. is an Industrials company (Airlines, Airports & Air Services) based in South Korea, listed on KSC as 003490.KS.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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