Raon Secure is a security-software company whose business is built around authentication technology that lets users log in with biometrics such as fingerprints and faces, PC and mobile security modules, and blockchain-based decentralized identity, where each adoption contract in the authentication, financial, and public sectors weighs heavily on revenue and profit. A February 6, 2026 disclosure confirmed full-year 2025 revenue of ₩63.8 billion, operating profit of ₩2.8 billion, and net profit of ₩3.4 billion, while a May 15 quarterly report showed Q1 2026 revenue of ₩9.4 billion, operating profit of -₩2.1 billion, and net profit of -₩2.1 billion, confirming that results paused at the start of the year. What stands out now is that operating profit in the core business improved into the black for a second straight year, debt, liquidity, and interest burdens are sound, and the price has fallen more than half from its 52-week high; against that, a quarterly loss returned in Q1 2026 as revenue fell, so it needs confirming whether security-authentication demand and new contracts support a return of quarterly results to a profitable track.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 2.0% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 13.5% lower than a year earlier.
- ROE is 6.3% (controlling-interest basis). It is above the sector average.
- Operating margin is 4.4%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Lee Soon-hyung 17.26% (individual)
Controlling bloc incl. related parties 39.01%
With the controlling bloc holding 39%, the ownership structure is stable.
🔎 In-depth analysis
- Raon Secure makes security software that lets people prove online that they are who they say they are.
- Its business is organized around authentication technology that lets users log in with biometrics such as fingerprints and faces instead of passwords, security modules that protect keystrokes and the screen on PCs and mobile devices, and blockchain-based decentralized identity (a way of securely proving identity information scattered across various institutions without gathering it in one place).
- As a small company with a market capitalization of ₩74.6 billion, it is worth watching, alongside the trend of the business itself, how each adoption contract in the authentication, financial, and public sectors weighs heavily on revenue and profit.
- The latest close is ₩7,080 and market capitalization is ₩78.6 billion.
- The price sits below both the 20-day line (₩7,640) and the 60-day line (₩10,325).
- Trading beneath both its short- and medium-term moving averages, the trend is on the subdued side.
- The RSI (a supplementary gauge that weighs upward against downward force over the past 14 days on a 0-100 scale) is 36.4, a neutral level.
- The price is down 17.0% over one month and 17.5% over three months, and stands 54.1% below its 52-week high.
- Relative strength versus the KOSDAQ is 56 (1-99, converting return against the index over the past year with more weight on recent performance; higher means stronger than the market), placing it in roughly the top 44% of all stocks by strength.
- Over the past three months it outpaced the index by 11.5%.
- Chart reading is best done alongside volume and disclosure dates.
- For the most recent full year (2025), revenue was ₩63.8 billion, operating profit ₩2.8 billion, and net profit ₩3.4 billion.
- The operating margin was 4.4% and ROE (how much is earned in a year on shareholders' equity) was 6.3%, above the sector average.
- The debt ratio (borrowings against equity) is 138.5%, but the current ratio of 226% means assets convertible to cash exceed debt due within a year by more than twofold, and the interest coverage is at a level where operating profit can cover interest on debt, so the financial-structure diagnosis is 'stable.' The P/E ratio (how many times a year's profit the price represents) is 23.25x and the P/B (how many times book value the price represents) is 1.46x.
- The P/E looks higher than the sector median, but this figure is calculated on last year's confirmed results, when profit was small, and that should be kept in mind.
- A P/B of 1.4x is neither notably expensive nor cheap for a company with single-digit ROE, sitting not far from book value.
- Revenue rose steadily from ₩51.8 billion in 2023 to ₩62.5 billion in 2024 and ₩63.8 billion in 2025.
- The more notable shift is in operating profit, which improved for two straight years from a loss of -₩1.6 billion in 2023 to ₩2.0 billion in 2024 and ₩2.8 billion in 2025.
- It is a course in which the core business has moved out of a loss and settled into profitability.
- That said, in the most recent quarter, Q1 2026, revenue was ₩9.4 billion, down 13.5% from the same period a year earlier, and operating profit and net profit each came in at -₩2.1 billion, a return to a quarterly loss.
- Because the security-authentication business tends to have large quarter-to-quarter swings depending on contract timing, one quarter alone is hard to read the full year from; still, for last year's profitable run to continue, revenue and profit clearly need to recover in the remaining quarters.
- This year's annual outlook is set only at an approximate revenue level tying past quarterly ratios to the confirmed Q1 figure, and the full-year profit scale is not yet at a stage to state with certainty.
- Disclosures are best followed along the earnings track.
- A February 6, 2026 disclosure on the change in revenue and profit structure confirmed and made public full-year 2025 revenue of ₩63.8 billion, operating profit of ₩2.8 billion, and net profit of ₩3.4 billion, and a March 20 business report backed this up.
- A May 15 quarterly report then disclosed Q1 2026 revenue of ₩9.4 billion, operating profit of -₩2.1 billion, and net profit of -₩2.1 billion, confirming that results paused at the start of the year.
- The next quarterly report will be the material that decides whether this Q1 loss was temporary or the trend has changed.
- The strengths are clear.
- Operating profit in the core business improved from a loss into the black for two straight years, and debt, liquidity, and interest burdens are all sound, giving the finances staying power.
- The price has fallen more than half from its 52-week high, a spot where expectations have cooled considerably, and the P/B is not far off book value.
- On the other side, the point to watch is that a quarterly loss returned in Q1 2026 and quarterly revenue fell, so whether last year's profitable run continues this year has to be confirmed with the numbers in the remaining quarters.
- In sum, if security-authentication demand and new contracts support a return of quarterly results to a profitable track, the current price zone can be an attractive spot; conversely, if loss-making quarters like Q1 continue, the wait for recovery lengthens.
🔎 Valuation vs peers Overvalued
A peer group of neighboring market caps within the game and software sector.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| ESTsoft | — | 1.77x | -35.31% |
| MDS Tech | 9.65x | 0.56x | 5.82% |
| NuriFlex | — | 1.01x | -9.23% |
Within game and software, a public-data peer group of nearby market capitalizations was looked at first. The current P/E ratio (how many times a year's profit the price represents) is 23.25x and the P/B (how many times book value the price represents) is 1.46x. That said, because smaller-cap stocks are heavily affected by earnings swings and financing disclosures, no firm conclusion was drawn from metrics based on last year's confirmed results alone. The basis for the outlook box is a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩53.8 billion | — | — |
| Next quarter | Q2 2026 | ₩11.6 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩7,080 and the market capitalization is ₩78.6 billion. The price sits below its 20-day moving average (₩7,640) and below its 60-day moving average (₩10,325). 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 36.4, a neutral level. The one-month change is -17.0%, the three-month change is -17.5%, and the position relative to the 52-week high is -54.1%. Relative strength versus the KOSDAQ is 55 (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 56% of all stocks. Over the past three months it outpaced the index by 11.5%. 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 +11.45% / 6M -11.11% / 12M -42.06%
Key metrics vs sector median
Valuation
The P/E of 23.25x is above the sector median (13.30x). The P/B of 1.46x is in line with 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 6.3%, above the sector average (5.0%). The operating margin is 4.4%. The debt ratio is 138.5%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $34.4M | $41.4M | $42.3M | +2.01% ↓ slower |
| Operating profit | -$1.1M | $1.3M | $1.8M | +41.42% |
| Net profit | $2.8M | $2.7M | $2.2M | -15.83% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $28.7M | $31.0M | $34.4M | $41.4M | $42.3M |
| Operating profit | -$655,160 | $2.8M | -$1.1M | $1.3M | $1.8M |
| Net profit | -$4.3M | $4.4M | $2.8M | $2.7M | $2.2M |
| Revenue CAGR | 4-yr avg 10.12% | ||||
Revenue rose 2.0% year over year (2023 ₩51.8 billion → 2024 ₩62.5 billion → 2025 ₩63.8 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 41.4% year over year. Over the 5 years on record, revenue compound annual growth (CAGR) is 10.1%. The two-year revenue CAGR is 10.9%. In the most recent quarter (Q1 2026), revenue was 13.5% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue rose 2.0% 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
- 2026-02-06EarningsChange of 30% or more (15% for large corporations) in revenue or profit structure: annual revenue ₩63.8 billion, operating profit ₩2.8 billion, net profit ₩3.4 billionThis is recent confirmed or preliminary earnings data. Look at whether it points the same way as the annual trend and whether any one-off factors are involved. Source
- 2026-05-15EarningsQuarterly report (2026.03): Q1 2026 revenue ₩9.4 billion, operating profit -₩2.1 billion, net profit -₩2.1 billionThis is recent confirmed or preliminary earnings data. Look at whether it points the same way as the annual trend and whether any one-off factors are involved. Source
- 2026-03-20EarningsBusiness report (2025.12): revenue ₩52.0 billion, operating profit ₩2.6 billion, net profit ₩3.4 billionThis is recent confirmed or preliminary earnings data. Look at whether it points the same way as the annual trend and whether any one-off factors are involved. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩7,080 | ₩7,080 | Confirmed | link |
| Latest quarterly results | revenue ₩9.4 billion, operating profit -₩2.1 billion | revenue ₩9.4 billion, operating profit -₩2.1 billion | Confirmed | link |
| Annual results | revenue ₩63.8 billion, operating profit ₩2.8 billion | revenue ₩63.8 billion, operating profit ₩2.8 billion | Confirmed | link |
| Earnings disclosure source text | revenue30%: revenue ₩63.8 billion · operating profit ₩2.8 billion · net profit ₩3.4 billion | revenue30%: revenue ₩63.8 billion · operating profit ₩2.8 billion · net profit ₩3.4 billion | Confirmed | link |
| Earnings disclosure source text | (2026.03): 2026 1 revenue ₩9.4 billion · operating profit -₩2.1 billion · net profit -₩2.1 billion | (2026.03): 2026 1 revenue ₩9.4 billion · operating profit -₩2.1 billion · net profit -₩2.1 billion | Confirmed | link |
| Earnings disclosure source text | (2025.12): revenue ₩52.0 billion · operating profit ₩2.6 billion · net profit ₩3.4 billion | (2025.12): revenue ₩52.0 billion · operating profit ₩2.6 billion · net profit ₩3.4 billion | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-05-15PeriodicQuarterly report
- 2026-04-29Disclosure
- 2026-03-30Amended filing
- 2026-03-30Shareholders' meeting notice
- 2026-03-20PeriodicAnnual business report
- 2026-03-20Audit report
- 2026-03-17Amended filing
- 2026-03-12Disclosure
- 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.