Red Cap Tour (038390) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
Red Cap Tour earns money from long-term car rental — leasing vehicles to corporate and individual customers over several years and collecting monthly rent — and from a travel business that sells air ticketing, packages, and corporate business trips; on annual revenue of ₩365.6 billion the rental segment serves as the pillar of results while the travel segment adds swings with the economy and season. In March 2026 it voluntarily disclosed a corporate-value-up plan setting out its direction on shareholder returns and value enhancement, and in May the Q1 preliminary results (revenue ₩92.4 billion, operating profit ₩17.9 billion, net profit ₩10.9 billion) showed a quarter where revenue fell but profit held. What stands out lately is that, as long as rental income stays stable and the profit trend continues, the undervalued, high-dividend appeal of a P/B of 0.78x, a forward P/E of 4.80x, and a dividend yield in the 8% range works strongly, though the rental-car structure exposes profit resilience to interest rates, vehicle procurement, used-car values, and travel demand.
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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 “Travel Agencies” (Retail, Consumer Goods & Food · Leisure, Travel & Education), a type typically read first through forward P/E.
Travel agencies rebound quickly when demand recovers, but their earnings swing considerably with the cycle. Trailing results may still carry the slump before a recovery, so forward price-to-earnings (P/E on expected profit) is the first lens.
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 is somewhat higher than equity (debt ratio 256.6%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 36.4%).
- Revenue rose 1.9% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 12.3% lower than a year earlier.
- ROE is 11.8% (total-net basis). It is below the sector average.
- Operating margin is 13.3%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Koo Bennett 39.44% (individual)
Controlling bloc incl. related parties 76.48%
With the controlling bloc holding 76%, control is very secure but the free float is thin.
🔎 In-depth analysis Reading
Red Cap Tour makes its money in two main ways. The first is long-term car rental, a business of leasing vehicles to corporate and individual customers over several years and collecting monthly rent. Because the structure involves buying cars to lease them, money goes into vehicle purchases, but the feature is that once a contract is signed, rental income comes in steadily over the agreed term. The second is the travel business, selling air ticketing and package and corporate business-travel (BTM) products. By industry classification it falls under business-support and rental services. Recent annual revenue is on the order of ₩365.6 billion, with the rental segment serving as the pillar of results and the travel segment adding swings with the economy and season.
The latest close is ₩9,870 and the market capitalization is ₩165.0 billion. The price sits above its 20-day moving average (₩9,837) and above its 60-day moving average (₩9,865). 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 51.9, a neutral level. The one-month change is -2.0%, the three-month change is -9.1%, and the position relative to the 52-week high is -24.1%. Relative strength versus the KOSDAQ is 65 (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 66% of all stocks. Over the past three months it outpaced the index by 34.5%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Recent annual revenue was ₩365.6 billion, operating profit ₩46.8 billion, and net profit ₩23.7 billion, delivering solid profitability with an operating margin of 12.8% and ROE (how much it earns in a year on its equity) of 11.8%. The trailing (based on last year's confirmed results) P/E is 6.62x and the P/B (how many times book value the price represents) is 0.81x, so the share price is trading below book value. The debt ratio of 252.9% looks high, but this is a structural trait of a rental-car business that buys and leases out vehicles. When rental vehicles are financed, debt rises, but rental income and profit come from those cars, so there is no need to read it straight away as risk by the same yardstick as a manufacturing or service business. In fact, the ability to cover interest with operating profit (interest-coverage ratio of 2.61x) stays in profit. More important is that the forward P/E on this year's basis is 4.56x — since earnings are expected to grow further, it comes in even lower than the already-low trailing P/E. Set against its peer group (Modetour at 17.4x, Korea Credit Information Services at 10.2x, Hyosung ITX at 8.8x), it is markedly lower, which reads as an undervaluation signal that the share price is cheap relative to earnings.
Revenue rose steadily from ₩338.2 billion in 2023 to ₩358.9 billion in 2024 to ₩365.6 billion in 2025, and net profit grew by double digits (around +17%) each year over the same period, from ₩16.6 billion to ₩20.2 billion to ₩23.7 billion. The pace of top-line growth itself has moderated somewhat, but profit has grown faster, so profitability is improving in tandem. This year's outlook is on the order of revenue of about ₩355.6 billion, operating profit of ₩61.0 billion, and net profit of ₩34.6 billion — a picture stepping up a notch from last year's net profit of ₩23.7 billion. The basis for this view is clear. The rental contracts guarantee rent over several years, so rental-segment profit accumulates steadily, and in Q1 the company already booked operating profit of ₩17.9 billion and net profit of ₩10.9 billion, filling in a substantial part of the annual profit ahead of time. Q1 revenue falling 12.3% year on year owes largely to the volatile travel and air-ticketing segment, but operating profit (+0.4%) and net profit (+2.8%) actually rose, revealing a profitability-centered business constitution. The forward P/E of 4.80x measures this growing profit against the current share price, and rather than the calculation basis being conservative, it is better viewed as a figure reflecting the profit improvement. Meanwhile, no clear basis is found for profit next year and beyond falling below this year's, so there is no material to conclude that now is a cycle peak.
Recent disclosures center on the company's own plans and results. The March 27, 2026 corporate-value-up plan (voluntary disclosure) is material containing the company's self-presented direction on shareholder returns and value enhancement, read as a signal that it intends to tend to dividends and capital efficiency. If it has concrete figures, treat it as a primary basis for the outlook; if not, view it as directional material. The May 7, 2026 Q1 preliminary results (fair disclosure) announced revenue of ₩92.4 billion, operating profit of ₩17.9 billion, and net profit of ₩10.9 billion, showing a quarter where revenue fell but profit held. The September 30, 2025 termination of a liquidity-provision contract is a matter related to trading-liquidity management, viewed as a change on the share-trading side rather than in business results themselves.
Red Cap Tour's strengths are clear. Despite stable income from long-term car rental, double-digit ROE (11.8%) and operating margin (12.8%), and this year's profit that looks set to grow beyond last year's, the share price is below book value (P/B of 0.78x) and the forward P/E (4.56x) is far lower than peers. A payout ratio of 56.5% and a dividend yield in the 8% range thicken the cash flow received while waiting. That is, whether viewed through earnings, assets, or dividends, the key point is that the current price is on the cheap side. Points to note alongside: the high-looking debt ratio is the structure of the rental-car business, but for that very reason the interest-rate environment, vehicle procurement, and used-car values affect profit, and the travel and air-ticketing segment can see revenue swing with the economy and season. In sum, as long as rental income stays stable and the profit trend continues, this is a stock where undervalued, high-dividend appeal works strongly, and conversely, in a phase where travel demand contracts sharply or vehicle procurement costs surge, profit resilience can slow.
🔎 Valuation vs peers Undervalued
A peer set within business-support and rental services that is close in market capitalization.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Modetour | 19.20x | 1.82x | 7.10% |
| Korea Credit Information Services | 9.91x | 2.14x | 21.43% |
| Hyosung ITX | 8.95x | 1.87x | 19.93% |
We first looked at a public-data peer group close in market capitalization within business-support and rental services. The current P/E (how many times a year's earnings the price represents) is 6.97x and the P/B (how many times book value the price represents) is 0.81x. However, lower-market-cap stocks are strongly affected by earnings swings and financing disclosures, so we did not draw firm conclusions from metrics based on last year's confirmed results alone. The basis for the outlook box is a DART seasonality approximation.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩355.6 billion | ₩61.0 billion | ₩34.6 billion |
| Next quarter | Q2 2026 | ₩91.3 billion | ₩17.6 billion | ₩11.1 billion |
Price history Close · MA20 · MA60
The latest close is ₩9,870 and the market capitalization is ₩165.0 billion. The price sits above its 20-day moving average (₩9,837) and above its 60-day moving average (₩9,865). 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 51.9, a neutral level. The one-month change is -2.0%, the three-month change is -9.1%, and the position relative to the 52-week high is -24.1%. Relative strength versus the KOSDAQ is 65 (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 66% of all stocks. Over the past three months it outpaced the index by 34.5%. 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 +34.46% / 6M +8.44% / 12M -13.96%
Key metrics Computed vs sector median
Valuation
The P/E of 6.97x is below the sector median (15.31x). The P/B of 0.81x is below the sector median (1.46x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
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 1.452x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 11.8%, in line with the sector average (12.0%). The operating margin is 13.3%. The debt ratio is 256.6%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $237.6M | $252.1M | $256.8M | +1.86% ↓ slower |
| Operating profit | $27.2M | $30.6M | $32.9M | +7.37% ↓ slower |
| Net profit | $11.7M | $14.2M | $16.6M | +16.95% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $160.8M | $184.1M | $237.6M | $252.1M | $256.8M |
| Operating profit | $14.4M | $25.5M | $27.2M | $30.6M | $32.9M |
| Net profit | $8.5M | $14.9M | $11.7M | $14.2M | $16.6M |
| Revenue CAGR | 4-yr avg 12.41% | ||||
Revenue rose 1.9% year over year (2023 ₩338.2 billion → 2024 ₩358.9 billion → 2025 ₩365.6 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 7.4% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 12.4%. The two-year revenue CAGR is 4.0%. In the most recent quarter (Q1 2026), revenue was 12.3% lower than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- The dividend yield, at 8.1%, is on the high side.
- ROE of 11.8% points to solid profitability.
Points to watch
- Revenue rose 1.9% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-03-27UpdateCorporate-value-up plan (voluntary disclosure): confirmation of the company's plan source textThis is planning material the company itself presented. If it has figures, treat it as a primary basis for the outlook box; if not, view it only as directional material. Source
- 2025-09-30ContractTermination of a liquidity-provision contract: confirmation of detailed terms in the source textThe contract amount and term are central to future revenue recognition. Whether it is a one-off or a repeatable transaction determines the medium-term reading. Source
- 2026-05-07EarningsOperating (preliminary) results on a consolidated-financial-statement basis (fair disclosure): Q1 2026 revenue of ₩92.4 billion, operating profit of ₩17.9 billion, and net profit of ₩10.9 billionThis is recent confirmed or preliminary results material. Check whether it points the same way as the annual trend and whether there are one-off factors. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩9,870 | ₩9,870 | Confirmed | link |
| Latest quarterly results | revenue ₩92.4 billion, operating profit ₩17.9 billion | revenue ₩92.4 billion, operating profit ₩17.9 billion | Confirmed | link |
| Full-year results | revenue ₩365.6 billion, operating profit ₩46.8 billion | revenue ₩365.6 billion, operating profit ₩46.8 billion | Confirmed | link |
| Outlook/plan disclosure source text | — | — | Confirmed | link |
| Contract disclosure source text | see the filing for detailed terms | see the filing for detailed terms | Confirmed | link |
| Results disclosure source text | 2026 1 revenue ₩92.4 billion · operating profit ₩17.9 billion · net profit ₩10.9 billion | 2026 1 revenue ₩92.4 billion · operating profit ₩17.9 billion · net profit ₩10.9 billion | Confirmed | link |
| Outlook-box basis | DART | DART | Confirmed | link |
Recent filings Source
- 2026-05-15PeriodicQuarterly report
- 2026-05-12Disclosure
- 2026-05-07EarningsFair-disclosure notice
- 2026-05-06Disclosure
- 2026-04-27EarningsEarnings disclosure
- 2026-03-27Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Audit report
- 2026-03-12Shareholders' meeting notice
- 2026-03-12Shareholders' meeting notice
- 2026-03-12Shareholders' meeting notice
📖 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.