SK Square is an investment holding company that, rather than making products itself, earns money from the appreciation and dividends of stakes it holds in various companies, with most of its corporate value coming from its stake in SK Hynix (about 20%). So it makes more sense to look at what it holds and at what market value (the market value of its stakes) than at how much it earned, and the company is narrowing the gap between its market cap and its net asset value (NAV) through buybacks and cancellations. The key points to watch are that, while its core asset SK Hynix benefits from the memory upcycle, the discount to NAV stands out and the company is strong, but that if the memory cycle turns, its profit and share price are linked to SK Hynix and could wobble together.
At-a-glance assessment financial health · growth · profitability · valuation
- For financial companies, debt and interest costs are large by the nature of the business, so the debt ratio and interest coverage cannot be read on the same yardstick as an ordinary company.
- Revenue fell 14.4% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 13.2% lower than a year earlier.
- ROE is 31.9% (controlling-interest basis). It is above the sector average.
- Operating margin is 623.3%.
- Valued against the net asset value (NAV) of its listed holdings rather than a consolidated P/E — see the in-depth valuation for the detailed basis.
Ownership & governance As of 2025-12-31
Largest shareholder SK Inc. 32.14% (corporate)
Controlling bloc incl. related parties 32.16%
With the controlling bloc holding 32%, the ownership structure is stable.
Net asset value (NAV) assessment Undervalued42% discount to NAV
💡 How to read a holding company · A holding company owns stakes in several subsidiaries. Its P/E swings with equity-method gains and losses on those stakes, so read it only as a rough guide. P/B is more meaningful because subsidiary stakes sit in equity, but book value carries them at low historical cost (so P/B looks higher than reality). The most accurate view is the price against the market value of those stakes (NAV) ↓
Valued against the net asset value (NAV) of its listed holdings rather than a consolidated P/E — see the in-depth valuation for the detailed basis.
Listed subsidiaries ownership
| SK Hynix | 20.07% |
🔎 In-depth analysis
- SK Square is not a company that makes and sells products directly; it is an investment holding company that earns money from the appreciation and dividends of stakes it holds in various companies.
- Most of its corporate value comes from its stake in SK Hynix (about 20.07%, as the largest shareholder), on top of which sit unlisted subsidiaries such as SK Shieldus, 11st, Tmap Mobility and Contentwavve, plus an investment portfolio in the semiconductor and platform areas.
- The company's income is mostly filled by equity-method gains from accounting valuations of its subsidiary stakes, and its ₩8.8 trillion of net profit in 2025 was likewise not cash earned from operations but chiefly a valuation gain reflecting SK Hynix's results.
- Accordingly, it fits the business reality better to view this company by what it holds and at what market value (the market value of its stakes) rather than by how much it earned (profit).
- The latest closing price is ₩1,327,000 and the market capitalization is ₩175.1 trillion.
- The price sits below the 20-day moving average (₩1,611,200) and above the 60-day average (₩1,214,083).
- With short- and medium-term trends diverging, the direction should be read separately.
- The RSI (a supplementary gauge that compares upward and downward force over the last 14 days on a 0-100 scale) is 43.9, a neutral level.
- The one-month change is +12.2%, the three-month change is +165.9%, and the position versus the 52-week high is -32.6%.
- Relative strength against the KOSPI is 95 (on a 1-99 scale, converted from the past year's return versus the index with recent periods weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 4% of all stocks by strength.
- Over the last three months it outpaced the index by 84.9%.
- Chart reading is best done alongside trading volume and the dates on which disclosures occurred.
- On the metrics, the P/E ratio (how many times one year's profit the share price is) is 19.84x, the P/B (how many times book equity the share price is) is 6.34x, and the ROE (how much is earned in a year per unit of equity) is 31.9%.
- For a holding company, however, these numbers are hard to take at face value.
- Profit swings year to year because it is driven by equity-method valuation gains on the SK Hynix stake, and book equity carries subsidiary stakes at low historical cost, which makes the P/B look higher than it really is.
- A debt ratio of 110% and an interest-coverage ratio of 62.6x are hard to judge by the same yardstick as a typical manufacturer given the holding and finance characteristics, while a current ratio of 231% leaves ample short-term liquidity.
- In other words, viewing the company by the market value of its stakes (NAV) is closer to its reality than the surface P/E and P/B.
- Revenue (about ₩1.4 trillion on a separate basis) fell for three straight years, from ₩2.0 trillion in 2023 to ₩1.65 trillion in 2024 to ₩1.41 trillion in 2025, so on the surface it is negative growth.
- But for a holding company, a decline in revenue reflects changes in the makeup of consolidated subsidiaries more than any weakness in the business, and what actually moves corporate value is the value of the stakes it holds, not revenue.
- Net profit surged from minus ₩1.29 trillion (a loss) in 2023 to ₩3.71 trillion in 2024 to ₩8.82 trillion in 2025, because its core asset SK Hynix saw earnings rise sharply amid the cycle of expanding HBM (high-bandwidth memory) demand.
- Cumulative first-quarter 2026 net profit was also ₩8.37 trillion, a large year-on-year increase.
- Since this profit is a valuation gain on stakes rather than cash, however, it is highly volatile with the memory cycle, so it is more appropriate to track it through changes in the value of subsidiary stakes than to value it by simply extending future profit into a P/E.
- Recent disclosures center on shareholder returns.
- In November 2025 the company announced a new corporate value enhancement plan (a voluntary value-up disclosure), presenting the full cancellation of repurchased treasury shares as its core tool; cumulative purchases reached ₩750 billion and the cumulative number of cancelled shares reached about 9.509 million (6.7% of shares outstanding).
- The ₩100 billion purchased in February 2026 was cancelled in April, and from March to June a further ₩40 billion was carried out, with the disposal (cancellation) results leading to treasury-share disclosures in April and May.
- The dividend policy adds part of any meaningful asset-sale (Harvest) proceeds on top of at least 30% of recurring dividend income, and the shareholder-return ratio rose from 30.7% in 2023 to 56.5% in 2024 to 56.6% in the first half of 2025.
- These treasury-share cancellations and expanded returns read as a consistent move to narrow the discount between market cap and NAV.
- The strong side is clear.
- Its core asset SK Hynix is in a stretch benefiting from the memory upcycle, and with its market cap heavily discounted to the value of that stake (NAV), SK Square is narrowing the gap through treasury-share cancellations and expanded dividends, so on the basis of the value of its holdings the undervaluation signal is distinct.
- The weak side, by contrast, is volatility.
- Since profit and share price are effectively linked to SK Hynix, if the memory cycle turns, NAV and the share price could wobble together, and given the large recent run-up there is pullback risk.
- Also, if the realization (Harvest) of unlisted subsidiary value is delayed, the pace of discount narrowing could slow.
- In sum, it is strong while the memory cycle holds and treasury-share cancellations and asset-value realization continue, and the discount could widen again if the memory cycle slows or the momentum behind returns weakens.
🔎 Valuation vs peers Undervalued
A comparison group viewed by the substance of the assets held - its core asset SK Hynix (memory chips) and SK Inc., which shares the same SK Group holding-company structure.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| SK Hynix | 36.30x | 12.93x | 35.61% |
| SK | 27.68x | 1.76x | 6.34% |
For SK Square as a holding company, it is hard to declare it over- or undervalued from the surface P/E and P/B. Profit swings year to year because it is driven by equity-method gains on the SK Hynix stake (last year's trailing P/E of 25.7x reflects a non-cash valuation gain, so it is hard to view as a burden), and book equity carries subsidiary stakes at historical cost, which makes the P/B (8.2x) look higher than reality. The yardstick that fits the business reality is the market value of its stakes (NAV), and the market cap sits at roughly a 42% discount to the NAV of its listed stakes. Given that its core asset SK Hynix is in an upcycle stretch, that treasury-share cancellations and returns continue, and that the value of unlisted subsidiaries is not fully reflected in NAV, the discount looks excessive, so on the basis of the value of its holdings it is judged to be undervalued. That said, the fact that this value is strongly linked to the memory cycle needs to be considered alongside.
Price history Close · MA20 · MA60
The latest close is ₩1,327,000 and the market capitalization is ₩175.1 trillion. The price sits below its 20-day moving average (₩1,611,200) and above its 60-day moving average (₩1,214,083). 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 43.9, a neutral level. The one-month change is +12.2%, the three-month change is +165.9%, and the position relative to the 52-week high is -32.6%. Relative strength versus the KOSPI is 95 (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 96% of all stocks. Over the past three months it outpaced the index by 84.9%. 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 +84.89% / 6M +90.64% / 12M +230.10%
Key metrics vs whole-market median
Valuation
The P/E of 19.84x is above the whole-market median (13.81x). The P/B of 6.34x is above the whole-market median (1.15x). 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 31.9%, above the whole-market average (5.0%). The operating margin is 623.3%. The debt ratio is 110.4%, but for financial firms deposits and insurance liabilities count as debt, so it cannot be read on the same yardstick as an ordinary company.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.3B | $1.1B | $935.5M | -14.45% ↑ faster |
| Operating profit | -$1.5B | $2.6B | $5.8B | +124.39% |
| Net profit | -$853.0M | $2.5B | $5.8B | +137.59% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $1.3B | $1.1B | $935.5M |
| Operating profit | — | — | -$1.5B | $2.6B | $5.8B |
| Net profit | — | — | -$853.0M | $2.5B | $5.8B |
| Revenue CAGR | 2-yr avg -16.16% | ||||
Revenue fell 14.4% year over year (2023 ₩2.0 trillion → 2024 ₩1.6 trillion → 2025 ₩1.4 trillion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Operating profit rose 124.4% year over year. Over the 3 years on record, revenue compound annual growth (CAGR) is -16.2%. The two-year revenue CAGR is -16.2%. In the most recent quarter (Q1 2026), revenue was 13.2% 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 31.9% points to solid profitability.
Points to watch
- Revenue fell 14.4% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-05-13UpdateTreasury-share disposal (cancellation) results reported - a shareholder-return execution that fully cancels the repurchased treasury sharesRaises per-share value through a reduction in shares outstanding. A short- and medium-term positive aimed at narrowing the NAV discount Source
- 2026-04-30UpdateMaterial report (treasury-share disposal decision) - disclosure of the decision to cancel the repurchased treasury sharesConsistent execution of the shareholder-return policy. Value return through a reduction in the free float Source
- 2026-05-14FilingFirst-quarter 2026 report - cumulative net profit of ₩8.37 trillion (a large year-on-year increase reflecting equity-method gains on the SK Hynix stake)Strong results at the core asset are reflected in the value of the stake (NAV). A short-term fundamental positive Source
- 2026-06-08FilingReport on mass holding of stocks (simplified form) - report of a change in the holding structureDisclosure of information related to the holding structure. Limited direct impact on income Source
- 2025-11-24IRCorporate value enhancement plan (voluntary value-up disclosure) - a policy to strengthen shareholder returns through full cancellation of repurchased treasury shares and expanded dividendsSets a medium-term policy direction toward narrowing the NAV discount. A basis for the rising trend in the return ratio Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-08OwnershipOwnership-change filing
- 2026-05-29Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-14PeriodicQuarterly report
- 2026-05-13TreasuryTreasury-stock disposal decision
- 2026-05-13OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-13OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-13OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-13OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-13OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-13TreasuryMaterial-fact report
- 2026-04-30TreasuryMaterial-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.