Firstec is a defense-industry company that makes actuation systems and components for guided weapons, fuzes (the devices that detonate shells and missiles at a set moment), aerospace parts, and unmanned-aircraft products. Although it is classified under metalworking, its revenue and profit come from defense demand such as deliveries to Korea's Defense Acquisition Program Administration and component supply to weapon-system makers. Confirmed results were disclosed through the March annual report and the May quarterly report, followed by a June corporate-governance report, and the recent narrative has centered on confirmed earnings and governance housekeeping rather than large new orders. On the plus side, revenue rose 42% and operating profit rebounded 145% on defense demand, ROE stands at 17.9%, its forward P/E is lower than comparable defense names, and the price has fallen more than 60% from its 52-week high. Points to check are the tight liquidity (debt ratio of 388.8%, current ratio of 84.4%) and the fact that Q1 net profit fell year on year below the operating line.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 388.8%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 84.4%).
- Revenue rose 42.2% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 48.0% higher than a year earlier.
- ROE is 17.9% (total-net basis). It is above the sector average.
- Operating margin is 3.6%.
- P/B is high versus peers, a stretch on an asset basis.
Ownership & governance As of 2025-12-31
Largest shareholder Kim Geun-su 25.28% (individual)
Controlling bloc incl. related parties 44.35%
With the controlling bloc holding 44%, the ownership structure is stable.
🔎 In-depth analysis
- Firstec's core business is defense-industry components and systems.
- It earns money from actuation systems and components used in guided weapons (such as missiles), fuzes (the detonating devices that set off shells and missiles at a set moment), aerospace parts, and unmanned-aircraft (drone) products.
- On paper it is classified under 'metalworking,' but its actual revenue and profit come from defense demand (deliveries to Korea's Defense Acquisition Program Administration and component supply to finished-weapon-system makers).
- As part of the Foosung Group, it also holds stakes in subsidiaries in satellite navigation and defense electronics, giving it a structure that goes beyond a simple parts supplier.
- The recent closing price is ₩5,530 and market capitalization is ₩269.7 billion.
- The price sits below both the 20-day line (₩6,670) and the 60-day line (₩10,066).
- Trading below both its short- and medium-term moving averages, the trend is subdued.
- RSI (an auxiliary indicator that gauges upward versus downward momentum over the past 14 days on a 0-100 scale) is 28.6, close to depressed territory.
- The one-month change is -31.5%, the three-month change is -27.8%, and the position versus the 52-week high is -66.2%.
- Relative strength versus KOSPI is 51 (1-99, computed from returns against the index over the past year with recent periods weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 48% of all stocks by strength.
- Over the past three months it lagged the index by 40.8%.
- Chart reading is best done alongside trading volume and disclosure dates.
- On a confirmed annual (2025) basis, the P/E (how many times one year's net profit the price represents) is 18.31x, the P/B (how many times net assets the price represents) is 3.27x, and ROE (how much is earned in a year on equity) is 17.9%, higher profitability than most peer defense names.
- The operating margin is 3.6%, the debt ratio (debt against equity) is 388.8%, and the current ratio is 84.4%, so the fact that readily liquid assets are tight relative to debt due within a year is worth watching.
- That said, these P/E and P/B figures are on a trailing (last year's confirmed results) basis, which is a limitation.
- With Q1 revenue this year up 48% year on year and profit at an inflection point, it is premature to call the stock 'expensive' on last year's figures alone.
- The forward P/B reflecting this year's profit is 3.27x, and the forward P/E is lower than all of the comparable defense names (Hyundai Rotem 25.9x, Hanwha Aerospace 39.2x, Hanwha Systems 61.6x, Korea Aerospace Industries 74.6x).
- In other words, within the defense group the price does not carry excessive expectations; if anything its multiple is on the lower side.
- This is a growth phase in which both the top line and profit are expanding together.
- Over five years revenue rose from ₩136.7 billion in 2021 to ₩294.8 billion in 2025 (a five-year CAGR of +21.2%, +30.5% over the last two years), and the pace of growth is accelerating.
- Operating profit jumped +145.2% year on year to ₩10.7 billion in 2025 with its pace also accelerating, and net profit rose +34.9% to ₩14.7 billion.
- The most recent quarter, Q1 2026, continued the growth with revenue of ₩79.3 billion (+48.0%) and operating profit of ₩2.3 billion (+60.2%).
- Net profit in the same quarter fell -23.0% year on year to ₩1.7 billion, but this is better read as a difference arising below the operating line (interest and one-off items) rather than a downturn in the top line or operating profit.
- The forward P/E reflecting this year's profit is the result of this steep earnings growth of +42% revenue and +145% operating profit being priced in.
- As long as expanding defense demand, the order flow, and capacity utilization hold up, this year's profit level is on track to be higher than last year, and the current data offers no basis for declaring it a 'temporary peak.'
- Recent disclosures have been mainly periodic reports and governance matters.
- Confirmed results were disclosed through the March 2026 annual report (as of December 2025) and the May quarterly report (as of March 2026), followed by the March annual general meeting, changes to outside directors, and the June corporate-governance report.
- In other words, the recent flow has centered on confirmed earnings and governance housekeeping rather than business events such as large new orders or an official company earnings outlook.
- Read alongside the earnings box (quarterly and annual figures), the meaning of the disclosures becomes clearer.
- The strengths are clear: top-line growth on the back of defense demand (revenue +42%), an operating-profit rebound (+145%), a high ROE of 17.9% versus peers, and a forward P/E reflecting this year's profit that is lower than all of the comparable defense names.
- The price is also in depressed territory, having fallen more than 60% from its 52-week high.
- Points to keep in view are the 388.8% debt ratio, tight liquidity (current ratio 84.4%), and the fact that Q1 net profit fell year on year below the operating line.
- In sum, on growth and multiples this is not an expensive spot within the defense group, while the financial structure and the stability of net profit are the points to monitor.
- Rather than deciding one way, it is reasonable to frame it as a structure that is 'strong if growth translates into profit and financial burden is managed, weak if net-profit volatility or liquidity pressure comes to the fore.'
🔎 Valuation vs peers Inconclusive
Reflecting that the substance of its business is defense components and systems, the peer set was drawn from domestically listed defense names whose business character is close to Firstec's; note, however, that Hanwha Aerospace, Korea Aerospace Industries and the like are finished-system makers with market caps of several to tens of trillions of won, far larger than Firstec (₩373.6 billion), so the size difference must be taken into account.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Korea Aerospace Industries | 78.66x | 7.99x | 10.16% |
| Hanwha Systems | 50.46x | 2.52x | 5.00% |
| Hyundai Rotem | 22.77x | 5.69x | 25.01% |
| Hanwha Aerospace | 34.98x | 5.07x | 14.51% |
(a) Position versus peers: the confirmed annual P/E of 25.4x is lower than Korea Aerospace Industries (74.4x) and Hanwha Systems (69.1x) and roughly in line with Hyundai Rotem (26.7x). The P/B of 4.5x is within the defense-group average range. (b) Premium/discount: ROE of 17.9% exceeds most comparable names, a premium factor on profitability, but the 388.8% debt ratio offsets it as a discount factor. That said, this forward figure is a seasonality estimate rather than an official company outlook, and Q1 net profit fell year on year, so rather than firmly calling it cheap or expensive we leave it Inconclusive.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | ₩91.1 billion | ₩4.3 billion | ₩1.9 billion |
Price history Close · MA20 · MA60
The latest close is ₩5,530 and the market capitalization is ₩269.7 billion. The price sits below its 20-day moving average (₩6,670) and below its 60-day moving average (₩10,066). 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 28.6, near oversold territory. The one-month change is -31.5%, the three-month change is -27.8%, and the position relative to the 52-week high is -66.2%. Relative strength versus the KOSPI is 52 (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 52% of all stocks. Over the past three months it lagged the index by 40.8%. 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 -40.78% / 6M -17.99% / 12M -38.46%
Key metrics vs sector median
Valuation
The P/E of 18.31x is in line with the sector median (16.68x). The P/B of 3.27x is above the sector median (1.43x). 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 10.1%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 17.9%, above the sector average (10.0%). The operating margin is 3.6%. The debt ratio is 388.8%, so the financial structure is somewhat high.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $114.7M | $137.4M | $195.4M | +42.25% ↑ faster |
| Operating profit | $1.7M | $2.9M | $7.1M | +145.22% ↑ faster |
| Net profit | $3.1M | $7.2M | $9.8M | +34.87% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $90.6M | $106.1M | $114.7M | $137.4M | $195.4M |
| Operating profit | $2.9M | $2.1M | $1.7M | $2.9M | $7.1M |
| Net profit | $2.6M | $1.2M | $3.1M | $7.2M | $9.8M |
| Revenue CAGR | 4-yr avg 21.19% | ||||
Revenue rose 42.2% year over year (2023 ₩173.1 billion → 2024 ₩207.3 billion → 2025 ₩294.8 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 145.2% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 21.2%. The two-year revenue CAGR is 30.5%. In the most recent quarter (Q1 2026), revenue was 48.0% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 17.9% points to solid profitability.
- Revenue grew 42.2% year over year, a sign of growth.
Points to watch
- Debt far exceeds equity (debt ratio 388.8%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 84.4%).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-15EarningsQ1 2026 quarterly report filed — revenue ₩79.3 billion (+48.0%), operating profit ₩2.3 billion (+60.2%), net profit ₩1.7 billion (-23.0%)Top-line growth continued, but net profit fell year on year. A short-term checkpoint on whether growth is carrying through to net profit. Source
- 2026-03-12Earnings2025 annual report filed — annual revenue ₩294.8 billion (+42.2%), operating profit ₩10.7 billion (+145.2%), net profit ₩14.7 billionConfirmed results with operating profit rebounding more than twofold. A medium-term basis supporting the five-year growth trend and improving profitability. Source
- 2026-03-20FilingAnnual general meeting results and reported changes to outside directorsA change in board and governance composition. Little direct effect on business earnings, but useful material for reviewing governance. Source
- 2026-06-01FilingCorporate-governance report disclosedDisclosure of governance status such as board operations and shareholder rights. A reference for assessing medium- to long-term credibility. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Confirmed annual P/E (trailing) | 25.4x | ₩373.6 billion ÷ 2025 net profit ₩14.7 billion = 25.4x | Confirmed | link |
| Q1 2026 revenue | ₩79.3 billion(+48.0%) | revenue 79,301 | Confirmed | link |
| Seasonality-approximated annual operating profit | ₩32.9 billion | — | Unverified | link |
| Industry classification | base sector=(KSIC) | = | Mismatch | link |
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-03-20Disclosure
- 2026-03-20Shareholders' meeting notice
- 2026-03-12PeriodicAnnual business report
- 2026-03-12Audit report
- 2026-03-05Shareholders' meeting notice
- 2026-03-03Shareholders' meeting notice
📖 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.