Mercury is a small-cap company, with a market capitalization of ₩62.8 billion, that supplies equipment used in communication networks and broadcast transmission, and its most recent annual revenue was around ₩123.9 billion. In the first quarter of 2026 revenue rose 20.9% year over year and net profit swung back into the black, while a P/B of 0.45x and a current ratio of 341.7% point to ample financial headroom; in April the company also signed a ₩15.0 billion supply contract, equal to 12.1% of annual revenue. The key point to watch now is that if the revenue rebound and return to profit carry into the next quarter and the supply contract is actually recognized as revenue, the undervaluation case could come alive; on the other hand, annual operating profit is still in the red and revenue has been shrinking on a three-year trend, so the rebound needs to continue for another quarter or two, and there is room for dilution if the convertible bonds are converted into shares.
At-a-glance assessment financial health · growth · profitability · valuation
- The most recent full-year net result was a loss.
- Revenue fell 7.8% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 20.9% higher than a year earlier.
- ROE is -1.8% (controlling-interest basis).
- Operating margin is -0.6%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Eyesvision 53.63% (corporate)
Controlling bloc incl. related parties 53.63%
With the controlling bloc holding 54%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Mercury makes communications and broadcasting equipment.
- It earns revenue by supplying equipment used in communication networks and broadcast transmission, and its most recent annual revenue was around ₩123.9 billion.
- As a small cap with a market capitalization of ₩62.8 billion, it is worth watching not only the flow of the business itself but also how a single supply contract or funding disclosure affects earnings and the share count.
- The latest close is ₩3,215 and market capitalization is ₩55.1 billion.
- The price sits below the 20-day line (₩4,183) and below the 60-day line (₩6,319).
- Trading beneath both the short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that weighs up-moves against down-moves over the past 14 days on a 0-100 scale) is 31.0, a neutral level.
- The one-month change is -35.5%, the three-month change is -43.5%, and the position versus the 52-week high is -76.6% below it.
- Relative strength versus the KOSDAQ is 81 (1-99, converting return against the index over the past year with recent periods weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 19% of all stocks by strength.
- Over the past three months it has lagged the index by 40.3%.
- It is best to read the chart alongside trading volume and disclosure dates.
- Recent annual revenue was ₩123.9 billion, with an operating loss of ₩700 million and a net loss of ₩2.5 billion.
- The operating margin was -0.6% and ROE (how much the company earns on its equity in a year) was -1.8%.
- That said, the financial structure itself is relatively solid.
- The current ratio (assets that can be turned into cash within a year against debts due within a year) is a comfortable 341.7%, and the debt ratio (debt relative to equity) is 125.4%, not a heavy level.
- On valuation, the P/E ratio (how many times one year's earnings the price represents) is not available because earnings are negative, so the P/B (how many times book value the price represents) is used instead, and it stands at 0.45x.
- Well below 1x, this means the market capitalization (₩62.8 billion) is smaller than the company's net assets (equity of ₩140.6 billion).
- In other words, the share price is cheap relative to asset value, and there is no basis for viewing this P/B as a burden.
- On an annual basis, revenue fell from ₩153.6 billion in 2023 to ₩123.9 billion in 2025 (a three-year downtrend), and operating profit turned from ₩4.9 billion in 2023 to a loss.
- Up to that point the picture is weak.
- But the direction changed in the most recent results, the first quarter of 2026.
- Quarterly revenue was ₩26.0 billion, up 20.9% from the same period a year earlier, and quarterly net profit swung to a positive ₩1.3 billion (operating profit was still a loss of ₩1.2 billion, so the operating line is not yet profitable).
- Revenue rising again and part of the earnings turning positive can be read as a sign that real demand or pricing is improving.
- Still, this is a single quarter's result, so the key is to confirm whether the rebound continues into the next quarter.
- Full-year revenue for this year is estimated at around ₩113.7 billion, but this is a provisional figure whose shape will become clearer only as more quarterly results accumulate.
- On April 9, 2026 there was a disclosure of a single supply contract (contract value ₩15.0 billion, equal to 12.1% of recent annual revenue).
- Whether this contract is one-off or a repeatable transaction, and over what period it is recognized as revenue, are the points to watch for future earnings.
- On the funding side, there was a decision to issue convertible bonds on May 13 (conversion price ₩10,079, ₩7.0 billion in operating funds) and, on April 13, an acquisition of bonds before maturity after issuance (conversion price ₩4,200, ₩100 million).
- With convertible bonds, it is worth watching both where the incoming funds are used and the fact that the share count could rise when they are later converted into shares.
- Mercury is a stock about whether a small communications and broadcasting equipment company that had been running an annual loss is entering the early stage of a recovery.
- The strengths are clear.
- First-quarter 2026 revenue rose 20.9% from a year earlier and net profit swung into the black; at a P/B of 0.45x the share price is cheap relative to net assets, and with a current ratio of 341.7% short-term financial headroom is ample as well.
- The ₩15.0 billion supply contract in April could support the revenue recovery.
- On the other hand, there are points to confirm.
- Annual operating profit is still a loss and revenue has fallen on a three-year trend, so the first-quarter rebound needs to continue for another quarter or two before it can be called a recovery.
- If the convertible bonds are converted into shares, the share count would rise and per-share value could be diluted.
- In short, if the revenue rebound and return to profit carry into the next quarter and the supply contract is actually recognized as revenue, the undervaluation appeal comes to life; conversely, if the first quarter proves to be a temporary effect, the existing weaknesses of losses and declining revenue come back into focus.
🔎 Valuation vs peers Undervalued
A peer group of communications and broadcasting equipment names with a similar market capitalization.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Korea Advanced Materials | — | 4.65x | -97.89% |
| Gaon Group | 11.79x | 0.61x | 5.16% |
| Woori Net | 20.38x | 0.79x | 3.90% |
The comparison prioritized a public-data peer group with a nearby market capitalization within communications and broadcasting equipment. The current P/E ratio (how many times one year's earnings the price represents) is not available, and the P/B (how many times book value the price represents) is 0.39x. That said, for smaller-cap names, earnings swings and funding disclosures have a large effect, so the assessment did not rely solely on metrics based on last year's confirmed results. The basis for the outlook box is a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩113.7 billion | — | — |
| Next quarter | Q2 2026 | ₩30.1 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩3,215 and the market capitalization is ₩55.1 billion. The price sits below its 20-day moving average (₩4,183) and below its 60-day moving average (₩6,319). 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 31.0, a neutral level. The one-month change is -35.5%, the three-month change is -43.5%, and the position relative to the 52-week high is -71.6%. Relative strength versus the KOSDAQ is 81 (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 81% of all stocks. Over the past three months it lagged the index by 40.3%. 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 -40.29% / 6M +14.86% / 12M -6.48%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.39x is below the sector median (1.32x).
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 -1.8%. The operating margin is -0.6%. The debt ratio is 125.4%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $101.8M | $89.0M | $82.1M | -7.77% ↑ faster |
| Operating profit | $3.3M | -$587,555 | -$486,741 | — |
| Net profit | $2.6M | -$726,750 | -$1.6M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $80.6M | $108.1M | $101.8M | $89.0M | $82.1M |
| Operating profit | $3.7M | $3.2M | $3.3M | -$587,555 | -$486,741 |
| Net profit | $3.7M | $354,900 | $2.6M | -$726,750 | -$1.6M |
| Revenue CAGR | 4-yr avg 0.46% | ||||
Revenue fell 7.8% year over year (2023 ₩153.6 billion → 2024 ₩134.3 billion → 2025 ₩123.9 billion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Operating results are in the red, so a swing back to profit matters more than the growth rate here. Over the 5 years on record, revenue compound annual growth (CAGR) is 0.5%. The two-year revenue CAGR is -10.2%. In the most recent quarter (Q1 2026), revenue was 20.9% 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.
Points to watch
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 7.8% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-04-09ContractSingle supply contract signed: contract value ₩15.0 billion, equal to 12.1% of recent revenueThe contract value and duration are central to how future revenue is recognized. Whether it is a one-off or a repeatable transaction shapes the medium-term reading. Source
- 2026-05-13UpdateMaterial report (decision to issue convertible bonds): conversion price ₩10,079, operating funds ₩7.0 billionThis is a disclosure to be read alongside both the purpose of the incoming funds and changes in the share count. Where facility or operating purposes are specified, the key is whether the investment is actually executed and connects to revenue. Source
- 2026-04-13UpdateAcquisition of convertible bonds (including overseas convertible bonds) before maturity after issuance: bond-related amount ₩100 million, conversion price ₩4,200This is a disclosure to be read alongside both the purpose of the incoming funds and changes in the share count. Where facility or operating purposes are specified, the key is whether the investment is actually executed and connects to revenue. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩3,215 | ₩3,215 | Confirmed | link |
| Latest quarterly results | revenue ₩26.0 billion, operating profit -₩1.2 billion | revenue ₩26.0 billion, operating profit -₩1.2 billion | Confirmed | link |
| Annual results | revenue ₩123.9 billion, operating profit -₩0.7 billion | revenue ₩123.9 billion, operating profit -₩0.7 billion | Confirmed | link |
| Original text of the contract disclosure | ㆍapprox. : approx. ₩15.0 billion · revenue 12.1% | ㆍapprox. : approx. ₩15.0 billion · revenue 12.1% | Confirmed | link |
| Original text of the funding disclosure | : ₩10,079 · ₩7.0 billion | : ₩10,079 · ₩7.0 billion | Confirmed | link |
| Original text of the funding disclosure | : ₩0.1 billion · ₩4,200 | : ₩0.1 billion · ₩4,200 | Confirmed | link |
| Basis of the outlook box | DART | DART | Confirmed | link |
Recent filings
- 2026-05-21Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-13Material-fact report
- 2026-04-22OwnershipOwnership-change filing
- 2026-04-16Amended filing
- 2026-04-13Convertible-bond issuance
- 2026-04-09Single supply/sales contract
- 2026-04-08Disclosure
- 2026-03-26Disclosure
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
📖 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.