Eugene Investment & Securities is a small-to-mid-sized securities house in the Eugene Group that earns trade-intermediation commissions and margin-loan interest by intermediating stock trades for individuals and institutions, proprietary trading gains from running bonds, equities, and derivatives with its own capital, and fees from issuing derivative-linked securities such as ELS and ELB and from arranging real-estate project financing. Recent disclosures mostly reflect routine filings showing that its core business of issuing derivative-linked securities is running normally rather than any funding strain, and profit has recovered for two straight years and steepened in Q1 2026, with a P/B of 0.36x and a dividend yield of 4.2% providing an asset-value and dividend floor. What stands out lately is that when market trading is active and the operating environment is favorable, the low valuation and earnings recovery come to the fore as strengths, whereas an ROE of 5.7% is lower than larger houses and quarterly profit swings with trading value and interest rates, so its reliance on proprietary trading and the quarterly trend must be watched together.
At-a-glance assessment financial health · growth · profitability · valuation
- For financial companies, debt and interest costs are large by the nature of the business, so the debt ratio and interest coverage cannot be read on the same yardstick as an ordinary company.
- Revenue rose 2.5% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 164.6% higher than a year earlier.
- ROE is 5.7% (controlling-interest basis). It is below the sector average.
- Operating margin is 5.0%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Eugene Corporation 28.26% (corporate)
Controlling bloc incl. related parties 32.36%
With the controlling bloc holding 32%, the ownership structure is stable.
🔎 In-depth analysis
- Eugene Investment & Securities earns money through trade-intermediation commissions for intermediating stock trades for individuals and institutions, interest and operating income from margin lending (lending money to investors for interest) and bond operations, proprietary-trading gains from running bonds, equities, and derivatives with its own capital, and investment-banking income from real-estate project financing (PF) and the issuance and arranging of financial products such as bonds and ELS.
- As the steady stream of equity-linked securities (ELS) and equity-linked bond (ELB) issuance filings in the disclosure record shows, in-house operations and financial-product issuance form a large part of its revenue.
- It is a small-to-mid-sized house, smaller than the major firms, and belongs to the Eugene Group.
- The latest close is ₩4,115 and the market cap is ₩398.6 billion.
- The price sits below its 20-day line (₩4,451) and its 60-day line (₩4,999).
- Trading below both its short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a gauge that scores upward versus downward force over the past 14 days on a 0-100 scale) is 39.6, a neutral level.
- The one-month change is -6.8%, the three-month change is -9.5%, and it stands -35.7% below its 52-week high.
- Its relative strength against the KOSPI is 37 (on a 1-99 scale, converting the past year's return versus the index with more weight on recent periods; higher means stronger than the market).
- That places it in roughly the top 63% of all stocks by strength.
- Over the past three months it lagged the index by 33.6%.
- Chart readings are best viewed alongside trading volume and the dates of disclosures.
- On a prior-year basis (confirmed 2025), the P/E ratio (how many times one year's net profit the price represents) is 6.18x and the P/B (how many times per-share net assets the price represents) is 0.35x.
- ROE (how much is earned in a year on equity) is 5.7% and the operating margin is 5.0%.
- The debt ratio (debt relative to equity) of 875.7% looks high, but for a securities house customer deposits, repurchase agreements (RP), and derivative-linked securities issuance are booked as liabilities in accounting, so it should not be judged by the same yardstick as an ordinary manufacturer.
- The most striking point is that the P/B is well below 1x, meaning the market cap is smaller than the net assets the company records on its books, so on an asset basis it is clearly in a cheap zone.
- On top of that, the P/E of 6.4x is a trailing figure calculated on last year's confirmed earnings, so with this year's earnings rising quickly it makes the stock look more expensive than it is.
- The forward P/E reflecting this year's expected earnings is among the lowest even versus securities peers (Daol at 4.9x, Samsung at 9.8x, NH at 10.1x).
- Rather than reading the high trailing number as a burden, it is more accurate to view this as a stock whose valuation is falling further as earnings grow.
- Annual revenue was nearly flat — ₩1.65 trillion in 2023, ₩1.65 trillion in 2024, ₩1.69 trillion in 2025 — but earnings clearly trended up.
- Operating profit rose for two straight years, ₩27.0 billion to ₩58.3 billion to ₩84.4 billion, and net profit rose alongside, ₩30.7 billion to ₩49.6 billion to ₩64.5 billion.
- Earnings growing while revenue stays flat signals that gains in the trading and financial-product segments improved and cost efficiency got better.
- In Q1 2026 it stepped up another level, with cumulative revenue of ₩1.07 trillion (+164.6% year over year), operating profit of ₩66.6 billion (+1,033.1%), and net profit of ₩52.7 billion (+775.2%) — Q1 operating profit of ₩66.6 billion alone already reaches 79% of last year's full-year figure (₩84.4 billion).
- As market trading revived and the bond and operating environment turned favorable, proprietary-trading and financial-product gains improved together, and that is the basis for this year's expected earnings being set well above last year's.
- Since securities-house earnings swing quarter to quarter with trading value and the rate and market environment, the quarterly trend needs continued confirmation, but the inflection to a higher earnings level itself is evident in the numbers.
- Recent disclosures are mostly shelf-registration supplements, prospectuses, and securities-issuance reports for financial products such as ELS and ELB (2026-06-10, 06-02, 05-29, and others).
- These are closer to routine filings showing that the company's core business of issuing derivative-linked securities is running normally, rather than fundraising driven by a cash crunch.
- Because a larger issuance scale also increases accounting liabilities and operating burden, the issuance balance is best viewed alongside operating gains and losses.
- The 2026-05-29 large-business-group status disclosure is a periodic report on governance and internal-transaction standing as a Eugene Group affiliate, a starting point for checking affiliate relationships.
- The strengths are clear.
- Earnings recovered for two straight years and steepened in Q1 2026, the P/B of 0.36x is cheap versus net assets, and the forward P/E on this year's expected earnings is among the lowest in the peer set.
- The dividend yield is also high at 4.2%, so asset value, earnings recovery, and dividend all provide a floor.
- The core of this stock is that it sits at the cheapest spot versus assets in its peer set while earnings are growing quickly.
- The points to watch are profitability and volatility.
- With an ROE of 5.7%, profitability itself is lower than the major houses (11-13%), and securities-house earnings swing quarter to quarter with trading value, rates, and the market environment, so reliance on proprietary trading and the quarterly trend are best watched continuously.
- In sum, this is a stock where the low valuation and high earnings leverage come to the fore together when market trading is active and the operating environment is favorable, and where earnings volatility grows if trading contracts or rate and real-estate-finance burdens pile up.
- It is not a case to call one direction outright, but the current price sits closer to the side that does not fully reflect the increased earnings and asset value.
🔎 Valuation vs peers Undervalued
Among securities houses with similar business substance, small-to-mid-sized firms of comparable size were used as the primary comparison set, with the major houses used only as positional reference (all figures are on-site calculations at the current price).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Daol Investment & Securities | 4.91x | 0.32x | 6.47% |
| SK Securities | 18.18x | 0.87x | 4.78% |
| Samsung Securities | 9.90x | 1.24x | 12.48% |
| NH Investment & Securities | 10.10x | 1.10x | 10.94% |
(a) Position within the peer set: on P/B it is, together with the similarly sized Daol Investment & Securities, among the cheapest versus net assets, and at a clear discount to the major houses. (b) Nature of the discount: much of this discount reflects not simple undervaluation but the low profitability of a 5.7% ROE, the small-to-mid-sized scale, and the earnings volatility that comes with reliance on proprietary trading. (c) Limits of trailing and the case for forward: the displayed P/E is on last year's confirmed earnings and does not capture the Q1 2026 earnings inflection. With no confirmed company outlook, the forward figure can only be gauged from a seasonality approximation of DART-confirmed quarterly results (annual operating profit of roughly ₩357.2 billion), which is hard to trust as-is given the volatile trading gains. On balance, it is indeed cheap versus asset value, but the discount gains meaning only once profitability and earnings durability are confirmed.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩1.1 trillion | approx. ₩172.4 billion | approx. ₩120.8 billion |
Price history Close · MA20 · MA60
The latest close is ₩4,115 and the market capitalization is ₩398.6 billion. The price sits below its 20-day moving average (₩4,451) and below its 60-day moving average (₩4,999). 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 39.6, a neutral level. The one-month change is -6.8%, the three-month change is -9.5%, and the position relative to the 52-week high is -35.7%. Relative strength versus the KOSPI is 37 (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 37% of all stocks. Over the past three months it lagged the index by 33.6%. 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 -33.59% / 6M -30.03% / 12M -50.95%
Key metrics vs sector median
Valuation
The P/E of 6.18x is below the sector median (8.97x). The P/B of 0.35x is below the sector median (0.45x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets. 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.
Profitability & financials
Return on equity (ROE) is 5.7%, in line with the sector average (6.0%). The operating margin is 5.0%. The debt ratio is 875.7%, but for financial firms deposits and insurance liabilities count as debt, so it cannot be read on the same yardstick as an ordinary company.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.1B | $1.1B | $1.1B | +2.51% ↑ faster |
| Operating profit | $17.9M | $38.7M | $56.0M | +44.74% ↓ slower |
| Net profit | $20.3M | $32.9M | $42.8M | +30.07% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $1.1B | $1.1B | $1.1B |
| Operating profit | — | — | $17.9M | $38.7M | $56.0M |
| Net profit | — | — | $20.3M | $32.9M | $42.8M |
| Revenue CAGR | 2-yr avg 1.40% | ||||
Revenue rose 2.5% year over year (2023 ₩1.6 trillion → 2024 ₩1.7 trillion → 2025 ₩1.7 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 44.7% year over year. The pace of that profit growth is gradually easing. Over the 3 years on record, revenue compound annual growth (CAGR) is 1.4%. The two-year revenue CAGR is 1.4%. In the most recent quarter (Q1 2026), revenue was 164.6% 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.
- The dividend yield, at 4.4%, is on the high side.
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
- 2026-06-10FilingFiling of a shelf-registration supplement and prospectus for equity-linked bonds (ELB) — a routine disclosure showing the core financial-product business is running normallyThe standalone short-term impact is limited, but a rising issuance balance of derivative-linked securities also grows accounting liabilities and operating burden, so it should be viewed together with operating gains and losses. Source
- 2026-06-02FilingSecurities-issuance report — confirmed report on bond and financial-product issuance resultsA source for checking the effect on funding and issuance scale and on the capital structure; the issuance-balance trend lets one gauge changes in interest costs and operating scale. Source
- 2026-05-29FilingLarge-business-group status disclosure (annual, Q1 filing, individual company) — periodic report on governance and internal transactions as a Eugene Group affiliateA starting point for checking group risks such as inter-affiliate transactions and support burdens. Over the medium term it can affect capital use and dividend policy. Source
- 2026-05-29FilingSecurities-issuance report — report on issuance results for financial products such as ELS and ELBA signal of normal business operation in that issuance continues steadily, though a larger issuance scale means the capital-structure burden should be watched alongside. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| P/B (price / per-share net assets) | 0.38x | 0.376x | Confirmed | link |
| EPS (earnings per share) | ₩666.3 | ₩666.3 | Confirmed | link |
| Q1 2026 operating profit as a share of the annual figure | ₩66.6 billion = 2025 operating profit(₩84.4 billion) approx. 79% | — | Unverified | link |
| DART seasonality-approximated annual operating profit | approx. ₩357.2 billion | — | Unverified | link |
Recent filings
- 2026-06-10Disclosure
- 2026-06-10Disclosure
- 2026-06-09Disclosure
- 2026-06-09Disclosure
- 2026-06-02Earnings disclosure
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Earnings disclosure
- 2026-05-27Disclosure
- 2026-05-27Disclosure
- 2026-05-21Disclosure
- 2026-05-21Disclosure
- 2026-05-21Disclosure
📖 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.