Daou Data다우데이타

Daou Data's trailing revenue has grown sharply through 2025 and into 2026, but thin margins, heavy borrowings and negative free cash flow weigh on the picture.

Daou Data, a KOSDAQ-listed Seoul company with software and hardware distribution and VAN services, reported trailing revenue of about ₩35.5T to H1 2026, up from ₩18.1T in 2025. Net margin is only 0.9% and free cash flow is negative at about -₩12.1T, against borrowings of about ₩45.5T and cash of about ₩3.2T. The share price has fallen about 17% over one month and 4% over one year, trading near its 52-week low.

What stands out

• Revenue rose 48.7% in 2025 to ₩18.1T, but operating margin fell from 9.9% in 2024 to 8.9%, and trailing operating margin is 6.5%.
• Trailing net income is about ₩336B, a net margin of 0.9%, far below the 2025 level of ₩219B on a much larger revenue base.
• Liabilities are about 11.9 times equity and borrowings are roughly ₩45.5T against ₩3.2T of cash, so leverage is very high.
• The filings list a merger decision (June 2026, amended August 2026) and a change of largest shareholder, but the data does not explain their terms or effects.
• Trailing P/E is about 1.9 and P/B about 0.3, while the data's DCF model gives a base value of ₩2.80M per share, far above the ₩16,390 close; this is a model output, not a forecast.

What to watch

• The terms and progress of the merger decision and its amendment, which the data does not describe.
• Whether free cash flow turns positive given the large borrowings relative to cash.
• The next quarterly report, since recent margins are narrowing and the data gives no guidance.