Stock Analysis

Could The CUCKOO Homesys Co., Ltd (KRX:284740) Ownership Structure Tell Us Something Useful?

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KOSE:A284740
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A look at the shareholders of CUCKOO Homesys Co., Ltd (KRX:284740) can tell us which group is most powerful. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

CUCKOO Homesys has a market capitalization of ₩909b, so we would expect some institutional investors to have noticed the stock. In the chart below, we can see that institutions own shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about CUCKOO Homesys.

Check out our latest analysis for CUCKOO Homesys

ownership-breakdown
KOSE:A284740 Ownership Breakdown March 3rd 2021

What Does The Institutional Ownership Tell Us About CUCKOO Homesys?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

CUCKOO Homesys already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of CUCKOO Homesys, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
KOSE:A284740 Earnings and Revenue Growth March 3rd 2021

We note that hedge funds don't have a meaningful investment in CUCKOO Homesys. The company's largest shareholder is Cuckoo Holdings Co., Ltd., with ownership of 41%. Meanwhile, the second and third largest shareholders, hold 17% and 9.3%, of the shares outstanding, respectively.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 57% stake.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of CUCKOO Homesys

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems insiders own a significant proportion of CUCKOO Homesys Co., Ltd. It has a market capitalization of just ₩909b, and insiders have ₩301b worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public holds a 12% stake in CUCKOO Homesys. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Public Company Ownership

We can see that public companies hold 41% of the CUCKOO Homesys shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with CUCKOO Homesys , and understanding them should be part of your investment process.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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About KOSE:A284740

CUCKOO Homesys

Cuckoo Homesys Co., Ltd. engages in the manufacture, sale, and rental of household appliances.

Excellent balance sheet second-rate dividend payer.

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