Emro builds SRM (supplier relationship management) software that automates how companies procure raw materials, parts, and services, earning revenue from implementation projects, licenses, maintenance, and cloud (SaaS) subscriptions. It is shifting its center of gravity from one-time on-premise deployments toward recurring subscriptions, and it counts more than 540 large-enterprise customers along with Samsung SDS as its largest shareholder (a 33.4% stake). A run of sizable supply contracts followed, including a ₩49.5 billion deal in August 2025, but the Q1 2026 quarterly report revealed a swing to a loss, and organizational moves such as stock-option grants are under way. On balance, its strengths are a No. 1 position in domestic procurement SCM, a large-enterprise customer base, and a springboard into global markets backed by Samsung SDS, while the cautions are a Q1 swing to a loss, an ongoing revenue decline, and low visibility on when its accumulated order backlog will translate into profit.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 5.7% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 28.5% lower than a year earlier.
- ROE is 3.1% (controlling-interest basis). It is below the sector average.
- Operating margin is 1.1%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Samsung SDS 35.48% (corporate)
Controlling bloc incl. related parties 39.81%
With the controlling bloc holding 40%, the ownership structure is stable.
🔎 In-depth analysis
- Emro makes and sells software that automates the "procurement" work of buying raw materials, parts, and services.
- Its core field is what is known as SRM (supplier relationship management), which ties supplier discovery, contracting, ordering, spend management, and partner integration together into a single system.
- Revenue breaks down into (1) services to build and tailor systems for customers, (2) software license sales, (3) maintenance and technical fees, and (4) cloud (SaaS) subscription fees.
- Recently the company has been shifting its weight from one-time on-premise deployments toward pay-as-you-go subscriptions (SaaS).
- Subscription revenue builds slowly at first but, once established, keeps flowing steadily, so this is a period of laying that foundation.
- The company's periodic reports likewise describe "enterprise supply-chain management software, AI software, and supply-chain management cloud services" as its main business areas.
- It serves more than 540 large-enterprise customers, including Samsung, LG, and SK, and since 2023 Samsung SDS has become its largest shareholder with a 33.4% stake, jointly pursuing entry into the global procurement SaaS market.
- The latest close is ₩15,050 and the market cap is ₩186.1 billion.
- The price sits below its 20-day line (₩17,800) and below its 60-day line (₩23,453).
- Trading under both its short- and mid-term moving averages, the trend looks subdued.
- The RSI (a supplementary gauge that compares upward versus downward strength over the past 14 days on a 0-100 scale) is 31.0, a neutral level.
- The one-month change is -29.3%, the three-month change is -42.0%, and the position versus the 52-week high is -71.5%.
- Relative strength versus the KOSDAQ is 13 (on a 1-99 scale, computed from returns against the index over the past year with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 88% of all stocks by strength.
- Over the past three months it lagged the index by 23.4%.
- Chart reading is best done alongside trading volume and disclosure dates.
- The trailing P/E (how many times the past year's net profit the price represents) is 63.53x, which looks high on its face.
- But rather than the company having grown expensive, this reflects a temporarily shrunken denominator: 2025 net profit (₩2.9 billion) contracted due to upfront investment and slowing earnings.
- When earnings are at an inflection point, a P/E based on last year's confirmed profit does not fully capture actual value, so it is hard to call the stock "expensive" on this figure alone.
- The P/B (how many times shareholders' equity the price represents) is 1.95x and the P/S (how many times revenue the price represents) is 2.92x, which are not excessive for a software company with real business value.
- Profitability is currently in a weak phase: ROE (how much is earned in a year on equity) has come down to 3.1% and operating margin to 1.1%.
- The financial structure, however, is solid.
- The current ratio (cash-like assets against debts due within a year) is 339%, leaving ample short-term coverage, and the debt ratio (debt against equity) is 119%, not a heavy burden.
- In short, the company's earning power has weakened temporarily but its reserves for weathering it are sturdy.
- Revenue grew steadily over five years, from ₩47.0 billion in 2021 to ₩84.0 billion in 2025 (about 16% annually).
- The pace slowed a beat, from +25.8% in 2024 to +5.7% in 2025, which aligns with the characteristics of a transition period as revenue recognition shifts from on-premise to subscription.
- Earnings volatility is greater than revenue's.
- Operating profit fell from ₩8.6 billion in 2024 to ₩0.9 billion in 2025, and net profit from ₩18.6 billion to ₩2.9 billion (in 2023 the company even posted a net loss of ₩26.7 billion, so profit swings widely from year to year).
- In Q1 2026 it swung to a loss, with revenue of ₩14.8 billion (-28.5% year on year), an operating loss of ₩2.8 billion, and a net loss of ₩2.5 billion.
- This is read as a lag created by spending upfront on people and platform for the global SaaS transition while the revenue recognition of large orders is pushed back.
- The path ahead should be viewed on a forward (future earnings) rather than trailing (past earnings) basis, but with the Q1 loss ongoing and no official annual guidance from the company, a forward P/E premised on positive net profit cannot yet be computed.
- The key thing to watch is therefore when the accumulated backlog and subscription revenue actually start turning into profit.
- The recent flow reads in two strands.
- The first is growth momentum.
- A ₩49.5 billion supply contract signed in August 2025 (a large deal equal to about 78% of recent annual revenue), followed by ₩8.0 billion in November and ₩8.9 billion in April 2026, kept order intake itself active.
- Global procurement SaaS cooperation with Samsung SDS and o9 Solutions, plus North American entry, are medium- to long-term tasks in the same vein.
- The second is the current cost phase.
- The swing to a loss in Q1, revealed in the May 2026 quarterly report, together with a late-May stock-option grant and the convening of an extraordinary shareholders' meeting, show that talent acquisition and organizational tidying are under way.
- It is a transition in which orders pile up while profit has yet to follow, so when the revenue from large contracts is booked to the ledger is the point to watch over the coming quarters.
- The strengths are clear: a No.
- 1 position in domestic procurement SCM, a base of more than 540 large-enterprise customers, a run of large supply contracts, a springboard into global markets backed by Samsung SDS, and enough financial stability to withstand a downturn (a high current ratio and low debt).
- A P/B of 2.0x and a P/S of 2.9x are not excessive for a software company with this kind of business value, and even the high-looking trailing P/E is closer to an optical effect stemming from depressed earnings.
- At the same time, the cautions are just as clear: a Q1 2026 swing to a loss and an ongoing revenue decline, and low visibility on when profit will turn, since the company's official annual guidance has yet to be confirmed.
- In sum, the company's strengths come alive when signs appear that the accumulated backlog and the SaaS transition are translating into actual profit, whereas if the upfront-investment window runs longer than expected or the revenue recognition of large contracts is delayed, the structure will need more time to recover.
🔎 Valuation vs peers Inconclusive
Based on its substance as an enterprise B2B software/SaaS business, the peer set is Samsung SDS, its parent and an integrated IT/SaaS operator, and AhnLab, a fellow KOSDAQ enterprise-software firm.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Samsung SDS | 19.18x | 1.47x | 7.66% |
| AhnLab | 10.99x | 1.60x | 14.53% |
(a) Peer positioning: at a P/E of 84x and a P/B of 2.58x, Emro trades well above Samsung SDS (P/E 22x) and AhnLab (P/E 12x). (b) Premium/discount: on the surface this is a large premium, but it is largely optical in nature, stemming from a collapsed denominator (earnings) after a sharp 2025 profit drop and a Q1 2026 loss rather than from superior growth. ROE, at 3.1%, also trails the peers (7.7% and 14.5%). (c) Trailing limits and forward: with earnings at an inflection point (a temporary slowdown from expanded investment), it is hard to call the stock expensive or cheap on a P/E based on last year's confirmed profit. Yet with the Q1 loss and revenue decline ongoing and no official annual guidance confirmed, it is also hard to drop an anchor on a forward basis. At the current point, an Overvalued read on the valuation is reasonable.
Price history Close · MA20 · MA60
The latest close is ₩15,050 and the market capitalization is ₩186.1 billion. The price sits below its 20-day moving average (₩17,800) and below its 60-day moving average (₩23,453). 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 31.0, a neutral level. The one-month change is -29.3%, the three-month change is -42.0%, and the position relative to the 52-week high is -71.5%. Relative strength versus the KOSDAQ is 13 (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 12% of all stocks. Over the past three months it lagged the index by 23.4%. 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 -23.35% / 6M -52.44% / 12M -70.22%
Key metrics vs sector median
Valuation
The P/E of 63.53x is above the sector median (13.30x). The P/B of 1.95x is above 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.
Profitability & financials
Return on equity (ROE) is 3.1%, below the sector average (5.0%). The operating margin is 1.1%. The debt ratio is 118.8%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $41.9M | $52.7M | $55.7M | +5.69% ↓ slower |
| Operating profit | $3.1M | $5.7M | $602,833 | -89.43% ↓ slower |
| Net profit | -$17.7M | $12.3M | $1.9M | -84.26% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $31.2M | $38.9M | $41.9M | $52.7M | $55.7M |
| Operating profit | $4.5M | $4.3M | $3.1M | $5.7M | $602,833 |
| Net profit | $3.6M | $4.3M | -$17.7M | $12.3M | $1.9M |
| Revenue CAGR | 4-yr avg 15.61% | ||||
Revenue rose 5.7% year over year (2023 ₩63.2 billion → 2024 ₩79.5 billion → 2025 ₩84.0 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 89.4% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 15.6%. The two-year revenue CAGR is 15.3%. In the most recent quarter (Q1 2026), revenue was 28.5% 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 5.7% 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
- 2026-05-15EarningsQ1 2026 quarterly report filed. Revenue ₩14.8 billion (-28.5% year on year), an operating loss of ₩2.8 billion and a net loss of ₩2.5 billion, a swing to a loss.A near-term burden. Upfront global-SaaS investment costs and falling revenue combined to sharply worsen profitability, adding uncertainty to annual profit estimates. Source
- 2025-08-08UpdateSingle supply contract signed (amended). Contract value of ₩49.5 billion, a large deal equal to about 78% of recent annual revenue.A medium- to long-term positive. It is a core driver of top-line growth, but with the possibility of multi-year phased recognition, the pace of revenue booking and whether it is one-off will shape the interpretation. Source
- 2026-04-10UpdateSingle supply contract signed (amended). Contract value of ₩8.9 billion, about 11% of recent revenue.A medium-term positive. It shows the order flow continuing, but the timing of revenue recognition is the key to whether it can offset the near-term loss. Source
- 2026-05-29FilingStock-option grant filing and resolution to convene an extraordinary shareholders' meeting. A phase of talent acquisition and organizational tidying.Neutral to a slight burden. It is positive for attracting key talent, but the possibility of a future increase in shares (dilution) is a point to note. Source
- 2026-05-22IRDisclosure of an investor briefing (IR). Communication with shareholders and the market timed to the Q1 earnings release.Neutral. As a venue to explain business progress and global strategy directly, it helps reduce information asymmetry. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Business substance (industry classification) | — | (SRM) ·, 1 | Mismatch | link |
| Largest shareholder | SDS | SDS 2023 33.4% | Confirmed | link |
| Q1 2026 swing to a loss | 28· 25 | (2026.03) | Confirmed | link |
| Large supply contract (Aug 2025) | approx. ₩49.5 billion · revenue 78.3% | approx. | Confirmed | link |
| 2026 annual net profit outlook | base | — | Unverified | link |
Recent filings
- 2026-06-09OwnershipOwnership-change filing
- 2026-05-29Shareholders' meeting notice
- 2026-05-29Disclosure
- 2026-05-29Amended filing
- 2026-05-29Amended filing
- 2026-05-22Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-04-22Amended filing
- 2026-04-10Single supply/sales contract (amended)
- 2026-03-23PeriodicAnnual business report (amended)
- 2026-03-18Shareholders' meeting notice
- 2026-03-10PeriodicAnnual business 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.