Hanwha Ocean Co., Ltd. (042660.KS) stock analysis

In our weekly check, Hanwha Ocean Co., Ltd. is graded C (A to F). Of 23 checks on debt, profit, cash flow and trend: 14 pass, warnings: 5, red flags: 4.

About Hanwha Ocean Co., Ltd.

Hanwha Ocean Co., Ltd. is an Industrials company (Aerospace & Defense) based in South Korea, listed on KSC as 042660.KS.

What our checks show for 042660.KS

Red flags

• Operating profit does not cover the interest bill (0x): interest is paid from cash or new debt.
• The price swings a lot: 74.4% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 98% from a peak. Would you have held through that?
• The share count grew by 65.8% in 2 years: each shareholder owns a smaller slice.

Warning signs

• Net debt is 4.4x a year of EBITDA (debt/equity 1.64). That limits room in a downturn and raises refinancing risk.
• Earnings per share fell 34.3% a year over the last 3 years.
• The net margin is only 9.5%: little room if costs rise.
• Free cash flow is only 4.5% of revenue.
• The stock is still below its previous peak.

Strengths

• The net margin rose by 47.4 points over 5 years, to 9.5%.
• The gross margin is 15.8% and has risen by 50.2 points: pricing power is holding.
• Analysts expect earnings per share to grow about 17.6% a year over the next years.
• Analysts expect the net margin to improve by 3.2 points from today's 9.5%.
• Revenue grew 39% a year over the last 3 years.
• The price is 7.9 times earnings (P/E), reasonable for its growth.

Similar companies

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Questions

What grade does Hanwha Ocean Co., Ltd. (042660.KS) have?

In our weekly check, Hanwha Ocean Co., Ltd. is graded C (A to F). Of 23 checks on debt, profit, cash flow and trend: 14 pass, warnings: 5, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 042660.KS stock?

This week's biggest flags for Hanwha Ocean Co., Ltd.: Weak interest cover, Very volatile, Deep past fall. In total 9 of 23 checks show a warning or a red flag.

What does Hanwha Ocean Co., Ltd. do?

Hanwha Ocean Co., Ltd. is an Industrials company (Aerospace & Defense) based in South Korea, listed on KSC as 042660.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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