NH Investment & Securities Co., Ltd. (005940.KS) stock analysis

In our weekly check, NH Investment & Securities Co., Ltd. is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 14 pass, warnings: 2, red flags: 8.

About NH Investment & Securities Co., Ltd.

NH Investment & Securities Co., Ltd. is a Financial Services company (Financial - Capital Markets) based in South Korea, listed on KSC as 005940.KS.

What our checks show for 005940.KS

Red flags

• The net margin fell by 27.5 points over 5 years, to 6.7%: the company keeps less of each sale as profit.
• Analysts expect revenue to shrink about 37.6% a year.
• The dividend takes 42477% of profit: little cushion if profit falls.
• The price swings a lot: 56.4% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 81% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 5.7 years.
• Return on capital (ROCE) is only 2.4%.

Warning signs

• The net margin is only 6.7%: little room if costs rise.
• Thinly traded (about 466 thousand shares a day): buying and selling can move the price.

Strengths

• The gross margin is 100% and has risen by 8.4 points: pricing power is holding.
• Operating cash flow is 8.63x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 13.4% a year over the next years.
• Analysts expect the net margin to improve by 33.5 points from today's 6.7%.
• Revenue grew 97.6% a year over the last 3 years.
• Earnings per share grew 47.5% a year over the last 3 years.

Similar companies

071050.KS · 016360.KS · 8604.T · 8601.T

Questions

What grade does NH Investment & Securities Co., Ltd. (005940.KS) have?

In our weekly check, NH Investment & Securities Co., Ltd. is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 14 pass, warnings: 2, red flags: 8. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 005940.KS stock?

This week's biggest flags for NH Investment & Securities Co., Ltd.: Margins falling, Weak revenue forecast, Dividend stretched. In total 10 of 24 checks show a warning or a red flag.

What does NH Investment & Securities Co., Ltd. do?

NH Investment & Securities Co., Ltd. is a Financial Services company (Financial - Capital Markets) based in South Korea, listed on KSC as 005940.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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