Korea Aerospace Industries, Ltd. (047810.KS) stock analysis

In our weekly check, Korea Aerospace Industries, Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 3, red flags: 9.

About Korea Aerospace Industries, Ltd.

Korea Aerospace Industries, Ltd. is an Industrials company (Aerospace & Defense) based in South Korea, listed on KSC as 047810.KS.

What our checks show for 047810.KS

Red flags

• Net debt is 7.6x a year of EBITDA (debt/equity 1.59). That limits room in a downturn and raises refinancing risk.
• Operating cash flow is negative while the company reports a profit: the profit does not arrive as cash.
• The net margin is only 4%: little room if costs rise.
• Free cash flow is negative (-18.5% of revenue): the business spends more cash than it brings in.
• The price is 53.8 times earnings (P/E): the market already pays for a lot of future growth.
• The price swings a lot: 69.3% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 84% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 5.3 years.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Operating profit covers interest only 2.7 times: a weak year could make the payments hard.
• Thinly traded (about 350 thousand shares a day): buying and selling can move the price.
• Return on capital (ROCE) is only 5.3%.

Strengths

• The net margin rose by 1.5 points over 5 years, to 4%.
• The gross margin is 17.1% and has risen by 5.2 points: pricing power is holding.
• Analysts expect earnings per share to grow about 57.6% a year over the next years.
• Analysts expect revenue to grow about 23.9% a year over the next years.
• Analysts expect the net margin to improve by 3.4 points from today's 4%.
• Revenue grew 16.7% a year over the last 3 years.

Next earnings report: 2026-11-03

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Questions

What grade does Korea Aerospace Industries, Ltd. (047810.KS) have?

In our weekly check, Korea Aerospace Industries, Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 3, red flags: 9. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 047810.KS stock?

This week's biggest flags for Korea Aerospace Industries, Ltd.: High debt, Profits not backed by cash, Thin margins. In total 12 of 25 checks show a warning or a red flag.

What does Korea Aerospace Industries, Ltd. do?

Korea Aerospace Industries, Ltd. is an Industrials company (Aerospace & Defense) based in South Korea, listed on KSC as 047810.KS.

When does Korea Aerospace Industries, Ltd. report earnings next?

The next earnings report is expected on 2026-11-03. 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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