Digital Daesung earns money from private education for university entrance exams. About 80% of revenue comes from the online lecture brand 'Daesung MyMac' and offline boarding academies and its medical-school academy, while the rest comes from elementary and middle-school reading-and-discussion content, and tuition makes up most of revenue. In March it presented a corporate value-up plan, and May's preliminary results confirmed an inflection in which first-quarter profit doubled on a quarterly basis, driven by the full reflection of the medical-school academy and by demand from repeat test-takers tied to the expansion of medical-school admission quotas. What stands out lately is that an ROE of 15% and an operating margin of 12%, a dividend yield in the 7% range, and a forward P/E lower than peers are strengths, while policy factors such as the admissions system and medical-school quotas and the trajectory of the school-age population — which govern the strength of demand — must be checked alongside.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 250.2%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 45.9%).
- Revenue rose 16.6% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 15.6% higher than a year earlier.
- ROE is 15.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 12.4%.
- The P/E sits below the sector median.
Ownership & governance As of 2019-12-31
Largest shareholder Daesung Publishing 10.98% (corporate)
Controlling bloc incl. related parties 26.31%
With the controlling bloc holding 26%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- Digital Daesung earns money from private education for university entrance exams.
- About 80% of revenue comes from the high-school and repeat-test-taker (re-exam) segment, centered on the online lecture brand 'Daesung MyMac,' offline boarding academies (Gangnam Daesung boarding academy), and the Gangnam Daesung boarding medical-school academy it acquired and has run since 2024.
- The remaining roughly 10-20% comes from elementary and middle-school reading-and-discussion content (Hanuri Open Education).
- In other words, tuition (online lecture payments and offline academy fees) makes up most of revenue, so student numbers, the size of the repeat-test-taker pool, and lecture pricing govern the results.
- The latest close is ₩7,200 and the market cap is ₩199.3 billion.
- The price sits below its 20-day line (₩7,346) and below its 60-day line (₩7,867).
- Trading beneath both the short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that scores upward versus downward momentum over the last 14 days on a 0-100 scale) is 41.2, a neutral level.
- The one-month change is -5.3%, the three-month change is -10.3%, and the position versus the 52-week high is -20.7%.
- Relative strength against the KOSDAQ is 76 (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).
- That places it around the top 23% for strength among all stocks.
- Over the past three months it led the index by 22.8%.
- Chart readings are best viewed together with volume and the dates of disclosures.
- The P/E ratio (how many times a year's profit the share price is) is 9.53x and the P/B (how many times net assets the share price is) is 1.44x.
- ROE (how much is earned in a year on equity) is 15.1%, a clear profitability on equity, and the operating margin of 12.4% points to a stable core-business margin.
- The dividend yield is in the 7% range (with a payout ratio of about 64%), meaning it returns a substantial share of what it earns to shareholders, so the cash reward while waiting is large.
- The debt ratio (debt relative to equity) is 250% and the current ratio (assets convertible to cash versus debt due within a year) is 46%, so the surface numbers look somewhat heavy, but in the academy business a large portion of deferred tuition (fees received in advance) is booked as an accounting liability, making it hard to judge risk by the same yardstick as ordinary manufacturing.
- One point to note is that the 9.5x is on last year's confirmed profit (trailing).
- In a phase of quickly rising profit, a multiple divided by last year's profit tends to look higher, and the forward P/E converted on this year's higher profit is low relative to peers.
- In short, the forward-basis figures are closer to the true picture than the surface P/E and P/B, and on that basis the stock is priced cheaply.
- The top line has grown for three straight years and is picking up speed.
- Revenue rose +16.6% last year (versus +2.9% the year before), operating profit +33.1%, and net profit +37.9%, with all three accelerating.
- The decisive change was the most recent quarter (first quarter of 2026): on a cumulative basis revenue rose +15.6% while operating profit rose +95.9% and net profit +106%, doubling profit.
- There is a clear reason profit grew far faster than revenue.
- The medical-school academy acquired in 2024 was fully reflected from this year, lifting both the top line and profit together, and the expansion of medical-school admission quotas increased demand from repeat test-takers preparing for medical school, reviving the higher-priced, higher-share entrance-exam segment at the same time.
- Because the academy business carries a large fixed-cost share, profit adds on more heavily when revenue rises, so this profit increase reads as a change coming from the business structure rather than a temporary base effect.
- The forward-basis profit is set this high precisely because this demand, capacity (the newly running medical-school academy), and share trend carried through the year.
- Recent filings split into two strands, results and shareholder-return/stake tidying.
- In March, through a corporate value-up plan (value-up voluntary disclosure), the company laid out its direction for enhancing shareholder value directly, and May's preliminary results confirmed the first-quarter profit surge.
- In April and May, capital policies using treasury shares continued, including terminating a treasury-share trust contract and then deciding to dispose of treasury shares, and at the same time repeated disclosures of decisions to acquire and dispose of shares in other companies pointed to a reshuffling of held stakes (business-related investments).
- In June a large-holding report was filed, disclosing changes in major shareholders' holdings.
- For an ordinary academy operator this is fairly active disclosure, so it is worth watching the direction of capital and stake policy alongside results.
- The strengths are distinct.
- An inflection in which profit doubled on a quarterly basis showed up in actual results, backed by the full reflection of the medical-school academy and by demand from repeat test-takers tied to the expansion of medical-school quotas.
- An ROE of 15% and an operating margin of 12% support profitability, and a dividend yield in the 7% range provides a large cash reward while holding.
- On valuation too, the forward-basis P/E is lower than peers, so as profit improves the price sits in a spot that has been pressed down over three months.
- Given the nature of the business, there are variables to watch alongside.
- Private education is a sector affected by policy such as the admissions system and medical-school quotas and by the trajectory of the school-age population, so a shift in policy direction can change the strength of repeat-test-taker demand.
- In sum, as long as the demand created by the expansion of medical-school quotas and the running of the medical-school academy continues, this is a spot where profit and valuation are both strong, and it is a stock that warrants a check when the policy environment underpinning that demand wavers.
🔎 Valuation vs peers Fairly valued
The peer set is built from direct same-sector operators that run both online entrance-exam lectures and offline academies for repeat test-takers (re-exam students).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Megastudy Education | 4.64x | 0.80x | 17.15% |
| Megastudy | 5.82x | 0.47x | 8.13% |
On last year's confirmed profit, the P/E of 10.1x is clearly higher than the closest peers (about 4.6-5.8x), so on the surface it is a premium. But the crux of that gap is the direction of growth. The peers' revenue is shrinking, while Digital Daesung's top line grew in double digits and profit doubled on a quarterly basis. At an inflection point where profit bends upward, a trailing P/E calculated on last year's profit looks more expensive than reality, and reflecting this year's rising profit, the forward-basis multiple falls noticeably below the trailing 10.1x. So it is hard to call the simple P/E premium versus peers 'overvalued,' and viewing it as a spot justified by whether growth continues, we judge it fairly valued. Conversely, if growth stalls, this premium can turn into a burden.
Price history Close · MA20 · MA60
The latest close is ₩7,200 and the market capitalization is ₩199.3 billion. The price sits below its 20-day moving average (₩7,346) and below its 60-day moving average (₩7,867). 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 41.2, a neutral level. The one-month change is -5.3%, the three-month change is -10.3%, and the position relative to the 52-week high is -20.7%. Relative strength versus the KOSDAQ is 76 (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 77% of all stocks. Over the past three months it outpaced the index by 22.8%. 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 +22.77% / 6M +14.21% / 12M -5.22%
Key metrics vs whole-market median
Valuation
The P/E of 9.53x is below the whole-market median (13.81x). The P/B of 1.44x is above the whole-market median (1.15x). 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 15.1%, above the whole-market average (5.0%). The operating margin is 12.4%. The debt ratio is 250.2%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $140.2M | $144.3M | $168.2M | +16.58% ↑ faster |
| Operating profit | $16.6M | $15.7M | $20.9M | +33.14% ↑ faster |
| Net profit | $8.3M | $10.0M | $13.9M | +37.92% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $130.5M | $139.7M | $140.2M | $144.3M | $168.2M |
| Operating profit | $16.7M | $18.8M | $16.6M | $15.7M | $20.9M |
| Net profit | $13.3M | $14.1M | $8.3M | $10.0M | $13.9M |
| Revenue CAGR | 4-yr avg 6.55% | ||||
Revenue rose 16.6% year over year (2023 ₩211.5 billion → 2024 ₩217.7 billion → 2025 ₩253.8 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 33.1% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 6.6%. The two-year revenue CAGR is 9.5%. In the most recent quarter (Q1 2026), revenue was 15.6% 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 7.2%, is on the high side.
- ROE of 15.1% points to solid profitability.
- Revenue grew 16.6% 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
- 2026-05-07EarningsConsolidated preliminary operating results (fair disclosure). The prior quarter's revenue rose about 15.6% year on year, while operating profit rose about 95.9% and net profit about 106%, so profit nearly doubled.Short term: the profit inflection is confirmed in official figures. Medium term: whether the full reflection of the medical-school academy and rising repeat-test-taker numbers lift the annual profit level is the crux. Source
- 2026-03-17IRCorporate value-up plan (value-up voluntary disclosure). Planning material in which the company presented its direction on shareholder returns and capital efficiency directly.Short term: formation of shareholder-return expectations. Medium term: whether execution of the plan (dividends, treasury shares, and the like) actually follows is the first basis for valuation. Source
- 2026-05-29FilingMaterial-fact report (decision to dispose of treasury shares). A capital-policy disclosure deciding to dispose of held treasury shares, following the April termination of a treasury-share acquisition trust contract.Short term: affects treasury-share flow and the direction of shareholder returns. Medium term: interpretation of shareholder value splits depending on how the treasury shares are used (whether cancelled or not). Source
- 2026-05-29FilingDecision to acquire shares and equity securities in another company. A business-related stake acquisition that, together with a disposal decision in the same period, amounts to a reshuffling of held stakes.Short term: needs a check on cash outflow and investment direction. Medium term: whether it contributes to results is decided by the business synergy of the acquisition target. Source
- 2026-06-05FilingLarge-holding report (general). A change in a major shareholder's holding ratio was reported.Short term: a possible change in the flow of holders. Medium term: a check point for the stability of the ownership structure. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 net profit growth rate | +106% | approx. +106% | Confirmed | link |
| Annual results (2025) | revenue 2,538, operating profit 316, net profit 209 | revenue 2,538 · operating profit 316 · net profit 209 | Confirmed | link |
| 2026 estimated net profit / forward P/E | approx. 280 / forward PER 7.5 (self-estimate) | — | Unverified | link |
Recent filings
- 2026-06-05OwnershipOwnership-change filing
- 2026-05-29TreasuryMaterial-fact report
- 2026-05-29Disclosure
- 2026-05-18Amended filing
- 2026-05-15PeriodicQuarterly report
- 2026-05-07EarningsFair-disclosure notice
- 2026-04-21OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-17OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-10OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-07Disclosure
- 2026-04-07TreasuryMaterial-fact report
- 2026-03-31Amended filing
📖 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.