Nexteel is a steel-pipe maker that rolls and welds steel plate into products, with oil-country tubular goods (OCTG) for drilling oil and gas and line pipe at its core; a large share of revenue comes from exports to the United States, so U.S. drilling activity, oil prices, and anti-dumping duty rates drive its results in an energy-linked structure. Shareholder returns are thick, with a payout ratio of 76% and a dividend yield in the 9% range, and in April it voluntarily disclosed a corporate value-up plan; its finances are stable with a debt ratio of 150%, an interest coverage ratio of 7x, and an ROE of 7.8%, and it trades at a P/B of 0.70x, below its net assets, yet Q1 operating profit fell as much as -88%. The key point to watch is that if U.S. energy drilling demand and the tariff environment turn favorable and profit recovers, the low P/B, high dividend, and stable finances all become strengths, whereas with profit down two years running, the forward P/E is estimated at about 28.1x, higher than last year's (8.97x), placing it in a trough phase, so if the drilling slump drags on, the profit recovery is delayed and dividend capacity must be watched alongside.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 0.2% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 35.8% lower than a year earlier.
- ROE is 7.8% (controlling-interest basis). It is above the sector average.
- Operating margin is 7.2%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Park Hyo-jung 54.15% (individual)
Controlling bloc incl. related parties 61.66%
With the controlling bloc holding 62%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Nexteel is a manufacturer focused on steel pipe made by rolling steel plate into a round shape and welding it.
- Its product lineup falls into four broad groups: at the core are OCTG (Oil Country Tubular Goods), the well pipe driven into the ground to drill and lift oil and gas, and line pipe that carries crude and gas over long distances; added to these are structural steel pipe for construction and structures, and general piping.
- Because a substantial part of revenue comes from exports to the United States, results are driven by U.S. crude-oil and shale-gas drilling activity (the number of active rigs), oil prices, and the anti-dumping duty rate the U.S. levies on Korean steel pipe.
- In other words, although classified in the steel sector, the substance of the business is closer to 'a steel-pipe exporter tied to the U.S. energy drilling cycle.'
- The latest close is ₩10,650 and the market cap is ₩276.9 billion.
- The price sits below its 20-day line (₩13,354) and below its 60-day line (₩15,891).
- Trading beneath both its short- and mid-term moving averages, the trend is subdued.
- The RSI (a supplementary gauge that scores the balance of up-days versus down-days over the past 14 days on a 0-100 scale) is 30.8, a neutral level.
- The one-month change is -24.0%, the three-month change is -23.9%, and the position versus the 52-week high is -51.3%.
- Relative strength against the KOSPI is 27 (1-99, computed from returns against the index over the past year with recent performance weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 73% of all stocks by strength.
- Over the past three months it has lagged the index by 41.5%.
- Chart readings are best interpreted alongside trading volume and disclosure dates.
- On a confirmed full-year (2025) basis, the P/E ratio (how many times a year's profit the share price represents) is 7.68x and the P/B ratio (how many times net assets the share price represents) is 0.60x.
- A P/B of 0.70x means the share price is set below the company's net asset value, a stable level where assets support the price.
- ROE (how much is earned on equity in a year) is 7.8%, well above the steel-sector average (about 2%), and the operating margin is 7.2%.
- The debt ratio (debt against equity) is 150.7%, not burdensome for a steel manufacturer, and with a current ratio of 191.6% and an interest coverage ratio of 7x, short-term solvency and the ability to cover interest are also sound.
- One point to note is that this P/E of 8.97x is based on 'last year's earnings' (trailing).
- The forward P/E reflecting this year's profit rises, but this is not because the company has become more expensive; rather, this year's profit is temporarily in a low phase, so the same share price produces a larger multiple.
- In short, the P/B and dividend show the stability of the asset and shareholder-return side, while the forward P/E shows that this year's profit is at a trough.
- Annual revenue fell for two straight years, from ₩619.1 billion in 2023 → ₩552.4 billion in 2024 → ₩551.0 billion in 2025, with a three-year revenue CAGR of -5.7%.
- The profit slowdown was steeper: operating profit fell from ₩157.3 billion in 2023 to ₩39.9 billion in 2025, down to a quarter of its level.
- The most recent quarter, Q1 2026, posted revenue of ₩100.6 billion (-35.8% year-on-year), operating profit of ₩2.7 billion (-88.3%), and net profit of ₩2.8 billion (-86.2%), showing in numbers that profit is in a cyclical trough.
- This flows straight into this year's profit, which is why the forward P/E rises from 9.8x on last year's basis to about 30.7x this year.
- In other words, the high forward multiple is not because the share price is inflated but because this year's profit sits low.
- The steel-pipe business is characterized by wide quarterly profit swings depending on U.S. drilling demand, oil prices, and anti-dumping duties, so the extent and timing of a recovery depend on whether these external variables turn favorable.
- Three threads stand out in the disclosure flow.
- First, on April 21, 2026, the company voluntarily released a 'corporate value-up plan (voluntary disclosure),' formalizing a direction of improved shareholder returns and capital efficiency (this is already a stock with strong returns, at a 76% payout ratio and a dividend yield in the 8% range).
- Second, the Q1 quarterly report on May 14 confirmed the sharp profit decline in numbers, making the point at which profit rebuilds a future focus.
- Third, the 'decision to increase short-term borrowings' on May 7 and the 'material management matter related to investment judgment' disclosure on May 27 signal changes in working capital and the operating environment, so their meaning needs to be confirmed alongside subsequent regular reports.
- The April-May price rise and June pullback also moved in step with this disclosure schedule.
- The strengths are clear.
- Shareholder returns are thick, with a dividend yield in the 9% range and a 76% payout ratio; finances are stable, with a debt ratio of 150%, a current ratio of 192%, and an interest coverage ratio of 7x; and ROE of 7.8% is well above the sector average.
- At a P/B of 0.70x the share price is set below net assets, so assets support the price, and the voluntary value-up disclosure adds to the return commitment.
- Meanwhile, the point to watch is the direction of profit.
- Operating profit fell for two straight years and dropped as much as -88% in Q1 this year, so profit is in a trough phase, and the forward P/E is estimated at about 28.1x, higher than last year's basis (8.97x).
- Also, because a large share of revenue is U.S. steel-pipe exports, results swing widely with the U.S. drilling cycle, oil prices, and anti-dumping duties.
- In sum, in a phase where U.S. energy drilling demand and the tariff environment turn favorable and profit recovers, the low P/B, high dividend, and stable finances work together as strengths, whereas in a phase where the drilling slump and quarterly profit swings drag on, the profit recovery is delayed and dividend capacity must be watched alongside.
🔎 Valuation vs peers Inconclusive
Rather than a simple steel-sector average, the peer set is drawn first from companies close in business substance to steel-pipe manufacturing; Poongsan and POSCO Steeleon are not identical in business mix but are processed-steel makers, while POSCO Holdings and Hyundai Steel are referenced as valuation anchors for large-cap steel. All P/E, P/B, and ROE figures are the site's internal calculations at the current price.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Poongsan | 11.71x | 0.75x | 6.40% |
| POSCO Steeleon | 16.50x | 0.73x | 4.44% |
| POSCO Holdings | 35.79x | 0.42x | 1.18% |
| Hyundai Steel | — | 0.19x | -0.04% |
On last year's confirmed results alone, the combination of a P/E of 8.97x, an ROE of 7.8%, and a dividend in the 9% range means a low multiple with high profitability and returns versus peers, leaving room to read it as undervalued. However, with Q1 operating profit plunging -88% this year, profit is at an inflection point, so the trailing multiple on last year's earnings is hard to trust as is. For future profit, no official company numeric outlook could be confirmed, and even a seasonality approximation is hard to stabilize given the wide operating- and net-profit swings inherent to the steel-pipe business. We therefore do not conclude cheap or expensive and leave it inconclusive. The crux is how the profit that turned down in Q1 carries through the full year depending on U.S. drilling demand and the tariff environment; if profit recovers, the low P/B and high dividend become strengths, and if the slump continues, the appeal of the trailing multiple fades quickly.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩114.4 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩10,650 and the market capitalization is ₩276.9 billion. The price sits below its 20-day moving average (₩13,354) and below its 60-day moving average (₩15,891). 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 30.8, a neutral level. The one-month change is -24.0%, the three-month change is -23.9%, and the position relative to the 52-week high is -51.3%. Relative strength versus the KOSPI is 27 (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 27% of all stocks. Over the past three months it lagged the index by 41.5%. 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 -41.50% / 6M -32.28% / 12M -68.46%
Key metrics vs sector median
Valuation
The P/E of 7.68x is below the sector median (16.39x). The P/B of 0.60x is above the sector median (0.50x).
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 10.1%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 7.8%, above the sector average (2.0%). The operating margin is 7.2%. The debt ratio is 150.7%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $410.3M | $366.1M | $365.2M | -0.25% ↑ faster |
| Operating profit | $104.3M | $41.9M | $26.5M | -36.81% ↑ faster |
| Net profit | $85.9M | $23.0M | $23.9M | +3.71% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $410.3M | $366.1M | $365.2M |
| Operating profit | — | — | $104.3M | $41.9M | $26.5M |
| Net profit | — | — | $85.9M | $23.0M | $23.9M |
| Revenue CAGR | 2-yr avg -5.66% | ||||
Revenue fell 0.2% year over year (2023 ₩619.1 billion → 2024 ₩552.4 billion → 2025 ₩551.0 billion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Operating profit fell 36.8% year over year. That said, the decline narrowed. Over the 3 years on record, revenue compound annual growth (CAGR) is -5.7%. The two-year revenue CAGR is -5.7%. In the most recent quarter (Q1 2026), revenue was 35.8% lower 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 10.8%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 0.2% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-04-21FilingCorporate value-up plan (voluntary disclosure) filed — voluntarily announcing a direction of improved capital efficiency and shareholder returnsOver the medium term, a reference point for gauging the durability of dividend and capital-efficiency policy. With returns already strong at a 76% payout ratio and a dividend yield in the 8% range, actual execution of the plan is the focus. Source
- 2026-05-14EarningsQ1 2026 quarterly report — revenue of ₩100.6 billion and operating profit of ₩2.7 billion, confirming the sharp profit declineThe most direct near-term earnings signal. Operating profit fell 88% year-on-year, confirming the slowdown in numbers. The timing of a recovery is the key valuation variable. Source
- 2026-05-07UpdateDecision to increase short-term borrowings — expansion of working-capital short-term debtA near-term signal to check working capital and interest costs. The financial structure is still sound, but rising borrowings in a profit-slowdown phase warrant checking the interest burden in subsequent quarters. Source
- 2026-05-27FilingMaterial management matter related to investment judgment — voluntary disclosure on changes in the operating and management environmentCould be a clue to medium-term earnings or strategy changes, so its meaning should be confirmed alongside subsequent regular reports. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-29Corporate governance report
- 2026-05-28OwnershipLargest-shareholder ownership change report
- 2026-05-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-27Disclosure
- 2026-05-14PeriodicQuarterly report
- 2026-05-07Disclosure
- 2026-04-29OwnershipLargest-shareholder ownership change report
- 2026-04-21Disclosure
- 2026-04-14PeriodicAnnual business report (amended)
- 2026-04-02Disclosure
- 2026-03-31Disclosure
- 2026-03-31Disclosure
📖 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.