Kaon Group가온그룹

Kaon Group's trailing results have recovered to a small profit after losses in 2023 and 2024, but debt remains high and free cash flow is negative.

Kaon Group, a KOSDAQ-listed maker of broadband, OTT and network equipment that sells mostly abroad, reported trailing twelve-month revenue of about ₩506B and operating income of about ₩30B through H1 2026. The shares closed at ₩3,950, well below the 52-week high of ₩10,920, and the stock fell 13.6% over the past month. Borrowings of about ₩158B against ₩52B of cash, and a liabilities-to-equity ratio of 280%, stand out in the data.

What stands out

• Operating margin improved to 5.9% on a trailing basis, compared with 2.4% for 2025 and losses in 2023 and 2024.
• Trailing free cash flow is negative at about -₩20B, so reported profit is not yet turning into cash.
• The company has filed several 'Decision on Guarantee of Debt for Another Party' notices in 2026, most recently on 14 October, and the data does not explain the amounts or counterparties.
• Valuation metrics sit low: P/E of 11.7, P/B of 0.5 and a 1.8% dividend yield, though the internal DCF base value of ₩13,072 is well above the current price and is a model output, not a forecast.
• Foreign ownership eased slightly to 7.4% from 7.6% over 60 days, and 20-day flows show net selling from retail and foreign investors.

What to watch

• Next periodic results and any further debt guarantee or loan extension filings, given the high leverage.
• Whether trailing free cash flow turns positive as operating profit continues to recover.
• The data contains no recent news headlines, so the reasons behind the one-month share price decline are not visible here.