STO (KOSDAQ:A098660) - Share price, News & Analysis

Q: What is the Fair Price of A098660 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

A098660 (₩2235) is trading below our estimate of [[fair value]] (₩34401.85)

A098660 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	0/6
Financial Health	5/6
Dividends	3/6

A098660 Stock Overview

STO Co., Ltd. engages in the manufacture, distribution, and sale of men's clothing, leather, and accessories.

Rewards

Trading at 93.5% below our estimate of its fair value

Risk Analysis

Earnings have declined by 38.2% per year over past 5 years

Dividend of 4.92% is not well covered by earnings

Volatile share price over the past 3 months

Does not have a meaningful market cap (₩27B)

STO Competitors

HYUNGJI INNOVATION & CREATIVELtd

KOSDAQ:A011080

₩33.6b

Jindo.Co

KOSE:A088790

₩41.5b

In the FLTD

KOSE:A014990

₩54.9b

J.ESTINALtd

KOSDAQ:A026040

₩48.0b

Price History & Performance

Summary of all time highs, changes and price drops for STO
Historical stock prices
Current Share Price	₩2,235.00
52 Week High	₩3,750.00
52 Week Low	₩2,035.00
Beta	0.77
1 Month Change	1.59%
3 Month Change	-28.71%
1 Year Change	-26.24%
3 Year Change	-0.52%
5 Year Change	-1.97%
Change since IPO	-51.31%

Recent News & Updates

Mar 22

Here's Why STO (KOSDAQ:098660) Has A Meaningful Debt Burden

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

	A098660	KR Luxury	KR Market
7D	-4.1%	1.4%	1.7%
1Y	-26.2%	-16.7%	-21.9%

Return vs Industry: A098660 underperformed the KR Luxury industry which returned -16.7% over the past year.

Return vs Market: A098660 underperformed the KR Market which returned -21.9% over the past year.

Price Volatility

Is A098660's price volatile compared to industry and market?
A098660 volatility
A098660 Average Weekly Movement	10.4%
Luxury Industry Average Movement	6.4%
Market Average Movement	6.5%
10% most volatile stocks in KR Market	11.0%
10% least volatile stocks in KR Market	4.0%

Stable Share Price: A098660 is more volatile than 75% of KR stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: A098660's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of KR stocks.

About the Company

Founded	Employees	CEO	Website
2003	82	Heung-Soo Kim	https://www.thesto.kr

STO Co., Ltd. engages in the manufacture, distribution, and sale of men's clothing, leather, and accessories. The company was founded in 2003 and is headquartered in Seoul, South Korea.

STO Fundamentals Summary

How do STO's earnings and revenue compare to its market cap?
A098660 fundamental statistics
Market Cap	₩27.13b
Earnings (TTM)	-₩187.35m
Revenue (TTM)	₩65.19b

0.4x

P/S Ratio

-144.8x

P/E Ratio

Is A098660 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
A098660 income statement (TTM)
Revenue	₩65.19b
Cost of Revenue	₩29.32b
Gross Profit	₩35.87b
Other Expenses	₩36.05b
Earnings	-₩187.35m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-15.44
Gross Margin	55.02%
Net Profit Margin	-0.29%
Debt/Equity Ratio	62.6%

How did A098660 perform over the long term?

See historical performance and comparison

Dividends

4.9%

Current Dividend Yield

-679%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is A098660 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for A098660?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for A098660. This is calculated by dividing A098660's market cap by their current preferred multiple.
What is A098660's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₩27.13b

A098660 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.7x
Enterprise Value/EBITDA	17.7x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does A098660's PS Ratio compare to its peers?

A098660 PS Ratio vs Peers

The above table shows the PS ratio for A098660 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	0.6x
A011080 HYUNGJI INNOVATION & CREATIVELtd	0.5x	n/a	₩33.6b
A088790 Jindo.Co	0.7x	n/a	₩41.5b
A014990 In the FLTD	0.4x	n/a	₩54.9b
A026040 J.ESTINALtd	0.7x	n/a	₩48.0b
A098660 STO	0.4x	n/a	₩27.1b

Price-To-Sales vs Peers: A098660 is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (0.6x).

Price to Earnings Ratio vs Industry

How does A098660's PE Ratio compare vs other companies in the KR Luxury Industry?

Price-To-Sales vs Industry: A098660 is good value based on its Price-To-Sales Ratio (0.4x) compared to the KR Luxury industry average (0.6x)

Price to Sales Ratio vs Fair Ratio

What is A098660's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

A098660 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.4x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate A098660's Price-To-Sales Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of A098660 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: A098660 (₩2235) is trading below our estimate of fair value (₩34401.85)

Significantly Below Fair Value: A098660 is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is STO forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

18.3%

Forecasted Consumer Durables industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as STO has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine whether STO is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has STO performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-38.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: A098660 is currently unprofitable.

Growing Profit Margin: A098660 is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: A098660 is unprofitable, and losses have increased over the past 5 years at a rate of 38.2% per year.

Accelerating Growth: Unable to compare A098660's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: A098660 is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (47.2%).

Return on Equity

High ROE: A098660 has a negative Return on Equity (-0.68%), as it is currently unprofitable.

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Financial Health

How is STO's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: A098660's short term assets (₩39.8B) exceed its short term liabilities (₩29.1B).

Long Term Liabilities: A098660's short term assets (₩39.8B) exceed its long term liabilities (₩10.7B).

Debt to Equity History and Analysis

Debt Level: A098660's net debt to equity ratio (35.5%) is considered satisfactory.

Reducing Debt: A098660's debt to equity ratio has reduced from 67.9% to 62.6% over the past 5 years.

Debt Coverage: A098660's debt is well covered by operating cash flow (64.9%).

Interest Coverage: Insufficient data to determine if A098660's interest payments on its debt are well covered by EBIT.

Balance Sheet

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Dividend

What is STO current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

4.92%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: A098660's dividend (4.92%) is higher than the bottom 25% of dividend payers in the KR market (0.94%).

High Dividend: A098660's dividend (4.92%) is in the top 25% of dividend payers in the KR market (3%)

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, A098660 has been paying a dividend for less than 10 years.

Growing Dividend: A098660's dividend payments have increased, but the company has only paid a dividend for 3 years.

Earnings Payout to Shareholders

Earnings Coverage: A098660 is paying a dividend but the company is unprofitable.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (15.5%), A098660's dividend payments are well covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

CEO

Heung-Soo Kim (59 yo)

no data

Tenure

Mr. Kim serves as the Chief Executive Officer of STO Co., Ltd. and manages Handling Generally Entire Business Department. He was employed in LG Fashion in February 2003 and graduated from Sogang University...

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/10 00:00
End of Day Share Price	2022/08/10 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31