Motrex makes and sells in-car infotainment units — AVN devices (integrated audio, video, and navigation systems) that display route guidance, music, and video on a screen — and has effectively been the sole supplier of AVN units for Hyundai Motor and Kia vehicles bound for emerging markets, while also running rear-seat entertainment (RSE), automotive electronics, and a heavy-industry business in construction and specialty vehicles. In February 2026 the company carried out a shareholder return by cancelling about ₩3.7 billion of treasury shares; although 2025 net profit fell 59% year over year to ₩7.4 billion, its first-quarter 2026 report showed a rapid rebound in earnings. What stands out lately is a two-sided setup: if the earnings recovery continues into the next quarter and the heavy debt — a debt ratio of 369.7% and an interest coverage ratio of 0.82x — gradually eases, the light valuation of a 0.54x P/B would more easily be recognized, but if the interest burden keeps offsetting the recovering earnings, the shares could stay heavy even amid revenue growth.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 369.7%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue rose 19.7% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 5.4% lower than a year earlier.
- ROE is 3.0% (controlling-interest basis). It is below the sector average.
- Operating margin is 5.9%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Lee Hyung-hwan 28.56% (individual)
Controlling bloc incl. related parties 38.53%
With the controlling bloc holding 39%, the ownership structure is stable.
🔎 In-depth analysis
- Motrex is a company that makes and sells in-car infotainment units — that is, AVN devices (audio, video, and navigation combined into one unit) that display route guidance, music, and video on a screen.
- Its largest customers are Hyundai Motor and Kia, and it has effectively been the sole supplier of AVN units for vehicles bound for emerging markets in particular.
- Looking at the 2025 product mix on a standalone basis, in-vehicle video and audio devices such as AV, AVN, and audio units form the main line of revenue, with automotive electronics such as rear-seat entertainment (RSE) and air purifiers, plus other businesses through subsidiaries, filling out the rest.
- On top of this, it also runs a heavy-industry business in construction and specialty vehicles.
- In short, revenue grows as more cars sell and as in-car screens grow larger and smarter.
- The latest closing price is ₩5,260 and the market cap is ₩129.1 billion.
- The price sits below the 20-day line (₩5,972) and below the 60-day line (₩7,550).
- Trading below both the short- and mid-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 27.5, close to a depressed zone.
- The one-month change is -21.0%, the three-month change is -35.7%, and the position versus the 52-week high is -49.9%.
- Relative strength versus the KOSDAQ is 45 (1–99, converting the past year's return versus the index with more recent weighting — higher means stronger than the market).
- That places it around the top 55% of all stocks by strength.
- Over the past three months it lagged the index by 15.7%.
- It helps to read the chart alongside trading volume and disclosure dates.
- The P/B (how many times net assets the share price is) is 0.52x, a position where the market cap is smaller than the net assets the company holds.
- The P/S (how many times a year's revenue the share price is) is also 0.19x, light relative to revenue scale.
- The P/E ratio (how many times a year's earnings the share price is) is 18.26x on last year's confirmed results, but this is not because the stock is expensive — it reflects a temporarily depressed 2025 net profit of ₩7.4 billion shrinking the denominator.
- Viewed on this year's expected earnings with profit back to normal, the P/E is around 7.33x, so the multiple changes markedly depending on whether one reads the same company through a 'depressed last year' or a 'recovering this year' lens.
- That 7.33x is far below peer HL Mando (22.98x) and similar to Leatec (6.94x), so on this year's earnings it leans toward an undervalued signal.
- That said, ROE (how much is earned in a year on equity) is still low at 2.96%, and with a debt ratio of 369.7% the heavy interest burden is a weakness to weigh alongside the light valuation.
- Revenue trended up for five straight years, reaching ₩702.3 billion in 2025, up 19.7% from the prior year and accelerating (from +10.5% the year before).
- By contrast, operating profit (₩41.8 billion, -4.2%) and net profit (₩7.4 billion, -59.2%) declined in 2025, apparently because interest costs from high debt and one-off burdens deeply weighed on earnings.
- The important change appears in the first quarter of 2026.
- First-quarter net profit was ₩7.66 billion, comparable to the full-year 2025 net profit (₩7.4 billion).
- In other words, earnings that had slumped deeply late last year are climbing back to a normal track, and increased revenue is starting to translate into its inherent earnings.
- The P/E dropping to 7.33x on this year's earnings reflects exactly this recovery, underpinned by the flow of already reaching last year's full-year earnings in a single quarter.
- As long as revenue growth continues and earnings return to their usual level, this year's earnings power is clearly thicker than last year's depressed figure.
- The core of the recent flow runs in three strands.
- First, in February 2026 the company terminated a treasury-stock trust agreement and decided to cancel about ₩3.7 billion of shares, carrying out a return that gives value back to shareholders (reducing the share count raises per-share value).
- Second, in the same month a disclosure of a 30%-plus change in 2025 profit/loss revealed net profit falling 59% year over year to ₩7.4 billion — the backdrop to the temporary earnings dent noted above.
- Third, it completed a small merger in July 2025 and in April 2026 decided to acquire shares of another company through a subsidiary, continuing business realignment and expansion at the subsidiary level.
- And its first-quarter 2026 report in May 2026 confirmed a rapid earnings rebound.
- Shareholder returns, business expansion, and an earnings recovery coexist in the same period alongside the burden of high debt.
- The strengths are distinct.
- Revenue has grown for five years, the shares are light relative to net assets (P/B 0.54x, P/S 0.19x), and with earnings rapidly returning to normal in the first quarter of 2026, the valuation on this year's earnings looks low versus peers.
- The treasury-share cancellation also shows a will to return value to shareholders.
- Its business position as an AVN supplier for Hyundai and Kia's emerging markets provides a stable revenue base.
- The cautions are equally clear.
- With a debt ratio of 369.7% and operating profit barely covering interest (interest coverage ratio 0.82x), the financial burden is heavy, and that interest cost could again erode recovering earnings.
- Quarterly operating profit is also still down year over year, so it needs confirming whether the recovery extends to the operating line and not just net profit.
- In sum, this is a stock where, under conditions of a confirmed earnings recovery over the coming quarters and gradually declining debt, the light valuation could readily be recognized, and conversely, if the interest burden keeps offsetting the earnings recovery, the shares could stay heavy even amid revenue growth.
🔎 Valuation vs peers Inconclusive
Based on the auto-electronics and parts segment that supplies Hyundai and Kia, using a large finished-vehicle parts maker (HL Mando) and an electronic-parts name light relative to net assets (Leatec) as the comparison set.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| HL Mando | 22.70x | 0.84x | 3.69% |
| E<ech | 6.37x | 0.55x | 8.62% |
On the surface the P/E of 22.67x looks higher than peers, but this stems from a temporarily depressed 2025 net profit of ₩7.4 billion shrinking the denominator. A P/E on last year's confirmed results (trailing) tends to overstate a company's true earnings power at an earnings inflection point. With first-quarter 2026 earnings recovering rapidly, the P/E on this year's earnings (forward) could be markedly lower, in which case it would align with the 'lightness' implied by the P/B and P/S. That said, the risk that high debt and the interest burden erode the recovery is ever-present, so rather than declaring the stock decisively cheap or expensive, we view it as a place to confirm both the durability of the earnings recovery and whether debt is reduced.
Price history Close · MA20 · MA60
The latest close is ₩5,260 and the market capitalization is ₩129.1 billion. The price sits below its 20-day moving average (₩5,972) and below its 60-day moving average (₩7,550). 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 27.5, near oversold territory. The one-month change is -21.0%, the three-month change is -35.7%, and the position relative to the 52-week high is -49.9%. Relative strength versus the KOSDAQ is 45 (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 45% of all stocks. Over the past three months it lagged the index by 15.7%. 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 -15.66% / 6M -34.30% / 12M -42.44%
Key metrics vs sector median
Valuation
The P/E of 17.43x is above the sector median (7.76x). The P/B of 0.52x is in line with the sector median (0.56x).
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 9.8%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 3.0%, below the sector average (7.0%). The operating margin is 5.9%. The debt ratio is 369.7%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $352.0M | $389.0M | $465.4M | +19.66% ↑ faster |
| Operating profit | $35.3M | $28.9M | $27.7M | -4.18% ↑ faster |
| Net profit | $21.6M | $12.0M | $4.9M | -59.18% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $289.4M | $376.8M | $352.0M | $389.0M | $465.4M |
| Operating profit | $23.4M | $39.0M | $35.3M | $28.9M | $27.7M |
| Net profit | $7.7M | $25.5M | $21.6M | $12.0M | $4.9M |
| Revenue CAGR | 4-yr avg 12.61% | ||||
Revenue rose 19.7% year over year (2023 ₩531.0 billion → 2024 ₩586.9 billion → 2025 ₩702.3 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit fell 4.2% year over year. That said, the decline narrowed. Over the 5 years on record, revenue compound annual growth (CAGR) is 12.6%. The two-year revenue CAGR is 15.0%. In the most recent quarter (Q1 2026), revenue was 5.4% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 19.7% year over year, a sign of growth.
Points to watch
- Debt far exceeds equity (debt ratio 369.7%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-02-24UpdateCarried out a shareholder return by terminating a treasury-stock trust agreement and deciding to cancel about ₩3.7 billion of sharesIn the short term this is a return signal that raises per-share value by reducing the float, and in the medium term it shows the company is placing weight on enhancing shareholder value. Source
- 2026-02-24EarningsDisclosure of a 30%-plus change in 2025 revenue or profit/loss structure — revenue rose to ₩702.3 billion, but net profit plunged 59% year over year to ₩7.4 billionIn the short term this is a burden factor of earnings erosion, with interest costs from high debt and one-off burdens appearing to be the backdrop to the profit decline. Source
- 2026-04-30FilingDecided to acquire shares and equity securities of another company through a subsidiary, moving toward business expansion at the subsidiary levelIn the medium term this could be a springboard for business diversification and top-line expansion, but the added investment burden must also be weighed given the heavy financial position. Source
- 2026-05-15EarningsFirst-quarter 2026 report — net profit recovered to ₩7.66 billion, comparable to the prior full year (₩7.4 billion)In the short term this signals earnings power returning to a normal track, but operating profit is still down year over year, so whether the recovery is sustained needs confirming over further quarters. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-15PeriodicQuarterly report
- 2026-04-30Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-06Disclosure
- 2026-03-06Shareholders' meeting notice
- 2026-03-06Shareholders' meeting notice
- 2026-02-24EarningsEarnings filing
- 2026-02-24Disclosure
- 2026-02-24Disclosure
- 2026-02-24TreasuryMaterial-fact 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.