Korea Ratings (034950) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
Korea Ratings is a credit rating agency that assigns credit grades to issuers when companies raise debt through corporate bonds, CP or ABS, earning fees for the assessment; within a three-firm domestic oligopoly, global rating agency Fitch is its largest shareholder (about 73%), making it effectively part of Fitch. It voluntarily disclosed a corporate value-up plan on March 27, 2026, already runs a high-payout policy with a payout ratio of 141.6% and a dividend yield in the 8% range, and carries high profitability with an operating margin in the 31% range and ROE in the 19% range. What stands out lately is that in a phase where bond issuance is active and high profitability and high dividends hold, the trailing 17.9x and forward 16.9x multiples are explained by its leading ROE, margin and dividend and stable cash flow works strongly, whereas if the bond market contracts sharply, slowing growth and adjusted dividend capacity could surface as weaknesses.
This page organises public market and filing data for information purposes. It is not a recommendation to buy or sell, nor investment advice. Metrics labelled “forward” are our own unverified estimates. Please verify with the original DART filings and decide at your own responsibility.
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
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 5.5% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 2.8% higher than a year earlier.
- ROE is 25.4% (controlling-interest basis). It is above the sector average.
- Operating margin is 31.0%.
- 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 Fitch Ratings 73.55% (individual)
Controlling bloc incl. related parties 73.55%
With the controlling bloc holding 74%, control is very secure but the free float is thin.
🔎 In-depth analysis Reading
Korea Ratings is a credit rating agency that assigns credit grades (AAA to D) to an issuer's ability to repay debt when a company issues debt such as corporate bonds, commercial paper (CP) or asset-backed securities (ABS), and earns an assessment fee in return. A company seeking to issue bonds usually must obtain grades from two or more rating agencies, so revenue is tied to the scale of domestic bond issuance. Added to this are ESG certification, investment and feasibility assessment, and sales of corporate financial data and research. The domestic credit-rating market is effectively split among three firms, Korea Ratings, NICE Investors Service and Korea Investors Service, and Korea Ratings has global rating agency Fitch Ratings as its largest shareholder (about 73%), making it effectively part of Fitch.
The latest close is ₩101,600 and the market capitalization is ₩461.3 billion. The price sits above its 20-day moving average (₩101,305) and above its 60-day moving average (₩101,597). 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 52.8, a neutral level. The one-month change is -1.2%, the three-month change is -7.1%, and the position relative to the 52-week high is -10.8%. Relative strength versus the KOSDAQ is 75 (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 75% of all stocks. Over the past three months it outpaced the index by 37.2%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On confirmed annual (2025) figures, the P/E ratio (how many times one year's profit the share price is) is 18.29x and the P/B (how many times book equity the share price is) is 4.57x. The forward P/E on this year's profit is 16.9x, almost the same as the trailing figure, which means profit does not shrink but holds at a similar level, showing the current multiple is not temporarily inflated. The P/B of 3.4x looks somewhat high largely because this is a professional-services business with almost no plants or inventory, so little capital builds up on the books. The real profitability should be viewed alongside: ROE (how much is earned per year on equity) of 19.1% exceeds the sector average (about 15%) and the operating margin reaches 31.3%, a company that leaves a lot of profit relative to capital. The debt ratio (debt against equity) of 141.8% looks high on the number alone, but much of the debt is deferred revenue and provisions rather than an obligation to repay, and with a current ratio of 425% and interest coverage of 488x, the debt burden is effectively nil.
Five-year revenue rose gently from ₩104.5 billion in 2021 to ₩109.8 billion in 2025, and operating profit, after bottoming at ₩25.8 billion in 2023, recovered for two straight years to ₩32.7 billion in 2024 and ₩34.3 billion in 2025, a two-year CAGR (compound annual growth rate) of about 15%. Assessment volume swings with the bond-issuance cycle, but the recent stretch is closer to a phase where a reviving issuance market lifts profit again. This year began with Q1 revenue of ₩22.7 billion (+2.8%) and operating profit of ₩4.7 billion (-1.4%), and because this company has seasonality in which a large part of annual profit arises in the second quarter when scheduled reviews cluster, the full-year result fills in earnest from the second quarter. The forward P/E on this year's profit is 16.9x, similar to the trailing 17.9x. In other words, last year's solid earnings power is gauged to hold almost unchanged this year, and in an oligopoly, as long as the issuance market holds up, it has the base for this earnings flow to continue steadily. There is no clear basis to expect profit next year to fall below this year.
The core of the recent flow is the March 27, 2026 "corporate value-up plan (voluntary disclosure)." In line with the exchange's value-up program, the company voluntarily disclosed its own direction on capital efficiency and shareholder returns, offering a clue to gauge its intent to sustain a high-payout policy already at a 141.6% payout ratio and a dividend yield in the 8% range (specific numerical targets need further confirmation from the original text). The May 15, 2026 quarterly report (2026.03) is a periodic report with confirmed Q1 results, and given the second-quarter skew, the next half-year report is the watershed that will show the year's earnings direction. The March 26, 2026 shareholder meeting and outside-director appointment and the [amended] business report (2025.12) are procedural disclosures confirming governance and confirmed annual results. For this stock, the bond-market environment and dividend and value-up disclosures are the main variables rather than events such as orders or new products.
The strengths are clear: a barrier to entry as a three-firm domestic oligopoly, an operating margin in the 31% range and ROE in the 19% range, shareholder returns evident in a dividend reaching 8% and value-up disclosures, and fee income that keeps flowing in as long as there is bond issuance. Valuation, too: the trailing P/E of 17.9x is not simply an expensive-looking number but a multiple backed by profit holding steady at a forward P/E of 10.56x this year. The part where the multiple is higher than listed credit and corporate-information names is largely explained by ROE, margin and dividend being that much stronger. Points to view together: this is not a fast-growing company, so profit is swayed by the bond-issuance environment, and a 141.6% payout ratio means it distributed more than it earned in a year, so if the issuance market contracts and profit falls sharply, dividend capacity could adjust with it. In short, in a phase where bond issuance is active and high profitability and high dividends hold, stable cash flow works strongly, while in a phase where the bond market contracts sharply, slowing growth and reliance on high dividends surface as weaknesses.
🔎 Valuation vs peers Fairly valued
Because the actual business differs from its KSIC classification (business support and rental services), listed companies in the "credit rating and corporate information" industry were selected directly as peers: NICE Information Service (030190) is a listed operator of credit and corporate-information business, and NICE (034310) is a holding company that owns credit rating agency NICE Investors Service.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| NICE Information Service | 11.40x | 1.92x | 18.18% |
| NICE | 12.42x | 0.62x | 7.61% |
(a) Position versus peers: the trailing P/E of 18.0x and P/B of 3.44x are higher than the credit and corporate-information listings NICE Information Service (P/E 11.3, P/B 1.9) and the NICE holding company (P/E 12.1, P/B 0.6). (b) Premium/discount: however, Korea Ratings' ROE (19.1%), operating margin (31.3%) and dividend yield (8%) are markedly higher than peers, so a certain premium is explained by profitability and returns. (c) Trailing limitation and forward: this company has seasonality with 63% of operating profit skewed to the second quarter, so last year's confirmed P/E may overstate the real earnings power. Converting DART confirmed quarterly results by a three-year seasonality ratio approximates this year's net profit at about ₩43.7 billion and a forward P/E of about 10.4x, considerably narrowing the gap between the trailing 18x and the peers. On trailing alone it looks expensive, but viewed together with seasonality, profitability and dividends it is hard to declare excessive versus peers, so it is seen as fairly valued. The forward figure is a seasonality approximation, not an official company forecast.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩44.2 billion | approx. ₩31.3 billion | approx. ₩26.3 billion |
Price history Close · MA20 · MA60
The latest close is ₩101,600 and the market capitalization is ₩461.3 billion. The price sits above its 20-day moving average (₩101,305) and above its 60-day moving average (₩101,597). 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 52.8, a neutral level. The one-month change is -1.2%, the three-month change is -7.1%, and the position relative to the 52-week high is -10.8%. Relative strength versus the KOSDAQ is 75 (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 75% of all stocks. Over the past three months it outpaced the index by 37.2%. 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 +37.16% / 6M +44.25% / 12M +2.37%
Key metrics Computed vs sector median
Valuation
The P/E of 18.29x is above the sector median (15.31x). The P/B of 4.57x is above the sector median (1.46x).
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 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.732x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 25.4%, above the sector average (12.0%). The operating margin is 31.0%. The debt ratio is 76.4%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $67.2M | $73.1M | $77.1M | +5.50% ↓ slower |
| Operating profit | $18.2M | $23.0M | $24.1M | +5.08% ↓ slower |
| Net profit | $14.3M | $17.2M | $17.7M | +3.25% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $73.4M | $71.4M | $67.2M | $73.1M | $77.1M |
| Operating profit | $25.4M | $21.0M | $18.2M | $23.0M | $24.1M |
| Net profit | $15.6M | $14.4M | $14.3M | $17.2M | $17.7M |
| Revenue CAGR | 4-yr avg 1.24% | ||||
Revenue rose 5.5% year over year (2023 ₩95.6 billion → 2024 ₩104.1 billion → 2025 ₩109.8 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 5.1% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 1.2%. The two-year revenue CAGR is 7.2%. In the most recent quarter (Q1 2026), revenue was 2.8% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- The dividend yield, at 7.9%, is on the high side.
- ROE of 25.4% points to solid profitability.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue rose 5.5% 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
- 2026-03-27FilingCorporate value-up plan (voluntary disclosure) — the company voluntarily discloses its direction on capital efficiency and shareholder returns under the exchange's value-up programMedium term: an official clue to gauge intent to sustain or strengthen the high-payout (141.6% payout ratio) policy. Specific numerical targets are subject to further confirmation from the original text. Source
- 2026-05-15EarningsQuarterly report (2026.03) — Q1 revenue of ₩22.7 billion (+2.8%) and operating profit of ₩4.7 billion (-1.4%) confirmedShort term: nearly flat. That said, with about 63% of operating profit arising in the second quarter due to seasonality, the year is hard to judge on Q1 alone. Source
- 2026-03-26FilingShareholder-meeting results and outside-director appointment; [amended] business report (2025.12) — confirming 2025 annual results and governanceMedium term: a procedural disclosure officially confirming confirmed annual results such as revenue of ₩109.8 billion, operating profit of ₩34.3 billion and net profit of ₩25.2 billion, along with board composition. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 annual operating profit | ₩34.3 billion | ₩34.3 billion(operating profit ₩34,339,555,609) | Confirmed | link |
| Q1 2026 operating profit | ₩4.7 billion | ₩4.7 billion(₩4,713,438,899) | Confirmed | link |
| This year's annual net profit (seasonality approximation) | approx. ₩43.7 billion | — | Unverified | link |
| Largest shareholder (Fitch stake) | — | Fitch Ratings | Confirmed | link |
Recent filings Source
- 2026-05-15PeriodicQuarterly report
- 2026-03-27Disclosure
- 2026-03-26PeriodicAnnual business report (amended)
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-13Amended filing
- 2026-03-11Amended filing
- 2026-03-11Disclosure
- 2026-03-11Amended filing
- 2026-03-11Shareholders' meeting notice
- 2026-02-20Audit 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.