STX EngineSTX엔진

STX Engine's trailing profits look solid on paper, but the shares have fallen sharply over the past year.

STX Engine, a Korean maker of marine, defense and power engines, reported trailing twelve-month revenue of ₩838.5B and net income of ₩67.5B through H1 2026. The share price is ₩16,450, down 55% over one year and near its 52-week low of ₩15,830. Free cash flow was negative at -₩11.3B and borrowings of ₩343.2B are large relative to cash of ₩114.2B.

What stands out

• Revenue grew from ₩493.5B in 2021 to ₩789.3B in 2025, and operating margin improved from 0.7% to 8.8% over the same period.
• Trailing net margin is 8.1% and ROE is 20.5%, but liabilities are 217.3% of equity, so leverage is high.
• Free cash flow is negative on a trailing basis, so reported profits are not yet turning into cash in the data provided.
• Valuation is 9.8x P/E and 1.7x P/B, with no dividend yield; the data gives a DCF base value of ₩11,276, below the current price.
• Foreign ownership fell from 5.2% to 4.0% over about 60 days, and 20-day flows show institutions net selling while retail bought.

What to watch

• Half-year and full-year results, especially whether free cash flow turns positive and borrowings change.
• Outcome of the recent change of representative director and the extraordinary shareholders' meeting, as the filings do not describe the reasons.
• Disclosed major sales or supply contracts and any amendments, since they drive much of the defense and marine order flow.