Nexen earns money two ways: an in-house manufacturing business making synthetic resins, industrial materials, and condenser paper, and a holding-company role that owns stakes in affiliates such as its listed subsidiary Nexen Tire, drawing on their results and dividends. First-quarter 2026 revenue of ₩937.5 billion, operating profit of ₩67.6 billion, and net profit of ₩73.1 billion show earnings momentum is intact, and 2025 consolidated revenue was ₩3.6 trillion; in March there was a subsidiary dividend decision along with a designation as an unfaithful-disclosure corporation. What stands out lately is that a deep holding-company discount at a P/B of 0.21x, a forward P/E among the lowest in the tire group, and a dividend yield reaching 3.1% sit on one side, while a debt ratio of 213.7% and an interest coverage ratio of 1.21x mean financial headroom is not ample, and the unfaithful-disclosure designation has dented the qualitative factor of disclosure trust.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 213.7%).
- Revenue rose 11.6% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 8.1% higher than a year earlier.
- ROE is 6.5% (controlling-interest basis). It is above the sector average.
- Operating margin is 5.7%.
- Valued against the net asset value (NAV) of its listed holdings rather than a consolidated P/E — see the in-depth valuation for the detailed basis.
Ownership & governance As of 2025-12-31
Largest shareholder Kang Ho-chan 48.49% (individual)
Controlling bloc incl. related parties 68.04%
With the controlling bloc holding 68%, control is very secure but the free float is thin.
Net asset value (NAV) assessment Fairly valued
💡 How to read a holding company · A holding company owns stakes in several subsidiaries. Its P/E swings with equity-method gains and losses on those stakes, so read it only as a rough guide. P/B is more meaningful because subsidiary stakes sit in equity, but book value carries them at low historical cost (so P/B looks higher than reality). The most accurate view is the price against the market value of those stakes (NAV) ↓
Valued against the net asset value (NAV) of its listed holdings rather than a consolidated P/E — see the in-depth valuation for the detailed basis.
Listed subsidiaries ownership
| Nexen Tire | 46.48% |
🔎 In-depth analysis
- Nexen makes money two ways.
- The first is an in-house manufacturing business that makes and sells synthetic resins, industrial materials, and condenser paper (specialty paper for electronic components).
- The second is a holding-company role: it owns stakes in affiliates, including its listed subsidiary Nexen Tire (002350), and draws on their results and dividends.
- As a result, the large part of the ₩3.6 trillion in consolidated revenue comes from the tire subsidiary, and Nexen's own corporate value is heavily swayed not only by its own operating profit but by the worth of the subsidiary stakes it holds.
- Among the disclosures posted to the official filing system, the frequent appearance of subsidiary key-management matters such as the subsidiary's dividend decisions and audit reports reflects this holding-company structure directly.
- The latest close is ₩5,930 and the market cap is ₩311.6 billion.
- The price sits below its 20-day line (₩6,068) and below its 60-day line (₩6,538).
- Trading beneath both its short- and mid-term moving averages, the trend is on the soft side.
- The RSI (an indicator that gauges upward versus downward momentum over the past 14 days on a 0-100 scale) is 44.6, a neutral reading.
- The one-month change is -0.2%, the three-month change is -6.2%, and the position versus the 52-week high is -26.3%.
- Relative strength against the KOSPI is 29 (on a 1-99 scale that weights recent returns versus the index over the past year more heavily; higher means stronger than the market).
- That places it in roughly the top 72% of all stocks by strength.
- Over the past three months it lagged the index by 27.0%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- On confirmed annual (FY2025) results, the P/E ratio (how many times one year's earnings the price represents) is 3.42x and the P/B (how many times net assets the price represents) is 0.22x.
- A P/B of 0.21x means the price is set at one-fifth of the company's net assets, reflecting the holding-company discount, in which a subsidiary's value is not fully reflected in the parent's share price, running strong here.
- ROE (how much is earned in a year on equity) is 6.5%, above the industry average, and the operating margin is 5.7%.
- The key point here is that this trailing P/E of 3.28x is on last year's confirmed earnings.
- That is, it is not that the trailing number looks high; rather, being in an earnings-inflection phase, the trailing figure looks expensive while the forward is closer to the true picture.
- That said, a debt ratio (debt versus equity) of 213.7% and an interest coverage ratio of 1.21x (operating profit covers interest about 1.2 times) signal tight financial headroom, so this is a part to check alongside changes in rates and industry conditions.
- Revenue grew steadily from ₩3.0 trillion in 2023 to ₩3.6 trillion in 2025 (+11.6% year-on-year, with the pace of increase quickening), and net profit more than doubled in two years from ₩41.6 billion in 2023 to ₩91.2 billion in 2025.
- In the most recent first quarter of 2026, revenue was ₩937.5 billion (+8.1%), operating profit ₩67.6 billion (+38.4%), and net profit ₩73.1 billion (+58.2%), with earnings rising far faster than revenue.
- There is a clear backdrop for this year's forward earnings being booked at this level.
- As the in-house manufacturing division's top line grows at a double-digit pace, the core tire subsidiary is building earnings on the back of replacement demand and a rising share of high-inch, high-value products, and those results add directly to Nexen's consolidated and controlling-interest net profit via the equity method.
- That first-quarter operating and net profit both jumped in the 30-50% range is the result of this flow confirmed in actual numbers.
- The forward P/E reflects this earnings increase, and with this year's earnings clearly exceeding last year's, there is no basis to call it a peak or cycle top.
- Recent disclosures fall into two strands.
- One is regular earnings releases: the 2026-05-15 quarterly report (first-quarter revenue ₩937.5 billion, operating profit ₩67.6 billion, net profit ₩73.1 billion) and the 2026-03-18 annual report (FY2025 revenue ₩3.6 trillion, operating profit ₩204.2 billion, net profit ₩91.2 billion) carry the confirmed results.
- These are primary materials for confirming at once that earnings rose faster than revenue and the financial structure such as the debt ratio.
- The other strand is signals that show the structure: the 2026-03-10 subsidiary (Nexen Tire) cash and in-kind dividend decision reconfirms the holding-company structure in which Nexen draws cash from subsidiary dividends.
- Meanwhile, the 2026-03-23 designation as an unfaithful-disclosure corporation reflects the exchange's judgment that past disclosures were not carried out on time or accurately, and it is an item to keep confirming through follow-up disclosures such as assessed penalty points, remediation, and whether an additional designation follows.
- This is a name with clear strengths.
- It trades at one-fifth of net assets (P/B 0.21x), a large holding-company discount; its forward P/E is among the lowest in the tire group; first-quarter earnings momentum is intact; and the dividend yield is on the high side at 3.1%.
- The market value of its Nexen Tire listed stake alone explains more than 100% of Nexen's own market cap, so this is also a textbook holding-company discount phase in which the parent trades cheaper than the subsidiary.
- The points to view alongside are finances and disclosure.
- A debt ratio of 213.7% and an interest coverage ratio of 1.21x mean financial headroom is not ample, and the March 2026 unfaithful-disclosure designation dented the qualitative factor of disclosure trust.
- In sum, its value stands out when the tire industry and in-house manufacturing hold up and the holding-company discount narrows, and its appeal fades when subsidiary results wobble or follow-up disclosure problems flare up.
🔎 Valuation vs peers Undervalued
Considering both tire and rubber manufacturing and the shareholding structure, the peer set comprises the listed subsidiary Nexen Tire in the same tire group and peer tire makers, using on-site calculated values (at the current price).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Nexen Tire | 4.32x | 0.32x | 7.36% |
| Kumho Tire | 4.96x | 0.85x | 17.12% |
| Hankook Tire & Technology | 8.04x | 0.72x | 9.00% |
(a) Position versus peers: at 3.6x P/E and 0.23x P/B, both are among the lowest in the tire group, so on absolute figures this is a discount zone. (b) Nature of the discount: because Nexen is an operating holding company whose corporate value is driven more by the value of its Nexen Tire stake than by its own operations, value is hard to gauge from the consolidated P/E alone, and a view that separately adds the subsidiary stake value is needed (see sector_view). In fact, the market value of Nexen's Nexen Tire stake alone can approach or exceed Nexen's own market cap (₩327.3 billion), a textbook holding-company discount zone in which the parent trades cheaper than the subsidiary. (c) Limits of the trailing figure: the current P/E is on last year's confirmed earnings, and with first-quarter earnings surging, the forward could be lower still. That said, this forward is not an official company forecast but a DART seasonality approximation, so rather than concluding cheap, it is right to look at what conditions would narrow the discount.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | ₩1.0 trillion | ₩90.0 billion | ₩61.0 billion |
Price history Close · MA20 · MA60
The latest close is ₩5,930 and the market capitalization is ₩311.6 billion. The price sits below its 20-day moving average (₩6,068) and below its 60-day moving average (₩6,538). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 44.6, a neutral level. The one-month change is -0.2%, the three-month change is -6.2%, and the position relative to the 52-week high is -26.3%. Relative strength versus the KOSPI is 29 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 28% of all stocks. Over the past three months it lagged the index by 27.0%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -26.98% / 6M -37.73% / 12M -60.95%
Key metrics vs sector median
Valuation
The P/E of 3.42x is below the sector median (12.90x). The P/B of 0.22x is below the sector median (0.75x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets. That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 9.2%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 6.5%, in line with the sector average (6.0%). The operating margin is 5.7%. The debt ratio is 213.7%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $2.0B | $2.1B | $2.4B | +11.58% ↑ faster |
| Operating profit | $146.5M | $139.0M | $135.3M | -2.60% ↑ faster |
| Net profit | $27.6M | $56.9M | $60.4M | +6.15% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.6B | $2.0B | $2.0B | $2.1B | $2.4B |
| Operating profit | $22.3M | -$14.9M | $146.5M | $139.0M | $135.3M |
| Net profit | $19.1M | $11.6M | $27.6M | $56.9M | $60.4M |
| Revenue CAGR | 4-yr avg 10.52% | ||||
Revenue rose 11.6% year over year (2023 ₩3.0 trillion → 2024 ₩3.2 trillion → 2025 ₩3.6 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit fell 2.6% year over year. That said, the decline narrowed. Over the 5 years on record, revenue compound annual growth (CAGR) is 10.5%. The two-year revenue CAGR is 8.7%. In the most recent quarter (Q1 2026), revenue was 8.1% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 11.6% year over year, a sign of growth.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-03-23UpdateDesignated an unfaithful-disclosure corporation: a formal designation as an exchange sanction for past disclosure-obligation violationsShort-term: a factor for lower disclosure credibility and dampened sentiment. Mid-term: with assessed penalty points, remediation, and whether an additional designation follows, it could lead to reputational risk, so follow-up disclosures need tracking. Source
- 2026-03-10DividendSubsidiary (Nexen Tire) cash and in-kind dividend decided: cash inflow via subsidiary dividends as a holding companyShort-term: a boost to parent cash flow. Mid-term: a structural signal that Nexen's revenue sources lean heavily on subsidiary stakes and dividends, not just its own operations. Source
- 2026-05-15EarningsQuarterly report (2026.03): first-quarter revenue of ₩937.5 billion, operating profit of ₩67.6 billion, net profit of ₩73.1 billion confirmedShort-term: confirmed that earnings rose faster than revenue. Mid-term: whether this earnings level holds quarter after quarter is the question for the annual trend. Source
- 2026-03-18FilingAnnual report (2025.12): FY2025 consolidated revenue of ₩3.6 trillion, operating profit of ₩204.2 billion, net profit of ₩91.2 billion confirmedShort-term: confirms the annual results and the dividend and financial structure at once. Mid-term: primary material for checking financial headroom such as the 213.7% debt ratio. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| FY2025 consolidated operating profit | ₩204.2 billion | (2025.12) | Confirmed | link |
| Q1 2026 operating profit | ₩67.6 billion | (2026.03) | Confirmed | link |
| Holding-company structure (holding subsidiary Nexen Tire) | — | — | Confirmed | link |
| 2026 annual operating profit (seasonality approximation) | ₩338.5 billion | — | Unverified | link |
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-03-26Shareholders' meeting notice
- 2026-03-26Disclosure
- 2026-03-23Disclosure
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-18Audit report
- 2026-03-11Shareholders' meeting notice
- 2026-03-10DividendCash/stock dividend decision
- 2026-03-10DividendCash/stock dividend decision
- 2026-02-27Disclosure
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.