New Risk • Feb 05
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. The company is paying a dividend despite being loss-making. The company is paying a dividend despite having no free cash flows. Dividend yield: 1.0% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (0.8x net interest cover). Dividend is not well covered by earnings and cash flows. Paying a dividend despite being loss-making. Paying a dividend despite having no free cash flows. Minor Risk Market cap is less than US$100m (₩24.6b market cap, or US$16.8m). New Risk • May 29
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 0.6% Last year net profit margin: 1.0% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.3x net interest cover). Share price has been highly volatile over the past 3 months (14% average weekly change). Minor Risks Profit margins are more than 30% lower than last year (0.6% net profit margin). Market cap is less than US$100m (₩37.3b market cap, or US$27.0m). Valuation Update With 7 Day Price Move • May 19
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ₩1,602, the stock trades at a trailing P/E ratio of 30x. Average trailing P/E is 15x in the Machinery industry in South Korea. Total loss to shareholders of 40% over the past three years. Reported Earnings • Mar 27
Full year 2024 earnings released: EPS: ₩53.00 (vs ₩71.00 in FY 2023) Full year 2024 results: EPS: ₩53.00 (down from ₩71.00 in FY 2023). Revenue: ₩156.0b (flat on FY 2023). Net income: ₩1.31b (down 24% from FY 2023). Profit margin: 0.8% (down from 1.1% in FY 2023). Over the last 3 years on average, earnings per share has fallen by 11% per year whereas the company’s share price has fallen by 13% per year. Valuation Update With 7 Day Price Move • Mar 25
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to ₩1,718, the stock trades at a trailing P/E ratio of 28.1x. Average trailing P/E is 14x in the Machinery industry in South Korea. Total loss to shareholders of 42% over the past three years. Announcement • Mar 01
CAS Corporation, Annual General Meeting, Mar 31, 2025 CAS Corporation, Annual General Meeting, Mar 31, 2025, at 08:30 Tokyo Standard Time. Location: auditorium, 262, geurugogae-ro, gwangjeok-myeon, gyeonggi-do, yangju South Korea Valuation Update With 7 Day Price Move • Jan 17
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩1,970, the stock trades at a trailing P/E ratio of 32.3x. Average trailing P/E is 14x in the Machinery industry in South Korea. Total loss to shareholders of 50% over the past three years. Buy Or Sell Opportunity • Jan 02
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 105% to ₩2,505. The fair value is estimated to be ₩2,083, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. Upcoming Dividend • Dec 20
Upcoming dividend of ₩10.00 per share Eligible shareholders must have bought the stock before 27 December 2024. Payment date: 23 April 2025. Payout ratio is a comfortable 17% but the company is not cash flow positive. Trailing yield: 0.5%. Lower than top quartile of South Korean dividend payers (3.9%). Lower than average of industry peers (2.0%). Valuation Update With 7 Day Price Move • Dec 18
Investor sentiment deteriorates as stock falls 25% After last week's 25% share price decline to ₩2,120, the stock trades at a trailing P/E ratio of 34.7x. Average trailing P/E is 13x in the Machinery industry in South Korea. Total loss to shareholders of 46% over the past three years. Buy Or Sell Opportunity • Dec 10
Now 36% overvalued after recent price rise Over the last 90 days, the stock has risen 136% to ₩2,830. The fair value is estimated to be ₩2,081, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. New Risk • Dec 04
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of South Korean stocks, typically moving 9.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.6x net interest cover). Minor Risks Share price has been volatile over the past 3 months (9.6% average weekly change). Market cap is less than US$100m (₩35.9b market cap, or US$25.4m). Valuation Update With 7 Day Price Move • Dec 04
Investor sentiment improves as stock rises 30% After last week's 30% share price gain to ₩1,462, the stock trades at a trailing P/E ratio of 24x. Average trailing P/E is 13x in the Machinery industry in South Korea. Total loss to shareholders of 64% over the past three years. Reported Earnings • Mar 24
Full year 2023 earnings released: EPS: ₩71.00 (vs ₩112 in FY 2022) Full year 2023 results: EPS: ₩71.00 (down from ₩112 in FY 2022). Revenue: ₩156.0b (down 7.3% from FY 2022). Net income: ₩1.73b (down 37% from FY 2022). Profit margin: 1.1% (down from 1.6% in FY 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 54% per year but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Upcoming Dividend • Dec 20
Upcoming dividend of ₩10.00 per share at 0.7% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 22 April 2024. The company is not currently making a profit but it is cash flow positive. Trailing yield: 0.7%. Lower than top quartile of South Korean dividend payers (3.5%). Lower than average of industry peers (2.3%). Reported Earnings • Mar 26
Full year 2022 earnings released: EPS: ₩121 (vs ₩128 loss in FY 2021) Full year 2022 results: EPS: ₩121 (up from ₩128 loss in FY 2021). Revenue: ₩168.4b (up 4.9% from FY 2021). Net income: ₩2.74b (up ₩5.32b from FY 2021). Profit margin: 1.6% (up from net loss in FY 2021). Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 21
Upcoming dividend of ₩15.00 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 24 April 2023. Payout ratio is a comfortable 4.8% but the company is not cash flow positive. Trailing yield: 0.8%. Lower than top quartile of South Korean dividend payers (3.3%). Lower than average of industry peers (2.1%). Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. No highly experienced directors. No independent directors (6 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Board Change • Apr 27
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. No highly experienced directors. No independent directors (6 non-independent directors). was the last director to join the board, commencing their role in . The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Upcoming Dividend • Dec 22
Upcoming dividend of ₩10.00 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 25 April 2022. The company is not currently making a profit and is not cash flow positive. Trailing yield: 0.2%. Lower than top quartile of South Korean dividend payers (2.4%). Lower than average of industry peers (2.8%). Is New 90 Day High Low • Jan 15
New 90-day high: ₩3,000 The company is up 34% from its price of ₩2,245 on 16 October 2020. The South Korean market is up 32% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 26% over the same period. Valuation Update With 7 Day Price Move • Nov 19
Market bids up stock over the past week After last week's 18% share price gain to ₩2,670, the stock is trading at a trailing P/E ratio of 60.6x, up from the previous P/E ratio of 51.3x. This compares to an average P/E of 20x in the Machinery industry in South Korea. Total returns to shareholders over the past three years are 79%. Is New 90 Day High Low • Nov 19
New 90-day high: ₩2,670 The company is up 48% from its price of ₩1,810 on 21 August 2020. The South Korean market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 16% over the same period. Is New 90 Day High Low • Oct 22
New 90-day high: ₩2,580 The company is up 24% from its price of ₩2,080 on 24 July 2020. The South Korean market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 2.0% over the same period. Valuation Update With 7 Day Price Move • Oct 22
Market bids up stock over the past week After last week's 22% share price gain to ₩2,580, the stock is trading at a trailing P/E ratio of 58.6x, up from the previous P/E ratio of 47.9x. This compares to an average P/E of 19x in the Machinery industry in South Korea. Total returns to shareholders over the past three years are 90%.