# LIG Nex1 (079550.KO)

Canonical: https://gigainvestors.com/s/079550.KO

Analysis as of: 2026-10-16T07:36:01.127Z. Financial observations: FY2014–FY2026.

Listing currency: KRW. Reporting currency: KRW.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: KRW 550,000.00 per share; close as of 2026-10-15.

Estimated value: low KRW 161,433.46 per share, central KRW 230,611.67 per share, high KRW 270,894.27 per share. Buy at or below the central value KRW 230,611.67 per share. Valuation as of 2026-10-16T07:36:01.127Z; scenarios are not confidence intervals.

Expected annual return: 6.0% at the stated quote. About 6.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; KR 10-year bond 4.2% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 1

- Operating margin variation: 0.58×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.00×

- FY2018: 0.02×

- FY2019: 0.01×

- FY2020: 0.04×

- FY2021: 0.05×

- FY2022: 0.08×

- FY2023: 0.08×

- FY2024: 0.07×

- FY2025: 0.07×

- LTM to Jun 2026: 0.09×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 7.8%

- ROIC, second-lowest year: 1.0%

- Typical minus recent gross margin: -2.7 pp

- Typical gross margin (annual median): 12.3%

- Recent gross margin (lower of latest and 3-year median): 15.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.5%

- ROIC including acquisitions, ten-year median: 8.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 9.2%

- FY2017: 0.3%

- FY2018: 1.3%

- FY2019: 1.0%

- FY2020: 5.5%

- FY2021: 6.5%

- FY2022: 13.6%

- FY2023: 21.1%

- FY2024: 31.7%

- FY2025: 13.5%

### economics: pass

- Owner earnings / net income, 5-yr: 0.88×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: KRW 773B

- Net income, five-year total: KRW 876B

- Return on incremental invested capital: 18.1%

- Working capital / revenue, annual change: -0.8 pp

- Working capital / revenue, change between three-year averages: -6.9 pp

- Working capital / revenue, final three-year average: 13.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.22×

- FY2022: 0.94×

- FY2023: 0.94×

- FY2024: 0.58×

- FY2025: 0.93×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 1.3% vs 21.1%

- Per-share earnings: 144.79 to 10068.00 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 0.2%

- Market cap gain: KRW 7.88T

- Cumulative retained earnings: KRW 753B

- Diluted shares, 5-year annual growth: 0.2%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 102.8%

- Per-share value change: KRW 10K

- Per-share value, starting three-year median: KRW 144.79

- Per-share value, ending three-year median: KRW 10K

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 0.6%

- Buyback history: 2 years

- Debt-funded buybacks: No

- Acquisition spending: KRW 610B

- Cumulative net income, 10 years: KRW 1.01T

- ROIC, first three-year median: 1.3%

- ROIC, last three-year median: 21.1%

Chart: Earnings per share; fiscal year observations.

- FY2017: KRW -392.19

- FY2018: KRW 202.64

- FY2019: KRW 144.79

- FY2020: KRW 3K

- FY2021: KRW 5K

- FY2022: KRW 6K

- FY2023: KRW 8K

- FY2024: KRW 10K

- FY2025: KRW 12K

### accounting: fail

- Sloan accruals exceed 10%

- earnings not backed by cash

- Sloan accruals: 10.4%

- Receivables to sales index (DSRI): 1.07×

- Restructuring years, last five: 0

- Earnings backed by cash: No

- Operating cash / earnings: -2.31×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.45×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 10.3%

- FY2017: 1.4%

- FY2018: 5.1%

- FY2019: -6.4%

- FY2020: -5.2%

- FY2021: -1.2%

- FY2022: -11.1%

- FY2023: -7.7%

- FY2024: -12.0%

- FY2025: 10.4%

## Holders

## Price story

Down 42% since Apr 2026 · sales +9.9%

Story as of 2026-10-16T10:00:06.577Z; price observation 2026-10-15.

Price needs cash profits to grow 17.6% a year for ten years

### Sales · FY2025–2026

sales +9.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: KRW 1.76T 

- FY2018: KRW 1.48T 

- FY2019: KRW 1.45T 

- FY2020: KRW 1.60T 

- FY2021: KRW 1.82T 

- FY2022: KRW 2.22T 

- FY2023: KRW 2.31T 

- FY2024: KRW 3.28T 

- FY2025: KRW 4.31T 

- FY2026: KRW 4.73T 

### Gross margin · FY2025

gross margin 15.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 10.5% 

- FY2017: 8.2% 

- FY2018: 9.6% 

- FY2019: 9.5% 

- FY2020: 11.9% 

- FY2021: 12.7% 

- FY2022: 14.7% 

- FY2023: 15.0% 

- FY2024: 13.8% 

- FY2025: 15.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in aerospace & defense; annual sales are KRW 4.3 trillion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:01.127Z); FY2025: revenue 4306936127410; grossProfit 662773185640; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 079550.KO: LIG Defense&Aerospace Co., Ltd. engages in the research and development, manufacturing, maintenance, and sale of defense materials in South Korea and internationally. It offers precision guided munitions, such as M-SAM II, long-range air-to-surface missile, SAAM, Raybolt, and Poniard products; maritime warfare products, including Tiger Shark, lightweight torpedo-II, unmanned underwater vehicle for mine search, KDX-III Batch-II integrated sonar system, and KSS-III sonar system; and micro-satellite system, weapon locating radar-II, division-level weapon locating radar, long range radar, and airborne AESA radar. The company also provides military satellite communication systems; integrated platform for intelligent battlespace situation recognition; maneuverable and multifunction integrated communication equipment; cyber battlespace management system; software framework for development of weapon systems; and avionics and drones comprising small reconnaissance-and-strike drone, KF-2, LAH, medium altitude unmanned aerial vehicle, and unmanned aerial vehicle. In addition, it offers KF-21 EW suite; air-borne EW systems; land-based EW systems; ship-borne EW systems; and counter unmanned aerial systems; unmanned systems and future warfare consisting of Sea Sword and laser rifle; communication and surveillance device for unmanned surface vehicles; wearable robots for interoperation with protection and mission equipment; and AI tactical staff and MR-based dronebot operation control technology. Further, the company provides training and consulting, as well as RAM-based lifetime costs simulation software maintenance repair overhaul solutions; and integrated product support and integrated logistics support. The company was formerly known as LIG Nex1 Co., Ltd. and changed its name to LIG Defense&Aerospace Co., Ltd. in April 2026. The company was founded in 1976 and is headquartered in Yongin-si, South Korea.

### Why customers stay

Margins ranged from 13.8% to 15.4% during 2023–25; it earns 7.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:01.127Z); FY2023: grossProfit / revenue = 15%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:01.127Z); FY2024: grossProfit / revenue = 13.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:01.127Z); FY2025: grossProfit / revenue = 15.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:01.127Z); 10-year return on capital observations [[2016,0.09195103099297675],[2017,0.003306103414324536],[2018,0.012704599707431496],[2019,0.010146502987232795],[2020,0.05531095964650744],[2021,0.06483172118926477],[2022,0.1357087067917611],[2023,0.2107908912907622],[2024,0.31662495550126113],[2025,0.13507688668160903]]; median 0.07839137609112076. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 51.5% of cash earnings on expansion; earns 18.1% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:01.127Z); FY2016: growth capex 0; upkeep 98294883860; owner earnings 26349518160. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:01.127Z); FY2018: growth capex 0; upkeep 11119805500; owner earnings 43303335210. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:01.127Z); FY2019: growth capex 0; upkeep 31239371260; owner earnings 24492335580. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:01.127Z); FY2020: growth capex 0; upkeep 31930815620; owner earnings 75696055030. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:01.127Z); FY2021: growth capex 0; upkeep 32239683280; owner earnings 127941849550. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:01.127Z); FY2022: growth capex 20969953940; upkeep 53678496000; owner earnings 115590722970. Growth capex / owner earnings = 0.18141554444159386.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:01.127Z); FY2023: growth capex 14311787570; upkeep 68826240000; owner earnings 165057261910. Growth capex / owner earnings = 0.0867080151723571.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:01.127Z); FY2024: growth capex 399407717997.3028; upkeep 167869668272.6972; owner earnings 128242060597.3028. Growth capex / owner earnings = 3.1144830029790023.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:01.127Z); FY2025: growth capex 121624438060; upkeep 124143271000; owner earnings 236103587470. Growth capex / owner earnings = 0.5151316816626259.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:01.127Z); Incremental return on capital 0.18124386093646722, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:01.127Z); Dividend observations: [[2016,20680000000],[2017,20680000000],[2018,11000000000],[2019,11000000000],[2020,13200000000],[2021,19503000000],[2022,26153232000],[2023,32691540000],[2024,42499002000],[2025,52306464000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 38.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 079550.KO SharesStats.PercentInsiders = 38.353 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 17.6% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:01.127Z); Ten-year compound average after fade. Initial solved rate 0.2423665369150535. Price 550000; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (KRW per share)

- 2016-10: KRW 74,000.00 per share

- 2016-11: KRW 75,400.00 per share

- 2016-12: KRW 80,500.00 per share

- 2017-01: KRW 72,400.00 per share

- 2017-02: KRW 74,300.00 per share

- 2017-03: KRW 78,500.00 per share

- 2017-04: KRW 80,700.00 per share

- 2017-05: KRW 82,000.00 per share

- 2017-06: KRW 74,000.00 per share

- 2017-07: KRW 81,900.00 per share

- 2017-08: KRW 83,400.00 per share

- 2017-09: KRW 72,800.00 per share

- 2017-10: KRW 71,900.00 per share

- 2017-11: KRW 59,500.00 per share

- 2017-12: KRW 59,800.00 per share

- 2018-01: KRW 58,600.00 per share

- 2018-02: KRW 49,000.00 per share

- 2018-03: KRW 48,150.00 per share

- 2018-04: KRW 39,550.00 per share

- 2018-05: KRW 51,000.00 per share

- 2018-06: KRW 40,050.00 per share

- 2018-07: KRW 34,750.00 per share

- 2018-08: KRW 33,300.00 per share

- 2018-09: KRW 34,650.00 per share

- 2018-10: KRW 29,100.00 per share

- 2018-11: KRW 36,950.00 per share

- 2018-12: KRW 36,950.00 per share

- 2019-01: KRW 34,000.00 per share

- 2019-02: KRW 38,950.00 per share

- 2019-03: KRW 39,350.00 per share

- 2019-04: KRW 37,450.00 per share

- 2019-05: KRW 33,450.00 per share

- 2019-06: KRW 31,100.00 per share

- 2019-07: KRW 29,450.00 per share

- 2019-08: KRW 31,150.00 per share

- 2019-09: KRW 35,650.00 per share

- 2019-10: KRW 33,650.00 per share

- 2019-11: KRW 34,250.00 per share

- 2019-12: KRW 31,600.00 per share

- 2020-01: KRW 27,850.00 per share

- 2020-02: KRW 26,050.00 per share

- 2020-03: KRW 19,300.00 per share

- 2020-04: KRW 26,100.00 per share

- 2020-05: KRW 35,850.00 per share

- 2020-06: KRW 30,000.00 per share

- 2020-07: KRW 33,650.00 per share

- 2020-08: KRW 31,200.00 per share

- 2020-09: KRW 32,150.00 per share

- 2020-10: KRW 28,050.00 per share

- 2020-11: KRW 30,300.00 per share

- 2020-12: KRW 30,500.00 per share

- 2021-01: KRW 37,150.00 per share

- 2021-02: KRW 37,000.00 per share

- 2021-03: KRW 40,150.00 per share

- 2021-04: KRW 39,600.00 per share

- 2021-05: KRW 44,250.00 per share

- 2021-06: KRW 42,450.00 per share

- 2021-07: KRW 42,800.00 per share

- 2021-08: KRW 52,100.00 per share

- 2021-09: KRW 52,000.00 per share

- 2021-10: KRW 46,600.00 per share

- 2021-11: KRW 53,700.00 per share

- 2021-12: KRW 68,600.00 per share

- 2022-01: KRW 58,000.00 per share

- 2022-02: KRW 68,100.00 per share

- 2022-03: KRW 71,900.00 per share

- 2022-04: KRW 82,100.00 per share

- 2022-05: KRW 79,200.00 per share

- 2022-06: KRW 71,800.00 per share

- 2022-07: KRW 88,000.00 per share

- 2022-08: KRW 106,000.00 per share

- 2022-09: KRW 90,300.00 per share

- 2022-10: KRW 101,500.00 per share

- 2022-11: KRW 92,500.00 per share

- 2022-12: KRW 92,200.00 per share

- 2023-01: KRW 80,800.00 per share

- 2023-02: KRW 74,700.00 per share

- 2023-03: KRW 72,400.00 per share

- 2023-04: KRW 78,300.00 per share

- 2023-05: KRW 79,200.00 per share

- 2023-06: KRW 81,100.00 per share

- 2023-07: KRW 76,700.00 per share

- 2023-08: KRW 84,800.00 per share

- 2023-09: KRW 87,900.00 per share

- 2023-10: KRW 87,100.00 per share

- 2023-11: KRW 97,500.00 per share

- 2023-12: KRW 130,500.00 per share

- 2024-01: KRW 105,100.00 per share

- 2024-02: KRW 143,200.00 per share

- 2024-03: KRW 178,400.00 per share

- 2024-04: KRW 160,800.00 per share

- 2024-05: KRW 160,200.00 per share

- 2024-06: KRW 220,000.00 per share

- 2024-07: KRW 200,000.00 per share

- 2024-08: KRW 195,000.00 per share

- 2024-09: KRW 211,000.00 per share

- 2024-10: KRW 248,000.00 per share

- 2024-11: KRW 197,100.00 per share

- 2024-12: KRW 220,500.00 per share

- 2025-01: KRW 226,500.00 per share

- 2025-02: KRW 270,500.00 per share

- 2025-03: KRW 248,000.00 per share

- 2025-04: KRW 320,500.00 per share

- 2025-05: KRW 429,000.00 per share

- 2025-06: KRW 540,000.00 per share

- 2025-07: KRW 628,000.00 per share

- 2025-08: KRW 489,500.00 per share

- 2025-09: KRW 513,000.00 per share

- 2025-10: KRW 519,000.00 per share

- 2025-11: KRW 383,000.00 per share

- 2025-12: KRW 421,000.00 per share

- 2026-01: KRW 481,500.00 per share

- 2026-02: KRW 509,000.00 per share

- 2026-03: KRW 611,000.00 per share

- 2026-04: KRW 941,000.00 per share

- 2026-05: KRW 801,000.00 per share

- 2026-06: KRW 719,000.00 per share

- 2026-07: KRW 699,000.00 per share

- 2026-08: KRW 694,000.00 per share

- 2026-09: KRW 682,000.00 per share

- 2026-10: KRW 565,000.00 per share

## Annual estimated value (KRW per share)

- FY2018: low KRW 11,473.50 per share, central KRW 12,906.71 per share, high KRW 14,814.61 per share

- FY2019: low KRW 13,750.47 per share, central KRW 15,159.57 per share, high KRW 17,035.38 per share

- FY2020: low KRW 20,389.18 per share, central KRW 22,265.68 per share, high KRW 24,763.70 per share

- FY2021: low KRW 29,355.43 per share, central KRW 33,048.33 per share, high KRW 37,964.36 per share

- FY2022: low KRW 63,170.73 per share, central KRW 70,434.29 per share, high KRW 80,103.63 per share

- FY2023: low KRW 79,632.69 per share, central KRW 87,941.81 per share, high KRW 99,003.00 per share

- FY2024: low KRW 129,434.12 per share, central KRW 175,017.40 per share, high KRW 201,560.62 per share

- FY2025: low KRW 150,210.20 per share, central KRW 213,209.37 per share, high KRW 249,893.90 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:41:52.226Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.