MDS Tech is a small IT company that earns revenue from tools and solutions used in embedded and software development, along with related technical support; on a consolidated basis its trailing 12-month revenue is about ₩187.7 billion. Recent disclosures are funding-related: on June 5, 2026 there was an exercise of conversion rights on convertible bonds at a conversion price of ₩2,435, and in February and December 2025 there were exercises of conversion rights at a conversion price of ₩974, while revenue has risen for three straight years at an accelerating pace and quarterly earnings improved sharply. The key point to watch now is that alongside the growth trend, a P/E of about 10x and P/B of about 0.6x make the stock lower against earnings and assets than its peer group — a strength — while the thin operating margin of 3.1% means profit can wobble on small changes, the interest coverage ratio is below 1, and the rising share count from CB conversions is a factor to watch on the dilution side.
At-a-glance assessment financial health · growth · profitability · valuation
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue rose 13.4% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 15.7% higher than a year earlier.
- ROE is 5.8% (controlling-interest basis). It is above the sector average.
- Operating margin is 3.1%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Playgram 25.5% (corporate)
Controlling bloc incl. related parties 25.5%
With the controlling bloc holding 26%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- MDS Tech is a small IT company classified under the games and software sector.
- Its structure is to earn revenue from tools and solutions used in embedded and software development, plus related technical support, and on a consolidated basis its trailing 12-month revenue is about ₩187.7 billion.
- With a small market cap of ₩84.2 billion, it is best to keep in mind that not only the flow of the business itself but also each disclosure on funding or share-count changes works on finances and the stock price relatively strongly.
- The latest close is ₩1,886 and the market cap is ₩80.2 billion.
- The price sits below the 20-day line (₩2,223) and below the 60-day line (₩2,238).
- Trading beneath both the short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that weighs upward versus downward strength over the past 14 days on a 0-100 scale) is 33.3, a neutral level.
- The one-month change is -24.7%, the three-month change is +80.0%, and the position versus the 52-week high is -48.5%.
- Relative strength versus the KOSDAQ is 95 (1-99, converted from returns against the index over the past year with heavier weight on the recent period; higher means stronger than the market), placing it in roughly the top 4% for strength among all stocks.
- Over the past three months it outpaced the index by 132.2%.
- Chart reading is best done together with volume and disclosure dates.
- Recent annual revenue was ₩187.7 billion, with operating profit of ₩5.8 billion and net profit of ₩8.2 billion.
- The operating margin is 3.1% and ROE (how much a company earns in a year on its equity) is 5.8%, above the peer-group average.
- Measured against earnings and assets, the P/E ratio is 9.65x and the P/B is 0.56x.
- A P/B below 1x means the market's price is lower than the book net assets, and even compared with peers' P/B (1.2-1.7x) it is on the cheap side on an asset basis.
- The debt ratio is 150.0%, not an excessive level, and the current ratio is 2.1x, so short-term liquidity is comfortable.
- That said, the interest coverage ratio is below 1x (operating profit barely covers interest), so whether the profit layer thickens further is the point to watch for the financial constitution.
- Revenue rose for three straight years — ₩155.3 billion in 2023, ₩165.6 billion in 2024 and ₩187.7 billion in 2025 — and the growth rate (+13.4%) quickened from the prior year (+6.6%).
- Net profit rose 19.9% year-on-year to ₩8.2 billion in 2025, continuing the recovery.
- In particular, the most recent quarter (Q1 2026) posted revenue of ₩50.9 billion, operating profit of ₩4.5 billion and net profit of ₩2.1 billion — revenue up +15.7% year-on-year while operating profit rose +205.5% and net profit jumped sharply.
- This signals that on top of revenue growth, the quality of earnings is improving on a quarterly basis.
- On this year's outlook basis, revenue of ₩200.9 billion and operating profit of ₩16.9 billion are put forward, which on operating profit is a step thicker than the prior year (₩5.8 billion).
- The forward P/E (the price multiple against this year's expected earnings) is the result of a conservative view of the net-profit line, and its meaning becomes clear only when read together with the direction of revenue and operating-profit growth.
- Recent disclosures continue to be funding-related.
- In the material-fact report of 2026-06-05, there was an exercise of conversion rights on convertible bonds at a conversion price of ₩2,435, and on 2026-02-11 and 2025-12-11 there were exercises of conversion rights at a conversion price of ₩974 each.
- A CB conversion is a two-sided disclosure: funds may flow into the company or debt is turned into equity, while at the same time new shares increase and existing holders' stakes can thin out.
- Checking the purpose of the funds together with the increasing share count helps gauge whether this movement connects to actual business investment and profit.
- MDS Tech's strengths are clear.
- Revenue has risen for three straight years at an accelerating pace and quarterly earnings improved sharply, while a P/E of about 10x and P/B of about 0.6x make the stock lower against earnings and assets than its peer group.
- In other words, this is a stock where a growth trend and a low valuation appear together, and on a diagnostic basis it is classified as undervalued and growing.
- The part to watch carefully is the constitution side.
- The thin operating margin of 3.1% means profit can wobble on small changes, and with the interest coverage ratio below 1x, earnings do not yet amply cover the interest burden.
- The rising share count from CB conversions is also a factor to watch on the dilution side.
- In short, this is a stock where the low valuation stands out as appeal in a phase where revenue growth and quarterly earnings improvement continue and the margin thickens, and conversely, where the thin margin and dilution burden catch the eye first if earnings improvement stalls or funding events grow frequent.
🔎 Valuation vs peers Overvalued
A peer group of games and software companies with market caps close to MDS Tech.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| NuriFlex | — | 1.01x | -9.23% |
| ESTsoft | — | 1.77x | -35.31% |
| LS Tirauetec | — | 1.14x | -12.04% |
Within the games and software sector, we looked first at a public-data peer group with nearby market caps. The current P/E is 9.65x and the P/B is 0.56x. That said, because smaller-cap names are heavily affected by earnings swings and funding disclosures, we did not draw firm conclusions from metrics based on last year's confirmed results alone. The forecast box is based on a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩200.9 billion | ₩16.9 billion | ₩5.7 billion |
| Next quarter | Q2 2026 | ₩46.6 billion | ₩5.2 billion | ₩2.3 billion |
Price history Close · MA20 · MA60
The latest close is ₩1,886 and the market capitalization is ₩80.2 billion. The price sits below its 20-day moving average (₩2,223) and below its 60-day moving average (₩2,238). 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 33.3, a neutral level. The one-month change is -24.7%, the three-month change is +80.0%, and the position relative to the 52-week high is -48.5%. Relative strength versus the KOSDAQ is 95 (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 96% of all stocks. Over the past three months it outpaced the index by 132.2%. 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 +132.17% / 6M +72.02% / 12M +40.00%
Key metrics vs sector median
Valuation
The P/E of 9.65x is below the sector median (13.30x). The P/B of 0.56x is below the sector median (1.58x). 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 5.8%, above the sector average (5.0%). The operating margin is 3.1%. The debt ratio is 150.0%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $102.9M | $109.7M | $124.4M | +13.36% ↑ faster |
| Operating profit | $5.8M | $3.9M | $3.9M | -2.20% ↑ faster |
| Net profit | $939,697 | $4.6M | $5.5M | +19.85% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $99.0M | $101.8M | $102.9M | $109.7M | $124.4M |
| Operating profit | $3.4M | $5.4M | $5.8M | $3.9M | $3.9M |
| Net profit | -$3.3M | -$4.5M | $939,697 | $4.6M | $5.5M |
| Revenue CAGR | 4-yr avg 5.88% | ||||
Revenue rose 13.4% year over year (2023 ₩155.3 billion → 2024 ₩165.6 billion → 2025 ₩187.7 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit fell 2.2% year over year. That said, the decline narrowed. Over the 5 years on record, revenue compound annual growth (CAGR) is 5.9%. The two-year revenue CAGR is 9.9%. In the most recent quarter (Q1 2026), revenue was 15.7% 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.
- Revenue grew 13.4% 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
- 2026-06-05UpdateMaterial-fact report (exercise of a third party's convertible-bond option): conversion price ₩2,435This is a disclosure where the purpose of the incoming funds and the change in share count must be viewed together. When a facility or operating purpose is stated, whether the actual spending connects to revenue is the crux. Source
- 2026-02-11UpdateMaterial-fact report (exercise of a third party's convertible-bond option): conversion price ₩974This is a disclosure where the purpose of the incoming funds and the change in share count must be viewed together. When a facility or operating purpose is stated, whether the actual spending connects to revenue is the crux. Source
- 2025-12-11UpdateMaterial-fact report (exercise of a third party's convertible-bond option): conversion price ₩974This is a disclosure where the purpose of the incoming funds and the change in share count must be viewed together. When a facility or operating purpose is stated, whether the actual spending connects to revenue is the crux. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩1,886 | ₩1,886 | Confirmed | link |
| Latest quarterly results | revenue ₩50.9 billion, operating profit ₩4.5 billion | revenue ₩50.9 billion, operating profit ₩4.5 billion | Confirmed | link |
| Annual results | revenue ₩187.7 billion, operating profit ₩5.8 billion | revenue ₩187.7 billion, operating profit ₩5.8 billion | Confirmed | link |
| Funding disclosure source text | : ₩2,435 | : ₩2,435 | Confirmed | link |
| Funding disclosure source text | : ₩974 | : ₩974 | Confirmed | link |
| Funding disclosure source text | : ₩974 | : ₩974 | Confirmed | link |
| Forecast box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-06-05Material-fact report
- 2026-05-21Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-08OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-07Disclosure
- 2026-04-30Disclosure
- 2026-04-13Disclosure
- 2026-04-06Spin-off/split decision
- 2026-03-26Shareholders' meeting notice
- 2026-03-25Disclosure
- 2026-03-25Amended filing
- 2026-03-25Amended 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.