S-1 is an integrated safety-solutions company that earns money on two axes: 'Security' - unmanned guarding and video surveillance (about 49.6% of revenue) - and 'Infrastructure' - building management and real-estate services (about 49.8%). Its strength is subscription-based security billed monthly, and recently infrastructure revenue overtook security revenue for the first time; its largest shareholder is Japan's SECOM (about 25.7%). In March 2026 it formalized a policy of maintaining a payout ratio of 50-60%, and after a one-off cost tied to an average-wage ruling in late April caused Q1 operating profit to plunge, it confirmed this via the quarterly report in May. The key point now is that stable shareholder returns - a dividend yield of 4.4% and a payout ratio in the 60% range - together with the defensive cash flow of subscription security and a growing building-management business, and a solid balance sheet with a debt ratio of 38%, are strengths, whereas as a service business based on roughly 7,000 staff its earnings are sensitive to labor-cost and minimum-wage changes, and with a revenue growth rate of a gradual 3-5% a year, this is not a place to expect high growth.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 3.0% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 0.1% lower than a year earlier.
- ROE is 10.2% (controlling-interest basis). It is below the sector average.
- Operating margin is 8.1%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder SECOM 25.65% (individual)
Controlling bloc incl. related parties 25.65%
With the controlling bloc holding 26%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- S-1 is an integrated safety-solutions company that earns money on two axes: 'Security' and 'Infrastructure.' Security (about 49.6% of total revenue) covers unmanned guarding - installing sensors and CCTV in homes, stores, and offices and dispatching response crews when an abnormal signal comes in - as well as physical and digital security such as video surveillance and access control.
- Its strength is a structure of subscription contracts billed monthly, in which revenue continues for a long time once a customer signs up.
- Infrastructure (about 49.8%) covers building management (integrated operation of cleaning, facilities, energy, and more), real-estate services, and security-system integration (SI), and recently this infrastructure revenue overtook security revenue for the first time.
- In other words, the business is broadening from a 'guarding company' into a 'company that takes charge of managing whole buildings.' Its largest shareholder is Japan's SECOM (about 25.7%), and Samsung affiliates also hold stakes.
- The recent closing price is ₩82,000 and the market cap is ₩3.1 trillion.
- The price sits above the 20-day line (₩73,700) and above the 60-day line (₩76,518).
- Above both the short- and mid-term moving averages, the trend is on the favorable side.
- The RSI (a supplementary gauge that measures upward versus downward force over the last 14 days on a 0-100 scale) is 61.8, a neutral level.
- The one-month change is +14.5%, the three-month change is -8.4%, and the position versus the 52-week high is -12.9%.
- Relative strength versus the KOSPI is 36 (on a 1-99 scale that weights recent returns against the index over the past year more heavily toward the recent period; higher means stronger than the market).
- That places it in roughly the top 65% of all stocks by strength.
- Over the past three months it lagged the index by 26.3%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- The valuation shows a P/E ratio (how many times a year's net profit the price represents) of 17.45x and a P/B (how many times book equity the price represents) of 1.77x.
- Profitability is stable for a service business, with an ROE (how much is earned in a year on equity) of 10.2% and an operating margin of 8.1%.
- The balance sheet has almost no debt burden, with a debt ratio (debt relative to equity) of a low 38.5%, a current ratio of 259%, and an interest coverage ratio of 84x.
- In particular, with a dividend yield of 4.4% (a dividend of ₩3,200 per share) and a payout ratio (the share of net profit paid out as dividends) of 60.6%, it is a high-dividend stock that returns a substantial part of its earnings to shareholders.
- One caution, however, is that the officially classified P/E of 15.4x is on a confirmed 2025 (last year) net-profit basis, whereas in 2026 the accounting net profit is temporarily depressed by a Q1 one-off cost, which can make the apparent multiple look higher.
- Five-year revenue grew steadily at an average of about 5.7% a year, from ₩2.31 trillion in 2021 to ₩2.89 trillion in 2025, and operating profit also trended up from ₩179.7 billion to ₩234.6 billion.
- Growth is not explosive, but it is the type that accumulates without wobble, as befits a subscription business.
- The issue is Q1 2026: revenue was essentially flat at ₩673.7 billion (₩674.1 billion a year earlier), but operating profit plunged 62% to ₩20.7 billion from ₩55.1 billion in the year-earlier quarter.
- The cause was a one-off cost (about ₩34.4 billion pre-tax) from retroactively booking past-period retirement benefits all at once, following the Supreme Court's January ruling on average wage (the basis for calculating severance pay); the company stated this was a temporary factor unrelated to the business fundamentals.
- Stripping out this cost, normal operating profit was around ₩55 billion, similar to the prior year, so the core business's earnings-generating power is being maintained.
- Once this one-off factor disappears from Q2 onward, earnings are expected to return to a normal trajectory, and reflecting this, an estimate of 2026 annual net profit puts the forward P/E at about 17x, or around 15x on a normalized basis with the one-off removed.
- In March 2026, through the corporate value-up plan (voluntary disclosure), the company formalized a policy of maintaining a payout ratio of 50-60% for fiscal 2026, and stated it would broaden its business with AI- and robot-based new products and integrated facility management (IFM).
- In the preliminary Q1 results announced in late April, operating profit plunged on the one-off cost tied to the average-wage ruling, and this was confirmed via the quarterly report in May.
- In May it held an investor briefing (IR) to communicate with shareholders, and in June, through the large-business-group status and corporate governance reports, it disclosed that the Samsung-affiliate and SECOM shareholding structure is being maintained.
- Overall, the reinforced shareholder-return stance and the booking of the one-off cost are the core narrative of this year's first half.
- Points to observe are (1) stable shareholder returns - a dividend yield of 4.4% and a payout ratio in the 60% range, with the company having formalized a 50-60% level for 2026; (2) the defensive cash flow created by subscription security revenue and a growing building-management (IFM) business; and (3) a solid balance sheet with a debt ratio of 38% and an interest coverage ratio of 84x.
- Points to note are (1) that, as a service business based on roughly 7,000 staff, its earnings are sensitive to labor-cost and minimum-wage changes, and (2) that with a revenue growth rate of a gradual 3-5% a year, this is not a place to expect explosive growth.
- If the Q1 2026 earnings plunge is confirmed in results to be one-off, the apparent multiple burden has room to ease, whereas if labor-cost issues recur structurally, they could affect the dividend funding as well.
- In short, this is a strong stock from the standpoint of wanting stable dividends and defensiveness, but of limited appeal from the standpoint of wanting high growth.
🔎 Valuation vs peers Fairly valued
Among domestically listed companies there is effectively no direct listed peer that runs both physical security and building management, so position is judged from the business substance (subscription security and facility-management services) and the company's own time-series metrics.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| S-1 Corporation | 17.45x | 1.77x | 10.17% |
A P/E of 15.4x, a P/B of 1.57x, and an ROE of 10.2% place it in a neutral zone - neither overheated nor undervalued - as a defensive service operator. That said, the base P/E has the limit of being on a confirmed 2025 net-profit basis, whereas in 2026 the accounting profit is temporarily depressed by the Q1 average-wage-ruling one-off cost (about ₩34.4 billion pre-tax), which can make the apparent multiple look higher. On normalized earnings with this one-off removed, the forward multiple is around 15x, not much different from trailing. Adding to this the 4.4% dividend yield and the company's formalized 50-60% payout-ratio floor, the structure is one in which - even with gradual growth - dividends and financial stability underpin the multiple, so on balance we judge it fairly valued.
Price history Close · MA20 · MA60
The latest close is ₩82,000 and the market capitalization is ₩3.1 trillion. The price sits above its 20-day moving average (₩73,700) and above its 60-day moving average (₩76,518). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 61.8, a neutral level. The one-month change is +14.5%, the three-month change is -8.4%, and the position relative to the 52-week high is -12.9%. Relative strength versus the KOSPI is 36 (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 36% of all stocks. Over the past three months it lagged the index by 26.3%. 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 -26.30% / 6M -30.00% / 12M -50.15%
Key metrics vs sector median
Valuation
The P/E of 17.45x is in line with the sector median (16.27x). The P/B of 1.77x is in line with the sector median (1.98x).
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 2.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 0.885x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 10.2%, below the sector average (15.0%). The operating margin is 8.1%. The debt ratio is 38.5%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.7B | $1.9B | $1.9B | +3.02% ↓ slower |
| Operating profit | $140.9M | $138.7M | $155.5M | +12.10% ↑ faster |
| Net profit | $125.6M | $117.1M | $118.3M | +1.04% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.5B | $1.6B | $1.7B | $1.9B | $1.9B |
| Operating profit | $119.1M | $135.3M | $140.9M | $138.7M | $155.5M |
| Net profit | $85.5M | $100.1M | $125.6M | $117.1M | $118.3M |
| Revenue CAGR | 4-yr avg 5.73% | ||||
Revenue rose 3.0% year over year (2023 ₩2.6 trillion → 2024 ₩2.8 trillion → 2025 ₩2.9 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 12.1% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 5.7%. The two-year revenue CAGR is 5.0%. In the most recent quarter (Q1 2026), revenue was 0.1% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 3.9%, is on the high side.
- ROE of 10.2% points to solid profitability.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue rose 3.0% year over year, and the pace is slowing (3-year trend: rising).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-03-19UpdateVoluntary disclosure of the corporate value-up plan. Formalizes a policy of maintaining a payout ratio of 50-60% for fiscal 2026 and sets out business expansion via AI and robot new products and integrated facility management (IFM).By specifying the floor of the medium-term shareholder-return policy, it raises the predictability of dividends (positive over the medium to long term). Source
- 2026-04-30EarningsFair disclosure of preliminary consolidated Q1 2026 results. Revenue ₩673.7 billion (-0.1% YoY), operating profit ₩20.7 billion (-62.3%), net profit ₩21.5 billion (-48.8%). Reflects a one-off retirement-benefit cost following the Supreme Court's average-wage ruling.Short-term earnings plunge on the one-off cost (negative short-term), but revenue and core-business strength are maintained (neutral over the medium term). Source
- 2026-05-15FilingSubmission of the Q1 2026 quarterly report. Confirms the preliminary revenue, operating profit, and net profit and the booking of the one-off cost.The preliminary figures are confirmed, and the nature of the one-off factor is verified in the financial statements (neutral). Source
- 2026-05-11IRDisclosure announcing an investor briefing (IR). Communicates Q1 results and future business direction to shareholders and the market.Shares the company's explanation of the one-off cost (neutral to short-term positive). Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-01Large-business-group status disclosure
- 2026-06-01Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-05-15Disclosure
- 2026-05-11Disclosure
- 2026-05-11OwnershipLargest-shareholder ownership change report
- 2026-05-11OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-30EarningsFair-disclosure notice
- 2026-04-24EarningsEarnings disclosure
- 2026-03-19Disclosure
- 2026-03-19Disclosure
- 2026-03-19Disclosure
📖 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.