Taekwang Industrial Co., Ltd. (003240) AI Stock Analysis

Taekwang Industrial Co., Ltd.

(Korea Exchange:003240)

Select Model

Rating:62Neutral

Price Target:$868,140.00▲(5.61% Upside)

Action:initiatedcoverage

Date:10/28/26

The score is supported mainly by attractive valuation (low P/E and high dividend yield) and a very strong balance sheet with minimal leverage. Offsetting these positives are weak cash generation (deeply negative TTM operating/free cash flow) and bearish technicals with price trading below key moving averages and negative MACD.

Positive Factors

Very low leverageExtremely low leverage gives Taekwang Industrial substantial financial flexibility through the operating cycle. A strong equity base can help the company absorb weaker earnings, fund necessary investment, and pursue opportunities without relying heavily on debt or exposing cash flow to large financing costs.

Negative Factors

Deeply negative cash generationPersistent negative operating and free cash flow indicate that reported earnings are not currently converting reliably into cash, or that working capital and capital spending are absorbing substantial funds. This creates execution and funding risk even though the balance sheet has considerable financial capacity.

Taekwang Industrial Co., Ltd. (003240) vs. SPDR S&P 500 ETF (SPY)

Market Cap: KRW 691.82B
Dividend Yield: 0.21%
Average Volume (3M): 1,323
Price to Earnings (P/E): 5.8
Beta (1Y): 0.54
Revenue Growth: -1.95%
EPS Growth: -32.65%
Country: KR
Employees: 826
Sector: General
Sector Strength: 55
Industry: Chemicals

Taekwang Industrial Co., Ltd. Business Overview & Revenue Model

Company Description

Taekwang Industrial Co., Ltd. operates extensively, both within South Korea and internationally, focusing on the production of synthetic fibers, textiles, petrochemicals, and advanced materials. Their synthetic fiber offerings include acrylic fibers,...

Taekwang Industrial Co., Ltd. Financial Statement Overview

Summary

Financials are mixed: a very strong, low-leverage balance sheet (debt-to-equity ~0.001; Balance Sheet Score 88) supports flexibility, but operating performance and cash conversion are weak (Income Statement Score 46 with negative EBIT; Cash Flow Score 28 with deeply negative TTM operating and free cash flow). Improved net margin and modest TTM revenue growth are positives, but earnings/cash-flow volatility lowers confidence.

Income Statement

46Neutral

Balance Sheet

88Very Positive

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.95T	1.83T	2.12T	2.27T	2.61T	2.59T
Gross Profit	193.14B	170.13B	178.58B	103.91B	99.10B	564.13B
EBITDA	-7.76B	3.42B	321.41B	-33.30B	-44.34B	411.90B
Net Income	118.70B	80.82B	214.53B	-18.50B	256.66B	316.36B
Balance Sheet
Total Assets	4.86T	4.58T	4.72T	4.74T	4.82T	4.92T
Cash, Cash Equivalents and Short-Term Investments	1.31T	1.55T	1.43T	1.27T	1.24T	1.45T
Total Debt	5.88B	9.13B	100.32B	99.73B	88.15B	112.93B
Total Liabilities	575.00B	614.62B	706.71B	708.79B	698.04B	951.55B
Stockholders Equity	4.25T	3.93T	3.93T	3.95T	4.04T	3.89T
Cash Flow
Free Cash Flow	-410.27B	-277.68B	153.45B	26.84B	-207.95B	203.95B
Operating Cash Flow	-281.50B	-133.28B	228.72B	106.94B	-146.34B	292.36B
Investing Cash Flow	183.51B	262.61B	-165.36B	-237.50B	296.87B	-236.17B
Financing Cash Flow	-88.90B	-92.45B	-11.36B	-10.36B	-32.36B	29.33B

Taekwang Industrial Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price822000.00

Price Trends

50DMA893120.00Negative

100DMA882720.00Negative

200DMA971571.55Negative

Market Momentum

MACD-23139.50Positive

RSI33.37Neutral

STOCH16.00Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KR:003240, the sentiment is Negative. The current price of 822000.00 is below the 20-day moving average (MA) of 872050.00, below the 50-day MA of 893120.00, and below the 200-day MA of 971571.55, indicating a bearish trend. The MACD of -23139.50 indicates Positive momentum. The RSI at 33.37 is Neutral, neither overbought nor oversold. The STOCH value of 16.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KR:003240.

Taekwang Industrial Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

KR:003240 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KR:268280	81Outperform	KRW 639.28B	7.17	―	2.61%	6.80%	63.38%
KR:178920	71Outperform	KRW 431.98B	10.35	―	2.38%	-1.76%	48.18%
KR:003240	62Neutral	KRW 691.82B	5.83	―	0.21%	-1.95%	-32.65%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
KR:298050	48Neutral	KRW 622.84B	16.85	―	1.79%	4.99%	―
KR:456040	47Neutral	KRW 501.34B	56.61	―	―	2.23%	―
KR:285130	41Neutral	KRW 769.28B	107.88	―	2.76%	26.85%	-80.66%

* General Sector Average

Performance Comparison

KR:003240 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
KR:003240	Taekwang Industrial Co., Ltd.	822000.00	27183.50	3.42%
KR:178920	PI Advanced Materials Co., Ltd.	14710.00	-3038.99	-17.12%
KR:268280	Miwon Specialty Chemical Co. Ltd.	130200.00	-6859.95	-5.01%
KR:285130	SK Chemicals Co., Ltd.	41650.00	-22340.05	-34.91%
KR:298050	HS HYOSUNG ADVANCED MATERIALS	139400.00	-39240.94	-21.97%
KR:456040	OCI Company Ltd.	56000.00	-6200.00	-9.97%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 28, 2026

Taekwang Industrial Co., Ltd. AI Stock Analysis