Socar (403550) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Socar centers its revenue on car sharing - renting cars through an app - earning vehicle-operating income from hourly short-term rentals and monthly subscription-style long-term rentals, and it has expanded into e-bikes and electric scooters (Elecle) and parking reservation and payment (Modoo Parking, ParkingCloud) as a mobility platform company. With 2025 consolidated revenue of ₩470.7 billion and operating profit of ₩23.2 billion, it turned a profit at the operating level, and its net-loss margin is narrowing quickly; in May it disclosed a subsidiary rights issue and a treasury-share disposal that shift capital to widen the platform business, and at a June extraordinary general meeting it added used-car dealing, car rental, and lending/installment finance to its business purposes. What stands out lately is the strength of an earnings inflection - top-line growth in a fifth straight year and operating profit turning positive - set against the fact that net profit is still in the red and the balance sheet is tight with a debt-to-equity ratio of 256.7% and a current ratio of 51.5%, so the key question is whether the operating profit and business expansion carry through to net profit and cash flow.
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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 “Other Services” (Other), a type typically read first through P/E.
These are mostly service businesses that earn steady profits from fairly stable operations, so price-to-earnings (P/E) — the share price against the profits it generates — is the most intuitive starting point. Value here comes from earning power rather than assets.
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 is somewhat higher than equity (debt ratio 276.9%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 41.0%).
- The most recent full-year net result was a loss.
- Revenue rose 9.0% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 26.2% lower than a year earlier.
- ROE is -11.2% (controlling-interest basis). It is below the sector average.
- Operating margin is 5.3%.
- 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 SOQRI LLC 19.73% (corporate)
Controlling bloc incl. related parties 45.92%
With the controlling bloc holding 46%, the ownership structure is stable.
🔎 In-depth analysis Reading
Socar centers its revenue on car sharing (vehicle sharing) - renting cars through an app. It earns vehicle-operating income from hourly short-term rentals and monthly subscription-style long-term rentals (Socar Plan), and through subsidiaries it has expanded into micromobility such as e-bikes and electric scooters (Elecle) and into parking reservation and payment (Modoo Parking, ParkingCloud). In short, it runs owned and partnered vehicles to raise utilization and adds mobility-platform value-added services on top to earn money. In 2025, consolidated revenue was ₩470.7 billion and operating profit was ₩23.2 billion, turning a profit at the operating level; net profit is in the red, but the size of that loss is narrowing quickly. Because vehicle depreciation and financing costs weigh on net profit, the strength of the core business is best read alongside operating profit and cash flow.
The latest close is ₩10,450 and the market capitalization is ₩396.5 billion. The price sits above its 20-day moving average (₩9,910) and below its 60-day moving average (₩11,460). 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 52.3, a neutral level. The one-month change is -1.9%, the three-month change is -27.5%, and the position relative to the 52-week high is -41.9%. Relative strength versus the KOSPI is 16 (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 15% of all stocks. Over the past three months it lagged the index by 10.0%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Because confirmed full-year net profit is still in the red (-₩18.4 billion), the trailing P/E (how many times the past year's profit the price represents) cannot be calculated, and the P/B (how many times shareholders' equity the price represents) is 2.58x. However, Socar is an earnings-inflection stock that only just turned an operating profit in 2025, so forward measures that reflect future earnings are closer to the real picture than the past year's numbers. The forward P/E looks high in absolute terms, but this is a natural feature of the early stage after a swing to profit, when the earnings base is still small, and it is the kind of figure that falls quickly as earnings grow. The operating margin is 4.9%, so the operating level is profitable, and the net-loss margin is narrowing year by year (-₩42.3 billion in 2023, -₩31.0 billion in 2024, -₩18.4 billion in 2025). That said, with a debt-to-equity ratio of 256.7% and a current ratio (assets convertible to cash within a year against debt due within a year) of 51.5%, financial headroom is on the tight side, so this is a stage to watch whether the operating profit carries through to net profit and cash flow. The dividend, at a yield of about 0.8% at the current price (₩92 per share), is best seen as a small token policy dividend.
Five-year revenue rose from ₩289.0 billion in 2021 to ₩470.7 billion in 2025, growing at about 13% a year, and the pace has actually quickened recently at +9.0% year on year. The key change is operating profit. Operating profit, in the red in 2023-2024, turned positive at ₩23.2 billion in 2025, and the net-loss margin also shrank to less than half over the same span. The basis for this year's expected earnings is not a simple extension but an actual business flow: (1) revenue keeps growing near double digits, (2) operating-level profitability has taken hold as vehicle utilization and the subscription (Socar Plan) share rise, and (3) revenue sources are widening through subsidiary micromobility and parking. Q1 2026 revenue (₩97.1 billion) fell 26.2% year on year, but because car sharing concentrates revenue and profit in the second-half travel peak (Q3-Q4), it is too early to gauge the full year from Q1 alone. There is no clear basis to view the years after next as lower than this year, and if the operating-profit trend continues, there is room for earnings to normalize further.
The core of recent disclosures is a capital shift to grow a subsidiary. In May 2026, a mobility subsidiary wholly owned by Socar decided on a ₩7.5 billion third-party allotment rights issue (75,000 new shares at ₩10,000 per share, allotted to Cross, payment 2026-06-30) to secure early operating funds for a new business. In tandem, Socar itself disclosed a flow in which it disposes of about 1.08% of treasury shares at ₩12,750 per share and uses the proceeds to invest in the subsidiary. At the June 4 extraordinary general meeting, an agenda item adding numerous business purposes - used-car dealing, car rental, lending/installment finance, and auto-parts sales - passed with 100% in favor (47.4% attendance). On May 14 the Q1 2026 quarterly report was also submitted. In short, the disclosure narrative runs as platform-business expansion plus subsidiary capital buildup plus fundraising at the parent.
The strengths are clear. Amid top-line growth in a fifth straight year at an accelerating pace, operating profit - in the red in 2023-2024 - turned positive in 2025, and the net-loss margin is narrowing year by year. Widening its business purposes beyond car sharing into micromobility, parking, used cars, car rental, and mobility finance to grow as a platform is also a mid-term growth axis. The forward P/E being high in absolute terms is because earnings are still small at the early stage after a swing to profit, not a weakness in itself. Points to weigh together are that net profit is still in the red and the balance sheet is tight with a debt-to-equity ratio of 256.7% and a current ratio of 51.5%, and that capital events such as subsidiary investment and treasury-share disposal can affect the financial structure. In sum, if the swing to operating profit and the business expansion carry through to net profit and cash flow, the strength of the earnings inflection shows through strongly; conversely, if revenue growth slows or the burden of subsidiary investment weighs further on the parent's finances, the pace of recovery may slow.
🔎 Valuation vs peers Inconclusive
The comparison prioritizes names whose actual business is close to the 'run vehicles to earn money' mobility/rental structure; Lotte Rental, which combines vehicle rental and car sharing (Greencar), is the closest peer, and KG Mobility, a finished-car maker with a different business structure, is added as a reference for a sense of automotive-industry valuation.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Lotte Rental | 11.41x | 0.93x | 8.22% |
| KG Mobility | 12.58x | 0.39x | 4.69% |
(a) Position versus the true peer set: the closest peer, Lotte Rental, is undervalued relative to capital and profitable at a P/B of 0.71x and ROE of 8.2%, whereas Socar is far more expensive relative to asset value with a P/B of 2.58x and negative profitability at an ROE of -11.2%, so on a simple multiple it is in a premium zone. (b) Nature of the premium: this premium reflects the growth potential of a car-sharing platform and the expectation of the 2025 swing to operating profit; it is justified if results follow through, and a burden if they do not. (c) Limits of last year's trailing: the confirmed P/E cannot be calculated because of the loss, and because 2025 was just an inflection point of turning to operating profit, value is hard to conclude from the past year's measures alone. With no official company forecast, approximating this year from the seasonality of DART quarterly results leaves room for the operating-profit trend to continue, but this is unverified. Therefore, rather than declaring it cheap or expensive, the verdict is set to Inconclusive.
Earnings outlook Estimate company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | ₩97.4 billion | ₩1.8 billion | — |
Price history Close · MA20 · MA60
The latest close is ₩10,450 and the market capitalization is ₩396.5 billion. The price sits above its 20-day moving average (₩9,910) and below its 60-day moving average (₩11,460). 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 52.3, a neutral level. The one-month change is -1.9%, the three-month change is -27.5%, and the position relative to the 52-week high is -41.9%. Relative strength versus the KOSPI is 16 (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 15% of all stocks. Over the past three months it lagged the index by 10.0%. 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 -9.98% / 6M -29.85% / 12M -58.67%
Key metrics Computed vs whole-market median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 2.58x is above the whole-market median (0.84x).
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 9.2%, 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 -11.2%, below the whole-market average (3.0%). The operating margin is 5.3%. The debt ratio is 276.9%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $279.9M | $303.3M | $330.7M | +9.02% ↑ faster |
| Operating profit | -$6.8M | -$6.9M | $16.3M | — |
| Net profit | -$29.7M | -$21.8M | -$12.9M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $203.0M | $279.3M | $279.9M | $303.3M | $330.7M |
| Operating profit | -$14.7M | $6.7M | -$6.8M | -$6.9M | $16.3M |
| Net profit | $4.4M | -$12.7M | -$29.7M | -$21.8M | -$12.9M |
| Revenue CAGR | 4-yr avg 12.97% | ||||
Revenue rose 9.0% year over year (2023 ₩398.5 billion → 2024 ₩431.8 billion → 2025 ₩470.7 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is 13.0%. The two-year revenue CAGR is 8.7%. In the most recent quarter (Q1 2026), revenue was 26.2% lower than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- —
Points to watch
- Debt is somewhat higher than equity (debt ratio 276.9%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 41.0%).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-18UpdateA wholly owned (mobility) subsidiary decided on a ₩7.5 billion third-party allotment rights issue (75,000 new shares at ₩10,000 per share, allotted to Cross, payment date 2026-06-30, operating funds for a new business)A capital buildup for subsidiary business expansion that can serve as a mid-term growth base, but additional investment burden may be reflected in consolidated financials, so the use of funds and whether they are recovered should be viewed together. Source
- 2026-05-18FilingThe parent disposed of about 1.08% of treasury shares (disposal price ₩12,750) - the proceeds used to invest in the mobility subsidiaryA capital shift to raise funds for the subsidiary investment; the disposed volume can affect free float and supply-demand, so it can be seen as a short-term swing factor. Source
- 2026-06-04FilingAt the extraordinary general meeting, an expansion of the articles' business purposes (adding numerous items such as used-car dealing, car rental, lending/installment finance, and auto-parts sales) and a change to the board-composition provision passed (100% in favor, 47.4% attendance)A mid-term strategy signal of widening the business beyond car sharing into used cars, car rental, and mobility finance, but whether the new businesses actually contribute revenue and profit needs to be confirmed in future results. Source
- 2026-05-14EarningsQ1 2026 quarterly report submitted (consolidated cumulative revenue ₩97.1 billion, operating profit ₩1.4 billion, revenue -26.2% year on year)The top line shrank year on year, showing short-term growth softening, and whether the second-half seasonal recovery materializes is the key to this year's full-year results. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Latest close | ₩10,450 | — | Unverified | link |
| 2025 annual revenue | ₩470.7 billion | ₩470.7 billion | Confirmed | link |
| Subsidiary rights-issue size | ₩7.5 billion | ₩7.5 billion | Confirmed | link |
| Q1 2026 operating profit | ₩1.4 billion | ₩1.4 billion | Confirmed | link |
| Seasonality-approximated annual operating profit | ₩22.8 billion | — | Unverified | link |
Recent filings Source
- 2026-06-04Shareholders' meeting notice
- 2026-05-29Corporate governance report
- 2026-05-27OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-27OwnershipOwnership-change filing
- 2026-05-19Disclosure
- 2026-05-19Shareholders' meeting notice
- 2026-05-19Material-fact report (amended)
- 2026-05-18Paid-in capital increase
- 2026-05-18Paid-in capital increase
- 2026-05-15OwnershipLargest-shareholder ownership change report
- 2026-05-15OwnershipOwnership-change filing
- 2026-05-14PeriodicQuarterly 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.