Hanwha Systems Co., Ltd. (272210.KS) stock analysis

In our weekly check, Hanwha Systems Co., Ltd. is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 12 pass, warnings: 4, red flags: 8.

About Hanwha Systems Co., Ltd.

Hanwha Systems Co., Ltd. is an Industrials company (Aerospace & Defense) based in South Korea, listed on KSC as 272210.KS.

What our checks show for 272210.KS

Red flags

• Operating profit does not cover the interest bill (0x): interest is paid from cash or new debt.
• Operating cash flow is only 0.44x net profit: part of the reported profit does not arrive as cash.
• Free cash flow is negative (-5.3% of revenue): the business spends more cash than it brings in.
• The dividend takes 36054% of profit: little cushion if profit falls.
• The price swings a lot: 91.5% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 67% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 3.7%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Net debt is 4.3x a year of EBITDA (debt/equity 0.75). That limits room in a downturn and raises refinancing risk.
• The net margin is only 6.6%: little room if costs rise.
• The stock is still below its previous peak.
• Beta 1.47: the stock usually moves more than the market, both up and down.

Strengths

• The net margin rose by 1.9 points over 5 years, to 6.6%.
• The gross margin is 29.1% and has risen by 15.5 points: pricing power is holding.
• Analysts expect earnings per share to grow about 27.5% a year over the next years.
• Analysts expect the net margin to improve by 3.3 points from today's 6.6%.
• Revenue grew 18.8% a year over the last 3 years.
• Earnings per share grew 46.6% a year over the last 3 years.

Similar companies

047810.KS · 010140.KS · 079550.KS · 042660.KS · 009540.KS · 443060.KS

Questions

What grade does Hanwha Systems Co., Ltd. (272210.KS) have?

In our weekly check, Hanwha Systems Co., Ltd. is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 12 pass, warnings: 4, red flags: 8. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 272210.KS stock?

This week's biggest flags for Hanwha Systems Co., Ltd.: Weak interest cover, Profits not backed by cash, Weak free cash flow. In total 12 of 24 checks show a warning or a red flag.

What does Hanwha Systems Co., Ltd. do?

Hanwha Systems Co., Ltd. is an Industrials company (Aerospace & Defense) based in South Korea, listed on KSC as 272210.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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