[Featured Stock] ‘Cameron’ Company with More Cash than Market Cap Undervalued in Valuation

Komeron is on the rise. It is interpreted that the analysis by securities firms, which pointed out that the valuation is undervalued due to holding a large amount of net cash relative to market capitalization, has had an impact.

As of 9:27 AM on the 7th, Komeron was trading at 10,970 KRW, up 170 KRW (1.57%) compared to the previous trading day.

Jung Hong-sik, a researcher at LS Securities, explained, "Komeron is a company that manufactures tape measures, holding the No. 1 domestic market share and ranking around 3rd to 5th globally. Although tape measures are partially used for household purposes, they are mainly used at construction and civil engineering sites, so their performance is linked to global infrastructure and construction investment trends."

He added, "Komeron maintains a net cash financial structure. As of the third quarter of last year, net cash was 80.2 billion KRW, and when combined with fair value financial assets of 48.4 billion KRW (10.2 billion KRW short-term, 38.2 billion KRW long-term), the total amounts to 128.6 billion KRW, exceeding the market capitalization."

He stated, "With a price-to-earnings ratio (P/E) of 5.0 times in 2024, the valuation is at an undervalued level," but also noted, "It is important to consider that liquidity is very low."