KCS (115500) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
KCS is an IT services company whose mainstay is security solutions for the card and finance sector together with building and operating IT infrastructure; its revenue comes from supply contracts, system-build projects, and maintenance for its customers, and as a small-cap name a single supply contract can weigh heavily on that year's results. In March 2026 it made a voluntary disclosure of a corporate value-up plan, and it signed single supply contracts of ₩8.8 billion in April (35.4% of recent revenue) and ₩3.1 billion in January (10.7%). The notable point lately is that, with an ROE of 12.8% its profitability leads its peers, its finances are solid, and a payout ratio of 85.5% shows an active stance on shareholder returns; on top of that, first-quarter revenue and net profit both rose by double digits this year and there is the substance of roughly ₩12.0 billion in combined new supply contracts, a clear strength; on the other hand, the forward P/E of 32.34x is above the peer median, so some recovery expectation is already priced in, and it bears watching whether the orders are recognized as revenue on plan.
This page organises public market and filing data for information purposes. It is not a recommendation to buy or sell, nor investment advice. Metrics labelled “forward” are our own unverified estimates. Please verify with the original DART filings and decide at your own responsibility.
30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “IT Services (SI & Solutions)” (Internet, Platforms & Software), a type typically read first through P/E.
IT services (systems integration and solutions) tends to earn steadily off project wins and maintenance contracts. Value here comes from people and contracts rather than physical assets, so price-to-earnings (P/E) — the price measured against actual net profit — fits best.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 15.8% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 27.4% higher than a year earlier.
- ROE is 14.8% (total-net basis). It is above the sector average.
- Operating margin is 8.0%.
- P/B is high versus peers, a stretch on an asset basis.
Ownership & governance As of 2025-12-31
Largest shareholder Hanguk Holdings 66.67% (corporate)
Controlling bloc incl. related parties 66.67%
With the controlling bloc holding 67%, control is very secure but the free float is thin.
🔎 In-depth analysis Reading
KCS belongs to the IT services sector, and its mainstay is security solutions for the card and finance sector together with building and operating IT infrastructure. Its revenue comes from supply contracts and system-build projects received from customers and the maintenance that follows. As a small-cap name with a market capitalization of about ₩107.9 billion, a single supply contract can weigh as heavily on that year's revenue and profit as the broad trend of the business itself. In fact, the supply contracts signed so far this year each account for a double-digit share of revenue, so winning contracts is the key driver of results.
The latest close is ₩8,440 and the market capitalization is ₩101.3 billion. The price sits above its 20-day moving average (₩7,864) and below its 60-day moving average (₩11,111). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 49.2, a neutral level. The one-month change is -0.7%, the three-month change is -51.4%, and the position relative to the 52-week high is -63.5%. Relative strength versus the KOSDAQ is 65 (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 65% of all stocks. Over the past three months it lagged the index by 26.6%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
The most recent full-year (2025) figures show revenue of ₩24.9 billion, operating profit of ₩2.1 billion, and net profit of ₩2.5 billion. The operating margin is 8.3% and the net margin is 10.2%, and ROE (how much is earned in a year on equity) is 12.8%, clearly above its peer set (Shinsegae I&C 6.5%, Lotte Innovate 2.3%). The debt ratio (debt against equity) is 140.8%, but with a current ratio (assets that can be turned to cash against debts due within a year) of 197.5% and an interest coverage ratio (how many times earnings cover interest) of 19.6x, it has ample capacity to service debt. A payout ratio of 85.5%, returning a large share of earnings to shareholders, is another feature. On the surface a P/E (how many times one year of earnings the share price is) of 40.08x and a P/B (how many times book value the share price is) of 5.66x look high, but for a company like this whose earnings are passing an inflection point, viewing it on this year's expected profit rather than last year's confirmed results is closer to actual value. On that basis the forward P/E is 32.34x.
Revenue declined for two straight years, from ₩47.7 billion in 2023 to ₩29.5 billion in 2024 and ₩24.9 billion in 2025, a trend of the top line shrinking as large projects wrapped up. Profit, however, tells a different story. In 2025 operating profit rose +4.0% year on year and net profit +26.4%, so profit grew even in a year when revenue fell. And in the first quarter of this year, revenue rose +27.4% and net profit +57.9% from the same period a year earlier, signaling a recovery in the top line as well. The grounds for this rebound are clear. In January and April of this year the company won new supply contracts of ₩3.1 billion and ₩8.8 billion respectively, and the two combined equal about half of last year's revenue. If the orders are recognized as revenue, there is ample room for this year's top line to exceed last year's. This year's expected results are revenue of ₩30.4 billion, operating profit of ₩2.1 billion, and net profit of ₩3.1 billion, a picture that reflects both the confirmed first-quarter result and the flow of new orders. Net profit of ₩3.1 billion is above last year's ₩2.5 billion, showing that the profit recovery stands on an order base rather than being a one-off.
This year's disclosures read along two axes, orders and shareholder returns. On March 26, 2026, through a corporate value-up plan (voluntary disclosure), the company set out its own direction for enhancing value. Because it is planning material the company put out itself, if it contains numbers it serves as a primary basis for the outlook, and if it only gives direction it serves as material for reading intent. On April 8 it signed a single supply contract of ₩8.8 billion (35.4% of recent revenue), and earlier on January 26 a supply contract of ₩3.1 billion (10.7% of revenue). Both contracts are central to future revenue recognition, and whether these deals are one-off or repeatable shapes the medium-term trend. It is worth watching the contract amount and term along with whether further orders continue.
The strengths are clear. With an ROE of 12.8%, profitability leads its peer set; the current ratio and interest coverage are both sound, so finances are solid; and a payout ratio of 85.5% shows an active stance on shareholder returns. Above all, first-quarter revenue and net profit both rose by double digits this year, backed by the substance of roughly ₩12.0 billion in combined new supply contracts. The high-looking surface P/E and P/B owe much to the earnings base being depressed as the top line shrank over that period. That said, the forward P/E of 32.34x is above the peer-set median, so it is worth also noting that some recovery expectation is already priced in. The stock is therefore strong when orders are recognized as revenue on plan and the earnings recovery is confirmed in quarterly results, and weaker when new orders dry up or contracts prove one-off and the top-line decline resumes. Given its small-cap nature, order and financing disclosures can shift the metrics quickly, so the key is to judge while checking quarterly results and the order flow together.
🔎 Valuation vs peers Overvalued
A peer set of IT services names with nearby market capitalization.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Contec | — | 1.28x | -8.83% |
| Shinsegae I&C | 6.38x | 0.41x | 6.70% |
| Lotte Innovate | 28.16x | 0.66x | 2.50% |
Within IT services, public-data peers with nearby market capitalization were looked at first. The current P/E (how many times one year of earnings the share price is) is 40.08x and the P/B (how many times book value the share price is) is 5.66x. That said, for smaller-cap names the impact of earnings swings and financing disclosures is large, so no firm conclusion was drawn from last year's confirmed-results metrics alone. The basis for the outlook box is a DART seasonality approximation.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩30.4 billion | ₩2.1 billion | ₩3.1 billion |
| Next quarter | Q2 2026 | ₩8.2 billion | ₩0.5 billion | ₩0.7 billion |
Price history Close · MA20 · MA60
The latest close is ₩8,440 and the market capitalization is ₩101.3 billion. The price sits above its 20-day moving average (₩7,864) and below its 60-day moving average (₩11,111). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 49.2, a neutral level. The one-month change is -0.7%, the three-month change is -51.4%, and the position relative to the 52-week high is -63.5%. Relative strength versus the KOSDAQ is 65 (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 65% of all stocks. Over the past three months it lagged the index by 26.6%. 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 -26.60% / 6M +24.34% / 12M -5.78%
Key metrics Computed vs sector median
Valuation
The P/E of 40.08x is above the sector median (12.01x). The P/B of 5.66x is above the sector median (0.81x). 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.
Intrinsic value (DCF estimate) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
DCF (discounted cash flow) estimate — discount rate 10.4%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 14.8%, above the sector average (6.0%). The operating margin is 8.0%. The debt ratio is 40.6%, so the financial structure is stable.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $33.5M | $20.8M | $17.5M | -15.83% ↑ faster |
| Operating profit | $2.2M | $1.4M | $1.4M | +4.04% ↑ faster |
| Net profit | $1.9M | $1.4M | $1.8M | +26.42% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $27.8M | $29.3M | $33.5M | $20.8M | $17.5M |
| Operating profit | $2.9M | $382,860 | $2.2M | $1.4M | $1.4M |
| Net profit | $1.9M | $582,399 | $1.9M | $1.4M | $1.8M |
| Revenue CAGR | 4-yr avg -10.96% | ||||
Revenue fell 15.8% year over year (2023 ₩47.7 billion → 2024 ₩29.5 billion → 2025 ₩24.9 billion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Operating profit rose 4.0% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is -11.0%. The two-year revenue CAGR is -27.8%. In the most recent quarter (Q1 2026), revenue was 27.4% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- ROE of 14.8% points to solid profitability.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 15.8% year over year (3-year trend: falling).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-03-26UpdateCorporate value-up plan (voluntary disclosure): see the company's original planPlanning material the company presented directly. If it contains numbers, treat it as a primary basis for the outlook box; if not, treat it only as directional material. Source
- 2026-04-08ContractSingle supply contract signed: contract value ₩8.8 billion, 35.4% of recent revenueThe contract value and term are central to future revenue recognition. Whether it is a one-off or a repeatable deal shapes the medium-term read. Source
- 2026-01-26ContractSingle supply contract signed: contract value ₩3.1 billion, 10.7% of recent revenueThe contract value and term are central to future revenue recognition. Whether it is a one-off or a repeatable deal shapes the medium-term read. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩8,440 | ₩8,440 | Confirmed | link |
| Latest quarterly results | revenue ₩5.1 billion, operating profit ₩0.2 billion | revenue ₩5.1 billion, operating profit ₩0.2 billion | Confirmed | link |
| Full-year results | revenue ₩24.9 billion, operating profit ₩2.1 billion | revenue ₩24.9 billion, operating profit ₩2.1 billion | Confirmed | link |
| Original text of the outlook and plan disclosure | — | — | Confirmed | link |
| Original text of the contract disclosure | single supply contract signed: contract value ₩8.8 billion · vs recent revenue 35.4% | single supply contract signed: contract value ₩8.8 billion · vs recent revenue 35.4% | Confirmed | link |
| Original text of the contract disclosure | single supply contract signed: contract value ₩3.1 billion · vs recent revenue 10.7% | single supply contract signed: contract value ₩3.1 billion · vs recent revenue 10.7% | Confirmed | link |
| Basis of the outlook box | DART | DART | Confirmed | link |
Recent filings Source
- 2026-05-15PeriodicQuarterly report
- 2026-04-22TreasuryMaterial-fact report
- 2026-04-08Single supply/sales contract
- 2026-03-26Disclosure
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-11Shareholders' meeting notice
- 2026-03-06Disclosure
- 2026-02-20EarningsAmended filing
- 2026-02-20DividendCash/stock dividend decision
📖 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.