KG Financial is classified under games/software by sector, but in practice its core is the electronic payment gateway (PG) business run through its subsidiary Mobilians, which intermediates online and mobile payments for a fee, with revenue rising as transaction volume grows. A February 2026 disclosure confirmed annual revenue of ₩233.8 billion, operating profit of ₩33.1 billion and net profit of ₩23.2 billion, and it posted Q1 revenue of ₩62.5 billion and operating profit of ₩7.0 billion, earning steady cash from its core electronic-payment business at an operating margin in the 14% range. What stands out now is that if the recovered margin and payment transaction volume hold, the undervaluation-and-high-yield appeal of a P/E of 6.33x, P/B of 0.41x and a 6.5% dividend yield comes alive; on the other side, with revenue declining for a third year and Q1 earnings softer than the prior year, if the top-line decline begins to eat into the margin, the earnings outlook could waver.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 12.2% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 2.1% higher than a year earlier.
- ROE is 6.5% (controlling-interest basis). It is above the sector average.
- Operating margin is 14.2%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder KG Inicis 51.45% (corporate)
Controlling bloc incl. related parties 51.63%
With the controlling bloc holding 52%, control is very secure but the free float is thin.
🔎 In-depth analysis
- KG Financial is classified under games/software by sector, but in practice its core is the electronic payment gateway (PG, Payment Gateway) business run through its subsidiary Mobilians.
- The structure is one of intermediating payments so that money changes hands safely when goods are bought and sold on the internet and mobile, and earning a fee for it.
- The business has a characteristic where, as online and mobile commerce become part of everyday life, the number of payments and the transaction value grow and feed into revenue.
- Because this is a stock with a modest market cap, it is worth watching, alongside the core payment flow, how a single disclosure affects financials or share count.
- The latest close is ₩3,955 and the market cap is ₩150.3 billion.
- The price sits below its 20-day line (₩4,040) and below its 60-day line (₩4,516).
- Trading under both its short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a supporting gauge that scores upward versus downward momentum over the past 14 days on a 0-100 scale) is 39.5, a neutral reading.
- It is down 5.4% over one month and 19.3% over three months, and sits 34.2% below its 52-week high.
- Its relative strength versus the KOSDAQ is 63 (on a 1-99 scale, converting the past year's return against the index with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 37% of all stocks by strength.
- Over the past three months it led the index by 7.9%.
- Chart reading is best done alongside volume and disclosure dates.
- Recent annual revenue is ₩233.8 billion, operating profit ₩33.1 billion and net profit ₩23.2 billion.
- The operating margin of 14.2% is solid for payment intermediation, and ROE (how much the company earns on its equity in a year) is 6.5%, above the sector average.
- The debt ratio (debt against equity) is 156.5%, but with a current ratio (assets convertible to cash against debt due within a year) of 215%, ample, and interest coverage of 7.1x, the diagnostic financial soundness is 'stable'.
- On valuation, the P/E ratio (how many times one year's earnings the price represents) is 6.47x and P/B (how many times book value the price represents) is 0.42x.
- P/B well below 1x means the market cap is set below even the company's net assets, and with a low forecast P/E too, the stock is cheap relative to earnings and assets.
- Rather than being at a burdensome level, the trailing metrics point toward undervaluation.
- Revenue is on a shrinking trend, at ₩279.6 billion in 2023, ₩266.1 billion in 2024 and ₩233.8 billion in 2025.
- Profitability, by contrast, has clearly turned.
- Operating profit, which was pressed down sharply to ₩7.4 billion in 2024, jumped 345.9% to ₩33.1 billion in 2025, effectively recovering to a normal level, and net profit rose 139.1% from ₩9.7 billion to ₩23.2 billion.
- In other words, this is a phase where the inflection in earnings matters more than revenue.
- On this year's forecast basis, revenue is ₩231.1 billion, operating profit ₩34.9 billion and net profit ₩22.7 billion, a picture in which the recovered margin is maintained.
- That said, on a Q1 2026 cumulative basis, revenue rose a modest 2.1% while operating profit fell 9.0% and net profit fell 33.2%, a softer start versus the same period last year, so the margin recovery in the remaining quarters is the key to whether annual earnings reach the forecast level.
- Recent disclosures center on signals the company put out itself.
- The 2026-03-25 corporate-value-up plan (voluntary disclosure) is a planning document in which the company set out its own direction for enhancing shareholder value; if it contains specific numbers it can serve as a primary basis for the forecast, and if it is only directional it can be read as a statement of intent.
- The 2026-05-06 preliminary-results disclosure confirmed Q1 2026 revenue of ₩62.5 billion, operating profit of ₩7.0 billion and net profit of ₩4.0 billion, and the 2026-02-09 profit-structure-change disclosure confirmed annual revenue of ₩233.8 billion, operating profit of ₩33.1 billion and net profit of ₩23.2 billion.
- It is worth checking together whether the annual trend points the same way and whether one-off factors are mixed into the quarter.
- The strengths are clear.
- The core electronic-payment business earns steady cash at an operating margin in the 14% range, earnings recovered sharply last year, and at a P/E of 6.33x, P/B of 0.41x and a forecast P/E on the low side within its peer set, it reads as undervalued.
- With a share price below net assets plus a 6.5% dividend yield, it holds appeal in a pulled-back range for investors looking at value and dividend together.
- On the other hand, the point to be careful of is the top line.
- Revenue has fallen for a third year and Q1 2026 earnings softened versus the prior year, so the margin needs to be defended in the remaining quarters for annual earnings to reach the forecast.
- In short, if the recovered margin and payment transaction volume hold, this is a stock whose undervaluation-and-high-yield appeal comes alive; if the top-line decline begins to eat into the margin, the earnings outlook could waver.
🔎 Valuation vs peers Undervalued
The peer set is drawn from games/software names with a nearby market cap.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Polaris Office | 28.78x | 1.57x | 5.44% |
| GC MediEye | 4.18x | 1.09x | 26.12% |
| Neurophet | — | 5.39x | -115.10% |
Within games and software, we looked first at a public-data peer set with a nearby market cap. The current P/E ratio (how many times one year's earnings the price represents) is 6.47x and P/B (how many times book value the price represents) is 0.42x. That said, for smaller-cap names, earnings swings and funding disclosures have a large effect, so we did not draw a firm conclusion from last year's confirmed-results-based metrics alone. The basis for the forecast box is a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩231.1 billion | ₩34.9 billion | ₩22.7 billion |
| Next quarter | Q2 2026 | ₩58.8 billion | ₩8.1 billion | ₩4.2 billion |
Price history Close · MA20 · MA60
The latest close is ₩3,955 and the market capitalization is ₩150.3 billion. The price sits below its 20-day moving average (₩4,040) and below its 60-day moving average (₩4,516). 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 39.5, a neutral level. The one-month change is -5.4%, the three-month change is -19.3%, and the position relative to the 52-week high is -34.2%. Relative strength versus the KOSDAQ is 63 (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 63% of all stocks. Over the past three months it outpaced the index by 7.9%. 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 +7.93% / 6M +2.51% / 12M -26.41%
Key metrics vs sector median
Valuation
The P/E of 6.47x is below the sector median (13.30x). The P/B of 0.42x is below the sector median (1.58x). 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)
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 6.5%, above the sector average (5.0%). The operating margin is 14.2%. The debt ratio is 156.5%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $185.3M | $176.4M | $154.9M | -12.15% ↓ slower |
| Operating profit | $21.9M | $4.9M | $22.0M | +345.91% ↑ faster |
| Net profit | $28.9M | $6.4M | $15.4M | +139.06% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $203.1M | $183.0M | $185.3M | $176.4M | $154.9M |
| Operating profit | $31.5M | $26.7M | $21.9M | $4.9M | $22.0M |
| Net profit | $19.3M | $18.5M | $28.9M | $6.4M | $15.4M |
| Revenue CAGR | 4-yr avg -6.54% | ||||
Revenue fell 12.2% year over year (2023 ₩279.6 billion → 2024 ₩266.1 billion → 2025 ₩233.8 billion), and the three-year trend is 'falling'. The rate of decline widened from the prior year. Operating profit rose 345.9% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is -6.5%. The two-year revenue CAGR is -8.6%. In the most recent quarter (Q1 2026), revenue was 2.1% 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 dividend yield, at 6.3%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 12.2% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-03-25UpdateCorporate-value-up plan (voluntary disclosure): confirm the company's plan in the original textThis is a planning document the company itself put forward. If it has numbers, treat it as a primary basis for the forecast box; if not, view it only as directional material. Source
- 2026-05-06EarningsOperating (preliminary) results on a consolidated financial-statement basis (fair disclosure): Q1 2026 revenue ₩62.5 billion, operating profit ₩7.0 billion, net profit ₩4.0 billionThis is recent confirmed or preliminary results data. Check whether it points the same way as the annual trend and whether one-off factors are present. Source
- 2026-02-09EarningsChange in revenue or profit structure of 30% or more (15% for large corporations): annual revenue ₩233.8 billion, operating profit ₩33.1 billion, net profit ₩23.2 billionThis is recent confirmed or preliminary results data. Check whether it points the same way as the annual trend and whether one-off factors are present. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩3,955 | ₩3,955 | Confirmed | link |
| Latest quarterly results | revenue ₩62.5 billion, operating profit ₩7.0 billion | revenue ₩62.5 billion, operating profit ₩7.0 billion | Confirmed | link |
| Annual results | revenue ₩233.8 billion, operating profit ₩33.1 billion | revenue ₩233.8 billion, operating profit ₩33.1 billion | Confirmed | link |
| Forecast/plan disclosure text | : | : | Confirmed | link |
| Results disclosure text | : 2026 1 revenue ₩62.5 billion · operating profit ₩7.0 billion · net profit ₩4.0 billion | : 2026 1 revenue ₩62.5 billion · operating profit ₩7.0 billion · net profit ₩4.0 billion | Confirmed | link |
| Results disclosure text | revenue30%: revenue ₩233.8 billion · operating profit ₩33.1 billion · net profit ₩23.2 billion | revenue30%: revenue ₩233.8 billion · operating profit ₩33.1 billion · net profit ₩23.2 billion | Confirmed | link |
| Forecast-box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-06-10Fair-disclosure notice
- 2026-06-09Disclosure
- 2026-06-02Disclosure
- 2026-05-29Large-business-group status disclosure
- 2026-05-14Disclosure
- 2026-05-14PeriodicQuarterly report
- 2026-05-14OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-06EarningsFair-disclosure notice
- 2026-04-28Disclosure
- 2026-03-31OwnershipOwnership-change filing
- 2026-03-31OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-31OwnershipOfficers'/major-shareholders' holdings 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.