Sphere (347700) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
Sphere runs a materials and supply-chain-management (SCM) business, sourcing high-performance aerospace specialty alloys such as nickel and superalloys used in launch vehicles and engines and delivering them to end users, with most of its actual revenue coming from a long-term supply contract with SpaceX. On June 8, 2026, a single-sale/supply contract worth about ₩42.5 billion was disclosed, and through May and June there were several amendments to the contract terms, while in May the disposal of about ₩2.5 billion of its own convertible bonds and the exercise of conversion rights were disclosed, leaving open the point that changes in share count and valuation gains and losses can shake net profit. The strengths to note are that it secured a decade-long long-term contract that SpaceX rarely signs with outside vendors, and that ₩77.2 billion for 2026 is already confirmed volume, giving high revenue visibility. The cautions are that net profit is swayed by convertible-bond and derivative valuation gains and losses, making valuation hard to judge by P/E, and that raw-material price and margin management, along with the possibility of stake dilution, remain.
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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 far exceeds equity (debt ratio 399.4%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 27.3%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue rose 11.9% year over year, and the pace is holding steady (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 106.2% higher than a year earlier.
- ROE is 35.9% (total-net basis). It is above the sector average.
- Operating margin is 4.6%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder Choi Kwang-soo 29.98% (individual)
Controlling bloc incl. related parties 39.87%
With the controlling bloc holding 40%, the ownership structure is stable.
🔎 In-depth analysis Reading
Sphere runs a materials and supply-chain-management (SCM) business, sourcing high-performance aerospace specialty alloys and delivering them to end users. Its core is sourcing and supplying high-spec alloys such as nickel and superalloys used in launch vehicles and engines. Most of its actual revenue comes from a long-term supply contract with SpaceX. Because it is a transaction-based structure of securing and delivering specialty-alloy raw materials, revenue swings heavily with contracted volume and delivery timing.
The latest close is ₩20,050 and the market capitalization is ₩1.0 trillion. The price sits above its 20-day moving average (₩17,852) and below its 60-day moving average (₩27,470). 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 50.8, a neutral level. The one-month change is -2.2%, the three-month change is -52.6%, and the position relative to the 52-week high is -62.2%. 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 88% of all stocks. Over the past three months it lagged the index by 26.0%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
The P/E ratio (how many times one year's earnings the price is) is 6075.76x, which is effectively meaningless, because last year's net profit was pressed down to ₩170 million. The operating margin was 9.5% and ROE (how much is earned per year on equity) was 0.3%. The reason net profit is small is not that the operating business is poor, but that non-operating items such as derivative valuation gains and losses related to convertible bonds swung heavily. The P/B ratio (how many times net assets the price is) is a very high 15.06x. This is because book equity is small, at ₩6.36 billion, while the market is pricing in future contract results in advance. The debt ratio (debt versus equity) is 150%, but with a current ratio of 245% it has short-term paying ability. Net debt (total borrowings minus cash) is about ₩8.5 billion, negligible versus the market cap, so the financial-leverage burden is not large.
The change in the revenue trajectory is the heart of this company. Last year's revenue was ₩95.6 billion, a sharp jump from the prior year. As the business changed after a merger, the very scale of revenue stepped up. First-quarter 2026 revenue was ₩45.07 billion, up 106% from a year earlier. A single quarter's revenue already approaches half of last year's full year. The growth driver is clear. A ₩77.197 billion specialty-alloy supply to SpaceX from January to December 2026 is confirmed. This is the first year's volume of a long-term contract running through 2035. The quality of earnings, however, is still being refined. First-quarter operating profit was ₩710 million, small relative to the revenue scale, and net profit of ₩39.78 billion was mostly a one-off valuation gain related to convertible bonds. So this year's earnings should be viewed by how much operating profit settles in alongside the contracted volume.
Recent disclosures are mostly concentrated on the SpaceX supply contract and its amendments. On June 8, 2026, a single-sale/supply contract worth about ₩42.5 billion was disclosed. Through May and June there were several amendments to the contract, which can be seen as the process of the contract volume and terms being finalized and adjusted in detail. On the funding side, a decision to dispose of about ₩2.5 billion of its own convertible bonds was disclosed on May 19, and the exercise of conversion rights on May 22. If convertible bonds are converted into shares, the number of outstanding shares rises and existing shareholders' stakes may be diluted, and the valuation gains and losses in this process can shake net profit heavily, which is a point of caution.
The strengths are clear. It secured a decade-long long-term contract that SpaceX rarely signs with outside vendors. With ₩77.2 billion for 2026 already confirmed volume, revenue visibility is high. It is a structure where specialty-alloy volume rises together with growing launch-vehicle demand. The cautions are clear too. First, net profit is swayed by convertible-bond and derivative valuation gains and losses, swinging heavily by quarter, so valuation is hard to judge by P/E. Second, as a transaction structure of sourcing and delivering materials, raw-material price and margin management are the key to results. Third, the possibility of stake dilution from convertible-bond conversion remains. In sum, whether the contracted volume converts stably into operating profit is the strong condition, and if the base-business margin, stripped of one-off gains, wobbles, that is the weak condition.
🔎 Valuation vs peers Inconclusive
Materials companies that source, process and supply specialty alloys and industrial metal materials are taken as the peer set. Given that the business is materials sourcing and delivery, piping, fitting and casting-forging materials makers serve as reference.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Sungkwang Bend | 20.75x | 1.29x | 6.10% |
| Hy-Lok Corporation | 7.64x | 0.84x | 11.80% |
| Samyoung M-Tek | 10.71x | 0.97x | 10.83% |
The peer materials companies sit at P/E ratios of 7-22x and P/B ratios of 0.8-1.4x. Sphere's P/E of 7,394x and P/B of 19.8x are hard to compare directly with these, because last year's net profit was pressed down to ₩170 million and net profit itself swings heavily on one-off gains and losses related to convertible bonds. In other words, today's high multiples are more accurately read as 'the denominator (earnings) is distorted' than as 'expensive.' This company's valuation depends not on trailing metrics but on how stably the 2026 confirmed volume and the long-term contract convert into operating profit. Because that conversion is still being verified, it cannot be firmly called undervalued or overvalued either way, so it is judged inconclusive.
Price history Close · MA20 · MA60
The latest close is ₩20,050 and the market capitalization is ₩1.0 trillion. The price sits above its 20-day moving average (₩17,852) and below its 60-day moving average (₩27,470). 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 50.8, a neutral level. The one-month change is -2.2%, the three-month change is -52.6%, and the position relative to the 52-week high is -62.2%. 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 88% of all stocks. Over the past three months it lagged the index by 26.0%. 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 -26.04% / 6M +0.99% / 12M +101.00%
Key metrics Computed vs sector median
Valuation
The P/E of 6075.76x is above the sector median (11.94x). The P/B of 10.10x is above the sector median (1.10x). 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.
Profitability & financials
Return on equity (ROE) is 35.9%, above the sector average (1.0%). The operating margin is 4.6%. The debt ratio is 399.4%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | — | $60.0M | $67.2M | +11.95% |
| Operating profit | — | $10.7M | $6.4M | -40.36% |
| Net profit | — | $6.0M | $119,609 | -98.02% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $3.3M | $2.0M | — | $60.0M | $67.2M |
| Operating profit | -$4.2M | -$3.9M | — | $10.7M | $6.4M |
| Net profit | -$4.4M | -$2.4M | — | $6.0M | $119,609 |
| Revenue CAGR | 3-yr avg 113.14% | ||||
Revenue rose 11.9% year over year, and the three-year trend is 'mixed'. Operating profit fell 40.4% year over year. Over the 4 years on record, revenue compound annual growth (CAGR) is 113.1%. In the most recent quarter (Q1 2026), revenue was 106.2% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- ROE of 35.9% points to solid profitability.
- Revenue grew 11.9% year over year, a sign of growth.
Points to watch
- Debt far exceeds equity (debt ratio 399.4%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 27.3%).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-06-08UpdateSigned a single-sale/supply contract for specialty alloys to SpaceX (worth about ₩42.5 billion).A signal that annual supply volume is being concretized within the long-term contract framework, raising 2026 revenue visibility. Source
- 2026-05-26FilingAmendment to the single-sale/supply contract (detailed adjustment of supply terms and volume).Part of the process of finalizing contract details; a point at which to check the certainty of volume and duration. Source
- 2026-05-22UpdateExercise of conversion rights (conversion of convertible bonds into shares).A rise in outstanding shares may dilute existing shareholders' stakes, and the related valuation gains and losses amplify net-profit swings. Source
- 2026-05-19FilingDecision to dispose of its own convertible bonds (about ₩2.5 billion).Of a funding and financial-structure adjustment nature; whether future stake dilution follows should be watched together. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-06-09Disclosure
- 2026-06-08Single supply/sales contract
- 2026-06-08Single supply/sales contract (amended)
- 2026-06-01Single supply/sales contract (amended)
- 2026-06-01Single supply/sales contract (amended)
- 2026-06-01Single supply/sales contract (amended)
- 2026-05-26Single supply/sales contract (amended)
- 2026-05-22Disclosure
- 2026-05-20Single supply/sales contract (amended)
- 2026-05-19Material-fact report
- 2026-05-18Single supply/sales contract (amended)
- 2026-05-18Single supply/sales contract (amended)
📖 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.