KMW makes and sells radio-frequency (RF) components for mobile base stations, such as filters and antennas and 5G MMR units, with the RF business accounting for about 80% of revenue and the rest coming from LED lighting; its results are tied directly to the 5G/6G investment cycle of the carriers it supplies. In April 2026 it disclosed, in quick succession, the disposal of previously issued convertible bonds, the acquisition and redemption of bonds before maturity, and an adjustment to the conversion price, managing potential dilution and interest costs, and it held an investor briefing in June to explain the state of its business. What stands out lately is that even in a fourth straight year of losses the deficit has narrowed every year, and the business has large earnings leverage if an expansion of 5G SA, 6G preparation and exports to the U.S. come together, but it has not yet returned to profit, Q1 revenue turned down again so a recovery is not confirmed, the current ratio is below 100%, and the P/B and P/S are already high.
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 86.0%).
- The most recent full-year net result was a loss.
- Revenue rose 11.6% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 17.8% lower than a year earlier.
- ROE is -20.6% (controlling-interest basis).
- Operating margin is -24.4%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Kim Deok-yong 27.05% (individual)
Controlling bloc incl. related parties 31.37%
With the controlling bloc holding 31%, the ownership structure is stable.
🔎 In-depth analysis
- KMW makes and sells radio-frequency (RF) components that go into mobile base stations.
- Its core is the RF business, which accounts for about 80% of total revenue; its flagship products are base-station filters and antennas, together with the 5G massive multiple-input multiple-output (MMR) unit, which combines an antenna and a filter into a single body.
- The rest is an LED lighting business for sports stadiums and outdoor use.
- Most of its revenue comes from exports, and its main customers are Samsung Electronics and overseas telecom-equipment makers.
- In other words, the company's results are tied directly to how much the carriers it supplies spend on base stations (the 5G/6G investment cycle).
- The latest close is ₩15,120 and the market cap is ₩637.9 billion.
- The price sits below both the 20-day line (₩20,631) and the 60-day line (₩27,943).
- Trading below both the short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a gauge that scores the strength of gains versus losses over the past 14 days on a 0-100 scale) is 26.2, close to oversold territory.
- The one-month change is -42.8%, the three-month change is -42.6%, and the price is -60.4% from its 52-week high.
- Relative strength versus the KOSDAQ is 79 (on a 1-99 scale, converting the past year's return versus the index with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 20% of all stocks by strength.
- Over the past three months it lagged the index by 21.8%.
- Chart reading is best done alongside trading volume and the dates of disclosures.
- The heart of the financials is that the company is still loss-making.
- In 2025 the operating margin was -24.4% and ROE (how much a company earns in a year on its equity) was -20.6%, both negative.
- Because earnings are negative, a P/E ratio cannot be calculated.
- Instead the P/B ratio is 4.85x and the P/S ratio is 7.59x, on the high side for a company with no earnings.
- This means the market is currently pricing in a future recovery in results rather than today's figures.
- The debt ratio (debt relative to equity) is 188% and the current ratio is 86%, meaning it has slightly fewer assets it can turn into cash right away than debt due within a year, so short-term liquidity is not ample.
- Net debt (total borrowings minus cash) is about ₩31.1 billion, which is not excessive, but the FCF yield (cash actually generated relative to market cap) is -3.4%, so it is still in a phase of burning cash.
- The revenue trajectory shows the clear ups and downs of a cycle.
- From a peak of ₩205.2 billion in 2021 it fell to ₩87.4 billion in 2024 before rebounding 11.6% to ₩97.5 billion in 2025.
- The bottom line is a more meaningful story.
- The operating loss narrowed clearly every year: -₩62.9 billion in 2023, -₩45.5 billion in 2024 and -₩23.8 billion in 2025.
- That said, Q1 2026 revenue fell 17.8% from a year earlier, with an operating loss of ₩5.7 billion and a net loss of ₩5.1 billion, so on a quarterly basis the recovery is not smooth.
- The keys going forward are 5G standalone (SA) investment, the next 5G spectrum auction, and how far export volumes to the U.S. and other markets revive.
- The company's official profit target for this year has not been confirmed, so the timing of a swing to profit is still hard to pin down in numbers.
- The focus of recent disclosures is on restructuring the capital base.
- In April 2026 the company disclosed, in quick succession, decisions to dispose of convertible bonds (bonds that can be swapped into shares) it had previously issued and repurchased, and to acquire and redeem bonds before maturity.
- A conversion-price adjustment and the exercise of conversion rights also took place, which reads as a move to manage the potential dilution and interest burden.
- In June 2026 it held an investor briefing (IR) to explain the state of its business directly to the market.
- In March it filed its business and audit reports and completed its regular general meeting of shareholders.
- It is most accurate to view this stock as one attempting a recovery as it passes through the trough of the telecom-investment cycle.
- The bull conditions are clear.
- Even in a fourth straight year of losses the deficit has narrowed every year, and the business has large earnings leverage if an expansion of 5G SA, 6G preparation, a new spectrum auction, and an increase in exports to the U.S. come together.
- The bear conditions are equally clear.
- It has not yet returned to profit, and Q1 2026 revenue turned down again, so a recovery is not confirmed.
- The current ratio is below 100%, so short-term financial capacity is tight, and although it is not yet earning a profit, the P/B and P/S are already high.
- In sum, if telecom investment really revives and feeds through to orders and a swing to profit, it is strong; if the investment gap drags on, valuation strain and funding pressure grow together.
🔎 Valuation vs peers Inconclusive
Compared against telecom and broadcasting-equipment makers that produce 5G wireless base stations and RF components; because most of this group is loss-making or has volatile earnings amid the telecom-investment gap, which limits P/E comparison, we look at P/B and P/S together with whether earnings recover.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| RFHIC | 45.40x | 3.84x | 8.45% |
| OE Solutions | — | 3.90x | -42.07% |
| Ace Technologies | — | 1.78x | -41.30% |
KMW is currently loss-making, so with no P/E it is impossible to declare it cheap or expensive on an earnings basis. Its P/B of 5.63x is higher than the profitable RFHIC (4.4x) or the loss-making OE Solution (4.52x) and Ace Technology (1.99x). But because the whole business group has earnings depressed by the telecom-investment gap, one must bear in mind that valuation currently hinges on a future recovery rather than today's figures. In other words, looking only at last year's losses and the high P/B is a strain, but looking together at the year-on-year narrowing of the deficit and the possibility of a resumption in 5G/6G investment, it can also be read as a valuation targeting a recovery off the bottom. Until the recovery is confirmed in actual results, holding judgment is more honest than declaring one way or the other.
Price history Close · MA20 · MA60
The latest close is ₩15,120 and the market capitalization is ₩637.9 billion. The price sits below its 20-day moving average (₩20,631) and below its 60-day moving average (₩27,943). 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 26.2, near oversold territory. The one-month change is -42.8%, the three-month change is -42.6%, and the position relative to the 52-week high is -60.4%. Relative strength versus the KOSDAQ is 79 (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 80% of all stocks. Over the past three months it lagged the index by 21.8%. 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 -21.83% / 6M +14.78% / 12M +14.71%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 4.85x is above the sector median (1.32x).
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.
Profitability & financials
Return on equity (ROE) is -20.6%. The operating margin is -24.4%. The debt ratio is 188.0%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $66.3M | $57.9M | $64.6M | +11.63% ↑ faster |
| Operating profit | -$41.7M | -$30.1M | -$15.8M | — |
| Net profit | -$43.3M | -$25.6M | -$17.9M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $136.0M | $118.9M | $66.3M | $57.9M | $64.6M |
| Operating profit | -$18.5M | -$29.8M | -$41.7M | -$30.1M | -$15.8M |
| Net profit | -$2.5M | -$17.7M | -$43.3M | -$25.6M | -$17.9M |
| Revenue CAGR | 4-yr avg -16.97% | ||||
Revenue rose 11.6% year over year (2023 ₩100.1 billion → 2024 ₩87.4 billion → 2025 ₩97.5 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating results are in the red, so a swing back to profit matters more than the growth rate here. Over the 5 years on record, revenue compound annual growth (CAGR) is -17.0%. The two-year revenue CAGR is -1.3%. In the most recent quarter (Q1 2026), revenue was 17.8% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 11.6% year over year, a sign of growth.
Points to watch
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 86.0%).
- The most recent full-year net result was a loss.
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-04-08FilingDecision to acquire and redeem convertible bonds (including overseas convertible bonds) before maturity after issuance.A cleanup of the financial structure that reduces potential share-conversion volume and interest costs. In the short term a factor of cash outflow or easing of potential dilution. Source
- 2026-04-10FilingDecision to dispose of (place back on the market) convertible bonds it had held (material-event report).A move to secure funds by re-placing the held convertible bonds. Cash flowing in on disposal could serve as a resource for R&D and production. Source
- 2026-04-08FilingAdjustment of the convertible-bond conversion price.A re-setting of the conversion price following a fall in the share price, a factor that changes the volume of new shares (and thus potential dilution) on future conversion. Source
- 2026-06-08IRHeld an investor briefing (IR) to explain the state of its business directly to the market.In a recovery phase, an occasion for the company to convey the direction of its business and downstream demand. A short-term effect on sentiment. Source
- 2026-05-15EarningsFiled the Q1 2026 quarterly report (revenue ₩21.5 billion, operating loss ₩5.7 billion, net loss ₩5.1 billion).Confirmed that revenue fell 17.8% from a year earlier, so the recovery is not smooth on a quarterly basis. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-08Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-04-10Disclosure
- 2026-04-10Material-fact report
- 2026-04-08Convertible-bond issuance
- 2026-04-08Disclosure
- 2026-04-06Amended filing
- 2026-03-30Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-23OwnershipOwnership-change filing
- 2026-03-19PeriodicAnnual business report
- 2026-03-18Audit 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.