Farmsco팜스코

Farmsco's trailing profit has swung to a net loss in H1 2026, though operating income is still positive and the shares trade near book value.

Farmsco is a Korean livestock feed and food company whose trailing twelve-month revenue is about ₩1.6T with a 5.1% operating margin, but a net loss of about ₩16B leaves return on equity at -9.5%. The balance sheet is heavily geared, with liabilities at 445.6% of equity and cash of ₩123B against borrowings of ₩34B, and the share price is ₩2,400, down 13.4% over three months.

What stands out

• 2025 was a profitable year, with net income of about ₩41B after losses in 2021-2024 apart from a small 2021 profit, but the trailing twelve months are back in loss.
• Operating income of about ₩83B on ₩1.63T revenue is positive, so the trailing loss is below operating level, and the filings do not explain the gap in the data provided.
• The shares trade at about 0.5 times book value and the data shows a 2.1% dividend yield, while P/E is not meaningful because earnings are negative.
• The DCF fair value model gives a base of ₩4,142 against the ₩2,400 price, but the bear case is ₩0 and the bull case is ₩18,811, a very wide range that is a model output and not a forecast.
• Recent filings are mostly routine: a half-year report, related-party transaction and debt guarantee disclosures, and several 5%+ holding reports. No news headlines were in the data.

What to watch

• The next quarterly or annual results, to see whether the trailing net loss persists or reverses from the 2025 profit.
• Debt guarantee decisions for other parties and related-party transactions with affiliates, which are disclosed in filings and bear on balance sheet risk.
• Further 5%+ holding reports, since ownership changes are being filed frequently. Foreign ownership and short interest data were not available.