Megastudy Education is a private-education company that makes money by selling lectures and study materials to students. Its largest pillar is the high-school and college-entrance segment, built around all-access online lecture passes such as "Mega Pass" alongside single-course and textbook sales, with adult exam prep (medical/pharmacy, civil-service) and K-12 online learning layered on top; earnings are driven by the number of exam-takers multiplied by the average spend per student. First-quarter figures were set by the May 8 preliminary results and the May 15 quarterly report, and on April 30 the company reviewed its shareholder-return direction (dividends, treasury shares) through a voluntary corporate-value-up disclosure. What stands out lately is a rare combination of low valuation, profitability, and payout: a trailing P/E of 4.62x, a P/B of 0.79x, a forward P/E also below the peer range (roughly 5-9x), a 17.2% ROE, and a 7.9% dividend yield all line up in its favor. The offsetting concern is that revenue has fallen for two straight years, leaving a shrinking school-age population and shifting admissions rules as structural headwinds, so the key question is whether revenue can hold flat or better.
At-a-glance assessment financial health · growth · profitability · valuation
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 77.1%).
- Revenue fell 6.1% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 0.5% lower than a year earlier.
- ROE is 17.2% (controlling-interest basis). It is above the sector average.
- Operating margin is 13.7%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Son Joo-eun 15.49% (individual)
Controlling bloc incl. related parties 33.73%
With the controlling bloc holding 34%, the ownership structure is stable.
🔎 In-depth analysis
- Megastudy Education is a private-education company that earns money by selling lectures and study materials to students.
- Its biggest pillar is the high-school and college-entrance segment, where fixed-price all-access online lecture passes (bundles that let a student pay once for many courses) such as "Mega Pass," plus single courses and textbooks and workbooks from popular instructors, form the core of revenue.
- To this are added a segment teaching adult and professional exam prep (medical/pharmacy, pharmacy college, civil service, accountancy, teacher certification) and an online-learning segment (Elihigh) aimed at elementary and middle-school students.
- In short, earnings are driven by the number of exam-takers multiplied by the average spend per student, so changes in the admissions system, the school-age population, and new instructor line-ups directly affect revenue.
- Because the business collects payment for lecture passes up front and delivers the lectures later, cash comes in first while revenue is recognized over the lecture period - a point worth keeping in mind.
- The latest close is 38,200 won and the market cap is 396.0 billion won.
- The price sits below its 20-day line (39,422 won) and below its 60-day line (41,909 won).
- Trading beneath both its short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that scores the strength of gains against losses over the past 14 days on a 0-100 scale) is 43.0, a neutral level.
- The one-month change is +0.3%, the three-month change is -17.4%, and the position versus the 52-week high is -26.5%.
- Relative strength against the KOSDAQ is 68 (1-99; the past year's return versus the index, weighted toward recent performance - higher means stronger than the market).
- That places it in roughly the top 32% of all listed names for strength.
- Over the past three months it has outpaced the index by 15.0%.
- Chart reading is best done alongside trading volume and disclosure dates.
- On last year's (2025) confirmed results, the P/E (how many times one year's net profit the price represents) is 4.64x and the P/B (how many times net assets the price represents) is 0.80x.
- A P/B below 1x means the market cap is smaller than book net assets, so the price sits low relative to asset value.
- ROE (how much is earned in a year on shareholders' equity) is 17.2%, above the peer average, while the operating margin is 13.7% and the net margin 9.6%, pointing to solid core profitability.
- The debt ratio (debt against equity) is 180.3% and the current ratio is 77.1%; on the numbers alone short-term liquidity looks tight, but this company books large amounts of deferred revenue (money received in advance and recorded as a liability because the lectures have not yet been delivered) as debt, so it is hard to judge it by the same yardstick as an ordinary manufacturer.
- Above all, the trailing P/E of 4.62x is calculated on last year's already-past profit, and the forward P/E that reflects this year's earnings trend holds at a similar level.
- In other words, this is not a picture of earnings falling off sharply but of a low multiple carrying through, so a high multiple is not the concern here.
- Over five years, revenue rose from 703.9 billion won in 2021 to 935.2 billion won in 2023, then eased back to 942.2 billion won in 2024 and 884.9 billion won in 2025.
- Having peaked in 2023, revenue has now fallen for two straight years, with last year's growth rate at -6.1%, and operating profit also declined gently from 135.4 billion won in 2022 to 121.0 billion won in 2025.
- Net profit, however, rose +84.7% from 46.2 billion won in 2024 to 85.3 billion won in 2025, largely a base effect from a one-off loss booked in the fourth quarter of 2024.
- In the most recent period, first-quarter 2026, revenue of 236.5 billion won (-0.5%) and operating profit of 26.0 billion won (-0.8%) held essentially flat with the same period last year.
- In other words, a double-digit revenue decline has calmed close to flat entering the first quarter.
- Viewing this trend alongside the company's seasonality, where profit concentrates in the third-quarter main exam season, the low forward P/E this year comes from a picture in which earnings hold around last year's level.
- There is no clear evidence that earnings will fall below this year's level from next year onward, so there is also no cue to call the current position a "cycle top." Ultimately, whether student numbers and per-student spend hold up is the key variable for growth.
- The recent disclosure narrative reads as "results confirmed - shareholder returns reviewed - ownership changes." First-quarter figures came out first through the May 8 consolidated preliminary operating results, then were confirmed by the May 15 quarterly report.
- On April 30 the company voluntarily disclosed the 2025 progress of its corporate-value-up plan, directly reviewing its shareholder-return direction, including dividends and treasury shares.
- Meanwhile, reports of large-holding and executive ownership changes followed, including on June 4, making the movements of major holders another point to watch.
- All disclosures can be verified against the original official documents.
- The strengths are clear.
- A trailing P/E of 4.62x and P/B of 0.79x put the price low against last year's profit and net assets, and the forward P/E reflecting this year's trend sits clearly below the peer range (roughly 5-9x), reading as an undervaluation signal.
- On top of this, a 17.2% ROE and 13.7% operating margin point to solid core profitability, while a 7.9% dividend yield and a 36.4% payout ratio make cash returns fairly generous.
- It is a rare combination: cheap against asset value while profitability and payout both hold up.
- The point to watch is growth.
- Revenue has fallen for two straight years, leaving a shrinking school-age population and shifting admissions rules as structural headwinds.
- In sum, as long as student numbers and per-student spend hold and shareholder returns are maintained, the low valuation and high payout work as strengths; conversely, if the revenue decline turns into an earnings decline in earnest, that appeal weakens.
- So whether quarterly revenue holds flat or better, and the third-quarter results where profit concentrates, are the most important checkpoints.
🔎 Valuation vs peers Undervalued
The peer set is KOSDAQ education names whose core business is private education and exam-prep lectures; names with a different business mix were excluded.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Digital Daesung | 9.53x | 1.44x | 15.12% |
| Multicampus | 5.39x | 0.61x | 11.36% |
Against Digital Daesung (college-entrance online lectures) and Multicampus (corporate/adult education), the most similar businesses, the P/E is lower and ROE higher, so on last year's confirmed results it looks discounted. That said, much of this discount also reflects growth worries tied to two straight years of revenue decline. The P/E of 4.7x is on last year's trailing (confirmed past) profit, so it will not hold if earnings shrink further, and the forward P/E on a seasonality approximation is not much changed. It is therefore more accurate to read this as a conditional undervaluation: confirmed profit looks cheap, but the premise weakens if the direction of earnings turns down.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | ₩206.6 billion | ₩39.4 billion | ₩27.8 billion |
Price history Close · MA20 · MA60
The latest close is ₩38,200 and the market capitalization is ₩396.0 billion. The price sits below its 20-day moving average (₩39,422) and below its 60-day moving average (₩41,909). 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 43.0, a neutral level. The one-month change is +0.3%, the three-month change is -17.4%, and the position relative to the 52-week high is -26.5%. Relative strength versus the KOSDAQ is 68 (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 68% of all stocks. Over the past three months it outpaced the index by 15.0%. 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 +14.99% / 6M +9.51% / 12M -23.66%
Key metrics vs whole-market median
Valuation
The P/E of 4.64x is below the whole-market median (13.81x). The P/B of 0.80x is below the whole-market median (1.15x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
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 17.2%, above the whole-market average (5.0%). The operating margin is 13.7%. The debt ratio is 180.3%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $619.8M | $624.5M | $586.5M | -6.08% ↓ slower |
| Operating profit | $84.5M | $81.9M | $80.2M | -2.11% ↑ faster |
| Net profit | $62.7M | $30.6M | $56.5M | +84.67% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $466.5M | $554.0M | $619.8M | $624.5M | $586.5M |
| Operating profit | $65.6M | $89.7M | $84.5M | $81.9M | $80.2M |
| Net profit | $53.8M | $68.7M | $62.7M | $30.6M | $56.5M |
| Revenue CAGR | 4-yr avg 5.89% | ||||
Revenue fell 6.1% year over year (2023 ₩935.2 billion → 2024 ₩942.2 billion → 2025 ₩884.9 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 2.1% year over year. That said, the decline narrowed. Over the 5 years on record, revenue compound annual growth (CAGR) is 5.9%. The two-year revenue CAGR is -2.7%. In the most recent quarter (Q1 2026), revenue was 0.5% 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 dividend yield, at 7.8%, is on the high side.
- ROE of 17.2% points to solid profitability.
Points to watch
- Revenue fell 6.1% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-05-08EarningsConsolidated preliminary operating results disclosure - first-quarter 2026 revenue and operating profit disclosed ahead of confirmationShort term: first-quarter revenue of 236.5 billion won (-0.5%) and operating profit of 26.0 billion won (-0.8%), similar to the same period last year. A first signal of whether the decline is easing. Source
- 2026-05-15FilingQuarterly report (2026.03) - first-quarter financial statements confirmedMedium term: preliminary figures confirmed. A document that lets the business structure - deferred revenue, revenue mix - be checked against the original text. Source
- 2026-04-30IRCorporate-value-up plan voluntary disclosure - review of 2025 implementation progressMedium term: the company itself discloses how far its shareholder-return policy (dividends, treasury shares) has been implemented. A basis for gauging the durability of the 7.7% dividend. Source
- 2026-06-04UpdateLarge-holding report (abbreviated) - change in major-holder stakeShort term: shifts in a large stake. Could affect supply and demand, so it should be checked alongside follow-up reports. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-04OwnershipOwnership-change filing
- 2026-05-15PeriodicQuarterly report
- 2026-05-08EarningsFair-disclosure notice
- 2026-04-30Disclosure
- 2026-04-21OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-20OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-20OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-20OwnershipOwnership-change filing
- 2026-04-03OwnershipOwnership-change filing
- 2026-03-26Disclosure
- 2026-03-26Disclosure
- 2026-03-26Shareholders' 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.