Buy Or Sell Opportunity • 2h
Now 33% overvalued Over the last 90 days, the stock has fallen 40% to ₩24,900. The fair value is estimated to be ₩18,770, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 16% over the last 3 years. Earnings per share has grown by 51%. For the next 3 years, revenue is forecast to grow by 9.4% per annum. Earnings are also forecast to grow by 45% per annum over the same time period. Major Estimate Revision • Apr 10
Consensus revenue estimates fall by 20% The consensus outlook for revenues in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from ₩107.0m to ₩86.0m. EPS estimate fell from ₩1,341 to ₩542 per share. Net income forecast to grow 139% next year vs 56% growth forecast for Software industry in South Korea. Consensus price target down from ₩50,000 to ₩23,000. Share price was steady at ₩26,000 over the past week. Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to ₩33,100, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 14x in the Software industry in South Korea. Total returns to shareholders of 28% over the past three years. Aankondiging • Feb 27
EMRO., Incorporated., Annual General Meeting, Mar 18, 2026 EMRO., Incorporated., Annual General Meeting, Mar 18, 2026, at 09:01 Tokyo Standard Time. Location: conference room, 11, dangsan-ro 41-gil, yeongdeungpo-gu, seoul South Korea New Risk • Nov 26
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 26% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (26% accrual ratio). Minor Risk Profit margins are more than 30% lower than last year (6.5% net profit margin). New Risk • Aug 31
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 29% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. This is currently the only risk that has been identified for the company. Buy Or Sell Opportunity • Aug 21
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 17% to ₩41,600. The fair value is estimated to be ₩52,348, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 37% in 2 years. Earnings are forecast to grow by 3.2% in the next 2 years. New Risk • Jun 16
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of South Korean stocks, typically moving 9.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Buy Or Sell Opportunity • Jun 13
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 5.9% to ₩50,600. The fair value is estimated to be ₩63,881, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 31% in 2 years. Earnings are forecast to decline by 14% in the next 2 years. New Risk • May 05
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.7% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Earnings are forecast to decline by an average of 0.7% per year for the foreseeable future. High level of non-cash earnings (25% accrual ratio). Valuation Update With 7 Day Price Move • Apr 09
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩43,550, the stock trades at a trailing P/E ratio of 28.6x. Average forward P/E is 16x in the Software industry in South Korea. Total returns to shareholders of 126% over the past three years. New Risk • Mar 18
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of South Korean stocks, typically moving 8.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Earnings are forecast to decline by an average of 6.8% per year for the foreseeable future. High level of non-cash earnings (25% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (8.6% average weekly change). Reported Earnings • Mar 16
Full year 2024 earnings released: EPS: ₩1,611 (vs ₩2,359 loss in FY 2023) Full year 2024 results: EPS: ₩1,611 (up from ₩2,359 loss in FY 2023). Revenue: ₩79.5b (up 26% from FY 2023). Net income: ₩18.6b (up ₩45.1b from FY 2023). Profit margin: 23% (up from net loss in FY 2023). The move to profitability was primarily driven by lower expenses. Revenue is forecast to grow 24% p.a. on average during the next 2 years, compared to a 13% growth forecast for the Software industry in South Korea. Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has increased by 45% per year, which means it is well ahead of earnings. New Risk • Mar 13
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 6.8% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Earnings are forecast to decline by an average of 6.8% per year for the foreseeable future. High level of non-cash earnings (25% accrual ratio). Aankondiging • Feb 20
EMRO., Incorporated., Annual General Meeting, Mar 19, 2025 EMRO., Incorporated., Annual General Meeting, Mar 19, 2025, at 09:00 Tokyo Standard Time. Location: conference room, 11, dangsan-ro 41-gil, yeongdeungpo-gu, seoul South Korea Buy Or Sell Opportunity • Dec 23
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 18% to ₩63,800. The fair value is estimated to be ₩52,653, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 69% in 2 years. Earnings are forecast to grow by 49% in the next 2 years. Buy Or Sell Opportunity • Dec 05
Now 28% overvalued after recent price rise Over the last 90 days, the stock has risen 57% to ₩67,700. The fair value is estimated to be ₩52,697, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 69% in 2 years. Earnings are forecast to grow by 49% in the next 2 years. Buy Or Sell Opportunity • Nov 14
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 55% to ₩68,000. The fair value is estimated to be ₩55,217, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Meanwhile, the company became loss making. Buy Or Sell Opportunity • Sep 06
Now 25% undervalued after recent price drop Over the last 90 days, the stock has fallen 30% to ₩43,050. The fair value is estimated to be ₩57,242, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Meanwhile, the company became loss making. New Risk • Aug 16
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 5.7% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 100% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (9.0% average weekly change). Shareholders have been diluted in the past year (5.7% increase in shares outstanding). New Risk • Aug 06
New major risk - Revenue and earnings growth Earnings have declined by 100% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 100% per year over the past 5 years. Minor Risk Share price has been volatile over the past 3 months (8.7% average weekly change). New Risk • Aug 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of South Korean stocks, typically moving 8.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. New Risk • Jul 16
New minor risk - Profitability The company is currently unprofitable and not forecast to become profitable over the next year. Trailing 12-month net loss: ₩27b Forecast net loss in 1 year: ₩321m This is considered a minor risk. Companies that are not profitable are more likely to be burning through cash and less likely to be well established. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. Without profits, the company is under pressure to grow significantly while potentially having to reduce costs and possibly needing to take on debt or raise capital to remain afloat. This is currently the only risk that has been identified for the company. Reported Earnings • Mar 15
Full year 2023 earnings released: ₩2,385 loss per share (vs ₩578 profit in FY 2022) Full year 2023 results: ₩2,385 loss per share (down from ₩578 profit in FY 2022). Revenue: ₩63.2b (up 7.8% from FY 2022). Net loss: ₩26.7b (down ₩33.2b from profit in FY 2022). Revenue is forecast to grow 21% p.a. on average during the next 2 years, compared to a 21% growth forecast for the Software industry in South Korea. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 178 percentage points per year, which is a significant difference in performance. Aankondiging • Jun 01
EMRO., Incorporated. announced that it has received KRW 16.5 billion in funding from Samsung SDS Co.,Ltd. On May 31, 2023, EMRO., Incorporated. closed the transaction. Valuation Update With 7 Day Price Move • Mar 15
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩30,200, the stock trades at a forward P/E ratio of 37x. Average forward P/E is 35x in the Software industry in Asia. Total returns to shareholders of 1,733% over the past three years. Valuation Update With 7 Day Price Move • Feb 27
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩22,400, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 32x in the Software industry in Asia. Total returns to shareholders of 1,144% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₩12,168 per share. Valuation Update With 7 Day Price Move • Jan 04
Investor sentiment improved over the past week After last week's 20% share price gain to ₩15,700, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 27x in the Software industry in Asia. Total returns to shareholders of 972% over the past three years. Buying Opportunity • Nov 21
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 9.0%. The fair value is estimated to be ₩16,687, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last year. Earnings per share has grown by 13%. Revenue is forecast to grow by 60% in 2 years. Earnings is forecast to grow by 135% in the next 2 years. Aankondiging • Feb 26
EMRO. Incorporated, Annual General Meeting, Mar 25, 2021 EMRO. Incorporated, Annual General Meeting, Mar 25, 2021, at 09:00 Korea Standard Time. Location: 5F , Dangsan SK V1 Center, Dangsan-ro 41-gil 11, Yeongdeungpo-gu, Seoul South Korea Is New 90 Day High Low • Jan 14
New 90-day high: ₩14,000 The company is up 26% from its price of ₩11,100 on 16 October 2020. The South Korean market is up 31% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Software industry, which is up 12% over the same period. Is New 90 Day High Low • Nov 24
New 90-day high: ₩12,400 The company is up 52% from its price of ₩8,140 on 26 August 2020. The South Korean market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Software industry, which is up 9.0% over the same period. Is New 90 Day High Low • Oct 05
New 90-day high: ₩8,400 The company is up 6.0% from its price of ₩7,920 on 07 July 2020. The South Korean market is up 8.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Software industry, which is up 14% over the same period.