JW Pharmaceutical is a prescription-focused drugmaker that makes and sells the 'Livalo' family of dyslipidemia treatments, the hemophilia drug 'Hemlibra', and nutritional and general infusion solutions, with original and improved drugs prescribed in hospitals driving profit. It posted 2025 revenue of ₩775.3 billion and operating profit of ₩94.4 billion (+14.5% year on year), and in Q1 2026 operating profit rose 52% from a year earlier to ₩33.6 billion, adding pace to the growth. Worth noting recently: high-margin prescription drugs such as Livazet and Hemlibra are pushing revenue up, lifting ROE (how much is earned in a year per unit of equity) to a high 16.7% and leaving a net cash structure that keeps the finances sturdy; on the other hand, a sales-suspension order on some items from May to August could create a temporary gap in revenue recognition in the second and third quarters.
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue rose 7.8% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 7.9% higher than a year earlier.
- ROE is 16.7% (controlling-interest basis). It is above the sector average.
- Operating margin is 12.2%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder JW Holdings 40.25% (corporate)
Controlling bloc incl. related parties 45.37%
With the controlling bloc holding 45%, the ownership structure is stable.
🔎 In-depth analysis
- JW Pharmaceutical is a drugmaker that earns money by making medicines prescribed and sold in hospitals and pharmacies.
- Revenue rests on three large pillars.
- First, the cholesterol-lowering dyslipidemia treatment 'Livalo' family sold about ₩189.3 billion in 2025 (about 25% of total revenue), and within it the improved drug 'Livazet' — which combines two ingredients — grew rapidly to ₩101.0 billion.
- Second, the hemophilia drug 'Hemlibra' reached ₩72.6 billion, up 48% from the prior year, becoming a new growth axis.
- Third, the infusion segment, including the total parenteral nutrition solution 'Winuf' that supplies nutrition intravenously, made about ₩253.0 billion, forming a stable base of revenue.
- In other words, this company's profit structure is a combination of high-growth prescription drugs (Livazet and Hemlibra) plus steady infusion solutions.
- The share price is currently ₩23,700, in a medium-term downtrend.
- It sits below the 20-day line (₩25,918), 60-day line (₩28,314), and 120-day line (₩29,940).
- Over the past three months it fell 17.1%, and it is down about 39% from its 52-week high.
- RSI (a gauge of short-term overbought or oversold conditions on a 0-100 scale) is 36, close to oversold.
- It is worth noting that the price is depressed even as results are rising.
- Profitability is this company's greatest strength.
- ROE (how much is earned in a year per unit of equity) is 16.7%, among the top tier of domestic drugmakers.
- The operating margin is 12.2%, showing the effect of a rising share of high-margin prescription drugs.
- On valuation, the P/E ratio (how many times one year's earnings the price represents) is 8.97x and the P/B (how many times book net assets the price represents) is 1.49x.
- Debt-reflecting metrics are also sound.
- Net debt is -₩16.7 billion, a net cash position with more cash than debt.
- EV/EBIT (enterprise value divided by operating profit — an earnings multiple that reflects debt) is 6.2x, lower than the P/E.
- FCF yield (cash actually generated relative to market cap) is 10.0%, indicating good cash generation.
- The dividend yield is a respectable 2.7%, and with an interest-coverage ratio of 10.7x, financial soundness is stable.
- Results are in an uptrend for both revenue and profit.
- Revenue reached ₩775.3 billion in 2025, up 7.8% year on year, with a five-year revenue CAGR of 6.3%.
- Operating profit rose 14.5% year on year to ₩94.4 billion, improving the margin.
- The growth in Q1 2026 (consolidated) is especially large.
- Operating profit of ₩33.6 billion (+52.6% year on year) and net profit of ₩27.5 billion (+57.3%) far outpaced revenue growth (+7.9%).
- As high-margin original and improved drugs such as Livazet and Hemlibra grow, a structure that leaves more profit from the same revenue is taking hold.
- The company has officially set targets of an average ROE of 20% or more over three years through 2027 and revenue growth of 10% or more per year.
- Reflecting this pace of profit growth, the price on this year's earnings is valued at about 7x, lower than the 8.97x P/E on last year's earnings.
- The recent flow mixes growth signals with a temporary regulatory risk.
- In March 2026 the company disclosed a 'corporate value enhancement plan', setting shareholder-return targets of an average ROE of 20% or more over three years through 2027, a 30% dividend increase, ₩20 billion of treasury-share purchases over three years, and a payout ratio around 25% by 2028.
- In May it disclosed preliminary Q1 results, with profit rising sharply led by prescription drugs.
- By contrast, in late April it disclosed a sales-suspension order (May-August) on some items.
- The affected items' revenue last year was about 7% of the total, and existing distributed inventory can still be sold, so the annual impact is limited, but revenue recognition in the second and third quarters may vary.
- In sum, it can be viewed as an undervalued pharmaceutical stock in a phase where high-margin prescription drugs are lifting profit.
- The strengths are clear: the high growth of Livazet and Hemlibra, the high capital efficiency of a 16.7% ROE, a net cash structure, and the company's own targets of a 20% ROE and expanded shareholder returns.
- The share multiple on this year's earnings, reflecting the pace of profit growth, is on the low side versus peers.
- Even if it does not look expensive on last year's earnings alone, on this year's basis it is valued more cheaply.
- There are cautions, too.
- The May-August sales-suspension order could create a temporary gap in second- and third-quarter earnings recognition.
- The prescription-drug market is sensitive to generic competition and to changes in drug-pricing and reimbursement policy.
- Ultimately the structure is strong when the growth of Livazet and Hemlibra continues and the sales-suspension impact stays limited as expected, and weak if regulatory risk grows or new-product growth slows.
🔎 Valuation vs peers Undervalued
Domestic mid-cap prescription-focused drugmakers whose business mix and profitability are comparable.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Daewoong Pharmaceutical | 7.79x | 1.52x | 19.47% |
| Chong Kun Dang | 12.43x | 0.96x | 7.72% |
| Boryung | 10.77x | 0.82x | 7.61% |
| Yuhan Corporation | 27.66x | 2.27x | 8.22% |
A P/E of 8.97x and a P/B of 1.49x may not look low in absolute terms. But placed alongside peers, the position becomes clear. With top-tier profitability (ROE 16.7%, operating margin 12.2%), the P/E is lower than Chong Kun Dang (12.4x), Boryung (10.8x), and Yuhan (27.7x) and near Daewoong Pharmaceutical (7.8x). In other words, it is a low multiple relative to high profitability. In particular, last year's net profit dipped slightly from the prior year on some base effects, so the P/E on last year's earnings looks higher than the underlying strength. By contrast, with Q1 2026 profit up more than 52%, on this year's earnings the share multiple falls further to about 7x. Viewing the high ROE, net cash, and high-margin growth together, the current valuation is judged to be in undervalued territory.
Price history Close · MA20 · MA60
The latest close is ₩23,700 and the market capitalization is ₩551.9 billion. The price sits below its 20-day moving average (₩25,918) and below its 60-day moving average (₩28,314). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 36.1, a neutral level. The one-month change is -10.1%, the three-month change is -17.1%, and the position relative to the 52-week high is -39.3%. Relative strength versus the KOSPI is 29 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 29% of all stocks. Over the past three months it lagged the index by 34.6%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -34.64% / 6M -44.81% / 12M -56.06%
Key metrics vs sector median
Valuation
The P/E of 8.97x is below the sector median (15.98x). The P/B of 1.49x is in line with the sector median (1.37x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 11.6%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.263x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 16.7%, above the sector average (3.0%). The operating margin is 12.2%. The debt ratio is 163.9%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $496.1M | $476.8M | $513.8M | +7.77% ↑ faster |
| Operating profit | $66.5M | $54.7M | $62.6M | +14.51% ↑ faster |
| Net profit | $24.5M | $43.1M | $40.8M | -5.43% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $402.0M | $453.6M | $496.1M | $476.8M | $513.8M |
| Operating profit | $20.7M | $41.7M | $66.5M | $54.7M | $62.6M |
| Net profit | -$641,465 | $21.1M | $24.5M | $43.1M | $40.8M |
| Revenue CAGR | 4-yr avg 6.33% | ||||
Revenue rose 7.8% year over year (2023 ₩748.5 billion → 2024 ₩719.4 billion → 2025 ₩775.3 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 14.5% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 6.3%. The two-year revenue CAGR is 1.8%. In the most recent quarter (Q1 2026), revenue was 7.9% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- ROE of 16.7% points to solid profitability.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-03-27FilingCorporate value enhancement plan (voluntary disclosure) — targets of an average ROE of 20% or more over three years through 2027 and revenue growth of 10% or more per year, a 30% dividend increase, ₩20 billion of treasury-share purchases over three years, and a payout ratio around 25% by 2028Over the medium to long term, the company formalized a direction of expanded shareholder returns and improved capital efficiency. Whether the targets are met is the key to a re-valuation. Source
- 2026-05-12EarningsQ1 2026 preliminary results disclosure — operating profit rose sharply year on year led by prescription drugs (consolidated operating profit ₩33.6 billion, net profit ₩27.5 billion)With growth in high-margin items such as Livazet and Hemlibra, profit growth far outpaced revenue growth. Confirms the margin-improvement trend. Source
- 2026-04-30UpdateDisclosure of a sales-suspension order on some items — last year's revenue from the affected items was about 7% of the total, with a suspension period of May-AugustExisting distributed inventory can be sold, so the annual impact is limited, but a temporary gap in revenue recognition is possible in the second and third quarters. Defending market share in a generic-competitive market is a task. Source
- 2026-05-12DividendConfirmation of the basis for a dividend at ₩650 per share — a dividend yield of about 2.7%A shareholder-return pillar connected to the dividend-expansion stance in the corporate value enhancement plan. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 revenue | ₩775.3 billion | approx. 7,748~₩775.3 billion | Confirmed | link |
| Q1 2026 operating profit (consolidated) | ₩33.6 billion | 1 | Confirmed | link |
| Corporate value enhancement plan ROE target | 3 ROE 20% | — | Confirmed | link |
| 2026 net profit estimate | approx. ₩78.0 billion(self-estimate) | — | Unverified | link |
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-05-12EarningsFair-disclosure notice
- 2026-04-30Material-fact report
- 2026-04-30Disclosure
- 2026-04-08Disclosure
- 2026-03-27Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-26Disclosure
- 2026-03-18PeriodicAnnual business report
- 2026-03-13Audit report
- 2026-03-11Amended filing
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.