Coway Co., Ltd. (021240.KS) stock analysis

In our weekly check, Coway Co., Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 4, red flags: 5.

About Coway Co., Ltd.

Coway Co., Ltd. is a Consumer Cyclical company (Furnishings, Fixtures & Appliances) based in South Korea, listed on KSC as 021240.KS.

What our checks show for 021240.KS

Red flags

• The gross margin fell by 7.1 points, to 58.1%: costs are rising faster than prices.
• Operating cash flow is negative while the company reports a profit: the profit does not arrive as cash.
• Free cash flow is negative (-5.1% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 64% from a peak. Would you have held through that?
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Analysts expect the net margin to shrink by 0.1 points from today's 12.9%.
• The price swings a lot: 39.3% annual volatility. Expect large ups and downs.
• Recovering from its deepest fall took about 1.8 years.
• Thinly traded (about 186 thousand shares a day): buying and selling can move the price.

Strengths

• Operating profit covers interest 11.1 times over.
• Analysts expect earnings per share to grow about 10.3% a year over the next years.
• Earnings per share grew 15.1% a year over the last 3 years.
• Net profit grew 14.3% a year over the last 3 years.
• The dividend takes 27% of profit: there is a cushion.
• The price is 10.8 times earnings (P/E), reasonable for its growth.

Next earnings report: 2026-11-06

Similar companies

003550.KS · 0300.HK

Questions

What grade does Coway Co., Ltd. (021240.KS) have?

In our weekly check, Coway Co., Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 4, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 021240.KS stock?

This week's biggest flags for Coway Co., Ltd.: Gross margin falling, Profits not backed by cash, Weak free cash flow. In total 9 of 25 checks show a warning or a red flag.

What does Coway Co., Ltd. do?

Coway Co., Ltd. is a Consumer Cyclical company (Furnishings, Fixtures & Appliances) based in South Korea, listed on KSC as 021240.KS.

When does Coway Co., Ltd. report earnings next?

The next earnings report is expected on 2026-11-06. We re-run the checks every week, so the grade can change after it.

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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