Dream Security (203650) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
Dream Security's core business is information security, supplying public-key-infrastructure (PKI) electronic signatures, certificates, and biometric authentication (FIDO) to the public, financial, and telecom sectors. But on a 2025 business-report basis, consolidated revenue is dominated by equipment leasing at subsidiary Korea Rental (83.55%), followed by defense (6.40%), security solutions (6.22%), and personal-data protection (3.33%), so the security core and 14 rental and content subsidiaries sit under one umbrella. On May 28, subsidiary DigiCAP issued ₩9.5 billion of private exchangeable bonds, and there were two conversion-right exercises in April, a large-holding report in June, and a change of CEO and shareholder-meeting results in March. What stands out lately is that revenue has grown every year for five straight years, with steady top-line expansion, and the company holds both a security core with entry barriers and a rental subsidiary that earns steady lease income. On the other side, revenue is rising while operating and net profit have fallen for three years running, so a profitability recovery is the crux, and with a high consolidated debt-to-equity ratio and subsidiaries continuing to raise funds through exchangeable and convertible bonds, interest burdens and dilution need to be watched together.
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 “Information Security” (Internet, Platforms & Software · Software), a type typically read first through P/E.
Information-security firms provide security solutions and maintenance to businesses and institutions, with subscription and contract revenue accumulating steadily and flowing fairly reliably into profit. Because revenue translates cleanly into current-year net income, price-to-earnings (P/E) is the natural first read.
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 far exceeds equity (debt ratio 387.6%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 58.8%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue rose 18.6% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 46.1% higher than a year earlier.
- ROE is 6.6% (controlling-interest basis). It is above the sector average.
- Operating margin is 5.8%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder Beom Jin-gyu 35.44% (individual)
Controlling bloc incl. related parties 41.17%
With the controlling bloc holding 41%, the ownership structure is stable.
🔎 In-depth analysis Reading
Dream Security's core business is information security. Using public key infrastructure (PKI, an authentication technology used for electronic signatures and encryption), it supplies solutions such as electronic signatures, certificates, biometric authentication (FIDO, verifying identity by fingerprint or face without a password), and certified electronic document storage to the public, financial, telecom, and private sectors. However, the composition of consolidated revenue (parent plus subsidiaries), which is viewed together for accounting, differs greatly from the core-business image. On a 2025 business-report basis, consolidated revenue breaks down as 83.55% rental (equipment leasing at subsidiary Korea Rental), 6.40% defense, 6.22% security solutions, 3.33% personal-data protection services, and 0.50% operations. In other words, most of the revenue comes not from information security but from the subsidiary's equipment rental. There are 14 consolidated subsidiaries in total, including Korea Rental, DigiCAP (digital content and DRM), and Seedcore (embedded security), so the security core and the rental and content subsidiaries sit under one umbrella.
The latest close is ₩2,010 and the market capitalization is ₩204.4 billion. The price sits above its 20-day moving average (₩1,918) and below its 60-day moving average (₩2,588). 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 48.9, a neutral level. The one-month change is -5.0%, the three-month change is -46.5%, and the position relative to the 52-week high is -56.5%. 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 lagged the index by 27.2%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On last year's confirmed results (2025), the P/E ratio (how many times one year of net profit the share price represents) is 24.54x and P/B (how many times net assets) is 1.71x. ROE (how much is earned on equity in a year) is 7.0% and the operating margin is 7.1%, both around average. On the balance sheet, the debt-to-equity ratio of 380%, current ratio of 56%, and interest coverage of around 1x look burdensome on the numbers alone. But the character of this debt must be considered together. The rental subsidiary, which makes up 83% of revenue, is a business that finances equipment purchases with borrowing and recovers it through lease income, so growing assets and liabilities together is normal. Rather than concluding that the high debt ratio and low current ratio signal a weak core business, it is more accurate to understand them as the financial structure inherent to the rental business. Meanwhile, the P/E and P/B look higher than security peers because rental revenue, different in character from the core business, is mixed in; rather than judging expensive or cheap by a single multiple, it is meaningful to look at it by segment.
Over five years, revenue grew steadily from ₩189.5 billion in 2021 to ₩318.9 billion in 2025 (about +13.9% a year on average), and the 2025 growth rate of +18.6% accelerated from the prior year's +15.5%, so growth is gaining pace. The engines of revenue growth are the subsidiary with growing rental assets and public and financial security demand. Profit, however, points the other way. Operating profit fell from ₩33.3 billion in 2023 to ₩22.5 billion in 2025, and net profit fell from ₩22.5 billion to ₩8.3 billion over the same period. In the first quarter of 2026, too, revenue rose +46.1% to ₩108.4 billion, but operating profit was ₩3.8 billion (-36.6%) and net profit ₩0.3 billion (-59.8%), continuing the pattern of a growing top line and thinner profit. In a phase where the top line is expanding fast but margins are not keeping up, this year's profit is more likely to stay similar to or below last year's than to improve markedly. That the forward P/E based on this year's expected profit is set even higher than the trailing P/E also shows that profit, not revenue, is the real variable for this company. Ultimately, whether margins turn around is the key to completing the growth story.
Recent disclosures center on subsidiary fundraising and changes in ownership and governance. On May 28, 2026, subsidiary DigiCAP decided to issue ₩9.5 billion of private exchangeable bonds (bonds that can be exchanged for shares), with proceeds earmarked as ₩6 billion for operations and ₩3.5 billion for other uses. In April there were two conversion-right exercise disclosures (converting convertible bonds into shares; as the number of issued shares rises, existing shareholders' stakes can be somewhat diluted), and in June a large-holding report came out. In March, a change of CEO and the results of the regular shareholders' meeting were disclosed. Because these funding and governance events bear directly on subsidiary operations and finances rather than on core-business revenue, it is best to watch how their effects show up in next quarter's results.
Starting with strengths, revenue has grown every year for five years, with steady - and accelerating - top-line expansion. Holding both a core business with entry barriers (electronic signatures, biometric authentication, public security) and a rental subsidiary that generates cash through steady lease income also thickens its business base. There are also clear points to watch. First, revenue is rising while operating and net profit have fallen for three years running, so top-line growth and profitability are moving apart, making a margin recovery the crux. Second, the consolidated debt-to-equity ratio is high and subsidiaries keep raising funds through exchangeable and convertible bonds, so interest burdens and dilution need to be watched together. Third, even though more than 80% of revenue comes from rental, the market often views this company as a security theme, so its core-business weight and price expectations can be misaligned. In short, it is strong when rising revenue is joined by a margin recovery and stable subsidiary finances, and weak when profit declines persist or subsidiary borrowing and dilution pressures grow.
🔎 Valuation vs peers Inconclusive
As a diversified company whose core business (information security) and consolidated revenue structure (rental) differ, a single peer set is difficult. We place AhnLab as a reference peer for the security core and NHN KCP for the adjacent authentication and payments area, while separately factoring in that 80% of revenue is rental.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| AhnLab | 11.97x | 1.77x | 15.15% |
| NHN KCP | 11.61x | 1.75x | 17.11% |
(a) True peer position: on the security core alone, the P/E is about three times higher than AhnLab and NHN KCP while ROE is about half, so it looks expensive relative to earnings. But (b) this is a diversified company where more than 80% of revenue comes from the rental subsidiary, so mechanically applying security-peer multiples distorts the picture. Rental is a low-margin business that grows assets and liabilities together, so P/B and the debt ratio also mean something different from ordinary software. (c) The trailing P/E of 36.5x is already based on shrunken profit, and this year's net profit approximated by seasonality is lower still, making the simple forward multiple even larger. Before separately assessing the core-business recovery and the subsidiaries' value, undervalued or overvalued cannot be declared, so we keep it inconclusive.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩102.0 billion | approx. ₩1.9 billion | approx. ₩0.2 billion |
Price history Close · MA20 · MA60
The latest close is ₩2,010 and the market capitalization is ₩204.4 billion. The price sits above its 20-day moving average (₩1,918) and below its 60-day moving average (₩2,588). 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 48.9, a neutral level. The one-month change is -5.0%, the three-month change is -46.5%, and the position relative to the 52-week high is -56.5%. 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 lagged the index by 27.2%. 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 -27.20% / 6M +62.09% / 12M -42.26%
Key metrics Computed vs sector median
Valuation
The P/E of 24.54x is above the sector median (11.94x). The P/B of 1.71x is above the sector median (1.10x).
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 10.7%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 6.6%, above the sector average (1.0%). The operating margin is 5.8%. The debt ratio is 387.6%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $163.5M | $188.9M | $224.0M | +18.60% ↑ faster |
| Operating profit | $23.4M | $18.0M | $15.8M | -12.32% ↑ faster |
| Net profit | $15.8M | $9.1M | $5.8M | -36.19% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $133.1M | $157.5M | $163.5M | $188.9M | $224.0M |
| Operating profit | $12.4M | $17.7M | $23.4M | $18.0M | $15.8M |
| Net profit | $9.0M | $6.8M | $15.8M | $9.1M | $5.8M |
| Revenue CAGR | 4-yr avg 13.89% | ||||
Revenue rose 18.6% year over year (2023 ₩232.7 billion → 2024 ₩268.8 billion → 2025 ₩318.9 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit fell 12.3% year over year. That said, the decline narrowed. Over the 5 years on record, revenue compound annual growth (CAGR) is 13.9%. The two-year revenue CAGR is 17.1%. In the most recent quarter (Q1 2026), revenue was 46.1% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- Revenue grew 18.6% year over year, a sign of growth.
Points to watch
- Debt far exceeds equity (debt ratio 387.6%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 58.8%).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-28FilingSubsidiary DigiCAP decided to issue ₩9.5 billion of private exchangeable bonds (₩6 billion for operations, ₩3.5 billion for other uses, 0% coupon)In the short term it secures operating funds for the subsidiary, but potential dilution on future share exchange and an increase in consolidated borrowing need to be watched together. Source
- 2026-05-15EarningsFiled first-quarter 2026 report (revenue ₩108.4 billion +46.1%, operating profit ₩3.8 billion -36.6%)The top line grew sharply while profit fell, so the gap between growth and profitability was reconfirmed in reported results. Source
- 2026-04-16FilingConversion-right exercise (converting convertible bonds into shares; consecutive disclosures on April 15 and 16)The conversion increases the number of issued shares, somewhat diluting existing shareholders' stakes. Source
- 2026-03-27FilingFiling of a change of CEO and appointment of an outside director (governance change after the regular shareholders' meeting)A change in management can affect business direction and capital policy over the medium term, so follow-up moves need to be checked. Source
- 2026-03-18EarningsFiled 2025 business report (consolidated revenue ₩318.9 billion, operating profit ₩22.5 billion, rental segment 83.55% of revenue)Confirms in reported results the business structure in which the core is security but consolidated revenue is driven by the rental subsidiary. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 consolidated revenue | ₩318.9 billion | ₩318.9 billion | Confirmed | link |
| Rental segment share of consolidated revenue | — | 83.55%, 6.40%, 6.22% | Confirmed | link |
| First-quarter 2026 operating profit | ₩3.8 billion | ₩3.8 billion | Confirmed | link |
| Seasonality-approximated annual operating profit | approx. ₩15.0 billion | — | Unverified | link |
Recent filings Source
- 2026-06-05OwnershipOwnership-change filing
- 2026-05-28Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-04-22OwnershipOwnership-change filing
- 2026-04-16Disclosure
- 2026-04-15Disclosure
- 2026-03-27Disclosure
- 2026-03-27Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-11Shareholders' 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.