SMEC has made machine tools for more than 30 years; its core business is machine tools such as machining centers used in automotive, IT-component and mold machining, to which it adds industrial robots and automation equipment as well as mobile-communications and IP-network gear, making it a typical capital-goods company whose revenue is tied directly to the manufacturing sector's capex cycle. In April 2026 there was a governance reshuffle within the SNT Group in which the largest shareholder changed to SNT Motiv (the 21.26% stake moving within the group unchanged), and the flow continued of the company seeking to explain its post-reshuffle direction directly, including announcing an investor relations event in June. What stands out lately is that if front-end capex revives and reshuffle synergies actually translate into orders and a return to profit, the 30 years of operating history and expectations of group support become strengths; on the other hand, 2025 operating and net profit turned to losses, the first-quarter loss widened, and with a debt ratio of 309% there is financial burden, so whether an inflection out of the loss takes hold is the key gauge.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 309.1%).
- The most recent full-year net result was a loss.
- Revenue fell 23.7% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 31.1% lower than a year earlier.
- ROE is -22.0% (controlling-interest basis). It is below the sector average.
- Operating margin is -10.9%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder SNT Holdings 13.65% (corporate)
Controlling bloc incl. related parties 21.19%
With the controlling bloc holding 21%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- SMEC has made machine tools for more than 30 years, and its core revenue source is machine tools such as vertical machining centers and tapping centers used in automotive-component, IT-component and mold machining.
- To this it adds a convergence business bundling industrial robots, automation equipment and laser equipment, and an ICT business handling mobile-communications gear and IP-network gear.
- In other words, 'machines that cut metal (machine tools)' are the core business, with robots, semiconductor equipment and communications gear attached as offshoots.
- Because the main stream of revenue is tied directly to manufacturing capex (the cycle in which companies buy new machines), it is a typical capital-goods company whose results rise when front-end industry investment increases and fall when it decreases.
- The latest closing price is ₩2,675 and market capitalization is ₩182.6 billion.
- The price is below the 20-day line (₩2,912) and below the 60-day line (₩3,637).
- Sitting under both the short- and medium-term moving averages, the trend is on the subdued side.
- The RSI (a supplementary gauge that scores the strength of gains versus declines over the past 14 days on a 0-100 scale) is 36.1, a neutral level.
- The one-month change is -16.9%, the three-month change is -39.3%, and the position versus the 52-week high is -66.0%.
- Relative strength versus the KOSDAQ is 52 (1-99, computed from returns against the index over the past year with more weight on recent performance; higher means stronger than the market).
- It sits in roughly the top 48% of all stocks by strength.
- Over the past three months it lagged the index by 21.9%.
- It is best to read the chart together with trading volume and the dates of disclosures.
- With 2025 results having swung to a loss, the P/E ratio (how many times one year's profit the share price represents) is not calculable because profit is negative.
- EPS (earnings per share) is -₩315 and BPS (net assets per share) is ₩1,430, and the P/B (how many times net assets the price represents) is 1.87x.
- On profitability, ROE (how much is earned in a year per unit of equity) is -22%, the operating margin is -10.9% and the net margin is -14%, so the core business is currently generating losses.
- On the financial side, the debt ratio (debt against equity) is 309%, so debt exceeds equity, and the interest-coverage ratio is -2.5, so current operating profit cannot cover interest.
- That said, the current ratio is 1.43, so there are more assets convertible to cash within a year than debt due within a year, and short-term liquidity is for now being maintained.
- A P/B of 1.92x is not especially cheap relative to net assets, so it is natural to view the current price as reflecting not only present asset value but also expectations of future recovery and reshuffle.
- On the top line, 2025 revenue fell 23.7% year on year, from ₩201.3 billion to ₩153.6 billion, and operating and net profit, which had been in the black for the prior two years, both swung to losses in 2025 (operating: +₩24.0 billion→-₩16.8 billion; net: +₩22.1 billion→-₩21.5 billion).
- Widening the view to five years — a loss in 2021, profit in 2022-2024, and a loss again in 2025 — it is a cyclical name whose profit swings sharply with the industry cycle.
- In the most recent first quarter of 2026, revenue of ₩29.2 billion (-31.1% YoY) and a net loss of -₩5.1 billion showed the loss deepening rather than easing.
- One point worth noting is that the commonly seen P/E is on a 'profit already confirmed last year' (trailing) basis, so for a company like this that has inflected into a loss, it should really be viewed on a 'profit to be earned this year' (forward) basis.
- Yet with the loss continuing from full-year 2025 into first-quarter 2026, there is not yet a confirmed basis for assuming this year's profit is positive.
- So rather than forcing a forward profit into the frame, it is more honest to treat this as a period for confirming, through quarterly results, whether an inflection out of the loss actually takes hold.
- The biggest recent event is the transfer of the largest shareholder within the SNT Group in April 2026.
- The former largest shareholder, SNT Holdings, handed over its stake — together with the stakes of related parties — to its subsidiary SNT Motiv via off-hours block trade, changing the largest shareholder to SNT Motiv.
- Because the number of shares held (14,510,332) and the stake (21.26%) are unchanged, this is not a stake leaving to the outside but a 'governance reshuffle' in which the position merely moved within the group.
- It reads as one move in a larger picture of the group seeking to bundle SMEC, robotics and machine-tool businesses around SNT Motiv.
- This was followed on June 5 by an investor relations (IR) event disclosure and a succession of executive/major-shareholder ownership changes and large-holding reports, and at the end of April there was also a disclosure on a change of market segment.
- This is a stretch where the flow of the company seeking to explain its business direction after the reshuffle appeared alongside signals — market administration indicators tied to the continued loss — that should be watched together.
- This is a stock whose strengths and cautions are clearly divided.
- On the strength side: it has the core-business base of machine tools and 30 years of operating history, it has a track record of returning to a profit cycle when the industry supported it (2022-2024), and by entering as one axis of the reshuffle in which the SNT Group seeks to bundle robotics and smart manufacturing around SNT Motiv, expectations of group-level support and synergy have arisen.
- On the caution side: 2025 operating and net profit both swung to losses, the loss widened in the first quarter of 2026, and with a debt ratio of 309% and an interest-coverage ratio of -2.5 there is a burden on financial headroom.
- In sum, it is strong under conditions where front-end capex revives and reshuffle synergies translate into actual orders and a return to profit, and conversely, if the industry slump and losses drag on longer, the high debt works as a weakness.
- Ultimately, more than the 'reshuffle expectation' itself, 'whether an inflection out of the loss takes hold in the results' becomes the most important gauge for this stock.
🔎 Valuation vs peers Inconclusive
Compared against listed machinery companies whose core business is machine tools or industrial machinery, or that belong to the same SNT Group. Since SMEC is loss-making and no P/E can be derived, it is viewed by its position on price relative to net assets (P/B) and profitability (ROE).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| SNT Dynamics | 17.63x | 1.25x | 7.10% |
| HD Hyundai Marine Engine | 11.20x | 3.78x | 33.77% |
Since it is currently loss-making, comparison by P/E is impossible, so it is viewed by P/B on a net-asset basis. SMEC's P/B of 2.24x is if anything higher than the same group's profitable company SNT Dynamics (1.58x, ROE +7.1%). That is, a loss-making company trades more expensively relative to net assets than a profit-making one, so on asset value alone it is hard to call cheap. This premium is best read as pre-reflecting the expectation of a 'group reshuffle and robotics theme' rather than current earnings. Meanwhile, the trailing gauge based on last year's confirmed profit carries little meaning now that profit has inflected to a loss, and it should be viewed on a forward basis; but with the loss continuing through the first quarter, there is insufficient basis to assume forward profit is positive. Therefore, rather than declaring it cheap or expensive, 'inconclusive until the exit from the loss is confirmed' is appropriate.
Price history Close · MA20 · MA60
The latest close is ₩2,675 and the market capitalization is ₩182.6 billion. The price sits below its 20-day moving average (₩2,912) and below its 60-day moving average (₩3,637). 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 36.1, a neutral level. The one-month change is -16.9%, the three-month change is -39.3%, and the position relative to the 52-week high is -66.0%. Relative strength versus the KOSDAQ is 52 (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 52% of all stocks. Over the past three months it lagged the index by 21.9%. 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 -21.88% / 6M -45.87% / 12M -11.94%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 1.87x is above the sector median (1.44x).
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 -22.0%, below the sector average (5.0%). The operating margin is -10.9%. The debt ratio is 309.1%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $117.1M | $133.4M | $101.8M | -23.70% ↓ slower |
| Operating profit | $14.6M | $15.9M | -$11.1M | -170.17% ↓ slower |
| Net profit | $11.1M | $14.7M | -$14.2M | -197.11% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $85.2M | $105.7M | $117.1M | $133.4M | $101.8M |
| Operating profit | -$7.3M | $7.8M | $14.6M | $15.9M | -$11.1M |
| Net profit | -$10.9M | $6.4M | $11.1M | $14.7M | -$14.2M |
| Revenue CAGR | 4-yr avg 4.56% | ||||
Revenue fell 23.7% year over year (2023 ₩176.6 billion → 2024 ₩201.3 billion → 2025 ₩153.6 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 170.2% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 4.6%. The two-year revenue CAGR is -6.8%. In the most recent quarter (Q1 2026), revenue was 31.1% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Debt far exceeds equity (debt ratio 309.1%).
- The most recent full-year net result was a loss.
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 23.7% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-04-22FilingThe largest shareholder changed from SNT Holdings to its subsidiary SNT Motiv. The 14,510,332 shares held (a 21.26% stake) were transferred within the group unchanged (off-hours block trade).A signal of group-level governance reshuffle. A medium-term catalyst raising expectations of robotics and smart-manufacturing integration, but it does not immediately change the loss-making results. Source
- 2026-06-05IRInvestor relations (IR) event disclosure. Disclosure of holding an event for the KOSDAQ market to explain the company's business status and outlook.A venue for the company to explain its business direction directly after the reshuffle, an event that draws short-term investor attention. Source
- 2026-05-15EarningsFiling of the first-quarter 2026 report. Revenue ₩29.2 billion (-31.1% YoY), operating loss -₩4.8 billion, net loss -₩5.1 billion, with the loss continuing and widening.Confirms that the loss continues this year and short-term earnings momentum is weak. A factor that makes assuming forward profit difficult. Source
- 2026-04-30FilingMarket-segment change disclosure. The segment within KOSDAQ was changed.A classification change on the administration/investment-environment side, a signal that market administration indicators tied to the continued loss should be watched together. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-10OwnershipOwnership-change filing
- 2026-06-05Disclosure
- 2026-06-05OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-05OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-04OwnershipOwnership-change filing
- 2026-05-20OwnershipOwnership-change filing
- 2026-05-15PeriodicQuarterly report
- 2026-05-11OwnershipOwnership-change filing
- 2026-04-30Disclosure
- 2026-04-24OwnershipLargest-shareholder ownership change report (amended)
- 2026-04-22OwnershipLargest-shareholder ownership change report
- 2026-04-22OwnershipOwnership-change 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.