Cape's core business is making cylinder liners for slow-speed marine engines on an integrated domestic production system, supplying Korea's three big engine makers and overseas players such as MAN and Wartsila. But it also has the character of a holding company: with several subsidiaries including Cape Investment & Securities, a large part of its consolidated revenue and assets comes from financial and investment affiliates. In 2026 it disclosed a corporate value-up plan in April and a treasury-share cancellation in March, and kept up a dividend of about 6.8% (₩700 per share); a Q1 quarterly report in May confirmed revenue of ₩187.7 billion and operating profit of ₩28.2 billion, while a control-dispute lawsuit filed in March is also ongoing. What stands out lately is that the scarce production position of its cylinder liners, together with a forward P/B of 0.77x, a high dividend and treasury-share cancellation, make it read as a value stock; against this, consolidated results are heavily swayed by the financial subsidiaries, so it is closer to reality to value the manufacturing business and the subsidiaries separately, and the direction of the control dispute remains a variable.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 893.4%).
- Revenue rose 12.2% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 46.4% higher than a year earlier.
- ROE is 19.7% (controlling-interest basis). It is above the sector average.
- Operating margin is 8.6%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Tempus Investment 29.49% (corporate)
Controlling bloc incl. related parties 30.69%
With the controlling bloc holding 31%, the ownership structure is stable.
🔎 In-depth analysis
- Cape's own core business is making 'cylinder liners' (the barrel part inside an engine in which the piston moves back and forth) for slow-speed marine engines.
- It is essentially the only domestic maker with an integrated production system, supplying Korea's three big engine makers — HD Hyundai Heavy Industries, Hanwha Engine and HD Hyundai Marine Engine — and overseas players such as MAN and Wartsila.
- On a consolidated basis, though, there is another layer to the picture.
- Cape is a parent company with several subsidiaries including Cape Investment & Securities, so a large part of its consolidated revenue and assets comes not from manufacturing but from financial and investment affiliates.
- In other words, a 'manufacturing operation making engine parts' and 'the character of a holding company owning securities and investment subsidiaries' sit together inside one company.
- The latest close is ₩8,150 and the market cap is ₩251.5 billion.
- The price sits below its 20-day line (₩9,420) and below its 60-day line (₩11,744).
- Trading beneath both its short- and mid-term moving averages, the trend is on the soft side.
- RSI (a gauge comparing upward and downward strength over the past 14 days on a 0-100 scale) is 32.9, a neutral level.
- The price is down 18.9% over one month and 20.6% over three months, and sits 51.8% below its 52-week high.
- Relative strength versus the KOSDAQ is 74 (on a 1-99 scale, converting the past year's return versus the index while weighting recent performance more heavily; higher means stronger than the market).
- That places it in roughly the top 25% of all stocks by strength.
- Over the past three months it outpaced the index by 3.2%.
- Chart readings are best considered alongside trading volume and disclosure dates.
- On confirmed full-year (2025) figures, the P/E (how many times one year's earnings the price is) is 4.23x, the P/B (how many times net assets the price is) is 0.83x, ROE (how much it earns in a year on its capital) is 19.7%, and the operating margin is 8.6%.
- An ROE of 19.7% is above the peer average, and a P/B below 1 means the stock is priced below net assets.
- The debt ratio (debt relative to equity) looks very high at 893%, but rather than meaning the manufacturer is drowning in debt, it is more naturally read as reflecting the liabilities of the securities subsidiary in the consolidation (customer deposits, borrowings and the like).
- That net profit (₩59.4 billion) exceeds operating profit (₩50.0 billion) is likewise the result of financial and investment subsidiary earnings added on top of the core operating business.
- One important point: the P/E and P/B above are on last year's confirmed results (trailing).
- For a company whose profits are rising fast, a forward P/E reflecting this year's trend fits the actual picture better than last year's numbers.
- Cape's forward P/E on a this-year basis is even lower than last year's 4.60x and opens up a wide gap below the peer median, clearly showing the price is cheap relative to earnings (the forward P/B, at 0.77x, is also below net assets).
- Rather than reading it as expensive on trailing numbers alone, one should also see that the real value of a stock whose earnings are inflecting upward lies in the forward figures.
- Over five years, revenue grew from ₩427.7 billion in 2021 to ₩579.8 billion in 2025, and operating profit, while varying by year, has been reviving of late.
- On an annual basis, revenue rose +12.2%, operating profit +28.1% and net profit +278%, a clear recovery whose pace has gradually quickened.
- Q1 2026 got off to a very strong start with revenue of ₩187.7 billion (+46.4%), operating profit of ₩28.2 billion (+552.7%) and net profit of ₩20.5 billion (+1,521%).
- This momentum is no accident: shipbuilding and shipping orders are reviving, lifting demand for new-build and replacement engines, and the volume and unit prices of the core cylinder-liner business are supporting profits along with it.
- Its position as a scarce supplier with an integrated domestic production system is also a force that turns this recovery into earnings.
- These figures are not a simple extension of one strong quarter but take account of the cycle phase, demand and supply position together, and current data give no basis to think next year and beyond will come in below this year.
- Recent disclosures read along two broad lines.
- One is shareholder returns and corporate value.
- In April 2026 the company filed a corporate value-up plan (voluntary disclosure), and at the end of March it also disclosed a treasury-share cancellation decision.
- Fewer shares outstanding is favorable for per-share value, and with a dividend yield of about 6.8% (₩700 per share, a payout ratio of 36.3%) added on, there is room to read this as weighted toward shareholder returns.
- The other is control-related variables.
- In March 2026 a control-dispute lawsuit, an injunction to allow voting rights, and reference materials soliciting proxy voting were disclosed one after another; a fight over stakes and control raises short-term volatility while, depending on the outcome, being a variable that could change the ownership structure.
- In May a Q1 quarterly report confirmed revenue of ₩187.7 billion and operating profit of ₩28.2 billion, serving as a first data point to check the core-business recovery and subsidiary earnings together.
- Tracking these three axes alongside the quarterly and annual reports gives a clearer view of the trend.
- The strengths are clear.
- The core cylinder-liner business holds a scarce position with an integrated domestic production system; Q1 profits jumped sharply amid a recovery in shipbuilding and engine demand; and on a this-year forward P/B of 0.77x the price is cheaper than peers relative to earnings and net assets.
- Added to this, a dividend yield of about 6.8% (₩700 per share, a payout ratio of 36.3%) and shareholder-return signals such as treasury-share cancellation and the value-up plan give several overlapping value-stock elements.
- Points to consider: (1) consolidated results and financials are heavily swayed by the financial subsidiaries, so it is closer to reality to value the core manufacturing business and the subsidiaries separately (a sum-of-the-parts view); (2) the trailing P/E alone cannot fully capture rapidly changing earnings, so a this-year forward view is more appropriate; and (3) with a control-dispute lawsuit ongoing, the direction of ownership remains a variable.
- In sum, the strengths sharpen when the core-business earnings recovery and shareholder returns continue and the control fight resolves without a big shock, while a large mispricing in subsidiary value or the control variable could shake the stock.
🔎 Valuation vs peers Inconclusive
Because Cape blends a core business (marine-engine parts) with financial and investment subsidiaries, one peer set alone is not enough; the core side is compared against marine-engine and parts makers, and the financial subsidiary side that drives consolidated earnings and assets against small-to-mid-sized securities companies (valuation figures are on the on-site current price).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hanwha Engine | 20.46x | 6.39x | 31.24% |
| HD Hyundai Marine Engine | 11.20x | 3.78x | 33.77% |
| STX Engine | 14.41x | 2.90x | 20.10% |
| Daol Investment & Securities | 4.91x | 0.32x | 6.47% |
| Hanyang Securities | 4.45x | 0.43x | 9.72% |
The base classified Cape as undervalued on the grounds that it is lower than the 'shipbuilding' sector median (P/E 16.29x, P/B 2.12x), but Cape is not a pure shipbuilder — it is a complex structure with securities and investment subsidiaries layered on top of a manufacturing core. Comparing a single consolidated P/E against the shipbuilding median therefore mismatches the reference. To do it properly, one should (a) value the operating worth of the core cylinder-liner manufacturing separately at the normal multiple of a marine-engine and parts peer set, (b) value the financial and investment subsidiaries such as the securities arm separately at the P/B of small-to-mid-sized securities companies (generally near or below net assets), and (c) sum the two (a sum-of-the-parts view). Taken on its own, the core business may deserve a low valuation versus peers, but financial subsidiary value is usually discounted in the market and governance uncertainty such as the control dispute remains, so rather than settling on a single verdict at this point it is reasonable to leave it inconclusive and view it part by part.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩158.5 billion | approx. ₩30.5 billion | — |
Price history Close · MA20 · MA60
The latest close is ₩8,150 and the market capitalization is ₩251.5 billion. The price sits below its 20-day moving average (₩9,420) and below its 60-day moving average (₩11,744). 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 32.9, a neutral level. The one-month change is -18.9%, the three-month change is -20.6%, and the position relative to the 52-week high is -51.8%. Relative strength versus the KOSDAQ is 74 (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 3.2%. 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 +3.20% / 6M -0.28% / 12M +32.19%
Key metrics vs sector median
Valuation
The P/E of 4.23x is below the sector median (12.45x). The P/B of 0.83x is below the sector median (1.64x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets. That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
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 19.7%, above the sector average (15.0%). The operating margin is 8.6%. The debt ratio is 893.4%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $391.5M | $342.3M | $384.3M | +12.25% ↑ faster |
| Operating profit | $27.1M | $25.8M | $33.1M | +28.14% ↑ faster |
| Net profit | $16.1M | $10.4M | $39.4M | +278.44% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $283.4M | $404.1M | $391.5M | $342.3M | $384.3M |
| Operating profit | $31.4M | $1.6M | $27.1M | $25.8M | $33.1M |
| Net profit | $19.1M | $151,129 | $16.1M | $10.4M | $39.4M |
| Revenue CAGR | 4-yr avg 7.90% | ||||
Revenue rose 12.2% year over year (2023 ₩590.7 billion → 2024 ₩516.5 billion → 2025 ₩579.8 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 28.1% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 7.9%. The two-year revenue CAGR is -0.9%. In the most recent quarter (Q1 2026), revenue was 46.4% 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 8.6%, is on the high side.
- ROE of 19.7% points to solid profitability.
- Revenue grew 12.2% year over year, a sign of growth.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-04-01FilingCorporate value-up plan (voluntary disclosure) filed — the company set out its direction for enhancing corporate value on a voluntary basis.Over the medium term, a reference for gauging resolve on shareholder returns and capital efficiency. Actual follow-through such as dividends and cancellations needs to be checked alongside subsequent disclosures. Source
- 2026-03-31DividendShare-cancellation decision — a shareholder-return decision disclosed through cancellation of treasury shares.Fewer shares outstanding is favorable for per-share value. Together with the roughly 6.8% dividend yield, there is room to read it as part of a shareholder-return trend. Source
- 2026-03-23UpdateControl-dispute lawsuit filed (injunction to allow voting rights) — an ongoing dispute over stakes and control.It raises short-term volatility while, depending on the outcome, being a variable that could change the ownership structure. Subsequent injunction and ruling disclosures need to be tracked. Source
- 2026-05-15EarningsQuarterly report (2026.03) — Q1 2026 consolidated results confirmed.With revenue of ₩187.7 billion and operating profit of ₩28.2 billion, sharply higher year over year, it is a first data point to check the core-business recovery and subsidiary earnings together. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 consolidated revenue | ₩579.8 billion | ₩579.8 billion | Confirmed | link |
| Q1 2026 consolidated operating profit | ₩28.2 billion | ₩28.2 billion | Confirmed | link |
| Corporate group structure (subsidiaries held) | — | (DART) | Confirmed | link |
| Seasonality-approximated operating profit (2026) | approx. ₩109.6 billion | — | Unverified | link |
Recent filings
- 2026-05-15PeriodicQuarterly report
- 2026-04-01Disclosure
- 2026-03-31PeriodicAnnual business report (amended)
- 2026-03-31Disclosure
- 2026-03-31Disclosure
- 2026-03-31Shareholders' meeting notice
- 2026-03-31Litigation disclosure
- 2026-03-24PeriodicAnnual business report
- 2026-03-23Audit report
- 2026-03-23Litigation disclosure
- 2026-02-27Disclosure
- 2026-02-27Shareholders' 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.