Ilshinstone.Co.,Ltd. produces and sells Pocheon stone in South Korea. The company offers limestone, marble, sandstone, engineered stone, cork, fila, granite, basalt, travertine, and other products. It also exports its products. The company was formerly known as Ilshin Stone Craft Co., Ltd. and changed its name to Ilshinstone.Co.,Ltd. Ilshinstone.Co.,Ltd. was founded in 1971 and is based in Seoul, South Korea.

Korea

Ilshinstone.Co.,Ltd.

Industrials

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

007110.KS reported revenue of KRW 78 727mn in the last 12 months, down 22% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 53% from FY23 to KRW 8.36.

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Over the past six months the stock has exceeded the performance of this peer group by 51ppts and its growth decelerated by 14ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

The company has reported weak EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 8.7% in the last 12 months, up from 5.6% in FY23. 

Historically, 007110.KS has reported weak net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 0.9%, down from 1.3% in FY23. 

Ilshinstone.Co.,Ltd. reported a return on equity (RoE) of 1.2% in the last 12 months, down from 2.4% in FY23. 

Another important profitability metric, return on assets (RoA), amounted to 0.7% in the last 12 months, a decrease from 1.2% in FY23. 

In the last 12 months, the return on capital employed (RoCE) declined to 0.9%, below the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 0.8 in the past several years. This ratio implies a poor shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

007110.KS has poor trading liquidity. The average private investor can sell his common position in the stock almost immediately. Liquidity is unstable and is somewhat unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. The stock has a very small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, bleak profitability, and negligible return on capital. We note low margin volatility and an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, 007110.KS is volatile. In other words, the stock will fall much more than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be large. 

In normal market circumstances, 007110.KS is highly volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change somewhat erratically. The stock's losses on its worst days (less than 1-5% of the time) will range from large to notable. We would also like to highlight the notable intraday volatility of the instrument. 

Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. In particular, the stock is overpriced on P/E, 'expensive' on EV/EBITDA, overvalued on P/FCF. 

Ilshinstone.Co.,Ltd.

₩ 2310

2

Ilshinstone.Co.,Ltd.

₩ 2310

2

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

₩ 2310

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