KG Eco SolutionKG에코솔루션

KG Eco Solution trades at very low multiples on thin margins, with heavy debt and negative free cash flow over the last twelve months.

The company reported trailing revenue of ₩8.1T to H1 2026 but only ₩152B of operating income and ₩127B of net income, giving a 1.9% operating margin. Revenue has grown while profits have shrunk since 2022, and liabilities are about 119% of equity. The share price is down 14.3% over one year and sits near its 52-week low of ₩4,745.

What stands out

• Revenue rose in 2025 by 4% to ₩7.6T, but operating income fell from ₩326B in 2021 to ₩191B in 2025, and margins have narrowed each year since 2022.
• Net income in 2022 of ₩489B was far above other years, so the one-off nature of that year should be considered before reading it as a trend.
• Trailing free cash flow is negative at about ₩-166B, while borrowings are ₩587B against cash of ₩294B.
• Valuation metrics are very low (P/E 1.9, P/B 0.2) and the dividend yield is 3%, but the data gives no explanation for the discount.
• Foreign ownership rose from 2.3% to 2.9% over about 60 days, while retail investors were net sellers over the last 20 days.

What to watch

• Corporate value-up plan (filed 22 Oct 2026) and details of the treasury share sale and share cancellation decisions from mid-October.
• Exchangeable and convertible bond issues filed in August and October 2026, which could affect share count and debt levels; the data does not show their terms.
• Full-year 2026 results, since the data only covers trailing figures to H1 2026 and no recent news headlines were provided.