LIG Defense & Aerospace Co Ltd (079550.KS) stock analysis
In our weekly check, LIG Defense & Aerospace Co Ltd is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 3, red flags: 6.
About LIG Defense & Aerospace Co Ltd
LIG Defense & Aerospace Co Ltd is an Industrials company (Aerospace & Defense) based in South Korea, listed on KSC as 079550.KS.
What our checks show for 079550.KS
Red flags
- Operating cash flow is negative while the company reports a profit: the profit does not arrive as cash.
- Free cash flow is negative (-28.7% of revenue): the business spends more cash than it brings in.
- The price swings a lot: 87.7% annual volatility. Expect large ups and downs.
- The stock has fallen as much as 87% from a peak. Would you have held through that?
- Recovering from its deepest fall took about 3.6 years.
- Pay in shares equals 0% of free cash flow: it dilutes shareholders.
Warning signs
- Net debt is 3.8x a year of EBITDA (debt/equity 1.09). That limits room in a downturn and raises refinancing risk.
- The net margin is only 6.1%: little room if costs rise.
- Thinly traded (about 126 thousand shares a day): buying and selling can move the price.
Strengths
- Operating profit covers interest 11 times over.
- The gross margin is 16.6% and has risen by 3.9 points: pricing power is holding.
- Analysts expect earnings per share to grow about 43.3% a year over the next years.
- Analysts expect revenue to grow about 18.5% a year over the next years.
- Analysts expect the net margin to improve by 3.7 points from today's 6.1%.
- Revenue grew 28.7% a year over the last 3 years.
Next earnings report: 2026-11-06
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Questions
What grade does LIG Defense & Aerospace Co Ltd (079550.KS) have?
In our weekly check, LIG Defense & Aerospace Co Ltd is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 3, red flags: 6. The grade is a risk check, not a buy or sell recommendation.
What are the main risks of 079550.KS stock?
This week's biggest flags for LIG Defense & Aerospace Co Ltd: Profits not backed by cash, Weak free cash flow, Very volatile. In total 9 of 25 checks show a warning or a red flag.
What does LIG Defense & Aerospace Co Ltd do?
LIG Defense & Aerospace Co Ltd is an Industrials company (Aerospace & Defense) based in South Korea, listed on KSC as 079550.KS.
When does LIG Defense & Aerospace 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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