Valuation Update With 7 Day Price Move • Jun 23
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to ₩9,140, the stock trades at a trailing P/E ratio of 3.2x. Average trailing P/E is 14x in the Machinery industry in South Korea. Total returns to shareholders of 139% over the past three years. Valuation Update With 7 Day Price Move • Jun 01
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to ₩10,540, the stock trades at a trailing P/E ratio of 3.7x. Average trailing P/E is 15x in the Machinery industry in South Korea. Total returns to shareholders of 181% over the past three years. New Risk • May 30
New major risk - Financial position The company's debt is not well covered by operating cash flow. Currently running at an operating cash loss. This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). High level of non-cash earnings (64% accrual ratio). Valuation Update With 7 Day Price Move • May 14
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩13,200, the stock trades at a trailing P/E ratio of 6.1x. Average trailing P/E is 21x in the Machinery industry in South Korea. Total returns to shareholders of 276% over the past three years. New Risk • Apr 29
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 13% 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: Minor Risks Share price has been volatile over the past 3 months (13% average weekly change). Large one-off items impacting financial results. Valuation Update With 7 Day Price Move • Apr 21
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₩13,010, the stock trades at a trailing P/E ratio of 6x. Average trailing P/E is 21x in the Machinery industry in South Korea. Total returns to shareholders of 333% over the past three years. New Risk • Apr 04
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 22% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. This is currently the only risk that has been identified for the company. Valuation Update With 7 Day Price Move • Mar 08
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to ₩10,200, the stock trades at a trailing P/E ratio of 11x. Average trailing P/E is 22x in the Machinery industry in South Korea. Total returns to shareholders of 208% over the past three years. Announcement • Mar 04
Cape Industries Ltd., Annual General Meeting, Mar 31, 2026 Cape Industries Ltd., Annual General Meeting, Mar 31, 2026, at 09:00 Tokyo Standard Time. Location: auditorium, 1303, yangsan-daero, sangbuk-myeon, gyeongsangnam-do, yangsan South Korea Valuation Update With 7 Day Price Move • Feb 20
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₩12,970, the stock trades at a trailing P/E ratio of 14x. Average trailing P/E is 23x in the Machinery industry in South Korea. Total returns to shareholders of 251% over the past three years. Valuation Update With 7 Day Price Move • Jan 15
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₩11,610, the stock trades at a trailing P/E ratio of 12.6x. Average trailing P/E is 20x in the Machinery industry in South Korea. Total returns to shareholders of 204% over the past three years. Valuation Update With 7 Day Price Move • Nov 21
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to ₩10,470, the stock trades at a trailing P/E ratio of 14.1x. Average trailing P/E is 18x in the Machinery industry in South Korea. Total returns to shareholders of 138% over the past three years. Valuation Update With 7 Day Price Move • Nov 07
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₩11,850, the stock trades at a trailing P/E ratio of 16x. Average trailing P/E is 23x in the Machinery industry in South Korea. Total returns to shareholders of 159% over the past three years. Valuation Update With 7 Day Price Move • Oct 21
Investor sentiment improves as stock rises 31% After last week's 31% share price gain to ₩15,860, the stock trades at a trailing P/E ratio of 21.4x. Average trailing P/E is 26x in the Machinery industry in South Korea. Total returns to shareholders of 324% over the past three years. Valuation Update With 7 Day Price Move • Oct 03
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩13,280, the stock trades at a trailing P/E ratio of 17.9x. Average trailing P/E is 25x in the Machinery industry in South Korea. Total returns to shareholders of 245% over the past three years. Valuation Update With 7 Day Price Move • Sep 16
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩12,440, the stock trades at a trailing P/E ratio of 16.8x. Average trailing P/E is 26x in the Machinery industry in South Korea. Total returns to shareholders of 191% over the past three years. Valuation Update With 7 Day Price Move • Sep 01
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₩9,390, the stock trades at a trailing P/E ratio of 12.7x. Average trailing P/E is 26x in the Machinery industry in South Korea. Total returns to shareholders of 116% over the past three years. Valuation Update With 7 Day Price Move • Aug 18
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₩9,220, the stock trades at a trailing P/E ratio of 28.2x. Average trailing P/E is 20x in the Machinery industry in South Korea. Total returns to shareholders of 110% over the past three years. New Risk • Jul 29
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 8.2% 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 Debt is not well covered by operating cash flow (currently running at an operating cash loss). Dividend is not well covered by earnings and cash flows. Payout ratio: 92% Paying a dividend despite having no free cash flows. High level of non-cash earnings (49% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (8.2% average weekly change). Profit margins are more than 30% lower than last year (1.8% net profit margin). Valuation Update With 7 Day Price Move • Jul 11
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₩6,960, the stock trades at a trailing P/E ratio of 21.2x. Average trailing P/E is 19x in the Machinery industry in South Korea. Total returns to shareholders of 99% over the past three years. New Risk • May 23
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 92% The company is paying a dividend despite having no free cash flows. Dividend yield: 4.7% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Dividend is not well covered by earnings and cash flows. Payout ratio: 92% Paying a dividend despite having no free cash flows. High level of non-cash earnings (49% accrual ratio). Minor Risk Profit margins are more than 30% lower than last year (1.8% net profit margin). Buy Or Sell Opportunity • May 19
Now 22% overvalued Over the last 90 days, the stock has fallen 8.4% to ₩6,000. The fair value is estimated to be ₩4,932, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 25%. Valuation Update With 7 Day Price Move • Apr 14
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₩6,350, the stock trades at a trailing P/E ratio of 11.2x. Average trailing P/E is 15x in the Machinery industry in South Korea. Total returns to shareholders of 48% over the past three years. Buy Or Sell Opportunity • Apr 11
Now 24% overvalued after recent price rise Over the last 90 days, the stock has risen 2.8% to ₩6,350. The fair value is estimated to be ₩5,140, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has grown by 25%. Reported Earnings • Mar 27
Full year 2024 earnings released: EPS: ₩563 (vs ₩835 in FY 2023) Full year 2024 results: EPS: ₩563 (down from ₩835 in FY 2023). Revenue: ₩516.5b (down 13% from FY 2023). Net income: ₩15.7b (down 35% from FY 2023). Profit margin: 3.0% (down from 4.1% in FY 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Mar 26
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 1.3% to ₩6,060. The fair value is estimated to be ₩5,022, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 6.9% over the last 3 years, while earnings per share has been flat. 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 Debt is not well covered by operating cash flow (currently running at an operating cash loss). High level of non-cash earnings (176% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.6% average weekly change). Announcement • Mar 08
Cape Industries Ltd., Annual General Meeting, Mar 31, 2025 Cape Industries Ltd., Annual General Meeting, Mar 31, 2025, at 09:00 Tokyo Standard Time. Location: auditorium, 1303, yangsan-daero, sangbuk-myeon, gyeongsangnam-do, yangsan South Korea Buy Or Sell Opportunity • Feb 11
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 27% to ₩6,620. The fair value is estimated to be ₩5,386, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 6.9% over the last 3 years, while earnings per share has been flat. Buy Or Sell Opportunity • Jan 15
Now 37% overvalued after recent price rise Over the last 90 days, the stock has risen 43% to ₩7,420. The fair value is estimated to be ₩5,425, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 6.9% over the last 3 years, while earnings per share has been flat. New Risk • Dec 09
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩143.0b (US$99.7m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). High level of non-cash earnings (176% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (₩143.0b market cap, or US$99.7m). Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ₩5,180, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 11x in the Machinery industry in South Korea. Total returns to shareholders of 23% over the past three years. New Risk • Apr 26
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 2.4% 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 Debt is not well covered by operating cash flow (currently running at an operating cash loss). Earnings are forecast to decline by an average of 2.4% per year for the foreseeable future. High level of non-cash earnings (76% accrual ratio). Minor Risk Paying a dividend despite having no free cash flows. Valuation Update With 7 Day Price Move • Apr 24
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₩5,770, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 12x in the Machinery industry in South Korea. Total returns to shareholders of 33% over the past three years. Upcoming Dividend • Dec 20
Upcoming dividend of ₩100.00 per share at 2.4% yield Eligible shareholders must have bought the stock before 27 December 2023. Payment date: 15 April 2024. Payout ratio is a comfortable 22% but the company is not cash flow positive. Trailing yield: 2.4%. Lower than top quartile of South Korean dividend payers (3.5%). In line with average of industry peers (2.3%). Valuation Update With 7 Day Price Move • Aug 18
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to ₩3,850, the stock trades at a trailing P/E ratio of 9x. Average trailing P/E is 15x in the Machinery industry in South Korea. Total returns to shareholders of 30% over the past three years. New Risk • Aug 17
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: ₩123.1b (US$91.9m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). High level of non-cash earnings (95% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (1.8% net profit margin). Market cap is less than US$100m (₩123.1b market cap, or US$91.9m). Upcoming Dividend • Dec 21
Upcoming dividend of ₩100.00 per share Eligible shareholders must have bought the stock before 28 December 2022. Payment date: 10 April 2023. The company is not currently making a profit and is not cash flow positive. Trailing yield: 2.1%. Lower than top quartile of South Korean dividend payers (3.3%). In line with average of industry peers (2.1%). Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 1 highly experienced director. 1 independent director (2 non-independent directors). Head of the Factory and Director Dong-Geun Jung was the last director to join the board, commencing their role in 2009. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Board Change • Apr 27
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 1 highly experienced director. 1 independent director (2 non-independent directors). Head of the Factory and Director Dong-Geun Jung was the last director to join the board, commencing their role in 2009. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Upcoming Dividend • Dec 22
Upcoming dividend of ₩100.00 per share Eligible shareholders must have bought the stock before 29 December 2021. Payment date: 12 April 2022. Payout ratio is a comfortable 7.1% and this is well supported by cash flows. Trailing yield: 2.3%. Lower than top quartile of South Korean dividend payers (2.4%). Lower than average of industry peers (2.8%). Valuation Update With 7 Day Price Move • May 04
Investor sentiment improved over the past week After last week's 15% share price gain to ₩5,700, the stock trades at a trailing P/E ratio of 18x. Average trailing P/E is 20x in the Machinery industry in South Korea. Total returns to shareholders of 92% over the past three years. Is New 90 Day High Low • Jan 19
New 90-day high: ₩5,790 The company is up 11% from its price of ₩5,230 on 21 October 2020. The South Korean market is up 26% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 20% over the same period. Valuation Update With 7 Day Price Move • Nov 13
Market pulls back on stock over the past week After last week's 17% share price decline to ₩4,600, the stock is trading at a trailing P/E ratio of 26.9x, down from the previous P/E ratio of 32.4x. This compares to an average P/E of 20x in the Machinery industry in South Korea. Total returns to shareholders over the past three years are 48%. Valuation Update With 7 Day Price Move • Nov 06
Market bids up stock over the past week After last week's 29% share price gain to ₩5,540, the stock is trading at a trailing P/E ratio of 32.4x, up from the previous P/E ratio of 25x. This compares to an average P/E of 20x in the Machinery industry in South Korea. Total returns to shareholders over the past three years are 83%. Is New 90 Day High Low • Sep 22
New 90-day high: ₩3,780 The company is up 11% from its price of ₩3,420 on 24 June 2020. The South Korean market is up 13% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Machinery industry, which is up 5.0% over the same period.