New Risk • Mar 30
New major risk - Revenue and earnings growth Earnings have declined by 7.3% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (19% operating cash flow to total debt). Earnings have declined by 7.3% per year over the past 5 years. Minor Risks Paying a dividend despite being loss-making. Market cap is less than US$100m (₩19.4b market cap, or US$12.8m). Announcement • Mar 24
STO Co., Ltd. (KOSDAQ:A098660) announces an Equity Buyback for KRW 1,000 million worth of its shares. STO Co., Ltd. (KOSDAQ:A098660) announces a share repurchase program. Under the program, the company will repurchase up to KRW 1,000 million worth of its common stock. The purpose of the program is stabilization of stock price and enhancement of shareholder value. The program will expire on December 30, 2026. As of March 23, 2026, the company had 362,483 shares available for acquisition within the dividend-eligible range and 1,245 shares from other stocks. Upcoming Dividend • Dec 22
Upcoming dividend of ₩40.00 per share Eligible shareholders must have bought the stock before 29 December 2025. Payment date: 27 April 2026. The company is not currently making a profit but it is cash flow positive. Trailing yield: 2.3%. Lower than top quartile of South Korean dividend payers (3.6%). In line with average of industry peers (2.4%). Declared Dividend • Nov 08
Dividend of ₩40.00 announced Dividend of ₩40.00 is the same as last year. Ex-date: 29th December 2025 Payment date: 27th April 2026 Dividend yield will be 2.2%, which is lower than the industry average of 2.8%. Sustainability & Growth Dividend is being paid despite the company being loss-making over the last 12 months and having no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has decreased over the past 66 years, indicating a lack of growth and stability in payments. Announcement • Nov 07
STO Co., Ltd. announces Annual dividend, payable on April 27, 2026 STO Co., Ltd. announced Annual dividend of KRW 40.0000 per share payable on April 27, 2026, ex-date on December 29, 2025 and record date on December 31, 2025. Reported Earnings • Mar 25
Full year 2024 earnings released: ₩82.00 loss per share (vs ₩166 profit in FY 2023) Full year 2024 results: ₩82.00 loss per share (down from ₩166 profit in FY 2023). Revenue: ₩70.2b (down 5.2% from FY 2023). Net loss: ₩996.3m (down 149% from profit in FY 2023). Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Announcement • Feb 28
STO Co., Ltd., Annual General Meeting, Mar 28, 2025 STO Co., Ltd., Annual General Meeting, Mar 28, 2025, at 09:30 Tokyo Standard Time. Location: conference room, 583, yangcheon-ro, gangseo-gu, seoul South Korea New Risk • Dec 16
New major risk - Financial data availability The company has not reported any financial data. This is considered a major risk. With no or incomplete audited reported financial data, it is virtually impossible to assess the company's investment potential. Currently, the following risks have been identified for the company: Major Risk No financial data reported. Minor Risk Market cap is less than US$100m (₩33.2b market cap, or US$23.1m). Valuation Update With 7 Day Price Move • Nov 09
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩3,220, the stock trades at a trailing P/E ratio of 52.3x. Average trailing P/E is 9x in the Luxury industry in South Korea. Total returns to shareholders of 55% over the past three years. Valuation Update With 7 Day Price Move • Oct 25
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to ₩2,835, the stock trades at a trailing P/E ratio of 46.1x. Average trailing P/E is 9x in the Luxury industry in South Korea. Total returns to shareholders of 20% over the past three years. New Risk • Aug 24
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: 1.0% Last year net profit margin: 2.5% 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 (1.5x net interest cover). Dividend is not well covered by earnings and cash flows. Payout ratio: 190% Paying a dividend despite having no free cash flows. Minor Risks Share price has been volatile over the past 3 months (9.6% average weekly change). Profit margins are more than 30% lower than last year (1.0% net profit margin). Market cap is less than US$100m (₩40.2b market cap, or US$30.3m). New Risk • Aug 21
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 9.3% 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 Risks Interest payments are not well covered by earnings (2.3x net interest cover). Dividend is not well covered by earnings and cash flows. Payout ratio: 102% Cash payout ratio: 103% Minor Risks Share price has been volatile over the past 3 months (9.3% average weekly change). Market cap is less than US$100m (₩35.3b market cap, or US$26.4m). Valuation Update With 7 Day Price Move • Aug 21
Investor sentiment improves as stock rises 36% After last week's 36% share price gain to ₩2,905, the stock trades at a trailing P/E ratio of 26.9x. Average trailing P/E is 9x in the Luxury industry in South Korea. Total returns to shareholders of 21% over the past three years. New Risk • Mar 28
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 3.0x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (3.0x net interest cover). Minor Risks Dividend is not well covered by earnings (122% payout ratio). Market cap is less than US$100m (₩25.4b market cap, or US$18.8m). Upcoming Dividend • Dec 20
Upcoming dividend of ₩110 per share at 4.7% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 17 April 2024. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 4.7%. Within top quartile of South Korean dividend payers (3.5%). Higher than average of industry peers (2.7%). New Risk • Nov 26
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: 1.5% Last year net profit margin: 2.1% 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: Minor Risks Dividend is not well covered by earnings (122% payout ratio). Profit margins are more than 30% lower than last year (1.5% net profit margin). Market cap is less than US$100m (₩28.9b market cap, or US$22.2m). Buying Opportunity • Jul 25
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 8.9%. The fair value is estimated to be ₩3,122, however this is not to be taken as a buy 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. Buying Opportunity • Jul 07
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 13%. The fair value is estimated to be ₩3,132, however this is not to be taken as a buy 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. Buying Opportunity • Jun 21
Now 20% undervalued Over the last 90 days, the stock is up 4.1%. The fair value is estimated to be ₩3,171, however this is not to be taken as a buy 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. Valuation Update With 7 Day Price Move • Apr 24
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩2,500, the stock trades at a trailing P/E ratio of 18.9x. Average trailing P/E is 7x in the Luxury industry in South Korea. Total returns to shareholders of 36% over the past three years. Reported Earnings • Mar 18
Full year 2022 earnings released: EPS: ₩132 (vs ₩28.00 in FY 2021) Full year 2022 results: EPS: ₩132 (up from ₩28.00 in FY 2021). Revenue: ₩73.2b (up 14% from FY 2021). Net income: ₩1.60b (up 375% from FY 2021). Profit margin: 2.2% (up from 0.5% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Upcoming Dividend • Dec 21
Upcoming dividend of ₩110 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 14 April 2023. Payout ratio is on the higher end at 89%, however this is supported by cash flows. Trailing yield: 4.5%. Within top quartile of South Korean dividend payers (3.3%). Higher 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. 3 experienced directors. No highly experienced directors. No independent directors (3 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. Valuation Update With 7 Day Price Move • Nov 02
Investor sentiment improved over the past week After last week's 16% share price gain to ₩3,700, the stock trades at a trailing P/E ratio of 28.4x. Average trailing P/E is 7x in the Luxury industry in South Korea. Total returns to shareholders of 88% over the past three years. Valuation Update With 7 Day Price Move • Sep 29
Investor sentiment deteriorated over the past week After last week's 15% share price decline to ₩2,425, the stock trades at a trailing P/E ratio of 18.6x. Average trailing P/E is 7x in the Luxury industry in South Korea. Total returns to shareholders of 21% over the past three years. 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. 3 experienced directors. No highly experienced directors. No independent directors (3 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. Reported Earnings • Mar 28
Full year 2021 earnings released: EPS: ₩28.00 (vs ₩223 loss in FY 2020) Full year 2021 results: EPS: ₩28.00 (up from ₩223 loss in FY 2020). Revenue: ₩64.5b (down 5.8% from FY 2020). Net income: ₩337.1m (up ₩3.04b from FY 2020). Profit margin: 0.5% (up from net loss in FY 2020). The move to profitability was driven by lower expenses. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 78 percentage points per year, which is a significant difference in performance. Upcoming Dividend • Dec 22
Upcoming dividend of ₩110 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 14 April 2022. The company is not currently making a profit but it is cash flow positive. Trailing yield: 4.5%. Within top quartile of South Korean dividend payers (2.4%). Higher than average of industry peers (1.8%). Announcement • Feb 25
STO Co., Ltd., Annual General Meeting, Mar 31, 2021 STO Co., Ltd., Annual General Meeting, Mar 31, 2021, at 09:30 Korea Standard Time. Is New 90 Day High Low • Feb 23
New 90-day high: ₩2,645 The company is up 27% from its price of ₩2,085 on 25 November 2020. The South Korean market is up 16% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Luxury industry, which is up 17% over the same period. Is New 90 Day High Low • Jan 12
New 90-day high: ₩2,495 The company is up 8.0% from its price of ₩2,310 on 14 October 2020. The South Korean market is up 28% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Luxury industry, which is up 5.0% over the same period. Upcoming Dividend • Dec 22
Upcoming Dividend of ₩120 Per Share Will be paid on the 13th of April to those who are registered shareholders by the 29th of December. The trailing yield of 5.7% is in the top quartile of South Korean dividend payers (2.6%), and it is higher than industry peers (1.4%). Is New 90 Day High Low • Oct 12
New 90-day high: ₩2,290 The company is up 18% from its price of ₩1,940 on 14 July 2020. The South Korean market is up 10.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Luxury industry, which is up 8.0% over the same period.