Avatech earns most of its revenue (about 92%) from chemically thinning LCD and OLED panels (a process called slimming) and coating them with ITO and metal films, while MLCC components (multilayer ceramic capacitors) it entered in 2018 and resumed volume production of in 2024 make up the remaining 8% or so. Its etching and coating products go into tablets and other devices for a large North American IT customer, and LG Display holds roughly 12.4% as the second-largest shareholder. In September 2025 the company cancelled all 1,939,797 of its treasury shares to reduce shares outstanding and raised its dividend from ₩100 to ₩200 per share; its Q1 report in May disclosed revenue of ₩16.97 billion and net profit of ₩920 million, and a second MLCC investment (₩90 billion) is under way. What stands out lately is that steady cash generation from the core business, about ₩41.4 billion in cash and cash equivalents, and shareholder returns through the share cancellation and dividend increase are strengths, but ROE is only in the 4% range and Q1 revenue started the year with a decline, so the OLED transition and MLCC production still need to show up in results from the second half onward.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 4.3% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 5.6% lower than a year earlier.
- ROE is 4.5% (total-net basis). It is below the sector average.
- Operating margin is 7.6%.
- P/B is low versus peers too, so it looks cheap on an asset basis as well.
Ownership & governance As of 2025-12-31
Largest shareholder Wi Jae-gon 18.22% (individual)
Controlling bloc incl. related parties 38.64%
With the controlling bloc holding 39%, the ownership structure is stable.
🔎 In-depth analysis
- Avatech makes most of its money from chemically thinning LCD and OLED panels (a process called slimming) and from coating them with functional films such as ITO and metal.
- Looking at its 2025 revenue mix, ATO OLED (OLED etching and back-coating) accounted for 39.0%, LCD panel slimming 30.4%, ITO coating 16.3%, and metal 6.7% — with etching and coating together making up roughly 92% — while the remaining 8% or so came from MLCC (a tiny multilayer ceramic capacitor that smooths the flow of current), a business it entered in 2018 and resumed volume production of in 2024.
- The etching and coating products go into tablets and other devices for a large North American IT customer, and LG Display participates as the second-largest shareholder with about 12.4%.
- Its OLED-based product range is broadening from tablets into laptops, monitors, and automotive applications.
- In short, the structure is one of a stable display etching-and-coating core business plus a fast-growing MLCC business as the new growth engine.
- The recent close is ₩8,980 and the market cap is ₩122.7 billion.
- The price sits below its 20-day line (₩12,306) and its 60-day line (₩13,248).
- Trading below both the short- and medium-term moving averages, the trend looks subdued.
- The RSI (a supplementary gauge that compares upward and downward momentum over the past 14 days on a 0-100 scale) is 36.1, a neutral level.
- The price is down 33.5% over one month and 5.4% over three months, and sits 48.1% below its 52-week high.
- Its relative strength versus the KOSDAQ is 78 (on a 1-99 scale, converting the past year's return against the index with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 22% of all stocks by strength.
- Over the past three months it has outpaced the index by 24.2%.
- Chart readings are best viewed alongside trading volume and the dates on which disclosures occur.
- As of 2025 the P/E ratio (how many times one year's earnings the price represents) is 17.74x and the P/B (how many times net asset value the price represents) is 0.81x.
- A P/B near 1x means the market cap is roughly equal to the company's net assets, so on an asset-value basis the stock is not expensive.
- ROE (how much the company earns in a year on its equity) is 4.6%, still not high, with an operating margin of 7.6% and a net margin of 8.6%.
- The balance sheet is very solid.
- The debt ratio (debt relative to equity) of 107% is not small at face value, but a large part of it is non-interest-bearing items, and with a current ratio of 670%, an interest coverage ratio of 43x, and cash and cash equivalents of about ₩41.4 billion, its cushion is thick.
- One point to note is that 2025 net profit fell versus 2024, largely because the sizable non-operating gains of 2024 normalized.
- Because operating profit — which reflects the core business — actually rose, it is hard to call the stock expensive on a single past year's P/E alone.
- Over a five-year view, the company emerged from operating losses in 2021-2022 to turn a profit in 2023 and recovered operating profit to ₩5.8 billion in 2024, then grew it a further 6.1% to ₩6.15 billion in 2025 (revenue ₩80.9 billion, down 4.3%).
- The 22% drop in 2025 net profit reflects the normalization of the large financial and other non-operating gains that had swelled in 2024, not a deterioration in the core business.
- Q1 2026 got off to a somewhat heavy start, with revenue of ₩16.97 billion (down 5.6%), operating profit of ₩767 million, and net profit of ₩920 million.
- The company's official materials state that it will keep etching and coating as a stable cash generator while sustaining growth momentum by expanding the OLED transition in IT products and increasing MLCC supply to the automotive sector; as the schedule for the Gumi No.
- 2 plant's completion (expected in 2026) and volume production (from 2027) shows, both of these axes carry more weight toward the second half and beyond.
- That is why the forward P/E (based on this year's expected earnings) is set a little higher than the trailing P/E on last year's results (22.8x).
- This figure directly reflects a phase in which this year's earnings start off carrying a weak first half while the growth effects appear later.
- The company's official track record over the past year comes down to shareholder returns and new-growth investment.
- In September 2025 it cancelled all 1,939,797 of its treasury shares, cutting shares outstanding from 15,607,500 to 13,667,703.
- When shares in circulation shrink, the value carried by each share rises accordingly.
- It also raised the dividend from ₩100 to ₩200 per share, confirmed at the March 2026 annual general meeting, and around the same time granted employee stock options to retain key talent.
- In the May Q1 report it disclosed revenue of ₩16.97 billion and net profit of ₩920 million.
- Meanwhile the company has a second MLCC investment (₩90 billion) under way and has formalized plans to add automotive MLCC lines through the completion of the Gumi No.
- 2 plant (expected in 2026) and volume production (from 2027).
- The strengths are clear.
- The stable core of etching and coating generates steady cash, and with about ₩41.4 billion in cash and cash equivalents, low borrowings, the share cancellation, and a doubling of the dividend, the intent to return value to shareholders is unmistakable.
- With a P/B near 1x the stock is not heavy on an asset-value basis, and operating profit has risen for two straight years.
- The widening OLED product range (tablets to laptops, monitors, and automotive) and the move into automotive MLCC are growth options that grow larger from the second half of 2026 onward.
- At the same time, the cautions deserve equal attention.
- With ROE in the 4% range, capital efficiency is still not high, and with Q1 2026 revenue starting off in decline, a re-acceleration of core-business growth is something to confirm in the results.
- The company plans large MLCC growth, but the revenue contribution is still small, so whether the volume-production schedule fills in is the key.
- In short, the assets and balance sheet are sturdy and the shareholder returns and growth options are attractive, but this is a stock to watch through the second half and beyond, where those growth effects show up in results.
- If the OLED transition and MLCC production proceed as planned, there is room for the core business to be re-valued; if that timing slips, the stock could tread water for a while.
🔎 Valuation vs peers Inconclusive
Compared against companies handling components, materials, and equipment in the display (especially OLED) supply chain; the closest business fits chosen as peers are an OLED materials maker (Duksan Neolux) and a display equipment maker (AP Systems).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Duksan Neolux | 13.35x | 1.57x | 11.77% |
| AP Systems | 12.50x | 0.81x | 6.47% |
The P/E of 32x and P/B of 1.46x put the P/E above OLED supply-chain peers (Duksan Neolux at a P/E of 17x, AP Systems at a P/E of 15x), while the P/B is similar or lower. In other words, on an asset-value (P/B) basis the burden is light, but on an earnings-value (P/E) basis a premium is attached. The key point is that last year's trailing P/E of 32x is the figure right after profit ballooned to ₩8.9 billion in 2024 and then fell to ₩6.9 billion in 2025. With earnings at an inflection point, it is hard to declare the stock cheap or expensive on the past P/E alone, and on this year's expected earnings (forward) basis it warrants a more conservative view in the near term. On the other hand, ROE in the 4% range, lower than peers, is a weakness that makes the multiple hard to justify. Ultimately, until a re-acceleration of core-business growth and visibility on MLCC results are confirmed, it is hard to conclude in either direction, so the verdict is Inconclusive.
Price history Close · MA20 · MA60
The latest close is ₩8,980 and the market capitalization is ₩122.7 billion. The price sits below its 20-day moving average (₩12,306) and below its 60-day moving average (₩13,248). 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 -33.5%, the three-month change is -5.4%, and the position relative to the 52-week high is -48.1%. Relative strength versus the KOSDAQ is 78 (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 78% of all stocks. Over the past three months it outpaced the index by 24.2%. 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 +24.25% / 6M +8.44% / 12M +10.23%
Key metrics vs sector median
Valuation
The P/E of 17.74x is in line with the sector median (18.61x). The P/B of 0.81x is below 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 4.5%, below the sector average (7.0%). The operating margin is 7.6%. The debt ratio is 107.4%, so the financial structure is moderate.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $50.2M | $56.0M | $53.6M | -4.26% ↓ slower |
| Operating profit | $1.5M | $3.8M | $4.1M | +6.05% ↓ slower |
| Net profit | $3.2M | $5.9M | $4.6M | -22.23% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $53.5M | $48.5M | $50.2M | $56.0M | $53.6M |
| Operating profit | -$1.6M | -$3.5M | $1.5M | $3.8M | $4.1M |
| Net profit | $58,236 | -$2.9M | $3.2M | $5.9M | $4.6M |
| Revenue CAGR | 4-yr avg 0.06% | ||||
Revenue fell 4.3% year over year (2023 ₩75.8 billion → 2024 ₩84.5 billion → 2025 ₩80.9 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit rose 6.0% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 0.1%. The two-year revenue CAGR is 3.4%. In the most recent quarter (Q1 2026), revenue was 5.6% lower 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.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 4.3% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2025-09-22UpdateDecision to cancel all 1,939,797 treasury shares. Shares outstanding fell from 15,607,500 to 13,667,703, directly lifting per-share value.Medium-term positive: the smaller share count raises earnings per share and net assets per share. A signal of the company's commitment to shareholder returns. Source
- 2026-03-12EarningsDisclosure of the 2025 business report. Revenue ₩80.9 billion (down 4.3%), operating profit ₩6.15 billion (up 6.1%), net profit ₩6.92 billion (down 22.2%). Operating profit rose, but net profit fell as non-operating gains normalized.Neutral to positive: core-business profitability held up and improved. The drop in net profit is largely from one-off and financial-income swings, so it is too early to read it as a trend slowdown. Source
- 2026-03-20DividendAt the annual general meeting the 2025 year-end dividend was confirmed. The dividend per share was raised from ₩100 to ₩200, lifting the payout ratio.Medium-term positive: a strengthening flow of shareholder returns combining a bigger dividend with the treasury-share cancellation. Source
- 2026-03-20FilingFiling of an employee stock-option grant. Intended to secure and motivate key talent.Near-term neutral: a modest increase in share count is possible on future exercise. Positive from a talent-retention standpoint. Source
- 2026-05-15EarningsDisclosure of the Q1 2026 report. Revenue ₩16.97 billion (down 5.6%), operating profit ₩767 million, net profit ₩920 million — a somewhat heavy start.Near-term negative: revenue declined and the Q1 operating margin (4.5%) softened. The OLED and MLCC growth the company outlined needs confirmation from the second half onward. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 revenue | ₩80.9 billion | IR revenue | Confirmed | link |
| Shares outstanding | 13,667,703 | 13,667,703 | Confirmed | link |
| 2025 revenue mix | approx. 92%, MLCC approx. 8% | ATO OLED 39.0%·LCD 30.4%·ITO 16.3%· 6.7%·MLCC 7.6% | Confirmed | link |
| 2026 estimated net profit (for forward P/E) | self-estimate | — | Unverified | link |
Recent filings
- 2026-05-15PeriodicQuarterly report
- 2026-03-20Disclosure
- 2026-03-20Disclosure
- 2026-03-20Shareholders' meeting notice
- 2026-03-12PeriodicAnnual business report
- 2026-03-12Audit report
- 2026-03-05Disclosure
- 2026-03-05Shareholders' meeting notice
- 2026-03-05Amended 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.