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Emro · 058970 · Software

Emro: Revenue Growth Slows as Profits Fade and the Share Price Falls 67.2% in a Year

Why this report

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Emro, a KOSDAQ software company, closed at ₩14,290 on 2026-10-23, down 67.2% over one year, while trailing operating income turned negative at -₩3.4B. The model estimate based on the assumptions shown is below the current share price.

Written Oct 26, 2026 · Data as of Oct 23, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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Thesis

The data supports a picture of a business whose earnings have weakened sharply from 2024. Operating margin fell from 11.7% in 2024 to 2.4% in 2025 and -4.7% over the trailing twelve months to H1 2026. Revenue is still large at ₩72.4B on a trailing basis, and the balance sheet looks light on debt, with liabilities at 17.3% of equity. What the data does not show is a clear reason for the profit decline, since no news headlines are available and filings give only titles. The share price is 69.7% below its 52-week high of ₩47,150 and 20.1% above the low of ₩11,900. A CEO change was filed on 2026-07-08, and the data does not say what it means for results.

Business overview

Emro was founded on 2000-03-15 and listed on KOSDAQ on 2021-08-13. It is classified in the software sector and has 12,362,794 listed shares. Market capitalisation is ₩176.7B and enterprise value is ₩149.0B. Annual revenue rose from ₩44.1B in 2021 to ₩80.9B in 2025, with growth of 24.1% in 2022, 8.2% in 2023, 26.5% in 2024 and 7.8% in 2025. The data does not describe products or customers.

Financial analysis

These figures come from filed financial statements. Revenue for 2025 was ₩80.9B, with operating income of ₩2.0B (2.4% margin) and net income of ₩3.6B. In 2024, operating income was ₩8.8B (11.7% margin) and net income was ₩18.7B, with ROE of 32.6%. In 2023 the company posted a net loss of ₩27.3B and ROE of -70.6%. For the trailing twelve months to H1 2026, revenue was ₩72.4B, operating income was -₩3.4B (-4.7% margin), net income was ₩420.8M (0.6% margin) and ROE was 0.5%. Cash was ₩17.7B, free cash flow was ₩534.8M, and borrowings are not available in the data. Liabilities to equity were 17.3%.

Valuation

The trailing P/E is 419.8, which reflects very small net income, against a year-end 2025 P/E of 127.0 and 42.7 in 2024. P/B is 1.9, below year-end levels of 4.8 (2025) and 9.1 (2024). P/S is 2.4, EV/EBITDA is not available, and the dividend yield is 0.0%. Peers listed are Hyundai Autoever (P/E 46.6, P/B 4.7), Krafton (10.2, 1.2), NC (7.1, 1.2), Netmarble (7.1, 0.5) and PearlAbyss (8.0, 2.1). Emro's P/E is far above all of them, and its P/B sits within the peer range. The valuation model (5-year discounted cash flow at a 7.8% rate, based on the trailing figures to H1 2026) gives a base estimate of ₩9,384 per share, with a bear case of ₩5,997 and a bull case of ₩14,964. This is a model estimate based on the assumptions shown, not a target. The current price of ₩14,290 is above the base case and just below the bull case.

Catalysts

  • A major sales or supply contract was filed on 2026-10-20, though the filing title gives no amount or terms in the data.
  • The half-year report for June 2026 was filed on 2026-08-14 and amended on 2026-08-28, and later results will show whether the loss at the operating level continues.
  • A CEO change and an extraordinary shareholders' meeting were filed on 2026-07-08, which could affect strategy.
  • Stock purchase option grant notices were amended on 2026-07-08 and 2026-09-29, which relate to employee or management incentives.
  • An investor relations event was held on 2026-08-14, though the data has no details of its content.

Risks

  • Trailing operating income is negative at -₩3.4B, and the 2025 margin of 2.4% is well below earlier years.
  • Earnings have been volatile, with a ₩27.3B net loss in 2023 followed by ₩18.7B net income in 2024.
  • The share price fell 11.9% in the past month and 67.2% over one year, showing high volatility.
  • Foreign ownership dropped from 3.8% to 2.0% in 60 days, and the foreign investors' 20-day net flow was negative at -₩490.1M.
  • Amended filings for the 2025 annual report and the March 2026 quarterly report appeared on 2026-07-16, and the data does not explain the changes.

Closing view

The data shows a company with growing revenue over five years but sharply weaker profitability since 2024, a low-debt balance sheet and a share price that has fallen steeply. The current price is above the model's base estimate of ₩9,384 and near its bull case, while earnings multiples are far above peers. Recent filings point to leadership and contract developments whose effects are not yet visible in the numbers. Investors would want to see whether profits recover in coming filings; the data alone cannot settle that.

Model estimate of fair value

Bear
₩5,997
-57%
Base
₩9,384
-32%
Bull
₩14,964
+8%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 7.8%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 26, 2026InitiationStart of coverage (reader request)Emro: Revenue Growth Slows as Profits Fade and the Share Price Falls 67.2% in a Year

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information