Kspco케이에스피

Kspco's earnings have fallen back from 2024 peaks while the share price has dropped sharply over the past year, with the company carrying negative free cash flow and rising borrowings.

Kspco makes engine valves for marine engines and metal forgings for industrial, construction, shipbuilding and defense uses. Trailing twelve-month revenue to H1 2026 was ₩106.5B-scale at ₩106.5B, with operating margin of 12.9% and net income of ₩7.9B, below the 2024 level of ₩15.3B. The shares closed at ₩2,620 on 2026-10-28, about 57.5% lower over one year and near the bottom of the 52-week range.

What stands out

• Revenue grew 12% in 2025 to ₩95.5B, but operating income (₩11.5B) and net income (₩6.6B) both fell from 2024, when net income was ₩15.3B.
• Trailing free cash flow is negative at about -₩20.1B, while borrowings are ₩45.0B against cash of ₩16.8B.
• Liabilities are 71.9% of equity and ROE is 9.9% on a trailing basis, down from 26% in 2024.
• The valuation shows a P/E of 13.3 and P/B of 1.2, while the company's own DCF model gives a base value of ₩2,899 and a range of ₩1,248 to ₩5,773.
• Filings in 2026 include a CEO change, a cash dividend decision and a half-year report; no news headlines were provided for the period.

What to watch

• The next quarterly and annual filings, to see whether margins and free cash flow recover from the H1 2026 level.
• Whether borrowings keep rising relative to cash, given negative trailing free cash flow.
• Foreign ownership is 3% and fell slightly over 60 days, and the joint CEO structure was introduced in March 2026; the data does not say what either means for the business.