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402340:KRXSK Square Co., Ltd. Analysis

Data as of 2026-03-10 - not real-time

₩554,000.00

Latest Price

7/10Risk

Risk Level: Medium

Executive Summary

The stock is trading at 554,000 KRW, just below the 20‑day SMA of 569,900 KRW but comfortably above the 50‑day (488,340 KRW) and 200‑day (270,995 KRW) averages, suggesting short‑term pressure amid a longer‑term bullish bias. Momentum indicators are mixed: the RSI sits at a neutral 51, while the MACD histogram remains negative, flagging bearish momentum on the near‑term chart. Volatility is extremely high at over 105% (30‑day) and beta exceeds 1.4, indicating the share can swing sharply on market moves.
Fundamentally, the company appears deeply undervalued with a forward P/E of 4.8× versus an industry average of 36.9×, and analysts collectively rate it a strong buy** with a median target of **760,000 KRW**, implying roughly 21% upside. The balance sheet is exceptionally strong—over 1.3 trillion KRW in cash and zero debt—yet operating margins are negative and profitability rests on a modest net profit margin of about 6.2%. No dividend is paid, so income‑focused investors should not expect cash returns.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 7/10

Key Factors

  • Price testing support near 485,500 KRW
  • Negative MACD histogram indicating short‑term bearish pressure
  • Elevated volatility and beta increasing downside risk

Medium Term

1–3 years
Positive
Model confidence: 8/10

Key Factors

  • Significant valuation discount (forward P/E 4.8× vs industry 36.9×)
  • Strong cash position with zero debt providing financial flexibility
  • Analyst consensus strong‑buy and upside potential of ~21%

Long Term

> 3 years
Positive
Model confidence: 9/10

Key Factors

  • Strategic exposure to the growing semiconductor and ICT sectors
  • High ROE (~37%) indicating efficient use of equity capital
  • Long‑term bullish trend supported by price above 50‑day and 200‑day SMAs

Key Metrics & Analysis

Financial Health

Revenue Growth108.10%
Profit Margin624.78%
P/E Ratio4.8
ROE37.08%
ROA-0.32%
Industry P/E36.8

Technical Analysis

TrendBullish
RSI51.2
Support₩485,500.00
Resistance₩681,000.00
MA 20₩569,900.00
MA 50₩488,340.00
MA 200₩270,995.00
MACDBearish
VolumeStable
Fear & Greed Index76.46

Valuation

Target Price₩673,777.75
Upside/Downside21.62%
GradeUndervalued
TypeBlend

Risk Assessment

Beta1.43
Volatility105.17%
Sector RiskHigh
Reg. RiskMedium
Geo RiskMedium
Currency RiskMedium
Liquidity RiskMedium

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.