Xgate (356680) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
Xgate's core business is not games but network and information security: it earns money from supplying security appliances and software such as VPN, firewalls and UTM to public institutions and companies, and from the maintenance and technical-support revenue that comes in every year on equipment once installed; because customers rarely switch once they adopt, revenue accumulates stably, while new revenue concentrates around year-end budget execution, giving it a pronounced seasonality with a large fourth-quarter weight. The May 15 quarterly report confirmed Q1 revenue of ₩9.7 billion and a swing to profit, the March business report finalized last year's annual results (revenue ₩48.1 billion, operating profit ₩3.8 billion), and in April it held an IR to explain the business directly. What stands out most recently is that slow-to-replace security appliances and recurring revenue, accelerating revenue growth, and a swing to profit in the off-season first quarter are strengths, whereas annual profit is set in the fourth-quarter peak season and the forward P/E is higher than AhnLab and Genians, so growth expectations are embedded in the price, making it the key question whether the Q1 profit carries through to the peak season.
This page organises public market and filing data for information purposes. It is not a recommendation to buy or sell, nor investment advice. Metrics labelled “forward” are our own unverified estimates. Please verify with the original DART filings and decide at your own responsibility.
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 “Information Security” (Internet, Platforms & Software · Software), a type typically read first through P/E.
Information-security firms provide security solutions and maintenance to businesses and institutions, with subscription and contract revenue accumulating steadily and flowing fairly reliably into profit. Because revenue translates cleanly into current-year net income, price-to-earnings (P/E) is the natural first read.
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 11.4% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 31.9% higher than a year earlier.
- ROE is 8.0% (total-net basis). It is above the sector average.
- Operating margin is 7.8%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Gabia 32.93% (corporate)
Controlling bloc incl. related parties 68.76%
With the controlling bloc holding 69%, control is very secure but the free float is thin.
🔎 In-depth analysis Reading
Xgate's core business is not games but network and information security. The company earns money along two main paths. One is supplying security hardware and software such as VPN (equipment that encrypts traffic so that off-site staff or branches can safely connect to the company's internal network) and firewalls and UTM (unified threat management that bundles several security functions into one appliance) to public institutions and companies; the other is revenue that comes in every year from maintenance and technical-support contracts on equipment once installed. Because customers such as government, public and financial entities rarely switch once they adopt, revenue accumulates relatively stably, and new revenue concentrates around year-end budget execution and project ordering, so a large part of revenue is booked in the fourth quarter, giving it a pronounced seasonality with the first half as the off-season.
The latest close is ₩11,100 and the market capitalization is ₩316.8 billion. The price sits above its 20-day moving average (₩10,498) and below its 60-day moving average (₩15,462). 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 47.3, a neutral level. The one-month change is -7.3%, the three-month change is -39.9%, and the position relative to the 52-week high is -59.7%. Relative strength versus the KOSDAQ is 86 (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 lagged the index by 0.4%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On a confirmed last-year (FY2025) basis the P/E (how many times one year's profit the price is) is 81.80x and the P/B (how many times net asset value the price is) is 6.50x. The numbers alone look high, but for a stock like this whose profit has just begun to rise, it is closer to reality to look at 'the profit to be earned this year' than 'the past year's profit'. The forward P/B reflecting this year's expected profit is 6.55x, both lower than the last-year basis. This means that as profit grows, the multiple comes down even at the same price. Profitability is unremarkable, with an ROE (how much was earned in a year on equity) of 8.0% and an operating margin of 7.8%, and while the debt ratio (debt to equity) is 141.5%, a current ratio of 235.9% and interest coverage of 8.2x make short-term repayment ability and interest burden sound. In sum, the financials are on the solid side, and the valuation should be read together with the flow of rising profit rather than the single high last-year P/E figure.
Over five years revenue rose steadily from ₩31.1 billion in 2021 to ₩48.1 billion in 2025, and the 2025 revenue growth of 11.4% was distinctly faster than the prior year's (0.9%). The more important change is in the most recent quarter. Q1 2026 revenue of ₩9.7 billion was up 31.9% year over year, and operating profit swung to a profit of about ₩0.2 billion. The first quarter had been in the red for the prior three years (about -₩0.93 billion in Q1 2025, about -₩0.73 billion in Q1 2023), so turning a profit in the off-season first quarter is a signal that, as revenue rises, the company has built the strength to cover its usual costs. Because this company's revenue concentrates in the fourth quarter, the annual outcome is confirmed once more in the second-half peak season, and the Q1 swing to profit shows the start was cleanly made.
The recent disclosures center on periodic reporting and IR. The May 15, 2026 quarterly report confirmed Q1 revenue of ₩9.7 billion and a swing to profit, and the March 18 business report closed out last year's annual results (revenue ₩48.1 billion, operating profit ₩3.8 billion). Through disclosures on April 14 and an amendment (April 15), it held an investor briefing (IR) where the company explained its business and results directly, a timing that overlaps with the stretch where the share price began to move in earnest. In April there was a succession of change-of-holdings reports by executives and major shareholders and large-holding reports, which show the shareholder composition and stake movements rather than the company's operations. Since no single revenue-linked disclosure such as new orders or supply contracts stood out during this period, whether the results flow continues is best confirmed again in the next quarterly report.
The strengths are distinct: a slow-to-replace business of security appliances for public and corporate customers, recurring revenue from maintenance, accelerating revenue growth, and a results improvement that turned the off-season first quarter to profit. The financials are also stable in terms of liquidity and interest burden. The valuation's last-year P/E looks high, but reflecting this year's expected profit the multiple is coming down, so it is reasonable to read it as an inflection period of rising profit. Two points to watch. Annual profit carries a large fourth-quarter peak-season weight, so a year's outcome is confirmed in the second half; and the forward P/E is still higher than fellow information-security firms AhnLab and Genians, so that much expectation for growth is embedded in the price. Accordingly, if revenue growth and the Q1 profit carry through to the fourth-quarter peak season, the stock is strong as it meets expectations, whereas if the Q1 profit proves a one-off, it becomes a stretch that unwinds the raised expectations.
🔎 Valuation vs peers Overvalued
The base classification is 'games and software', but Xgate's actual business is network and information security, so AhnLab and Genians, in the same information-security business, were taken as the true peer set; the P/E, P/B and ROE below are the site's base calculated values (at the current price).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| AhnLab | 11.97x | 1.77x | 15.15% |
| Genians | 18.53x | 2.26x | 14.05% |
Compared with AhnLab (P/E 11.7x, ROE 14.5%) and Genians (P/E 17.0x, ROE 12.0%), which are in the same information-security business, Xgate has an ROE of 8.0%, lower than both, yet its P/E and P/B are several times higher. Against the peer set it is clearly in a premium zone. That said, this P/E uses last year's single-year confirmed profit as the denominator, which carries a trap. Because this company's profit concentrates in the fourth quarter and its annual net profit varies widely, converting on last year's profit alone can make it look pricier than it really is. Conversely, if the Q1 swing to profit and revenue growth continue, the multiple on a forward basis (against this year's expected profit) has room to come down. With no official company outlook figures, the forward could only be gauged with a DART seasonality approximation, and a profit estimate was impossible due to negative quarters, so rather than asserting 'definitely expensive', it is right to see it as 'a high premium versus peers whose justification is confirmed in the fourth-quarter peak-season results'.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩13.6 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩11,100 and the market capitalization is ₩316.8 billion. The price sits above its 20-day moving average (₩10,498) and below its 60-day moving average (₩15,462). 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 47.3, a neutral level. The one-month change is -7.3%, the three-month change is -39.9%, and the position relative to the 52-week high is -59.7%. Relative strength versus the KOSDAQ is 86 (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 lagged the index by 0.4%. 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 -0.40% / 6M +100.90% / 12M +49.97%
Key metrics Computed vs sector median
Valuation
The P/E of 81.80x is above the sector median (11.94x). The P/B of 6.50x 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.
Profitability & financials
Return on equity (ROE) is 8.0%, above the sector average (1.0%). The operating margin is 7.8%. The debt ratio is 33.9%, so the financial structure is stable.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $30.1M | $30.4M | $33.8M | +11.38% ↑ faster |
| Operating profit | $2.9M | $2.4M | $2.6M | +7.69% ↑ faster |
| Net profit | $207,087 | $2.8M | $2.7M | -3.12% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $21.8M | $26.9M | $30.1M | $30.4M | $33.8M |
| Operating profit | $2.7M | $3.8M | $2.9M | $2.4M | $2.6M |
| Net profit | $2.4M | $3.2M | $207,087 | $2.8M | $2.7M |
| Revenue CAGR | 4-yr avg 11.54% | ||||
Revenue rose 11.4% year over year (2023 ₩42.8 billion → 2024 ₩43.2 billion → 2025 ₩48.1 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 7.7% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 11.5%. The two-year revenue CAGR is 6.0%. In the most recent quarter (Q1 2026), revenue was 31.9% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- Revenue grew 11.4% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-15EarningsQ1 2026 quarterly report filed. Cumulative revenue of ₩9.7 billion, up 31.9% year over year, and operating profit of about ₩0.2 billion, a swing to profit.Short term, turning an operating profit in the off-season first quarter is a signal of improving results. That said, annual profit carries a large fourth-quarter weight, so it is early to assert a trend from one quarter alone. Source
- 2026-04-15IRDisclosure of holding an investor briefing (IR) (amendment). An official communication venue where the company explains its business and results directly.Over the mid term, an occasion for the company's business direction and results explanation to reach the market. The disclosure timing overlapping with the start of the share-price surge is worth noting. Source
- 2026-03-18Earnings2025 business report filed. Annual revenue ₩48.1 billion (+11.4%), operating profit ₩3.8 billion, net profit ₩3.9 billion, finalizing last year's results.Over the mid term, the baseline of annual results. Revenue rose, but operating profit is at a level similar to five years ago, so whether profit improves relative to top-line growth is the point to watch. Source
- 2026-04-17FilingMultiple large-holding reports and change-of-holdings reports by executives and major shareholders filed.Short term, material showing shareholder composition and stake movements, with little direct bearing on the company's operating results. The background of the holding changes needs separate checking. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-05-15PeriodicQuarterly report
- 2026-04-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-17OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-17OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-17OwnershipOwnership-change filing
- 2026-04-15Amended filing
- 2026-04-14Disclosure
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-11Shareholders' 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.