SureSoftTech (298830) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
SureSoftTech sells verification and validation (V&V) solutions and third-party verification services that test whether software works safely as designed, aimed at mission-critical fields such as aircraft control, nuclear power, and autonomous driving, where a single small error can lead to loss of life; recently it has been widening its reach into virtual validation for autonomous driving and into AI reliability verification. A February profit-and-loss change disclosure revealed 2025 revenue growth and a 59.7% recovery in operating profit, and the May first-quarter report confirmed +19.6% revenue growth and a seasonal quarterly loss. What stands out lately is that as functional-safety regulation tightens, verification demand grows structurally, and the company holds both its own solutions and services in a high-barrier field, while its P/E and P/B on this year's expected earnings have come down to 24.9x and 1.93x respectively — strengths against which, as the first-quarter loss shows, quarterly volatility is large and a large share of annual earnings is concentrated in the second half, so second-half results must materialize as planned.
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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 “Software” (Internet, Platforms & Software), a type typically read first through forward P/E.
Software scales cheaply — once a product is built, serving another customer costs little, so profit can grow quickly as revenue climbs. Early on, though, spending on development and marketing runs ahead of earnings, which makes the forward P/E — based on expected earnings — the better starting point.
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 ratio, current ratio and interest burden all look healthy.
- Revenue rose 5.8% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 19.6% higher than a year earlier.
- ROE is 8.0% (controlling-interest basis). It is above the sector average.
- Operating margin is 13.4%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Bae Hyun-seob 33.01% (individual)
Controlling bloc incl. related parties 41.13%
With the controlling bloc holding 41%, the ownership structure is stable.
🔎 In-depth analysis Reading
This company earns money by selling verification and validation (V&V) tools and services that test whether software works safely as designed. Its main customers are mission-critical fields such as aircraft control, nuclear reaction control, and autonomous driving, where a single small error can lead to loss of life. Revenue comes in two broad strands. One is supplying its own solutions (software licenses) that automatically verify code, design, and systems to automotive, defense, nuclear, rail, and aerospace firms; the other is third-party verification services performing verification directly on customers' behalf. Recently it has been widening its reach with virtual-validation tools that pre-verify autonomous-vehicle functions in a digital environment, and with verification technology that checks the reliability of AI itself. Because certification and verification are hard to switch once established, it is a business where the customer base runs long.
The latest close is ₩4,035 and the market capitalization is ₩215.7 billion. The price sits above its 20-day moving average (₩3,784) and below its 60-day moving average (₩4,907). 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 50.2, a neutral level. The one-month change is -2.2%, the three-month change is -47.3%, and the position relative to the 52-week high is -60.5%. Relative strength versus the KOSDAQ is 37 (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 37% of all stocks. Over the past three months it lagged the index by 20.2%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
In 2025 it recorded revenue of ₩93.9 billion, operating profit of ₩12.6 billion, and net profit of ₩8.6 billion. The operating margin (operating profit as a share of revenue) is 13.4% and the net margin 9.1%, both solid, and the ROE (how much it earns in a year on its equity) is 8.0%, slightly above the peer average. The P/E (how many times one year's earnings the price is) is 25.14x and the P/B (how many times equity) is 2.01x. What matters, though, is that both figures are computed on last year's confirmed results (trailing). Because 2024 net profit temporarily jumped sharply and then came down to a normal level in 2025, the denominator was compressed for a single year and the P/E looks high; that in itself does not mean it is expensive. In other words, the valuation burden thins as much as earnings recover. The debt-to-equity ratio (debt against equity) is 167% and the current ratio (short-term assets covering debt due within a year) is 171%, so it is a structure that grows the business using debt while holding short-term payment capacity.
Over three years revenue climbed steadily from ₩63.3 billion to ₩88.8 billion to ₩93.9 billion. The growth rate itself eased from the 40% range to 5.8%, but that is a natural slowdown after the top line has already grown large, and the revenue direction is still up. On the earnings side it is clearer. Operating profit overcame a -31% setback in 2024 and recovered a double-digit margin in 2025 with +59.7% growth. Net profit looking down 20.6% in 2025 is due to the base effect of a +136% surge in 2024 — not a trend deterioration but a figure that spiked one year returning to place. First-quarter 2026 revenue rose 19.6% year on year, continuing the growth. This company has a distinct business trait in which orders and verification revenue concentrate in the second half, so first-quarter operating and net losses (-₩0.42 billion and -₩0.65 billion) are the usual seasonal pattern, with annual earnings accumulating in the second half. The P/E on this year's expected earnings coming down to 24.9x from the last-year basis reflects the picture in which the recovered operating margin and double-digit revenue growth lift this year's earnings again. Meanwhile there is no visible basis to see the outlook beyond next year as lower than this year, so there is no signal to conclude the cycle is at a top now.
Recent disclosures center on regular reports and the shareholders' meeting. A February 2026 disclosure of a change in profit-and-loss structure of 30% or more confirmed and disclosed the 2025 annual results (revenue up, net down), together with the fact that operating profit recovered +59.7%. In March the annual report and regular shareholders' meeting reconfirmed a business structure centered on test-verification solutions and third-party verification, and the May first-quarter report confirmed +19.6% revenue growth and a seasonal quarterly loss. In April there was an administrative disclosure of a change in listing category. Rather than one-off events such as large new orders or dividends, the core is a flow of regular disclosures that show the business structure and its second-half-concentrated seasonality as they are.
The strong parts are clear. As functional-safety (ISO 26262 and the like) regulation tightens, software-verification demand grows structurally in automotive, defense, and nuclear, and in the high-barrier mission-critical field the company holds both its own solutions and third-party verification services. Revenue is steadily up, the operating margin has recovered into double digits, and the P/E and P/B that looked high on last year's numbers come down to 24.9x and 1.93x respectively on this year's expected earnings, thinning the valuation burden as much as earnings recover. That the price has fallen to about half the 52-week high, with the market's expectations already much cooled, is also worth noting against a business whose earnings are recovering. The cautions are that, as the first-quarter loss shows, quarterly volatility is large, and that a large share of annual earnings is concentrated in the second half, so second-half orders and verification results must materialize as planned. In short, if second-half verification revenue concentrates as in prior years and earnings recover, the current price band is attractive; conversely, if second-half results fall short, the recovery hopes can be pushed back.
🔎 Valuation vs peers Overvalued
Viewed as B2B software quality and security rather than games, and compared with enterprise-software firms of the same character.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| AhnLab | 11.97x | 1.77x | 15.15% |
Versus an enterprise security and software firm of the same character (AhnLab at about a 12x P/E and 1.7x P/B), SureSoftTech trades at a clear premium with a 31.96x P/E and 2.56x P/B, which can be seen as reflecting expectations for the structural growth of verification demand and niche competitiveness. That said, the trailing P/E on last year's confirmed results is affected by 2025 net profit falling as a reaction to the 2024 surge, so it looks somewhat high; and on a forward view based on this year's revenue and margin trend the P/E is also estimated, so the burden does not fall greatly. Until growth expectations are confirmed by results, the valuation is on the high side.
Price history Close · MA20 · MA60
The latest close is ₩4,035 and the market capitalization is ₩215.7 billion. The price sits above its 20-day moving average (₩3,784) and below its 60-day moving average (₩4,907). 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 50.2, a neutral level. The one-month change is -2.2%, the three-month change is -47.3%, and the position relative to the 52-week high is -60.5%. Relative strength versus the KOSDAQ is 37 (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 37% of all stocks. Over the past three months it lagged the index by 20.2%. 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 -20.16% / 6M -33.39% / 12M -19.90%
Key metrics Computed vs sector median
Valuation
The P/E of 25.14x is above the sector median (11.94x). The P/B of 2.01x 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, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 8.0%, above the sector average (1.0%). The operating margin is 13.4%. The debt ratio is 44.0%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $44.5M | $62.4M | $66.0M | +5.78% ↓ slower |
| Operating profit | $8.1M | $5.5M | $8.9M | +59.69% ↑ faster |
| Net profit | $3.6M | $7.6M | $6.0M | -20.57% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $44.5M | $62.4M | $66.0M |
| Operating profit | — | — | $8.1M | $5.5M | $8.9M |
| Net profit | — | — | $3.6M | $7.6M | $6.0M |
| Revenue CAGR | 2-yr avg 21.83% | ||||
Revenue rose 5.8% year over year (2023 ₩63.3 billion → 2024 ₩88.8 billion → 2025 ₩93.9 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 59.7% year over year. Profit is growing at an accelerating pace. Over the 3 years on record, revenue compound annual growth (CAGR) is 21.8%. The two-year revenue CAGR is 21.8%. In the most recent quarter (Q1 2026), revenue was 19.6% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue rose 5.8% year over year, and the pace is slowing (3-year trend: rising).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-02-25EarningsDisclosure of a change of 30% or more in 2025 annual revenue or profit-and-loss structure. Revenue rose year on year, but net profit fell on the base of a temporary surge the prior year.Short term: the net decline is superficially highlighted, stirring the valuation burden. Medium term: the operating-profit recovery (+59.7%) leaves room to be read as a sign of earnings normalization. Source
- 2026-03-19FilingFiling of the 2025 annual report. Confirms a business structure centered on test-verification solutions and third-party verification services, and applied industries such as automotive, defense, and nuclear.Short term: limited direct impact. Medium term: a primary reference for checking business composition and R&D direction (virtual validation, AI verification). Source
- 2026-03-27FilingDisclosure of the result of the regular shareholders' meeting. Handling of regular agenda items such as approval of financial statements.A regular schedule with limited impact both short and medium term. Source
- 2026-05-15EarningsFiling of the 2026 first-quarter report. Revenue rose 19.6% year on year, but seasonality drove operating and net losses.Short term: the quarterly loss is a burden. Medium term: continued revenue growth and whether results concentrate in the second half are the keys to an annual recovery. Source
- 2026-04-30FilingDisclosure of a change in listing category.Short term: limited impact. Medium term: an administrative change in listing classification with low direct link to business fundamentals. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-05-15PeriodicQuarterly report
- 2026-04-30Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Audit report
- 2026-03-12Shareholders' meeting notice
- 2026-03-12Shareholders' meeting notice
- 2026-03-12Shareholders' meeting notice
- 2026-02-25EarningsEarnings filing
- 2026-02-12Disclosure
📖 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.