Fact based stock research
Korean Air Lines (KOSE:A003490)
KR7003490000
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Korean Air Lines stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 75 (better than 75% compared with investment alternatives), Korean Air Lines (Airlines, South Korea) shares have much better financial characteristics than comparable stocks. Shares of Korean Air Lines are a good value (attractively priced) with a consolidated Value Rank of 69 (better than 69% of alternatives), show above-average growth (Growth Rank of 81) but are riskily financed (Safety Rank of 23), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 75, is a strong buy recommendation based on Korean Air Lines's financial characteristics. As the company Korean Air Lines's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 69) and above-average growth (Obermatt Growth Rank of 81), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 23) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | South Korea |
| Industry | Airlines |
| Index | Low Emissions, Energy Efficient, KOSPI |
| Size class | XX-Large |
This stock has achievements: Top 10 Stock.
19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Korean Air Lines
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 46 |
|
21 |
|
90 |
|
69 |
|
| GROWTH | ||||||||
| GROWTH | 69 |
|
100 |
|
21 |
|
81 |
|
| SAFETY | ||||||||
| SAFETY | 17 |
|
23 |
|
67 |
|
23 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
100 |
|
88 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
75 |
|
88 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 75 (better than 75% compared with investment alternatives), Korean Air Lines (Airlines, South Korea) shares have much better financial characteristics than comparable stocks. Shares of Korean Air Lines are a good value (attractively priced) with a consolidated Value Rank of 69 (better than 69% of alternatives), show above-average growth (Growth Rank of 81) but are riskily financed (Safety Rank of 23), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 75, is a strong buy recommendation based on Korean Air Lines's financial characteristics. As the company Korean Air Lines's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 69) and above-average growth (Obermatt Growth Rank of 81), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 23) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 46 |
|
21 |
|
90 |
|
69 |
|
| GROWTH | ||||||||
| GROWTH | 69 |
|
100 |
|
21 |
|
81 |
|
| SAFETY | ||||||||
| SAFETY | 17 |
|
23 |
|
67 |
|
23 |
|
| COMBINED | ||||||||
| COMBINED | 38 |
|
53 |
|
82 |
|
75 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 69 (better than 69% compared with alternatives), Korean Air Lines shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Korean Air Lines. Price-to-Sales (P/S) is 66, which means that the stock price compared with what market professionals expect for future sales is lower than for 66% of comparable companies, indicating a good value concerning Korean Air Lines's revenue size. The same is valid for expected Price-to-Profits (or Price / Earnings, P/E), more favorable than for 85% of alternatives. It is also positive for expected dividend yields with a Dividend Yield rank of 60 (dividends are expected to be higher than 60% of other stocks). But, compared with other companies in the same industry, the Price-to-Book Capital ratio (also referred to as market-to-book ratio) is higher than average, making the stock more expensive. Only 64% of all competitors have an even higher price compared with book capital which puts the Price-to-Capital Rank for Korean Air Lines to 36. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 69, is a buy recommendation based on Korean Air Lines's stock price compared with the company's operational size and dividend yields. A low level of book capital means that the company has a business that is leaner in assets than its competitors. For instance, the company could be leasing its production facilities or be more focussed on intellectual property, such as its brand and software, which is less visible in its book capital. If that is the case, the three good value ranks for Sales, Profits, and Dividends are reliable indicators for the stock price value. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 72 |
|
40 |
|
76 |
|
66 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 65 |
|
50 |
|
91 |
|
85 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 45 |
|
28 |
|
59 |
|
36 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
1 |
|
71 |
|
60 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 46 |
|
21 |
|
90 |
|
69 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 81 (better than 81% compared with alternatives) for 2024, Korean Air Lines shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Korean Air Lines. Sales Growth has a rank of 59 which means that currently, professionals expect the company to grow more than 59% of its competitors. Both Profit Growth, with a rank of 66, and Stock Returns, with a rank of 67, are also above average. But Capital Growth only has a rank of 46, which means that, currently, professionals expect the company to grow its invested capital less than 54% of its competitors. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 81, is a buy recommendation for growth and momentum investors. That may be a good sign if the company is already well positioned and doesn't require more investments at this time. They may focus on growing the top (revenues) and bottom (profits) lines, recently rewarded with above-average stock returns for shareholders. But it may also be a sign of danger as the company is falling back with capital investment activities concerning competition. This requires further analysis of corporate communications. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 28 |
|
65 |
|
90 |
|
59 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 14 |
|
82 |
|
29 |
|
66 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
100 |
|
1 |
|
46 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 79 |
|
65 |
|
27 |
|
67 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 69 |
|
100 |
|
21 |
|
81 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 23 (better than 23% compared with alternatives), the company Korean Air Lines has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Korean Air Lines is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Korean Air Lines. Liquidity is at 24, meaning that the company generates less profit to service its debt than 76% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 46, meaning the company has an above-average debt-to-equity ratio. It has more debt than 54% of its competitors. Finally, Refinancing is at a rank of 21 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 79% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 23 (worse than 77% compared with alternatives), Korean Air Lines has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Korean Air Lines because it may suffer significantly in case of future difficulties. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 27 |
|
6 |
|
46 |
|
46 |
|
| REFINANCING | ||||||||
| REFINANCING | 37 |
|
21 |
|
47 |
|
21 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 31 |
|
52 |
|
56 |
|
24 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 17 |
|
23 |
|
67 |
|
23 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
91 |
|
97 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
91 |
|
75 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
76 |
|
68 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
81 |
|
35 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
100 |
|
88 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Korean Air Lines from December 19, 2024.
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