Femtron makes equipment that catches defects on production lines using industrial high-speed cameras, 3D measurement, and AI inspection, with its uses split three ways — SMT-process inspection equipment (SPI, AOI), semiconductor-package and stacked-memory inspection equipment (ZEUS), and secondary-battery inspection equipment (Hawk-LTI) — a structure in which one end-market pausing can be cushioned by another. At the center of the recent flow is a single supply contract for semiconductor inspection equipment for SK Hynix (₩10.02 billion, 17.58% of 2024 revenue, delivery by July 2026), and the timing of when this revenue is recognized in the second half is the watch point; in April there was an exercise of convertible-bond conversion rights. The point to watch: strengths include diversified uses, large-customer references, quarterly revenue growth of +52.7%, and a this-year forward P/E of about 22.5x that is below peers (in the 40-90x range), whereas last year's net profit was a loss and, with a debt ratio of 417% and a current ratio of 71.9%, financial capacity is tight, so a swing to profit this year being confirmed in the actual numbers is the precondition.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 417.3%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 71.9%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full-year net result was a loss.
- Revenue rose 22.6% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 52.7% higher than a year earlier.
- ROE is -14.8% (controlling-interest basis). It is below the sector average.
- Operating margin is 4.6%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Deokin 31.64% (corporate)
Controlling bloc incl. related parties 44.45%
With the controlling bloc holding 44%, the ownership structure is stable.
🔎 In-depth analysis
- Femtron makes and sells equipment that 'catches defects on production lines' using machine vision that analyzes images shot by industrial high-speed cameras, plus 3D measurement and AI inspection.
- Its money-making pillars split roughly three ways: (1) SMT-process inspection equipment for attaching electronic components to boards (SPI 'SATURN,' which checks solder-paste deposition, and AOI 'ATHENA,' which checks component mounting); (2) equipment inspecting semiconductor packages and stacked memory (the 'ZEUS' line); and (3) inspection equipment checking secondary-battery cells and parts ('Hawk-LTI').
- That is, this is an equipment business that goes into the quality-inspection step of customers' factories rather than a finished product, so orders rise when front-end semiconductor, electronics, and battery investment (facility expansion) increases and fall when it decreases.
- With uses not concentrated in one industry but split three ways, one end-market's investment pausing can be cushioned by another, which broadens the business's reach.
- The latest closing price is ₩14,450 and the market cap is ₩323.6 billion.
- The price sits below the 20-day line (₩19,502) and below the 60-day line (₩21,731).
- Trading below both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that compares upward and downward strength over the past 14 days on a 0-100 scale) is 34.2, a neutral level.
- The one-month change is -31.2%, the three-month change is -25.1%, and the position versus the 52-week high is -54.2%.
- Relative strength against the KOSDAQ is 67 (1-99, converting return versus the index over the past year with more weight on recent moves; higher means stronger than the market).
- That places it in roughly the top 33% of all stocks by strength.
- Over the past three months it lagged the index by 6.2%.
- Chart reading is best done alongside trading volume and disclosure dates.
- This year's forward P/E ratio (how many times a year's profit the price is) is about 22.5x.
- Compared with peers in the same inspection-and-measurement equipment group, which are in the 40-90x range, it is actually on the low side, so if this year's profit comes out as expected, it is not a burdensome value relative to profit.
- Looking only at the confirmed annual figure (FY2025), net profit was a loss, so a P/E on that basis cannot be calculated, and the P/B (how many times net assets the price is) at 15.55x looks high — but this is because profit is at an inflection just turning from loss to surplus, so last year's single-year trailing figures do not capture the company's real strength.
- For such a stock, this year's profit shows the picture more than a bygone loss year.
- The operating margin was 4.6%, a surplus at the operating level, and the reason net profit was a loss is the large impact of below-operating costs such as interest and financial losses.
- That said, with a debt ratio (debt to equity) of 417% and a current ratio of 71.9% — fewer assets that can be turned into cash right away than debt due within a year — the financial capacity itself is not ample, a point to keep in view.
- The dividend is small, about 0.3% yield on the current price, ₩50 per share.
- Five-year revenue went ₩57.9 billion in 2021 → ₩61.2 billion in 2022 → ₩73.7 billion in 2023 → ₩57.0 billion in 2024 → ₩69.9 billion in 2025, pausing once in 2024 before climbing again in 2025.
- In the most recent quarter, Q1 2026, revenue was ₩16.9 billion, up 52.7% from a year earlier, stepping up the pace of growth.
- The backdrop to this year's profit turning from last year's loss to a surplus is clear.
- On the semiconductor side, as demand for inspecting stacked memory (HBM and the like) grows, large orders such as the ₩10-billion-plus supply contract for SK Hynix have come in, and when this equipment ships and is recognized in the second half, it lifts both revenue and profit.
- On top of this, the company has a pronounced seasonality of revenue concentrating in Q4 (a roughly 29% Q4 share on a three-year average), a structure in which profit fills in more toward the second half than the first.
- With front-end investment recovery and new demand (stacked-memory inspection) overlapping, it is natural to see this year's profit as the result of grown revenue plus seasonality and order recognition.
- Since there is no basis confirmed that next year's revenue and profit will fall below this year's, there is no need to conclude that this year is the end or peak of the cycle.
- At the center of the recent flow is a single supply contract for semiconductor inspection equipment for SK Hynix, signed in September 2025 and amended in May 2026.
- The contract amount of ₩10.02 billion is a scale equal to 17.58% of 2024 revenue; payment comes in split as 90% on product shipment and 10% on inspection completion, with delivery by July 2026.
- The timing of when this revenue is recognized in the second-half results is the watch point.
- Following this, the May 2026 quarterly report disclosed the confirmed Q1 results, and disclosures covered a May extraordinary shareholders' meeting and appointment of an outside director, plus a June investor-relations event in the form of an NDR (investor meetings) for institutional investors.
- In April there was a disclosure of an exercise of convertible-bond conversion rights (first tranche); since conversion raises the share count and can dilute existing shareholders' stakes, it is a point to view together.
- The strengths are distinct.
- With inspection-equipment uses diversified across SMT, semiconductors, and secondary batteries, it is not tossed about by a single end-market; large-customer references such as the ₩10-billion-plus SK Hynix supply contract tied to demand for inspecting stacked memory (HBM and the like) are accumulating; and growth is fast, with quarterly revenue up 52.7% from a year earlier.
- Added to this, this year's forward P/E of about 22.5x is below the same inspection-and-measurement equipment group (40-90x range), so for a growing equipment stock its price is not heavy relative to profit.
- On the other hand, the cautions are also clear.
- Last year net profit was a loss, and with a debt ratio of 417% and a current ratio of 71.9%, financial capacity is tight, so a swing to profit this year being confirmed in the actual numbers is the precondition.
- In sum, this stock is strong 'if quarterly profit swings to surplus through second-half seasonality and order-revenue recognition and that flow continues' and weak 'if the top line grows but profit fails to follow or dilution proceeds through convertible-bond conversion.' Rather than concluding either way, it is a spot to watch whether these conditions fill in through quarterly results.
🔎 Valuation vs peers Overvalued
Stocks with confirmed data were chosen from the 'domestic precision-process inspection and measurement equipment' group of the same business substance; TES and Eugene Technology are semiconductor equipment and Park Systems is precision measurement and inspection equipment, sharing with Femtron the essence of inspection and measurement.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| TES | 49.32x | 7.17x | 14.53% |
| Eugene Technology | 79.34x | 7.33x | 9.24% |
| Park Systems | 58.60x | 8.97x | 15.31% |
The peers (TES, Eugene Technology, Park Systems) have P/Bs around 8x and ROEs all in surplus (9-15%), whereas Femtron at a P/B of 15.55x is nearly double the peers while its ROE of -14.8% is a loss. In other words, within the same inspection-and-measurement equipment group it is in the most expensive range relative to net-asset value while its profitability is the weakest. Last year's trailing P/E cannot be calculated at all because of the loss, so the price cannot be verified against profit, and the forward basis can only be gauged by a DART seasonality approximation (of revenue), with no company forecast. Until the growth expectation is confirmed in real profit, the premium is large, so it is viewed as an Overvalued range, but not definitively — if a second-half swing to profit is confirmed, the reading could change.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩19.3 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩14,450 and the market capitalization is ₩323.6 billion. The price sits below its 20-day moving average (₩19,502) and below its 60-day moving average (₩21,731). 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 34.2, a neutral level. The one-month change is -31.2%, the three-month change is -25.1%, and the position relative to the 52-week high is -54.2%. Relative strength versus the KOSDAQ is 67 (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 67% of all stocks. Over the past three months it lagged the index by 6.2%. 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 -6.22% / 6M +1.80% / 12M +4.93%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 12.38x is above the sector median (1.44x).
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 -14.8%, below the sector average (5.0%). The operating margin is 4.6%. The debt ratio is 417.3%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $48.9M | $37.8M | $46.3M | +22.55% ↑ faster |
| Operating profit | $5.3M | -$2.4M | $2.1M | — |
| Net profit | $4.7M | -$1.3M | -$2.5M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $38.4M | $40.5M | $48.9M | $37.8M | $46.3M |
| Operating profit | $2.7M | $4.2M | $5.3M | -$2.4M | $2.1M |
| Net profit | $3.0M | $3.5M | $4.7M | -$1.3M | -$2.5M |
| Revenue CAGR | 4-yr avg 4.82% | ||||
Revenue rose 22.6% year over year (2023 ₩73.7 billion → 2024 ₩57.0 billion → 2025 ₩69.9 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is 4.8%. The two-year revenue CAGR is -2.6%. In the most recent quarter (Q1 2026), revenue was 52.7% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 22.6% year over year, a sign of growth.
Points to watch
- Debt far exceeds equity (debt ratio 417.3%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 71.9%).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-15UpdateSingle supply contract for semiconductor inspection equipment for SK Hynix (amendment of the 2025-09-05 signing). Contract amount of ₩10.02 billion, a scale of 17.58% of 2024 revenue, delivery by 2026-07-15.A positive that raises revenue visibility over both the short and mid term. With payment split 90% on shipment and 10% on inspection, the timing of second-half revenue recognition is directly reflected in results. Source
- 2026-05-15UpdateQuarterly report (2026.03) disclosed the confirmed Q1 results. Revenue of ₩16.9 billion (+52.7% YoY), operating profit of -₩1.0 billion, net profit of -₩1.4 billion.The top line surged, but the first half's loss was confirmed. Given the seasonality, whether it recovers in the second half determines a swing to an annual surplus. Source
- 2026-06-09IRDisclosure of an investor-relations event (IR) in the form of an NDR for institutional investors. Explained the company's general status, main business status, and future plans.No quantitative official forecast was included in the disclosure, but it is a venue to inform the market directly of order and business progress. Source
- 2026-04-14UpdateDisclosure of an exercise of convertible-bond conversion rights (first tranche).If new shares are issued through conversion, the share count rises and existing shareholders' stakes can be diluted, so it needs checking. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| FY2025 consolidated revenue | ₩69.9 billion(₩69,861,835,068) | DART | Confirmed | link |
| SK Hynix supply-contract amount and ratio to revenue | ₩10.0 billion / 2024 revenue 17.58% | DART ·approx. ₩10.0 billion, 17.58% | Confirmed | link |
| 2026 revenue approximation | approx. ₩81.4 billion | — | Unverified | link |
Recent filings
- 2026-06-09Disclosure
- 2026-05-29Disclosure
- 2026-05-29Shareholders' meeting notice
- 2026-05-29OwnershipOwnership-change filing
- 2026-05-15PeriodicQuarterly report
- 2026-05-15Single supply/sales contract (amended)
- 2026-05-14Shareholders' meeting notice
- 2026-04-30Disclosure
- 2026-04-16OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-14Disclosure
- 2026-04-14Disclosure
- 2026-04-14Shareholders' meeting notice
📖 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.