i3system아이쓰리시스템

i3system's shares have recovered over the past three months, but the stock is still well below its 52-week high and free cash flow is negative on a trailing basis.

i3system makes image sensors for defense, medical, space and industrial uses, and is the only domestic supplier of military-grade infrared image sensors in Korea. Trailing results to H1 2026 show revenue of ₩132.7B...

What stands out

• Revenue reached ₩132.7B on a trailing basis to H1 2026, up from ₩124.3B in 2025 and ₩83.8B in 2022, while the 2025 growth rate was 3%.
• Trailing operating margin is 12.9% and net margin is 13.5%, compared with 10% in 2023 and 1.8% in 2021.
• Trailing free cash flow is negative at about -₩5.2B, although the company reports cash of ₩17.2B against borrowings of ₩7.1B.
• Shares closed at ₩68,100, up 14.3% over one month and 16.8% over three months, but down 8.3% over one year and about 51% below the 52-week high of ₩137,900.
• Recent filings include several major sales or supply contracts from October 2026, with amendments filed on October 8 and August 28; the data does not give contract values or counterparties.

What to watch

• The half-year report for June 2026 was filed on August 13; the next scheduled results are not in the data.
• Whether the recent major supply contracts and their amendments change revenue or margins in coming filings.
• The DCF fair value model gives a base of ₩71 per share against a price of ₩68,100, a result that looks unreliable and should not be read as a valuation signal.