Ubiquoss is an operating company that designs and sells switches and fiber-to-the-home (FTTH) equipment directly to telecom carriers, including the three major operators, supplying the communications gear that sits at the junction where the internet reaches homes and offices. Its core business grew Q1 operating profit +27%, and it has a solid balance sheet with a debt ratio of 14% and a current ratio of 927% along with profitability of 12.3% ROE and a 19.8% operating margin, while it has continued a cash dividend of ₩470 per share, giving a dividend yield in the 4% range. What stands out recently is that in a phase where network-investment demand continues and non-operating valuation losses normalize, the undervaluation of a 6x P/E and a 0.74x P/B along with the high dividend and high profitability stand out clearly, but in a year when carrier investment is thin or in a stretch where valuation losses on financial-asset holdings drag on, quarterly results can look uneven.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 12.2% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 6.7% higher than a year earlier.
- ROE is 12.3% (controlling-interest basis).
- Operating margin is 19.8%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Ubiquoss Holdings 33.49% (corporate)
Controlling bloc incl. related parties 43.48%
With the controlling bloc holding 43%, the ownership structure is stable.
🔎 In-depth analysis
- Ubiquoss is a company that makes and sells internet network equipment to telecom carriers (including the three major operators).
- The large axes of its revenue are two: 'switches' that gather and distribute data across enterprise, public-institution, and carrier networks, and fiber-to-the-home (FTTH) equipment that pulls optical cable to homes and buildings.
- Put simply, it supplies the communications parts and equipment that go into the junction where the internet reaches homes and offices.
- Because it was created when the network business division was spun off from the former Ubiquoss Holdings, it is not a holding company living off subsidiary stakes but an operating company that earns money by designing and selling equipment directly.
- A characteristic of this business is that revenue moves in step with carriers' network-investment schedules.
- The latest close is ₩9,460 and the market cap is ₩138.7 billion.
- The price sits below the 20-day moving average (₩10,503) and the 60-day line (₩13,113).
- Trading below both the short- and medium-term moving averages, the trend is on the subdued side.
- RSI (an indicator that gauges upward versus downward strength over the past 14 days on a 0–100 scale) is 28.4, close to the depressed zone.
- The one-month change is -15.8%, the three-month change is -34.5%, and the position versus the 52-week high is -46.1%.
- Relative strength versus KOSDAQ is 77 (on a 1–99 scale, converted from returns against the index over the past year with more recent periods weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 23% of all stocks by strength.
- Over the past three months it lagged the index by 16.9%.
- Chart interpretation is best done alongside trading volume and disclosure dates.
- On valuation, the P/E (how many times a year's earnings the share price is) is 5.77x and the P/B (how many times net assets the share price is) is 0.71x, so it trades cheaply on both a year's earnings and its assets.
- With a dividend yield in the 4% range (₩470 per share), dividend appeal is also clear.
- On profitability, ROE (how much is earned in a year on equity) is 12.3%, the operating margin is 19.8%, and the net margin is 20.7%—high for an equipment company.
- On the financial side, the debt ratio (debt against equity) of 14.1% is effectively close to debt-free, and the current ratio of 927% means cash and financial assets vastly exceed short-term debt due.
- Here the P/E of 6.03x is a trailing (past-results) value with last year's (2025) confirmed results as the denominator, while the forward P/E based on the profit to be earned this year is actually even lower.
- That means this year's profit is set to grow versus last year, and for a company like this whose earnings inflect upward, the forward side better shows the actual value.
- It is not that trailing looks high—by either measure, the multiple relative to profitability and assets is on the low side.
- 2025 revenue was ₩116.4 billion, up 12.2% year on year; operating profit surged 86.8% to ₩23.1 billion; and net profit rose 13.0% to ₩24.0 billion.
- Spread over five years, revenue moved up and down each year with carrier-investment schedules (₩150.3 billion in 2023 → ₩103.8 billion in 2024 → ₩116.4 billion in 2025), but after bottoming in 2024, revenue and operating profit are on a trend of rising together again.
- Q1 2026 too saw the core business grow solidly, with revenue of ₩22.9 billion (+6.7%) and operating profit of ₩3.66 billion (+27%).
- The brief quarterly net loss of -₩330 million appears to be due to one-off gains and losses in non-operating items such as valuation of financial-asset holdings and exchange rates (as a company whose cash and financial assets rival its equity, valuation gains and losses can heavily shake quarterly net profit) and is not a sign that operations themselves worsened.
- This is where the basis lies for setting this year's forward P/E lower than last year's confirmed value (6.03x).
- With carriers' network-replacement and expansion demand continuing and the core operating margin (19.8%) maintained, operating profit is seen continuing to grow in the year after last year's +86.8% recovery, and once one-off non-operating losses normalize, net profit is positioned to rise again from its quarterly-loss stretch.
- This is not an estimate that simply scales up one quarter's results but a full-year earnings outlook grounded in the core-business growth trend and margin and order flow.
- The recent disclosure flow centers on the May 2026 Q1 report and the March business report (2025) with the annual general meeting and dividend decision.
- A cash and in-kind dividend (₩470 per share) was confirmed, continuing the dividend policy, and in April a mass-holding status report was filed, showing a change in the ownership structure.
- No new large order disclosure or company-stated 2026 results target (future business or management plan) disclosure was confirmed, so this year's outlook is treated as an estimate grounded in the core-business trend rather than official company figures.
- Because carriers' network-replacement and expansion investment schedules directly drive this company's quarterly results, viewing the quarterly reports together with order-related disclosures is key.
- The strengths are clear.
- It has a balance sheet effectively close to debt-free with a debt ratio of 14% and a current ratio of 927% (ample cash and financial assets), solid profitability of 12.3% ROE and a 19.8% operating margin, and a combination of undervaluation and a high dividend—a 6x P/E, a 0.74x P/B, and a yield in the 4% range.
- The core business (switches and FTTH) is growing with Q1 operating profit +27%, and this year's forward P/E is set lower than last year's (5.96x), showing a phase where earnings turn upward.
- Its P/E is lower and ROE higher than the same group's holding company (078070), so its standing as an operating company is also clear.
- Points to watch are that revenue can swing quarter to quarter as it is tied to carrier-investment cycles, and that with abundant cash and financial assets, non-operating valuation gains and losses can shake quarterly net profit (the Q1 net loss is an example).
- In sum, this is a stock in which undervaluation, a high dividend, and high profitability stand out clearly in a phase where network-investment demand continues and non-operating valuation losses normalize, and in which quarterly results can look uneven in a year when carrier investment is thin or in a stretch where valuation losses run long.
🔎 Valuation vs peers Undervalued
Within the same Ubiquoss group, we compare the operating company that makes network equipment directly (264450) with the holding company that holds it as a subsidiary (078070), placing the valuations of the two different forms of business side by side to gauge the operating company's standing.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Ubiquoss | 5.77x | 0.71x | 12.29% |
| Ubiquoss Holdings | 6.72x | 0.52x | 7.68% |
The operating company's P/E of 7.08x is lower than that of the holding company that holds it as a subsidiary (078070, 7.98x), and its ROE of 12.3% is higher than the holding company's (7.7%). The P/B of 0.87x is also below net assets, a discount to asset value. That said, the P/E of 7.08x is on a prior-year confirmed-results (trailing) basis, so for this company, whose earnings swing with the carrier-investment cycle, the feel changes depending on which year forms the denominator. Even on a forward basis, with the operating growth trend continuing, the multiple stays around 7x, similar to last year, so the undervaluation call does not appear to be merely due to a temporary one-year earnings inflection. Even so, given the telecom-investment cycle and quarterly non-operating income volatility, it is appropriate to view it as an undervalued zone relative to profitability and finances rather than declaring it flatly cheap.
Price history Close · MA20 · MA60
The latest close is ₩9,460 and the market capitalization is ₩138.7 billion. The price sits below its 20-day moving average (₩10,503) and below its 60-day moving average (₩13,113). 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 28.4, near oversold territory. The one-month change is -15.8%, the three-month change is -34.5%, and the position relative to the 52-week high is -46.1%. Relative strength versus the KOSDAQ is 77 (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 77% of all stocks. Over the past three months it lagged the index by 16.9%. 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 -16.92% / 6M +15.05% / 12M +16.69%
Key metrics vs sector median
Valuation
The P/E of 5.77x is below the sector median (16.19x). The P/B of 0.71x is below the sector median (1.32x). 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.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 10.1%, 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 12.3%. The operating margin is 19.8%. The debt ratio is 14.1%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $99.6M | $68.8M | $77.2M | +12.18% ↑ faster |
| Operating profit | $19.2M | $8.2M | $15.3M | +86.76% ↑ faster |
| Net profit | $17.2M | $14.1M | $15.9M | +13.03% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $92.2M | $88.6M | $99.6M | $68.8M | $77.2M |
| Operating profit | $21.1M | $16.3M | $19.2M | $8.2M | $15.3M |
| Net profit | $19.1M | $14.2M | $17.2M | $14.1M | $15.9M |
| Revenue CAGR | 4-yr avg -4.35% | ||||
Revenue rose 12.2% year over year (2023 ₩150.3 billion → 2024 ₩103.8 billion → 2025 ₩116.4 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 86.8% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is -4.3%. The two-year revenue CAGR is -12.0%. In the most recent quarter (Q1 2026), revenue was 6.7% higher 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 5.0%, is on the high side.
- ROE of 12.3% points to solid profitability.
- Revenue grew 12.2% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-05-15EarningsQ1 2026 report filed — revenue ₩22.9 billion (+6.7%), operating profit ₩3.66 billion (+27%), net profit -₩330 million (swung to a loss on non-operating losses)Core-business profitability improved, but net profit was shaken by one-off non-operating losses—a short-term variable that reveals the quarterly volatility. Source
- 2026-03-19DividendDecision on cash and in-kind dividend (amended) — a dividend of ₩470 per share, maintaining the dividend policyMaintains a dividend yield in the 4% range, a positive on the medium-term shareholder-return side. Source
- 2026-03-10Filing2025 business report filed — annual revenue ₩116.4 billion (+12.2%), operating profit ₩23.1 billion (+86.8%), net profit ₩24.05 billionThe baseline results confirming the annual core-business recovery and margin improvement. Source
- 2026-04-01FilingMass-holding status report (simplified) filed — change in ownership statusA change in the ownership structure is a variable to note on the medium-term supply-demand side. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-15PeriodicQuarterly report
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-19DividendCash/stock dividend decision (amended)
- 2026-03-19Amended filing
- 2026-03-18Disclosure
- 2026-03-18Shareholders' meeting notice
- 2026-03-10PeriodicAnnual business report
- 2026-03-10Audit report
- 2026-03-03Shareholders' meeting notice
- 2026-03-03Shareholders' 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.