Coway earns most of its money not by selling appliances but by renting them out and collecting a monthly fee under a subscription model. Its lineup spans water purifiers, air purifiers, bidets, and mattresses and massage chairs sold under the BEREX brand, and the key to the business is keeping contracts alive for years through the in-home visits of its Cody and Codak service staff. As of Q1 2026 total rental accounts reached about 11.73 million, up 10.9% from a year earlier, and overseas now accounts for 40.4% of revenue with Malaysia as the largest market, while BEREX is establishing itself as a new revenue stream. The main points to weigh are the strengths: recurring fee revenue keeps earnings steady, profitability is high with ROE and operating margin both in the 17% range, and overseas markets are actually accelerating growth. Against that, the stock has climbed more than 30% over the past three months, so expectations are already reflected, and much of the growth depends on overseas (especially Malaysian) economic conditions and currency.
At-a-glance assessment financial health · growth · profitability · valuation
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 95.7%).
- 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 17.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 17.7%.
- The forward P/E sits below the sector median.
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
- Coway earns most of its revenue not by selling home appliances such as water purifiers, air purifiers, bidets, and water softeners, or mattresses and massage chairs (the BEREX brand), but by renting them out and collecting a monthly fee under a subscription model.
- Once a customer signs up, fees flow in steadily for several years, and the core of the business is keeping those contracts alive over the long term through the Cody and Codak visiting-service staff who handle after-sales care such as filter replacement.
- As of Q1 2026, total rental accounts stood at roughly 11.73 million, up 10.9% from a year earlier.
- More than half of revenue comes from Korea, but the share from overseas operations such as Malaysia, the U.S., Thailand, and Indonesia rose to 40.4% in Q1 2026, with Malaysia the largest single market accounting for most of the overseas total.
- On top of this, BEREX, a new brand bundling mattresses and massage chairs, is establishing itself as a fresh revenue stream.
- The recent close is ₩85,000 and the market cap is ₩6.0 trillion.
- The price sits below the 20-day line (₩90,465) and below the 60-day line (₩89,210).
- Trading beneath both its short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a gauge that scores upward versus downward force over the past 14 days on a 0-100 scale) is 40.5, a neutral level.
- The one-month change is -7.6%, the three-month change is +9.2%, and the position versus the 52-week high is -24.9%.
- Relative strength against the KOSPI is 28 (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 12.5%.
- It is best to read the chart alongside trading volume and the dates of disclosures.
- This is a highly profitable company.
- ROE (how much it earns in a year on shareholders' equity) is high at 17.1%, and margins are stable with a 17.7% operating margin and a 12.5% net margin.
- The P/E ratio (how many times one year's earnings the share price represents) is 9.74x and the P/B (how many times book net assets the share price represents) is 1.66x.
- The P/B looks somewhat elevated, but Coway makes money not by tying up large assets in factories but through the "invisible asset" of rental contracts, so it is natural for the share price to look high relative to book net assets.
- The debt ratio (debt against equity) is 93.7%, which is not low given the nature of the rental business, but with an interest coverage ratio of 11.7x there is ample capacity to service interest.
- The dividend yield is 2.0% (₩1,940 per share), returning about 22% of net profit as dividends.
- Note also that the current ratio is 95.7%, meaning readily cashable assets are slightly less than debt due within a year; this should be read together with the cash-flow characteristics of a subscription business in which fees come in steadily every month.
- Growth has been steadily accelerating.
- Revenue rose from ₩3.97 trillion in 2023 to ₩4.31 trillion in 2024 and ₩4.96 trillion in 2025, with the growth rate steepening from 8.7% to 15.2%, and operating profit also rose for three straight years to ₩878.7 billion in 2025.
- In Q1 2026, revenue was ₩1.3297 trillion (+13.2%), operating profit ₩250.9 billion (+18.8%), and net profit +31.1%, so profit is growing faster than revenue.
- This reflects the rising weight of higher-margin overseas markets such as Malaysia (Q1 revenue +23.5%, operating profit +42.3%) and thicker recurring revenue as rental accounts increase.
- If this momentum continues, this year's earnings have room to step up another level from last year's, and while the P/E on last year's confirmed earnings (10.9x) looks a touch expensive, on this year's expected earnings the multiple comes down below that.
- Recent disclosures center on routine and ownership-related items such as changes in shares held by executives and major shareholders, changes in the largest shareholder's stake, the corporate governance report, and the large business group status filing.
- On May 27 a notice of an investor briefing (IR) was disclosed, and on May 29 the Q1 quarterly report was filed.
- The June 1 corporate governance report updated governance information.
- Rather than event-driven disclosures such as large orders or M&A, the filings are dominated by routine ones centered on earnings, ownership, and governance, fitting a steadily running subscription business.
- The strengths are clear.
- Thanks to a rental structure in which fees recur every month, earnings vary little; profitability stays high with ROE and operating margin both in the 17% range; and overseas, led by Malaysia, has taken on a new role as a growth axis, so revenue and profit growth are actually accelerating.
- On this year's expected earnings, the valuation burden is not heavy either.
- On the other side, the points to watch are that the stock has climbed more than 30% over the past three months, so a good deal of near-term expectation is already reflected, and that a significant part of growth depends on overseas markets (especially Malaysia), so results can swing with local economic conditions and currency.
- In short, this is a structure that is strong when overseas growth and rental-account gains continue, but can turn relatively weak if foreign currencies weaken or new domestic account additions slow.
🔎 Valuation vs peers Undervalued
Under the KSIC classification Coway falls under "other services," but in substance it is a home-appliance rental (subscription) and direct-sales business; since domestic listed peers with a fully matching business mix are rare, it is assessed on the business substance of recurring revenue, overseas expansion, and high ROE.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Coway | 9.74x | 1.66x | 17.09% |
On last year's confirmed earnings the P/E is 10.9x, which at first glance is not low, but with profit growing faster than revenue (Q1 net profit +31.1%), on this year's expected earnings the multiple falls to the low single digits, below the trailing figure. For a subscription business that combines revenue growth of around 15%, ROE in the 17% range, and a dividend yield in the 2% range, that multiple is not a heavy burden. The P/B of 1.86x looks somewhat high because this is an asset-light structure that earns money through the intangible recurring revenue of rental contracts rather than tangible assets such as factories, so it is hard to call it overvalued on an asset basis alone. That said, the stock has risen more than 30% over the past three months, so a good deal of near-term expectation is already reflected, and a significant part of growth depends on overseas markets (especially Malaysia), leaving currency and local-economy variables to consider.
Price history Close · MA20 · MA60
The latest close is ₩85,000 and the market capitalization is ₩6.0 trillion. The price sits below its 20-day moving average (₩90,465) and below its 60-day moving average (₩89,210). 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 40.5, a neutral level. The one-month change is -7.6%, the three-month change is +9.2%, and the position relative to the 52-week high is -24.9%. Relative strength versus the KOSPI is 28 (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 12.5%. 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 -12.46% / 6M -36.37% / 12M -63.34%
Key metrics vs whole-market median
Valuation
The P/E of 9.74x is below the whole-market median (13.81x). The P/B of 1.66x is above the whole-market median (1.15x).
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 10.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 17.1%, above the whole-market average (5.0%). The operating margin is 17.7%. The debt ratio is 93.7%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $2.6B | $2.9B | $3.3B | +15.16% ↑ faster |
| Operating profit | $484.7M | $527.2M | $582.3M | +10.47% ↑ faster |
| Net profit | $312.4M | $374.9M | $409.4M | +9.22% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $2.4B | $2.6B | $2.6B | $2.9B | $3.3B |
| Operating profit | $424.3M | $448.9M | $484.7M | $527.2M | $582.3M |
| Net profit | $308.6M | $303.7M | $312.4M | $374.9M | $409.4M |
| 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 Q1 2026 · vs year-ago
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- ROE of 17.1% points to solid profitability.
- Revenue grew 15.2% 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
- 2026-05-29EarningsQ1 2026 quarterly report filed. Consolidated revenue ₩1.3297 trillion (+13.2%), operating profit ₩250.9 billion (+18.8%), and net profit +31.1% year on year, with profit growth outpacing revenue.Profit is growing faster than revenue, confirming an improving profitability trend. Overseas and rental-account growth feeding into earnings is a medium-term positive. Source
- 2026-05-27IRNotice of an investor briefing (IR). A routine IR at which the company explains quarterly results and business conditions directly to the market.A channel through which the company shares results and strategy directly, positive for near-term information transparency. Source
- 2026-06-01FilingCorporate governance report disclosed. Updates and discloses the status of the board, shareholder rights, audit, and other governance matters.A routine disclosure on governance transparency; a neutral-to-positive factor on the credibility side rather than a direct earnings impact. Source
- 2026-06-05FilingReport on holdings of specific securities by executives and major shareholders, and filing on changes in shares held by the largest shareholder and others. Routine ownership-related reporting items.Ordinary ownership reporting with no unusual change to control or ownership structure, so the earnings impact is limited. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 full-year consolidated revenue | 4 9,636 (base ₩4,963,566,073,111) | 4 9,636 (+15.2% YoY) | Confirmed | link |
| 2025 full-year consolidated operating profit | 8,787 (base ₩878,651,769,382) | 8,787 (+10.5% YoY) | Confirmed | link |
| Q1 2026 consolidated revenue and operating profit | revenue 1 3,297 (+13.2%), operating profit 2,509 (+18.8%) | revenue 1 3,297 (+13.2%), operating profit 2,509 (+18.8%) | Confirmed | link |
| 2026 estimated net profit (this year's expected, in-house estimate) | approx. 7,350 (self-estimate) | — | Unverified | link |
Recent filings
- 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.