Coway (021240) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Coway is a company that earns money not by selling home appliances such as water purifiers, air purifiers, bidets and mattresses but by renting them out on a rental/subscription basis. It has about 7.65 million rental and membership accounts in Korea, collecting a monthly fee from each, and overseas revenue in markets such as Malaysia, the United States and Thailand is also large. Consolidated revenue for 2025 was ₩4.9636 trillion, up 15.2% from the prior year, and in the first quarter of 2026 net profit rose 31.1% from a year earlier. What stands out recently is a two-sided picture: a strength in that, as a subscription business where accounts steadily generate monthly fees, the earnings flow is consistent and shareholder returns (dividends and share cancellation) hold steady at around 40% of net profit; on the other hand, because of a business model that buys rental assets up front and deploys them, accounting free cash flow is recorded as negative, and the growth pace of overseas accounts governs results — points worth watching together.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Other Services” (Other), a type typically read first through P/E.
These are mostly service businesses that earn steady profits from fairly stable operations, so price-to-earnings (P/E) — the share price against the profits it generates — is the most intuitive starting point. Value here comes from earning power rather than assets.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue rose 15.2% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 13.2% higher than a year earlier.
- ROE is 17.9% (controlling-interest basis). It is above the sector average.
- Operating margin is 17.9%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder Netmarble 25.74% (corporate)
Controlling bloc incl. related parties 25.76%
With the controlling bloc holding 26%, control is maintained but the free float is relatively large.
🔎 In-depth analysis Reading
Coway is a company that rents out home appliances rather than selling them. On top of water purifiers, air purifiers, bidets and water softeners, it adds mattresses and massage chairs; when a customer pays a monthly rental fee, Coway installs the product and visiting service staff known as 'Cody' periodically replace filters and perform checkups. Thanks to this structure, once an account is secured, the monthly fee comes in repeatedly. As of the end of 2025, domestic rental and membership accounts were about 7.65 million, to which revenue from overseas subsidiaries in Malaysia, the United States, Thailand, Indonesia and elsewhere is added. In Malaysia in particular, the brand is so established that it is practically synonymous with water purifiers, making overseas an important growth axis.
The latest close is ₩96,600 and the market capitalization is ₩6.8 trillion. The price sits above its 20-day moving average (₩92,305) and above its 60-day moving average (₩91,843). 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 59.3, a neutral level. The one-month change is -0.2%, the three-month change is +16.1%, and the position relative to the 52-week high is -14.7%. Relative strength versus the KOSPI is 47 (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 47% of all stocks. Over the past three months it outpaced the index by 32.2%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Profitability is this company's core strength. ROE (how much the company earns in a year on its equity) is 17.1%, so it is putting its capital to efficient use. The operating margin is 17.7%, high for the home-appliance industry. On valuation, the P/E (how many times a year's earnings the price represents) is 11.07x and the P/B (how many times net assets the price represents) is 1.85x. The debt ratio (debt relative to equity) is 94%, not low given a business model that funds rental assets, but the interest-coverage ratio (how many times operating profit can cover interest) is 11.7x, ample capacity to bear the interest burden. Reflecting debt, EV/EBIT (enterprise value divided by operating profit, akin to a P/E that reflects debt) is 10.0x and EV/EBITDA is 6.5x, not a burdensome level even after accounting for debt. The FCF yield (actual cash earned relative to market cap) is recorded as negative (-3.0%), because of an up-front-investment structure that buys rental products in large quantities in advance and installs them for customers. This is a common accounting trait at a growing rental company, and it should be distinguished as not being a loss caused by poor management.
Results have risen steadily. Revenue grew from ₩3.6643 trillion in 2021 to ₩4.9636 trillion in 2025, and the 2025 revenue growth rate of 15.2% was if anything faster than the prior year's (8.7%). Operating profit also grew all five years, reaching ₩878.7 billion in 2025. In the first quarter of 2026, revenue was +13.2%, operating profit +18.8% and net profit +31.1%, with profit growth outpacing revenue. Net profit grew especially sharply thanks to lighter interest and tax burdens on top of revenue growth. The company presented 2026 full-year consolidated revenue of ₩5.2770-5.4480 trillion and operating profit of ₩920.0-955.0 billion. Both revenue and operating profit targets are above 2025. Converting this year's earnings on the basis of this official company outlook, the current share price is around the low 10x range on earnings, and given that earnings keep growing, the actual burden is lighter than the P/E on past results.
In 2026, shareholder-return and ownership-related moves stood out. In February the company decided to cancel about 1.14 million treasury shares (about ₩110 billion) bought via trust, reducing the number of shares outstanding. On dividends, it combines a year-end dividend of ₩1,940 per share with quarterly dividends (₩700 in the first quarter of 2026), so that shareholder returns combining dividends and share buybacks amount to about 40% of 2025 net profit. On the ownership side, the largest shareholder, Netmarble, additionally bought Coway shares on the open market to raise its stake to the 27% range, and disclosed a plan to acquire a further ₩150 billion over the coming year to expand its stake. This reads as a move to strengthen control of Coway, which has stable cash-generating power.
Coway is a subscription business where fees come in repeatedly each month, so the earnings flow is predictable and defensive. To this are added high profitability with an ROE in the 17% range, double-digit growth from rising domestic and overseas accounts, and shareholder returns at around 40% of net profit. The company's stated 2026 revenue and operating-profit targets also point higher than the prior year. On the other hand, the cautions are clear. Because it buys rental assets up front, accounting free cash flow is recorded as negative, and the debt ratio of 94% is not low. Korea's rental market is already mature, so further growth depends substantially on expanding overseas accounts in Malaysia, the United States and elsewhere. In sum, this is a company whose strengths are stable subscription cash flow and shareholder returns, and the key to understanding it is to watch the overseas growth trend and the up-front-investment burden together.
🔎 Valuation vs peers Fairly valued
The substantive peer set was chosen among rental/subscription businesses that rent out home appliances. Cuckoo Homesys and Cuckoo Holdings are closest in business character to Coway in water-purifier and home-appliance rental, and Youngone Corporation, though in a different business, is referenced as a mid-cap with stable cash generation and dividends.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Cuckoo Homesys | 4.05x | 0.44x | 11.25% |
| Cuckoo Holdings | 6.44x | 0.71x | 11.49% |
| Youngone Corporation | 8.55x | 0.98x | 13.29% |
Coway's P/E of 10.96x and P/B of 1.87x are higher than rental peers Cuckoo Homesys (3.93x P/E) and Cuckoo Holdings (6.23x P/E). But this gap is largely explained by differences in profitability and growth. Coway's ROE of 17.1% far exceeds the peers' roughly 11%, and its revenue growth is faster. The company's stated 2026 operating-profit outlook (₩920.0-955.0 billion) is above the prior year, so on this year's expected earnings the current share price is around the low 10x range on earnings. Even if the P/E on past results looks somewhat high, in a phase where earnings keep growing the burden is lighter on this year's outlook. On balance, there is a premium versus peers, but a qualitative edge to match it supports a judgment of 'Fairly valued.'
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | 52,770~5₩448.0 billion | 9,200~₩955.0 billion | — |
Price history Close · MA20 · MA60
The latest close is ₩96,600 and the market capitalization is ₩6.8 trillion. The price sits above its 20-day moving average (₩92,305) and above its 60-day moving average (₩91,843). 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 59.3, a neutral level. The one-month change is -0.2%, the three-month change is +16.1%, and the position relative to the 52-week high is -14.7%. Relative strength versus the KOSPI is 47 (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 47% of all stocks. Over the past three months it outpaced the index by 32.2%. 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 +32.24% / 6M -9.16% / 12M -54.81%
Key metrics Computed vs whole-market median
Valuation
The P/E of 11.07x is in line with the whole-market median (12.97x). The P/B of 1.85x is above the whole-market median (0.84x).
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) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
DCF (discounted cash flow) estimate — discount rate 9.2%, initial growth 7.5%→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 whole-market average (3.0%). The operating margin is 17.9%. The debt ratio is 109.9%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $2.8B | $3.0B | $3.5B | +15.16% ↑ faster |
| Operating profit | $513.7M | $558.8M | $617.3M | +10.47% ↑ faster |
| Net profit | $331.1M | $397.3M | $434.0M | +9.22% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $2.6B | $2.7B | $2.8B | $3.0B | $3.5B |
| Operating profit | $449.8M | $475.9M | $513.7M | $558.8M | $617.3M |
| Net profit | $327.1M | $321.9M | $331.1M | $397.3M | $434.0M |
| Revenue CAGR | 4-yr avg 7.88% | ||||
Revenue rose 15.2% year over year (2023 ₩4.0 trillion → 2024 ₩4.3 trillion → 2025 ₩5.0 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 10.5% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 7.9%. The two-year revenue CAGR is 11.9%. In the most recent quarter (Q1 2026), revenue was 13.2% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- ROE of 17.9% points to solid profitability.
- Revenue grew 15.2% year over year, a sign of growth.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-02-06IRThe company presented an official outlook via fair disclosure of 2026 full-year consolidated revenue of ₩5.2770-5.4480 trillion and operating profit of ₩920.0-955.0 billion. The error against its 2025 outlook was 8.2% on revenue and 4.0% on operating profit, showing good accuracy of past outlooks.By setting a target of revenue and operating profit above the prior year, the company itself provides a basis for continued growth. Source
- 2026-02-06FilingDecided to cancel 1,141,707 treasury shares acquired via trust (acquisition value about ₩110 billion) (scheduled cancellation date February 12). Carried out within distributable profit without reducing paid-in capital.A shareholder-return measure that raises per-share value by reducing shares outstanding. Coupled with Netmarble's stake expansion, it has a governance-stabilizing effect. Source
- 2026-05-08EarningsFirst-quarter 2026 consolidated preliminary results: revenue ₩1.3297 trillion (+13.2%), operating profit ₩250.9 billion (+18.8%), net profit ₩182.0 billion (+31.1%). Profit growth outpaced revenue.Confirms improving earnings power as net profit grows faster than revenue and operating profit. A favorable start toward the company's annual outlook. Source
- 2026-05-07DividendFirst-quarter 2026 quarterly dividend of ₩700 per share (total dividends about ₩49.1 billion) decided. A quarterly dividend is run alongside the year-end dividend (₩1,940 per share).Raises the visibility of shareholder returns through dividends spread over the year. Total returns combining year-end and quarterly dividends and share cancellation are about 40% of net profit. Source
- 2026-02-06Filing2025 implementation-status disclosure of the value-up plan: consolidated revenue ₩4.9636 trillion (+15.2%), shareholder returns (cash dividends plus share buybacks) totaling ₩247.3 billion, meeting 40% of net profit, and governance improvements including raising the share of outside directors from 57% to 67%.Confirms that the shareholder-return policy and governance improvements are being carried out as planned. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 consolidated revenue | 4₩963.6 billion | 4,963,566 | Confirmed | link |
| First-quarter 2026 net profit | ₩182.0 billion | 182,015 | Confirmed | link |
| Year-end dividend per share | ₩1,940(base DPS) | ₩1,940 | Confirmed | link |
| 2026 full-year revenue and operating-profit outlook | base | revenue 52,770~5₩448.0 billion, operating profit 9,200~₩955.0 billion | Confirmed | link |
Recent filings Source
- 2026-06-05OwnershipLargest-shareholder ownership change report
- 2026-06-05OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-05OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-01Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-28OwnershipLargest-shareholder ownership change report
- 2026-05-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-27Disclosure
- 2026-05-20OwnershipLargest-shareholder ownership change report
- 2026-05-20OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-20OwnershipOfficers'/major-shareholders' holdings report
📖 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.