Ask Warren

JONBUR Research · Initiation

Danal · 064260 · Software

Danal: Thin Operating Profit, Net Losses and a Sharp One-Year Share Price Decline

Why this report

Start of coverage: written when a reader opened this company and there was no report yet.

Danal's shares closed at ₩4,055 on 2026-10-16, down 56.6% over one year, with trailing revenue of ₩227.6B and a net loss of ₩50.0B. Operating profit is slightly positive, but borrowings exceed cash and recent filings point to convertible bond activity and a lawsuit.

Written Oct 19, 2026 · Data as of Oct 16, 2026 · 0 views

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

XfWATGr/in@

Thesis

The data supports a picture of a company with a large revenue base but almost no operating profit. The trailing operating margin is 0.8%, and net income is deeply negative at -₩50.0B, a net margin of -22.0%. Revenue has fallen for two straight years (-11.7% in 2024, -13.6% in 2025).

On the other side, the shares trade at 1.0x book value, below the 1.8x at the end of 2025, and the price sits near the bottom of its 52-week range (₩3,805 to ₩10,700). Foreign investors were net buyers over 20 days (₩2.8B), though foreign ownership fell from 6.5% to 3.7% over 60 days. The short balance is 6.1%. The data does not explain the cause of the net losses or the content of the lawsuit, so those remain unclear.

Business overview

Danal is listed on the KOSDAQ and classified in the Software sector. It was founded on 1997-07-04 and listed on 2004-07-23. It has 75,645,457 listed shares and a market capitalisation of about ₩306.7B. The CEO is 백현숙.

Revenue was ₩285.6B in 2021, rose to ₩295.5B in 2023, and fell to ₩225.4B in 2025. The data does not break revenue down by product or segment, and no recent news headlines are available.

Financial analysis

These figures come from filed financial statements. Trailing twelve-month revenue to H1 2026 was ₩227.6B, operating income ₩1.9B and net income -₩50.0B. For 2025, revenue was ₩225.4B, operating income ₩2.3B (1.0% margin) and net loss ₩63.7B, with ROE of -21.2%. In 2021, by comparison, operating margin was 5.6%, net income ₩56.3B and ROE 16.6%. Net income was positive in only two of the last five years (2021 and 2024, the latter at ₩7.3B).

On the balance sheet, cash is ₩62.0B against borrowings of ₩234.4B, and liabilities to equity is 134.8%. Trailing free cash flow is negative at -₩26.1B. Trailing ROE is -16.7%.

Valuation

The shares trade at 1.0x book value and 1.3x sales. P/E and EV/EBITDA cannot be calculated because earnings are negative or unavailable. Enterprise value is about ₩479.1B. The dividend yield is 0.0%. Year-end P/B was 0.7x in 2024, 1.2x in 2022 and 2023, and 3.3x in 2021, so the current level is in the lower part of its own history.

The listed comparison companies show P/B ratios of 0.5x to 4.7x (Netmarble 0.5x, Krafton 1.2x, NC 1.3x, PearlAbyss 2.0x, Hyundai Autoever 4.7x) and mostly positive P/E ratios of 7.2x to 47.1x. They are much larger, with market caps of ₩2.1T to ₩9.0T, so the comparison is loose.

A valuation model estimate per share is not available for Danal, so no comparison with the share price can be made.

Catalysts

  • A filing on 2026-09-29 covers a decision to sell treasury convertible bonds (8th series), which relates to the company's funding and share count.
  • A filing on 2026-09-18 covers acquisition of convertible bonds after issuance and before maturity, which may be relevant to debt management.
  • A lawsuit filing or ruling was disclosed on 2026-09-18, and its outcome could matter, though details are not in the data.
  • Foreign investors were net buyers of ₩2.8B over 20 days, even as their ownership share declined over 60 days.
  • An 'Other management matters' filing on 2026-10-08 may contain further information, but its content is not in the data.

Risks

  • Net losses of -₩63.7B in 2025 and -₩50.0B on a trailing basis are eroding equity, with ROE at -16.7%.
  • Borrowings of ₩234.4B are almost four times cash of ₩62.0B, and free cash flow is negative.
  • Revenue has declined for two consecutive years, down 13.6% in 2025.
  • The operating margin of 0.8% leaves little buffer against cost increases or further sales declines.
  • A 6.1% short balance, a 56.6% one-year price fall and falling foreign ownership indicate weak market sentiment.

Closing view

The data shows a company with a sizeable revenue base but minimal operating profit, repeated net losses, falling sales and debt well above cash. The price-to-book multiple of 1.0x is low relative to the company's recent history, but that reflects weakening earnings and equity rather than clear evidence of undervaluation. With no valuation model estimate, no news and little detail on the lawsuit and convertible bond filings, important questions remain open. Investors would want to follow future filings for profitability, cash flow and debt developments.

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Filings and data used

Report history

  1. Oct 19, 2026InitiationStart of coverage (reader request)Danal: Thin Operating Profit, Net Losses and a Sharp One-Year Share Price Decline

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