Pentastone Electronics earns money along four lines: RF front-end modules — power-amplifier modules, switches, and filters for the communications section of smartphones and vehicles (RF FEM); automation equipment for inspecting and assembling semiconductors and camera modules; GPU/HPC servers for AI and data centers; and automotive and EMS parts through its subsidiary PS Onyx. Of its 2025 revenue of ₩125.5 billion, mobile was about ₩57.4 billion, automation equipment about ₩51.9 billion, and automotive about ₩13.7 billion, and in Q1 automation equipment (₩19.6 billion) overtook mobile (₩11.0 billion). On April 23 it issued an interest-free privately placed exchangeable bond (about ₩1.96 billion, exchangeable into its holdings of Haesung DS shares) to fund server-parts purchases, and on April 30 it signed a high-performance server supply contract worth about ₩102.9 billion (USD 69.7 million), equal to 81.99% of last year's revenue, on 100%-upfront terms (delivery deadline August 14), signaling revenue recognition in Q2-Q3. What stands out lately is that, having swung from last year's loss to profit with an ROE of 13.2% above the sector average and a forward P/E below the sector median, plus a large server contract secured with an upfront payment received — while operating profit is thin, so net profit leaned on gains outside the core business, and with interest coverage below 1x, whether the server revenue is recognized on schedule and leads to follow-on orders needs watching.
At-a-glance assessment financial health · growth · profitability · valuation
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue rose 2.7% year over year, and the pace is slowing (3-year trend: rising).
- Net profit swung from a loss a year earlier back into the black (a turnaround).
- Most recent quarter (Q1 2026) revenue was 1.0% lower than a year earlier.
- ROE is 13.2% (controlling-interest basis). It is above the sector average.
- Operating margin is 3.1%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Yoo Dae-gyu 23.59% (individual)
Controlling bloc incl. related parties 29.64%
With the controlling bloc holding 30%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- The company earns money not from a single business but from three lines plus an automotive-electronics subsidiary.
- (1) The RF FEM business makes wireless-communications parts such as power-amplifier modules (PAM), switches, and filters for the communications section of smartphones and vehicles.
- This is the company's long-standing core business.
- (2) The automation-equipment business produces inspection and assembly equipment for semiconductor, mobile-phone, and camera-module processes, along with VCM and vibration motors, in Gumi and Vietnam, supplying large domestic and overseas customers.
- (3) The server business is a new line supplying GPU/HPC servers and infrastructure aimed at AI and data-center demand.
- (4) The consolidated subsidiary PS Onyx handles automotive and EMS parts such as vehicle microphones, dashcams, and EV chargers.
- Of the 2025 revenue of ₩125.5 billion, mobile electronic parts were about ₩57.4 billion, automation equipment about ₩51.9 billion, and automotive electronics about ₩13.7 billion.
- In Q1 2026, automation equipment (₩19.6 billion) overtook mobile (₩11.0 billion) to become the largest segment.
- The March 2025 name change from its former RF-centric name to 'Pentastone Electronics' also reflects this business diversification.
- The latest close is ₩5,590 and market capitalization is ₩261.1 billion.
- The price sits below the 20-day line (₩6,115) and below the 60-day line (₩8,689).
- Trading below both the short- and medium-term moving averages, the trend is on the subdued side.
- The RSI (a supplementary gauge comparing upward and downward force over the last 14 days on a 0-100 scale) is 37.2, a neutral level.
- The one-month change is -30.7%, the three-month change is +10.5%, and the position versus the 52-week high is -60.6%.
- Relative strength against the KOSDAQ is 87 (1-99, computed from returns versus the index over the past year with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 13% of all stocks by strength.
- Over the past three months it outpaced the index by 44.8%.
- Chart interpretation is best done alongside trading volume and disclosure dates.
- On last year's (2025) confirmed results, the P/E (how many times annual earnings the price is) is 15.15x, the P/B (how many times net assets per share the price is) is 2.00x, and the ROE (how much is earned on equity in a year) is 13.2%.
- The ROE is above the sector average, so its power to turn capital into earnings is on the good side.
- One point to note is the composition of earnings.
- Operating profit in 2025 was ₩3.9 billion (a 3.1% operating margin), yet net profit was larger at ₩17.2 billion, with the gap coming from gains and losses outside the core business, such as equity-method income and financial-asset valuation.
- So last year's operating profit itself is still thin.
- The more important figure, though, is the forward P/E that mirrors this year (the price multiple against this year's expected earnings), which is below the sector median.
- That is closer to the true picture of a stock in an earnings inflection and is a signal that it is hard to call 'expensive' on last year's numbers alone.
- In other words, last year's figures of a 15x P/E and 2x P/B are better read not as burdensome in themselves but as multiples that will fall quickly if this year's earnings rise.
- On the balance sheet, with a debt ratio (borrowings against equity) of 177.9% and a current ratio (cash-convertible assets against debt due within a year) of 232%, short-term liquidity is ample, but interest coverage (how much operating profit can cover interest) is below 1x, so covering interest with core earnings alone is tight — a point to view together.
- Over five years revenue rose from ₩60.0 billion in 2021 to ₩68.1 billion in 2023, ₩122.1 billion in 2024, and ₩125.5 billion in 2025, a five-year CAGR of 20.2%.
- After a 79% jump in 2024, the 2025 increase eased to +2.7%, but that means it held on to the sharply enlarged revenue scale for another year, so the top line itself was maintained at a high level.
- The same year, net profit swung from a prior loss (about -₩7.8 billion) to +₩17.2 billion — a turnaround.
- There is a clear basis for the forward P/E that mirrors this year coming out below the sector median.
- First, the high-performance server supply contract of about ₩102.9 billion signed on April 30 is a large deal equal to 82% of last year's revenue; it carries low collection risk with 100% upfront payment, and the company has stated it will recognize this revenue in Q2-Q3.
- Second, automation equipment (₩19.6 billion), which rose to the largest revenue segment in Q1 and overtook mobile, has thickened the revenue base by another axis.
- Add these two together and this year's revenue and earnings could clearly exceed the core business's usual level.
- The point to watch is whether the operating margin keeps pace when the server revenue is actually recognized in Q2-Q3; if core profitability holds up there as well, the quality of earnings improves a notch.
- The recent flow reads as a 'shift of weight toward new businesses.' On April 23 it issued an interest-free privately placed exchangeable bond (face value about ₩1.96 billion) to fund purchases of IT-infrastructure parts and equipment such as servers; this bond is exchangeable into 24,000 shares of Haesung DS held by the company (an investment holding, not treasury stock).
- On April 30 it signed a high-performance server equipment and parts supply contract worth about ₩102.9 billion (USD 69.7 million), equal to 81.99% of last year's revenue, with 100% upfront payment (received in full during May) and a delivery deadline of August 14.
- Q1 results were confirmed with the May 14 quarterly report, and the company stated it will recognize this server revenue in Q2-Q3.
- That said, the counterparty and item details are undisclosed as trade secrets, so the timing of revenue recognition and whether it repeats can be checked through quarterly results going forward.
- The strengths are relatively clear.
- It swung from last year's loss to profit, its capital profitability of a 13.2% ROE is above the sector average, and the forward P/E that mirrors this year is below the sector median, so in a phase of rising earnings it reads as undervalued.
- Add that it has secured a server supply contract equal to 82% of last year's revenue with the upfront payment already received, and that its core automation-equipment business rose to the largest segment in Q1, diversifying the portfolio.
- There are also points to watch.
- In both last year and Q1, operating profit was thin, so net profit leaned on gains and losses outside the core business, and with interest coverage below 1x, the picture would firm up once a recovery in core profitability is confirmed.
- The server business also has a large weight of one-off large contracts, so whether this revenue is actually recognized in Q2-Q3 and leads to follow-on orders needs watching.
- In sum, when the server revenue is recognized on schedule and automation-equipment margins hold up, the low forward multiple shines, whereas if the operating-margin recovery is slow or the server proves a one-off, the strength fades.
🔎 Valuation vs peers Inconclusive
The comparison is with stocks for which figures are available on the site in the wireless-communications parts (RF) — the former core business — and electronic-parts and display business groups; automation equipment and servers mix business characters, so a simple peer comparison has limits.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Wisol | 0.00x | 0.54x | -14.09% |
| BH | 19.49x | 0.81x | 4.15% |
(a) Position versus peers: its ROE is clearly higher than Wisol (loss-making) and BH (4.2%), but its P/B of 2.82x is far above Wisol's 0.68x and BH's 1.21x. That is, a good deal of the profitability premium is already reflected in the asset-value multiple. (b) Premium/discount: the high P/B appears to be the result of the ROE plus expectations for the new server business, but if those expectations are not realized, it becomes a discount factor. (c) Limits of trailing P/E: 2025 net profit of ₩17.2 billion is a non-recurring earnings structure more than four times operating profit of ₩3.9 billion, so the past P/E of 21x is at a remove from a multiple on core-business earnings. With no official company guidance, the forward is gauged only from a DART seasonality approximation (revenue of about ₩147.4 billion, operating profit of about ₩0.3 billion), with the limitation that it is a conservative figure excluding the ₩102.9 billion server contract. For these reasons, rather than declaring it cheap or expensive, it is left inconclusive.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩34.9 billion | approx. ₩0.1 billion | — |
Price history Close · MA20 · MA60
The latest close is ₩5,590 and the market capitalization is ₩261.1 billion. The price sits below its 20-day moving average (₩6,115) and below its 60-day moving average (₩8,689). 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 37.2, a neutral level. The one-month change is -30.7%, the three-month change is +10.5%, and the position relative to the 52-week high is -60.6%. Relative strength versus the KOSDAQ is 87 (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 87% of all stocks. Over the past three months it outpaced the index by 44.8%. 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 +44.77% / 6M -17.52% / 12M +74.81%
Key metrics vs sector median
Valuation
The P/E of 15.15x is below the sector median (18.61x). The P/B of 2.00x is above the sector median (1.63x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
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 10.4%, 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 13.2%, above the sector average (7.0%). The operating margin is 3.1%. The debt ratio is 177.9%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $45.2M | $80.9M | $83.2M | +2.74% ↓ slower |
| Operating profit | $4.3M | $7.1M | $2.6M | -63.71% ↓ slower |
| Net profit | $12.8M | -$5.2M | $11.4M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $39.8M | $34.1M | $45.2M | $80.9M | $83.2M |
| Operating profit | $105,858 | $2.9M | $4.3M | $7.1M | $2.6M |
| Net profit | -$4.9M | -$6.7M | $12.8M | -$5.2M | $11.4M |
| Revenue CAGR | 4-yr avg 20.25% | ||||
Revenue rose 2.7% year over year (2023 ₩68.1 billion → 2024 ₩122.1 billion → 2025 ₩125.5 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 63.7% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 20.2%. The two-year revenue CAGR is 35.7%. In the most recent quarter (Q1 2026), revenue was 1.0% 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.
- ROE of 13.2% points to solid profitability.
Points to watch
- Revenue rose 2.7% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-04-30UpdateHigh-performance server equipment and parts supply contract signed (about ₩102.9 billion, USD 69.7 million, 81.99% of 2025 revenue). Payment 100% upfront, delivery deadline 2026-08-14, outsourced production. Counterparty and item undisclosed as trade secrets.Short term, it is a decisive momentum that could be booked in large size in Q2-Q3 revenue, with low collection risk thanks to the upfront payment. Medium term, the key is whether the contract leads to repeat orders and, since production is outsourced, how much margin remains. Source
- 2026-04-23Filing10th bearer, unguaranteed, privately placed exchangeable bond issuance decided (face value about ₩1.96 billion, 0% coupon and yield to maturity, maturity 2031-05-04). The exchange underlying is 24,000 common shares of Haesung DS held by the company, and the proceeds fund parts and equipment for the new server and IT-infrastructure business.The short-term funding burden is small (small size, interest-free) and it shows intent to invest in the new business. However, the possibility that the held Haesung DS stake exits via exchange is a medium-term asset-change factor. Source
- 2026-05-14EarningsQ1 2026 quarterly report. Revenue of ₩35.7 billion (-1.0%), operating profit of ₩56.46 million (-97.1%), net profit of ₩15.3 billion (+405%). Automation equipment (₩19.6 billion) emerged as the largest segment, with the first ₩0.56 billion of high-performance server revenue recognized.Operating profit effectively vanishing is a short-term weakness and shows the large server contract's revenue is not yet fully reflected. Whether it is recognized in Q2-Q3 is the watershed for the next quarter's results. Source
- 2026-05-04FilingSecurities-issuance results (voluntary disclosure), several. Confirms the privately placed bond decided in April was actually paid in and completed.The impact is roughly at the level of confirming that the new-business fundraising was executed as planned, to be viewed together with how the funds are subsequently used. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| P/E (on last year's confirmed results) | 21.3x | ₩7,860 ÷ EPS ₩368.9 = 21.3x | Confirmed | link |
| Server supply contract size | approx. ₩102.9 billion | approx. ₩102,878,642,006(USD 69,696,255), revenue 81.99% | Confirmed | link |
| 2025 revenue composition by business segment | approx. 574 · approx. 519 · approx. 137 | DART revenue | Confirmed | link |
| Seasonality-approximated annual operating profit | approx. ₩0.3 billion | — | Unverified | link |
Recent filings
- 2026-05-15OwnershipOwnership-change filing
- 2026-05-14PeriodicQuarterly report
- 2026-05-04Disclosure
- 2026-05-04Disclosure
- 2026-05-04Disclosure
- 2026-05-04Disclosure
- 2026-05-04Disclosure
- 2026-05-04Disclosure
- 2026-04-30Disclosure
- 2026-04-30Single supply/sales contract
- 2026-04-23Material-fact report
- 2026-04-23Material-fact report
📖 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.