SK Square Co., Ltd. (402340.KS) stock analysis

In our weekly check, SK Square Co., Ltd. is graded C (A to F). Of 23 checks on debt, profit, cash flow and trend: 14 pass, warnings: 2, red flags: 7.

About SK Square Co., Ltd.

SK Square Co., Ltd. is a Technology company (Semiconductors) based in South Korea, listed on KSC as 402340.KS.

What our checks show for 402340.KS

Red flags

• Operating profit does not cover the interest bill (-84.9x): interest is paid from cash or new debt.
• The gross margin fell by 13.6 points, to 73.3%: costs are rising faster than prices.
• Operating cash flow is only 0.01x net profit: part of the reported profit does not arrive as cash.
• The price swings a lot: 97.8% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 62% from a peak. Would you have held through that?
• Beta 2.45: the stock usually moves more than the market, both up and down.
• Return on capital (ROCE) is zero or negative: the business does not earn on the money put into it.

Warning signs

• Free cash flow is negative (-18.5% of revenue): the business spends more cash than it brings in.
• The stock is still below its previous peak.

Strengths

• Debt is low: 0x equity.
• The net margin rose by 592 points over 5 years, to 625%.
• Analysts expect earnings per share to grow about 28.8% a year over the next years.
• Analysts expect the net margin to improve by 3544 points from today's 625%.
• Earnings per share grew 414% a year over the last 3 years.
• Net profit grew 402% a year over the last 3 years.

Next earnings report: 2026-11-12

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Questions

What grade does SK Square Co., Ltd. (402340.KS) have?

In our weekly check, SK Square Co., Ltd. is graded C (A to F). Of 23 checks on debt, profit, cash flow and trend: 14 pass, warnings: 2, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 402340.KS stock?

This week's biggest flags for SK Square Co., Ltd.: Weak interest cover, Gross margin falling, Profits not backed by cash. In total 9 of 23 checks show a warning or a red flag.

What does SK Square Co., Ltd. do?

SK Square Co., Ltd. is a Technology company (Semiconductors) based in South Korea, listed on KSC as 402340.KS.

When does SK Square Co., Ltd. report earnings next?

The next earnings report is expected on 2026-11-12. 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 2026-10-24

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