Korea Computer & Systems케이씨에스

Korea Computer & Systems is profitable on a trailing basis but its shares have fallen sharply over the past year and trade at a high earnings multiple.

KCS is a Korean IT services firm focused on mission-critical systems for financial, telecom and public-sector clients, plus transit technology and self-service kiosks. Trailing revenue to H1 2026 was about ₩27.2B, down from ₩24.9B... wait, the trailing figure is ₩27.2B against ₩24.9B for full-year 2025, with operating margin of 6.1% and net margin of 8.2%. The share price is ₩8,950, well below its 52-week high of ₩27,500.

What stands out

• Trailing revenue to H1 2026 is about ₩27.2B, above the full-year 2025 figure of ₩24.9B, but revenue fell sharply in 2024 (-38.1%) and 2025 (-15.8%).
• Operating margin has moved around, from 10.5% in 2021 to 1.3% in 2022 and 8.3% in 2025; trailing operating margin is 6.1%.
• Trailing net income of ₩2.2B is above trailing operating income of ₩1.7B, so non-operating items or other factors contributed; the filings data does not explain why.
• The shares are down 27.4% over one year and 11.2% over one month, though up 14.3% over three months; the price is far below the 52-week high.
• Valuation is high versus the fair value model: P/E of 48.2 and P/B of 5.9 against a DCF base value of ₩1,604, with a bear-to-bull range of ₩1,040 to ₩2,512 (model inputs are not explained in the data).
• Recent filings include a share buyback decision, a treasury share sale decision and a corporate value-up plan; the news list was empty.

What to watch

• Next quarterly and annual filings, to see whether revenue recovers after two years of declines.
• Treasury share sale and buyback activity, given the recent filings on both.
• Foreign ownership fell from 2.7% to 1.1% over 60 days, and foreign investors were net sellers over the last 20 days; the data does not give reasons.