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    Genic Co., Ltd. (KOSDAQ:123330) Stock Has Shown Weakness Lately But Financials Look Strong: Should Prospective Shareholders Make The Leap?

    Simply Wall St·01/02/2026 22:32:12
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    Genic (KOSDAQ:123330) has had a rough three months with its share price down 28%. However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. In this article, we decided to focus on Genic's ROE.

    Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.

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    How Is ROE Calculated?

    The formula for return on equity is:

    Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity

    So, based on the above formula, the ROE for Genic is:

    52% = ₩18b ÷ ₩35b (Based on the trailing twelve months to September 2025).

    The 'return' is the yearly profit. That means that for every ₩1 worth of shareholders' equity, the company generated ₩0.52 in profit.

    See our latest analysis for Genic

    Why Is ROE Important For Earnings Growth?

    So far, we've learned that ROE is a measure of a company's profitability. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes.

    A Side By Side comparison of Genic's Earnings Growth And 52% ROE

    To begin with, Genic has a pretty high ROE which is interesting. Secondly, even when compared to the industry average of 6.4% the company's ROE is quite impressive. Under the circumstances, Genic's considerable five year net income growth of 56% was to be expected.

    Next, on comparing with the industry net income growth, we found that Genic's growth is quite high when compared to the industry average growth of 24% in the same period, which is great to see.

    past-earnings-growth
    KOSDAQ:A123330 Past Earnings Growth January 2nd 2026

    Earnings growth is an important metric to consider when valuing a stock. It’s important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). This then helps them determine if the stock is placed for a bright or bleak future. If you're wondering about Genic's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.

    Is Genic Efficiently Re-investing Its Profits?

    Given that Genic doesn't pay any regular dividends to its shareholders, we infer that the company has been reinvesting all of its profits to grow its business.

    Conclusion

    On the whole, we feel that Genic's performance has been quite good. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. If the company continues to grow its earnings the way it has, that could have a positive impact on its share price given how earnings per share influence long-term share prices. Remember, the price of a stock is also dependent on the perceived risk. Therefore investors must keep themselves informed about the risks involved before investing in any company. You can see the 2 risks we have identified for Genic by visiting our risks dashboard for free on our platform here.