Kencoa Aerospace handles the parts and materials that go into aircraft and space launch vehicles: machining of specialty aluminum and titanium materials (about 20%), production of precision parts for commercial and military aircraft, maintenance and modification of military aircraft (MRO, about 40%), and parts for launch vehicles and satellites — all within one company. It is an integrated aerospace-parts maker with no connection to the 'fintech' label written in its official classification. After a large 2025 loss was confirmed in February 2026, the May Q1 report revealed a +73% revenue increase and a swing to operating and net profit, signaling that results — which had swung with the timing of order recognition — were passing the bottom of the loss trough. What stands out recently is that the rare business structure spanning from materials to maintenance for NASA Artemis, commercial, and military aircraft parts, a P/B of 1.0x with assets near book value, and a beginning swing to profit are strengths, but with the recovery having appeared for just one quarter, the key thing to watch is whether the profit continues beyond Q2 and earnings normalize.
At-a-glance assessment financial health · growth · profitability · valuation
- The most recent full-year net result was a loss.
- Revenue fell 11.3% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 73.1% higher than a year earlier.
- ROE is -9.7% (controlling-interest basis). It is below the sector average.
- Operating margin is -12.1%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Kepler 27.08% (corporate)
Controlling bloc incl. related parties 27.08%
With the controlling bloc holding 27%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- Kencoa Aerospace makes and handles the parts and materials that go into aircraft and space launch vehicles.
- Its business runs along four broad lines.
- (1) It machines and supplies aviation specialty materials such as aluminum and titanium; (2) it directly produces precision parts for commercial and military aircraft; (3) it runs a maintenance and modification business (MRO) that repairs and remodels military aircraft in service so they can be reused; and (4) it makes parts for launch vehicles and satellites.
- On a company basis, revenue is largest in maintenance and modification (MRO) at about 40%, with specialty materials at about 20% and aircraft parts for U.S. aircraft and launch vehicles at about 10%.
- In other words, it is an integrated aerospace-parts maker that handles 'materials machining + parts production + maintenance' together within one company, a structure with no connection whatsoever to the 'fintech' label written in its official industry classification.
- The latest close is ₩10,160 and the market cap is ₩139.9 billion.
- The price sits below the 20-day line (₩13,486) and the 60-day line (₩20,353).
- Trading below both its short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that weighs upward versus downward force over the past 14 days on a 0-100 scale) is 30.0, a neutral level.
- The one-month change is -54.8%, the three-month change is -44.2%, and the position versus the 52-week high is -70.3%.
- Relative strength versus the KOSDAQ is 61 (on a 1-99 scale that converts the past year's return against the index with more weight on recent periods; higher means stronger than the market).
- That places it at roughly the top 39% by strength among all stocks.
- Over the past three months it lagged the index by 31.6%.
- Chart reading is best done alongside trading volume and the dates of disclosures.
- On a 2025 consolidated basis, the P/B ratio (how many times shareholders' equity the share price is) is 0.87x, almost the same level as book value.
- The P/E ratio (how many times a year's net profit the share price is) cannot be calculated because 2025 was a loss year.
- So on an asset-value basis the company is not expensively priced, and 'P/B around 1x' means it is not in a stretch of heavy burden relative to assets.
- On a 2025 basis the profitability metrics were all in the red: ROE -9.7%, operating margin -12.1%, and net margin -20.3%.
- That said, these figures reflect the single year of 2025, just before the recovery began, and for a loss-making stock the 'picture when earnings return to normal (forward)' matters more than the trailing results themselves.
- The balance sheet shows a debt ratio (debt to equity) of about 145%, similar to the peer average, and a current ratio (how far assets convertible to cash within a year cover debt due within the same period) of about 304%, so short-term solvency is ample.
- Revenue rose to ₩54.7 billion (2021) → ₩75.9 billion (2022) → ₩91.1 billion (2023), then fell for two straight years to ₩86.2 billion (2024) and ₩76.4 billion (2025) (2025 change -11.3%).
- Operating profit likewise shrank from +₩8.0 billion in 2022 to +₩0.9 billion in 2023, then deepened into losses of -₩5.4 billion in 2024 and -₩9.2 billion in 2025.
- Aerospace and defense parts are a business with large swings depending on the timing of order recognition, so 2024-2025 was a trough where revenue and earnings were pressed down together.
- Then Q1 2026 revenue rose +73.1% year on year to ₩29.2 billion, with operating profit (+₩0.22 billion) and net profit (+₩0.94 billion) both swinging to profit at once.
- Revenue jumping 73% and operating and net profit turning positive together in a single quarter shows that pent-up orders are beginning to be booked as revenue and that maintenance and materials utilization has entered a recovery phase.
- Since Q1 is the starting point of the recovery, confirming whether the same flow continues beyond Q2 will make the extent of earnings normalization clearer.
- Recent disclosures traced a flow confirming the swing to profit and its backdrop.
- On February 27, 2026, a disclosure of a change of more than 30% in operating and net results first confirmed the large 2025 loss, and the March 23 business report and March 31 AGM wrapped up that settlement.
- Then the May 15 Q1 report revealed a +73% revenue increase and a swing to operating and net profit.
- Because the company's results swing from quarter to quarter with the timing of order recognition, the Q1 swing to profit is a meaningful event for gauging whether the recovery has begun after passing the bottom of the loss trough.
- Starting with strengths, this is a rare integrated maker that handles aerospace parts for NASA Artemis and the space launch system (SLS), plus commercial and military aircraft, from materials machining through maintenance and modification within one company.
- Asset value is at book level with a P/B of 1.0x, so it is not expensive, and in Q1 2026 a +73% revenue increase and a swing to operating and net profit appeared together, showing the direction of recovery.
- The point to watch carefully is that after the losses that ran through 2024-2025, the recovery has appeared for only one quarter.
- Because aerospace and defense parts see quarterly results swing with the timing of order recognition, whether the Q1 profit flow continues beyond Q2 will govern the extent of earnings normalization.
- In short, the strength is a 'business structure spanning materials, parts, and maintenance, with asset value at book level and a swing to profit begun,' and the key thing to watch is 'whether the recovery continues across several quarters so that earnings normalization is confirmed.'
🔎 Valuation vs peers Inconclusive
Because there are not enough similarly sized aerospace parts and materials listed companies in the site data, larger aerospace and defense stocks with close business character are used as an industry benchmark (though the scale differs greatly).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Korea Aerospace Industries | 78.66x | 7.99x | 10.16% |
| Hyundai Rotem | 22.77x | 5.69x | 25.01% |
(a) The comparison names Korea Aerospace Industries (P/B 8.1) and Hyundai Rotem (P/B 7.5) are profitable large caps with P/Bs in the 7-8x range, whereas Kencoa at a P/B of 1.4x sits far lower relative to assets. But this is because Kencoa was in a loss in 2025, so it is hard to simply see it as 'cheap.' (b) With Kencoa in a loss, no P/E exists, so an earnings-based comparison is impossible, and the discount is visible only against equity (P/B). (c) Last year's trailing metrics are in a loss phase and hard to use as a basis for valuation judgment; the multiple only carries meaning on a forward basis under the assumption that the swing to profit continues. With profit continuity confirmed for only one quarter, it is too early to declare it fairly valued, undervalued, or overvalued, so it is left inconclusive.
Price history Close · MA20 · MA60
The latest close is ₩10,160 and the market capitalization is ₩139.9 billion. The price sits below its 20-day moving average (₩13,486) and below its 60-day moving average (₩20,353). 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 30.0, a neutral level. The one-month change is -54.8%, the three-month change is -44.2%, and the position relative to the 52-week high is -70.3%. Relative strength versus the KOSDAQ is 61 (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 61% of all stocks. Over the past three months it lagged the index by 31.6%. 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 -31.64% / 6M -42.84% / 12M -18.66%
Key metrics vs whole-market median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.87x is below the whole-market median (1.15x).
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 -9.7%, below the whole-market average (5.0%). The operating margin is -12.1%. The debt ratio is 145.3%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $60.4M | $57.1M | $50.6M | -11.33% ↓ slower |
| Operating profit | $581,336 | -$3.5M | -$6.1M | — |
| Net profit | -$1.2M | -$5.1M | -$10.3M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $36.2M | $50.3M | $60.4M | $57.1M | $50.6M |
| Operating profit | -$9.1M | $5.3M | $581,336 | -$3.5M | -$6.1M |
| Net profit | -$13.0M | $2.2M | -$1.2M | -$5.1M | -$10.3M |
| Revenue CAGR | 4-yr avg 8.72% | ||||
Revenue fell 11.3% year over year (2023 ₩91.1 billion → 2024 ₩86.2 billion → 2025 ₩76.4 billion), and the three-year trend is 'falling'. The rate of decline widened from the prior year. Operating results are in the red, so a swing back to profit matters more than the growth rate here. Over the 5 years on record, revenue compound annual growth (CAGR) is 8.7%. The two-year revenue CAGR is -8.5%. In the most recent quarter (Q1 2026), revenue was 73.1% 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.
Points to watch
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 11.3% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-05-15EarningsQ1 2026 report filed. Cumulative revenue of ₩29.2 billion, up about 73% year on year, with both operating profit and net profit swinging to profit.The first quarter to break a three-year run of losses, so short-term momentum is positive, but the sustainability of profit needs confirmation next quarter (medium-term neutral). Source
- 2026-02-27FilingDisclosure of a change of more than 30% in revenue or profit structure. The widened 2025 operating and net loss confirmed as fact.Officially confirms the bottom of the loss. A short-term burden, but it becomes the baseline for judging the inflection when contrasted with the swing to profit in the immediately following quarter. Source
- 2026-03-23Filing2025 business report filed. Discloses annual results and business status, including consolidated revenue of ₩76.4 billion, an operating loss of -₩9.2 billion, and a net loss of -₩15.5 billion.Confirms the financial position in the loss phase. Short-term liquidity confirmed as maintained, with a debt ratio of 145% and a current ratio of 304%. Source
- 2026-03-31FilingDisclosure of AGM results. Approval of financial statements and other agenda items processed.A disclosure related to governance and routine procedures, with limited impact on results. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-15PeriodicQuarterly report
- 2026-03-31Shareholders' meeting notice
- 2026-03-23Audit report
- 2026-03-23PeriodicAnnual business report
- 2026-03-17Amended filing
- 2026-03-16Shareholders' meeting notice
- 2026-03-16Disclosure
- 2026-03-16Shareholders' meeting notice
- 2026-02-27EarningsEarnings 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.