Hancom sells its Hancom Office document software — including the 'Hangul (HWP)' word processor — as licenses and subscriptions to businesses, government and public bodies, and educational institutions. Established as the de facto standard document tool across government and the public sector, it has a stable base of recurring renewal and subscription revenue. On April 20, 2026 the company directly presented, via fair disclosure, a 2026 target of ₩210 billion in revenue and ₩60 billion in operating profit — a profitability-first direction that trims the top line while growing earnings — and at a May IR it laid out an AI and document-automation strategy including 'Agentic OS'; the trailing P/E is 11.9x and P/B 1.1x. What stands out recently is that if the structure reshaped around earnings gets filled in by quarterly results and the AI new business converts into revenue, the shares are strong; on the other hand, because this is a profitability-improvement story rather than a growth story, revenue itself is planned to fall below last year's, and the final net-profit figure needs confirmation through quarterly results.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 7.2% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 4.4% higher than a year earlier.
- ROE is 9.4% (controlling-interest basis). It is above the sector average.
- Operating margin is 11.1%.
- P/B is low versus peers too, so it looks cheap on an asset basis as well.
Ownership & governance As of 2025-12-31
Largest shareholder Hancom With 26.73% (corporate)
Controlling bloc incl. related parties 35.68%
With the controlling bloc holding 36%, the ownership structure is stable.
🔎 In-depth analysis
- Hancom earns its money from Hancom Office document software, including the 'Hangul (HWP)' word processor that is in common everyday use.
- The main revenue stream is selling office-software licenses, subscriptions and usage rights to businesses, public bodies and educational institutions, and the fact that Hancom Office has become the de facto standard document tool in the government and public sector firmly underpins its revenue base.
- Software that is once installed as a standard tends to generate recurring revenue through renewals and subscriptions, and a strength is that, unlike games, it is not swayed heavily by hit-or-miss performance.
- On top of this, the company is expanding into cloud document services and document/work automation combined with AI (a direction the company calls 'Agentic OS' at IR).
- The company's official 2026 outlook places weight on the profitability of its core software rather than on the top line, leaning toward thickening earnings rather than building scale.
- The latest close is ₩17,130 and market capitalization is ₩414.2 billion.
- The price sits below the 20-day line (₩18,635) and below the 60-day line (₩19,589).
- Trading below both the short- and mid-term moving averages, the trend is on the subdued side.
- RSI (a supplementary gauge that measures the strength of gains versus declines over the past 14 days on a 0–100 scale) is 38.0, a neutral level.
- The one-month change is -11.0%, the three-month change is -9.2%, and the position versus the 52-week high is -43.9%.
- Relative strength versus KOSDAQ is 58 (on a 1–99 scale, computed from the past year's return versus the index with more recent performance weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 42% of all stocks by strength.
- Over the past three months it outpaced the index by 17.6%.
- Chart interpretation is best done alongside trading volume and disclosure dates.
- On confirmed 2025 annual results, the P/E (how many times one year's earnings the share price represents) is 12.05x and the P/B (how many times net assets the share price represents) is 1.13x.
- Both are on the low side in absolute terms, so the price looks cheap relative to earnings and assets.
- ROE (how much is earned in a year on shareholders' equity) is 9.4%, the operating margin 11.1% and the net margin 10.5%, delivering steady double-digit profitability.
- The debt ratio (debt relative to equity) of 198.7% looks high on the number alone, but with a current ratio of 208.6% and interest coverage of 5.3x, short-term payment capacity and the ability to cover interest are ample, so financial soundness is rated 'stable.' In other words, this is not a situation where the debt ratio alone should be read as a burden.
- One thing to note is that last year's net profit (₩34.4 billion) rose sharply from the prior year (₩13.9 billion) with some one-off factors mixed in, which means the P/E may look lower than it really is — but that only signals the multiple may be flattered, not that the valuation is expensive.
- Taken together with the company's target of ₩60 billion in operating profit this year, the current price band is not heavy relative to earnings.
- Over five years revenue rose steadily from ₩241.7 billion in 2021 to ₩326.7 billion in 2025, growing at about 7.8% a year on average.
- Operating profit was close to flat over the same span, ₩39.6 billion to ₩36.4 billion, while net profit swung year to year with one-off factors (₩46.8 billion in 2022, ₩13.9 billion in 2024, ₩34.4 billion in 2025).
- In Q1 2026 revenue of ₩63.6 billion (+4.4%) and operating profit of ₩8.6 billion (+2.1%) grew gently.
- This year's key point is the official outlook the company presented directly via fair disclosure on 2026-04-20: revenue set at ₩210 billion but operating profit targeted at ₩60 billion — a picture of roughly 65% growth from last year's ₩36.4 billion.
- It is a plan to shrink the top line while growing earnings, and it reads naturally as a shift that reflects a change to the consolidation scope and revenue-recognition basis, shedding low-margin scale to thicken earnings around the core software.
- In other words, this year's earnings target is not simply the result of top-line growth but a figure that comes from redrawing the business structure around profitability.
- Because this ₩60 billion in operating profit is a figure the company officially put out reflecting its business plan and environment, if it is filled in as stated, this year's profitability would be the thickest in several years.
- That said, since it is a company target, it is best watched by confirming whether quarterly results fill it in.
- The core of the recent flow is the operating-results outlook fair disclosure on 2026-04-20.
- The company directly presented this year's revenue of ₩210 billion and operating profit of ₩60 billion — a direction that trims the top line while growing earnings, showing the business structure shifting toward profitability.
- On 2026-05-19 it held an IR laying out an AI and document-automation strategy including 'Agentic OS,' an attempt to create new revenue streams by layering AI onto the Hancom Office base.
- On 2026-04-10 it decided on a treasury-share disposal (about 130,000 common shares) in response to stock-option exercises; on 2026-05-18 it disclosed the convening of an extraordinary general meeting (held July 2) and a new grant of stock options; and on 2026-05-06 it disclosed the result of terminating a treasury-share acquisition trust contract.
- Frequent treasury-share and stock-option disclosures show that shareholder returns and talent compensation are proceeding together.
- The strengths are clear: a stable revenue base in Hancom Office, used almost as a standard across government, public bodies and education; steady double-digit profitability; ample short-term finances; and a low valuation of a trailing P/E of 11.9x and P/B 1.1x all mesh together.
- The price has fallen to about half of its 52-week high, so this is not a stock priced expensively relative to earnings.
- On top of that, the company directly set an official target of ₩60 billion in operating profit via fair disclosure on 2026-04-20 — a positive signal that shows, in numbers, its intent to convert a top-line reduction into margin improvement.
- The point to examine is that this picture is a 'profitability-improvement' story rather than a 'growth' story.
- Revenue itself is planned to fall below last year's, and because the company has not separately provided a net-profit forecast, the final earnings figure needs confirmation through quarterly results.
- In short, the stock is strong when the earnings-centered restructuring is filled in by quarterly results and the AI new business converts into revenue, and weak when the top-line reduction does not translate into the expected margin improvement.
- The current price band is already priced fairly conservatively, before that improvement is confirmed.
🔎 Valuation vs peers Fairly valued
We directly chose listed domestic software companies close to Hancom's actual business (office/document and enterprise/public-sector packaged software) for comparison; we centered on Douzone Bizon (ERP/enterprise SW) and AhnLab (security SW), whose B2B/B2G software character is closer than games or streaming, and treated SOOP — grouped in the same base sector but a different business — as reference only.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Douzone Bizon | 37.86x | 5.68x | 15.01% |
| AhnLab | 10.99x | 1.60x | 14.53% |
| SOOP | 5.34x | 1.16x | 21.81% |
(a) Position versus the true peer set: Hancom's P/E of 14.0x and P/B of 1.31x are far below the high-growth ERP name Douzone Bizon (P/E 37.9, P/B 5.68) and similar to the security SW name AhnLab (P/E 11.7, P/B 1.69). (b) Premium/discount: versus Douzone it is a large discount, but that can be seen as reflecting Hancom's lower ROE (9.4%) versus Douzone (15.0%) and AhnLab (14.5%) and its gentler revenue growth, so it is hard to view as simply cheap. (c) Limitation of the trailing P/E and forward basis: the trailing P/E rests on last year's confirmed net profit with one-offs mixed in, so its reliability is limited. The company's official forward figure is the ₩60 billion in operating profit from the 2026-04-20 fair disclosure, but the top-line revenue falls to ₩210 billion and the company did not disclose net profit, so a forward P/E is hard to fix. So the current multiple is viewed as within a 'fair' range, a zone whose assessment will shift depending on whether margin improvement is confirmed in the results.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩210.0 billion | ₩60.0 billion | — |
Price history Close · MA20 · MA60
The latest close is ₩17,130 and the market capitalization is ₩414.2 billion. The price sits below its 20-day moving average (₩18,635) and below its 60-day moving average (₩19,589). 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 38.0, a neutral level. The one-month change is -11.0%, the three-month change is -9.2%, and the position relative to the 52-week high is -43.9%. Relative strength versus the KOSDAQ is 58 (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 58% of all stocks. Over the past three months it outpaced the index by 17.6%. 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 +17.56% / 6M -9.94% / 12M -43.04%
Key metrics vs sector median
Valuation
The P/E of 12.05x is in line with the sector median (13.30x). The P/B of 1.13x is below the sector median (1.58x).
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 10.7%, 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 9.4%, above the sector average (5.0%). The operating margin is 11.1%. The debt ratio is 198.7%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $179.7M | $202.0M | $216.6M | +7.21% ↓ slower |
| Operating profit | $22.6M | $26.8M | $24.1M | -9.96% ↓ slower |
| Net profit | $10.0M | $9.2M | $22.8M | +147.69% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $160.2M | $160.4M | $179.7M | $202.0M | $216.6M |
| Operating profit | $26.2M | $16.6M | $22.6M | $26.8M | $24.1M |
| Net profit | $11.9M | $31.0M | $10.0M | $9.2M | $22.8M |
| Revenue CAGR | 4-yr avg 7.83% | ||||
Revenue rose 7.2% year over year (2023 ₩271.1 billion → 2024 ₩304.8 billion → 2025 ₩326.7 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 10.0% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 7.8%. The two-year revenue CAGR is 9.8%. In the most recent quarter (Q1 2026), revenue was 4.4% 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.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue rose 7.2% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-04-20FilingOutlook for operating results (fair disclosure): 2026 revenue of ₩210 billion and operating profit of ₩60 billion presented (net profit not disclosed), reflecting the 2026 business plan and operating environmentThe company's official outlook. The top line falls below last year's consolidated revenue (₩326.7 billion) but operating profit is grown from last year's ₩36.4 billion to ₩60 billion, signaling a consolidation-scope adjustment and a shift toward profitability. Over the medium term, margins are the key point to watch. Source
- 2026-05-19IRIR held: presentation of an AI and document-automation strategy including 'Agentic OS' (filed 2026-05-18, KIND disclosure)Presents a new-growth direction that layers AI onto document and work automation. More an event that shows the direction of medium-term business expansion than near-term results, with revenue conversion to be confirmed in subsequent quarters. Source
- 2026-04-10UpdateMaterial report (treasury-share disposal decision): about 130,000 common shares disposed in response to stock-option exercise (treasury shares delivered instead of issuing new shares)Covering stock options with held treasury shares instead of issuing new shares to reduce further dilution. Interpreted more as part of the shareholder-return and compensation structure than near-term supply and demand. Source
- 2026-05-18FilingResolution to convene an extraordinary general meeting (held 2026-07-02) and filing of a new grant of stock optionsThe EGM agenda and stock options for talent compensation. Depending on the agenda, there is potential for governance and capital-policy change, so the July meeting result needs confirmation. Source
- 2026-05-13EarningsQuarterly report (2026.03): Q1 revenue of ₩63.6 billion (+4.4%) and operating profit of ₩8.6 billion (+2.1%) confirmedThe starting point of this year's results. With gentle Q1 growth, earnings contribution from Q2 onward matters to meet the company's official annual operating-profit target of ₩60 billion. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Company's official 2026 operating-profit outlook | ₩60.0 billion | ₩60.0 billion | Confirmed | link |
| Company's official 2026 revenue outlook | ₩210.0 billion | ₩210.0 billion | Confirmed | link |
| Q1 2026 confirmed results | revenue ₩63.6 billion·operating profit ₩8.6 billion | revenue ₩63.6 billion·operating profit ₩8.6 billion | Confirmed | link |
| Latest closing price | ₩17,130 | — | Unverified | link |
| Seasonality-approximated operating profit (reference) | ₩74.9 billion | — | Unverified | link |
Recent filings
- 2026-06-02OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-02OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-18Disclosure
- 2026-05-18Disclosure
- 2026-05-18Shareholders' meeting notice
- 2026-05-18Disclosure
- 2026-05-13PeriodicQuarterly report
- 2026-05-06Disclosure
- 2026-04-30OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-20Fair-disclosure notice
- 2026-04-10TreasuryMaterial-fact report
- 2026-03-26Disclosure
📖 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.