RS Automation makes and sells core industrial-automation parts such as motion controllers, drives and controllers that move factory equipment and robots with precision, so its revenue rises and falls with the capital-investment cycle and demand for manufacturing automation. In December 2025 it raised capital through a paid-in rights issue for facilities, operations and debt repayment, and in the first quarter of 2026 revenue rose 26.7% year over year, halting the decline. What stands out recently is that in a phase where the raised funds feed into capital investment and the quarterly revenue rebound translates into profit improvement, the low price (down -63.9% from the 52-week high) and the ample current ratio of 240.8% become strengths, but it is still in an annual loss and the rights issue diluted per-share value, so both need to be taken into account.
At-a-glance assessment financial health · growth · profitability · valuation
- The most recent full-year net result was a loss.
- Revenue fell 12.7% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 26.7% higher than a year earlier.
- ROE is -6.8% (total-net basis). It is below the sector average.
- Operating margin is -5.3%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Kang Deok-hyun 20.6% (individual)
Controlling bloc incl. related parties 21.2%
With the controlling bloc holding 21%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- RS Automation is an industrial-automation parts company classified in the electronic-components and display sector.
- By its official classification and its own website, its core business is making and selling automation parts such as motion controllers, drives and controllers that move factory equipment and robots with precision.
- In other words, its revenue rises and falls with the capital-investment cycle and demand for manufacturing automation.
- As a small- to mid-cap with a market capitalization of ₩126.1 billion, one must watch not only the business flow itself but also how a single disclosure affects the finances and the share count.
- The latest close is ₩8,980 and market capitalization is ₩115.3 billion.
- The price sits below its 20-day line (₩10,828) and its 60-day line (₩13,920).
- Trading below both the short- and medium-term moving averages, the trend is on the soft side.
- The RSI (an indicator that gauges the strength of gains versus declines over the past 14 days on a 0-100 scale) is 28.5, close to depressed territory.
- The one-month change is -21.8%, the three-month change is -41.1%, and the price is -67.0% from its 52-week high.
- Relative strength versus the KOSDAQ is 46 (on a 1-99 scale, converted from returns against the index over the past year with heavier weight on the recent period; higher means stronger than the market).
- That places it in roughly the top 54% of all stocks by strength.
- Over the past three months it lagged the index by 24.9%.
- Chart readings are best interpreted alongside trading volume and disclosure dates.
- For the most recent full year (2025), revenue was ₩67.0 billion, operating profit -₩3.6 billion and net profit -₩4.0 billion, still a loss.
- The operating margin was -5.3% and ROE (how much a company earns in a year on its equity) was -6.8%.
- Financial stability is decent, however: the current ratio (assets that can be converted to cash immediately relative to debt due within a year) is 240.8%, so near-term liquidity is ample, and the debt ratio (debt relative to equity) is 157.2%, not an excessive level.
- The P/E (how many times a year's profit the share price represents) cannot be computed because of the loss, and the P/B (how many times book value the share price represents) is 1.98x.
- Rather than viewing the P/B itself as a 'burden,' for a turnaround name moving from loss to profit it is worth considering that the earning power once profit normalizes matters more than the current book-value multiple.
- Revenue fell over three years, from ₩81.3 billion in 2023 to ₩76.8 billion in 2024 and ₩67.0 billion in 2025, and operating profit stayed in the red over the same period.
- What stands out, however, is that in the most recent quarter, the first quarter of 2026, revenue rose 26.7% year over year to ₩16.6 billion, turning back to growth.
- Unlike the declining annual revenue, a double-digit rebound in quarterly revenue can be read as an early sign that automation demand and orders are reviving.
- On the premise that the first-quarter trend continues, this year's annual revenue points to roughly ₩71.7 billion, a direction that halts the decline and turns back to growth.
- Whether the loss narrows as revenue recovers is the key to earnings normalization, and it is not yet at a stage where a swing to profit can be taken as given.
- Recent disclosures are concentrated on funding.
- On December 2, 2025 it resolved a paid-in rights issue (3,536,700 common shares) to raise ₩6.3 billion in facility funds, ₩22.8 billion in operating funds and ₩6.0 billion for debt repayment, and it confirmed the final issue price the same day.
- On December 8 the subscription results were disclosed: with no forfeited shares, the lead underwriter took them up on its own account, so the offering was completed without a public offering.
- A rights issue has two sides in that new funds come in but the share count rises and existing shareholders are diluted, so the key is to track whether the raised funds actually feed into capital investment and revenue.
- The strengths are clear.
- The share price is pressed down to near book value, -63.9% from the 52-week high; the current ratio of 240.8% gives ample near-term liquidity; and the rights issue secured facility and operating funds as well.
- Above all, first-quarter 2026 revenue rose 26.7% year over year, halting the decline, a clue to recovery.
- On the other side, it should be clearly taken into account that it is still in an annual loss and that the rights issue raised the share count and diluted per-share value.
- In sum, in a phase where the raised funds feed into capital investment and the quarterly revenue rebound translates into profit improvement, the lower price becomes a strength; conversely, if the revenue rebound proves temporary or the loss drags on, the stock may show weakness.
🔎 Valuation vs peers Fairly valued
A peer set of electronic-components-and-display names with similar market capitalization.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Elansys | 26.50x | 2.08x | 7.86% |
| Sarnics | — | 1.29x | -35.45% |
| MDevice | 11.73x | 2.66x | 22.67% |
Within electronic components and display, we looked first at a public-data peer set of comparable market capitalization. The current P/E (how many times a year's profit the share price represents) cannot be confirmed, and the P/B (how many times book value the share price represents) is 1.98x. That said, for smaller-cap names the impact of earnings swings and funding disclosures is large, so we did not rely on trailing-year confirmed-results metrics alone. 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 | ₩71.7 billion | — | — |
| Next quarter | Q2 2026 | ₩16.8 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩8,980 and the market capitalization is ₩115.3 billion. The price sits below its 20-day moving average (₩10,828) and below its 60-day moving average (₩13,920). 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 28.5, near oversold territory. The one-month change is -21.8%, the three-month change is -41.1%, and the position relative to the 52-week high is -67.0%. Relative strength versus the KOSDAQ is 46 (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 46% of all stocks. Over the past three months it lagged the index by 24.9%. 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 -24.93% / 6M -30.60% / 12M -42.34%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 1.98x is above the sector median (1.63x).
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 10.4%, 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 -6.8%, below the sector average (7.0%). The operating margin is -5.3%. The debt ratio is 157.2%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $53.9M | $50.9M | $44.4M | -12.67% ↓ slower |
| Operating profit | -$2.0M | -$2.5M | -$2.4M | — |
| Net profit | -$3.8M | -$6.0M | -$2.6M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $75.2M | $67.9M | $53.9M | $50.9M | $44.4M |
| Operating profit | $1.9M | $1.3M | -$2.0M | -$2.5M | -$2.4M |
| Net profit | $1.6M | $575,455 | -$3.8M | -$6.0M | -$2.6M |
| Revenue CAGR | 4-yr avg -12.32% | ||||
Revenue fell 12.7% year over year (2023 ₩81.3 billion → 2024 ₩76.8 billion → 2025 ₩67.0 billion), and the three-year trend is 'falling'. The rate of decline widened 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 -12.3%. The two-year revenue CAGR is -9.2%. In the most recent quarter (Q1 2026), revenue was 26.7% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 12.7% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2025-12-08UpdateResults of subscription for a rights issue or equity-related bonds (voluntary disclosure): taken up on own account. With no forfeited shares and the lead underwriter taking up odd-lot shares, no public offering subscription is conducted. 7. Other matters to consider in investment judgment: 1. The '4. Subscription date' above is the closing date of the existing-shareholder subscription. (Existing-shareholder subscription period: December 04, 2025 ~ 2025This disclosure must be read together with the purpose of the fund inflow and the change in share count. When facility and operating purposes are stated, whether the investment is actually executed and links to revenue is the key. Source
- 2025-12-02Update[Amended] Material fact report (rights issue resolution): 3,536,700 common shares, facility funds ₩6.3 billion, operating funds ₩22.8 billion, debt repayment ₩6.0 billionThis disclosure must be read together with the purpose of the fund inflow and the change in share count. When facility and operating purposes are stated, whether the investment is actually executed and links to revenue is the key. Source
- 2025-12-02UpdateConfirmation of final issue price for the rights issue: accordingly, an amended registration statement (confirmation of securities issuance terms) is disclosed on the Financial Supervisory Service's electronic disclosure system. Note: the issue price for the public offering applies the same confirmed issue price used in the existing-shareholder subscription. Related disclosure 2025-09-29 first issue-price determination for the rights issueThis disclosure must be read together with the purpose of the fund inflow and the change in share count. When facility and operating purposes are stated, whether the investment is actually executed and links to revenue is the key. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩8,980 | ₩8,980 | Confirmed | link |
| Latest quarterly results | revenue ₩16.6 billion, operating profit -₩1.1 billion | revenue ₩16.6 billion, operating profit -₩1.1 billion | Confirmed | link |
| Annual results | revenue ₩67.0 billion, operating profit -₩3.6 billion | revenue ₩67.0 billion, operating profit -₩3.6 billion | Confirmed | link |
| Funding disclosure original text | approx. : . approx. . 7. 1. '4. approx. ' approx. . ( approx. : 2025 12 04 ~ 2025 | approx. : . approx. . 7. 1. '4. approx. ' approx. . ( approx. : 2025 12 04 ~ 2025 | Confirmed | link |
| Funding disclosure original text | []: 3,536,700 · ₩6.3 billion· ₩22.8 billion· ₩6.0 billion | []: 3,536,700 · ₩6.3 billion· ₩22.8 billion· ₩6.0 billion | Confirmed | link |
| Funding disclosure original text | : . ※ approx. . ※ 2025-09-29 1 | : . ※ approx. . ※ 2025-09-29 1 | Confirmed | link |
| Outlook box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-05-15PeriodicQuarterly report
- 2026-04-30Disclosure
- 2026-03-31Shareholders' meeting notice
- 2026-03-20PeriodicAnnual business report
- 2026-03-20Audit report
- 2026-03-16Amended filing
- 2026-03-16Amended filing
- 2026-03-16TreasuryTreasury-stock acquisition decision
- 2026-03-12Amended filing
- 2026-03-12Amended filing
- 2026-03-12Amended filing
- 2026-03-09Amended 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.