Shinsegae (004170) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
Shinsegae is Korea's representative department-store operator, running large stores such as Gangnam and the main branch, and it is a diversified retailer with subsidiaries in duty-free (Shinsegae DF), fashion (Shinsegae International) and the Central City complex above the Seoul Express Bus Terminal. In Q1 2026 it posted revenue of ₩1.8471 trillion and operating profit of ₩197.8 billion (up 49.5% year on year), a record quarterly operating profit, and net profit also surged to ₩145.4 billion as the previously struggling duty-free business swung to profit and Shinsegae International's earnings grew sharply. What stands out lately is that with the core department-store business steady and the recovery of the duty-free and fashion subsidiaries overlapping, profit that was depressed by one-off costs last year is climbing back onto a normal track, though a high debt-to-equity ratio and sensitivity to consumer conditions and tourist flows are points to weigh together.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Offline Retail (Asset Plays)” (Retail, Consumer Goods & Food · Distribution & Wholesale/Retail), a type typically read first through P/E.
Offline retail is a consumer-facing business that earns steady profits from running stores, so price-to-earnings (P/E) — the price against the profits it makes — is a natural starting point. Sales and margins tend to be relatively stable, which makes the earnings stream easier to read.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 52.3%).
- Revenue rose 5.5% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 10.9% higher than a year earlier.
- ROE is 1.8% (controlling-interest basis). It is above the sector average.
- Operating margin is 7.7%.
Ownership & governance As of 2025-12-31
Largest shareholder Chung Yoo-kyung 29.15% (individual)
Controlling bloc incl. related parties 29.17%
With the controlling bloc holding 29%, control is maintained but the free float is relatively large.
🔎 In-depth analysis Reading
Shinsegae earns its money centered on department stores. Its core is the commission income and direct-purchase sales from selling luxury goods, fashion and food at large stores such as Gangnam, Centum City and the main branch. Subsidiaries are layered on top. The duty-free arm (Shinsegae DF, 100% owned) sells duty-free goods at Incheon Airport and in Myeongdong. Shinsegae International (about 39% owned) imports and rolls out overseas fashion and cosmetics brands. It also holds the Central City complex mall built atop the Seoul Express Bus Terminal (about 60%) and Gwangju Shinsegae (about 63%) as subsidiaries. So the consolidated results capture department-store, duty-free, fashion and real-estate rental profit together. On the surface it looks like 'one department store,' but it is actually a group-type company bundling retail, duty-free, fashion and real estate.
The latest close is ₩427,500 and the market capitalization is ₩4.0 trillion. The price sits below its 20-day moving average (₩510,425) and below its 60-day moving average (₩591,900). 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 35.0, a neutral level. The one-month change is -37.1%, the three-month change is +4.3%, and the position relative to the 52-week high is -44.9%. Relative strength versus the KOSPI is 78 (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 79% of all stocks. Over the past three months it outpaced the index by 17.4%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
The valuation looks very different depending on the metric. On last year's net profit, the P/E ratio (how many times one year's profit the price represents) is 289.71x, abnormally high. But that is because 2025 net profit was pressed down to ₩13.9 billion by one-off costs, not because the company is actually that expensive. The forward P/E reflecting normalized 2026 profit is about 17x, coming down to the level of department-store peers. The P/B (price relative to net assets) is 0.86x. That is clearly higher than Lotte Shopping (0.27x), E-Mart (0.20x) and Hyundai Department Store (0.75x), because the market values Shinsegae's urban department-store real estate and its duty-free, fashion and complex-mall subsidiaries above book. On profitability, ROE (how much it earns on equity in a year) is low at 0.3%, again due to the plunge in last year's profit, so it should be read together with this year's normalization. The operating margin is 6.9%. On debt-inclusive metrics, EV/EBIT (enterprise value divided by operating profit, a debt-inclusive P/E) is 23.8x and EV/EBITDA is 11.6x. Net debt (total borrowings minus cash) is about ₩4.5 trillion, on the high side. That said, the FCF yield (cash actually generated relative to market cap) is 7.1%, so the cash-generating power itself is sound.
Revenue is rising steadily, if gradually. 2025 revenue grew 5.5% year on year to ₩6.9295 trillion, and the pace of growth has picked up a bit. Net profit, by contrast, fell sharply from ₩225.1 billion in 2023 to ₩107.8 billion in 2024 and ₩13.9 billion in 2025. This plunge is less a deterioration in results than the outcome of duty-free losses and one-off subsidiary-related costs concentrated in the fourth quarter. Actual operating profit held at ₩480.0 billion even in 2025. Into 2026 the picture changes. Q1 revenue rose 10.9% year on year to ₩1.8471 trillion. Operating profit surged 49.5% to ₩197.8 billion, a record for a quarter. Net profit also jumped 88.5% to ₩145.4 billion. The recovery draws on three sources: the core department-store business is steady, the previously loss-making duty-free arm swung to profit, and Shinsegae International's earnings grew sharply. If this flow continues, this year's net profit is likely to normalize well beyond last year's depressed level, into the ₩300 billion range. On that basis, even though the price looks expensive on last year's profit, on this year's profit it is roughly in line with department-store peers.
Recent disclosures center on the earnings recovery and funding. A June preliminary operating-results disclosure confirmed the record quarterly operating profit. The May quarterly report formally reflected Q1 results. In the same month it held an investor briefing (IR) to signal the recovery. In May it also issued corporate bonds (debt securities) several times. As a company with a lot of debt, the funding terms and interest burden should be weighed together. In June it disclosed large-business-group status, updating governance information on the Shinsegae Group. The dividend is holding steady at ₩5,200 per share.
Shinsegae is in a classic earnings-normalization phase where the core business is solid but last year's numbers were depressed by one-off factors. On the strong side: with a strong core in large urban department stores, when the duty-free and fashion subsidiaries recover at the same time, profit steps up. In fact Q1 operating profit was a record. The forward P/E of about 17x has come down to peer level. The P/B of 1.29x being higher than peers can also be read as the market recognizing the value of prime real estate and subsidiaries. On the weak side: department-store and duty-free results are sensitive to consumer conditions and Chinese-tourist flows, so if these two falter the recovery pace can slow. A 355% debt-to-equity ratio and ₩4.5 trillion of net debt come back as an interest burden when rates are high. The current ratio of 53.5% also leaves short-term liquidity not ample. In sum, when consumer recovery and duty-free normalization continue, the profit leverage works strongly, but when economic and tourism demand weaken or rates stay high, the debt burden comes to the fore.
🔎 Valuation vs peers Fairly valued
Compared against department-store and large-retail peers (Lotte Shopping, Hyundai Department Store, E-Mart). As a diversified retailer with duty-free, fashion and complex-mall subsidiaries layered on the core department-store business, Shinsegae should be viewed on both asset value (P/B) and earnings normalization (forward P/E).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Lotte Shopping | 62.83x | 0.21x | 1.16% |
| Hyundai Department Store | 11.05x | 0.50x | 4.03% |
| E-Mart | 16.49x | 0.19x | 1.14% |
| Shinsegae International | 95.33x | 0.47x | 1.65% |
The 413x P/E on last year's net profit is the result of 2025 profit being pressed down to ₩13.9 billion by one-off costs, so it is hard to call the stock expensive on that number. For an earnings-inflection stock, the forward view is the real picture. The forward P/E reflecting 2026 normalization is about 17x, similar to Hyundai Department Store (16.5x) and E-Mart (16.1x) and lower than Lotte Shopping (81x). The P/B of 1.29x is higher than peers (0.2-0.75x), but that can be read as a premium the market grants for prime urban real estate and the duty-free and fashion subsidiaries. In other words, on forward earnings it is at peer level and on asset value it carries a premium, so on balance we judge it fairly valued. That said, a 355% debt-to-equity ratio and ₩4.5 trillion of net debt are burdens that should be kept in the valuation at all times.
Price history Close · MA20 · MA60
The latest close is ₩427,500 and the market capitalization is ₩4.0 trillion. The price sits below its 20-day moving average (₩510,425) and below its 60-day moving average (₩591,900). 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 35.0, a neutral level. The one-month change is -37.1%, the three-month change is +4.3%, and the position relative to the 52-week high is -44.9%. Relative strength versus the KOSPI is 78 (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 79% of all stocks. Over the past three months it outpaced the index by 17.4%. 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 +17.45% / 6M +7.20% / 12M +28.39%
Key metrics Computed vs sector median
Valuation
The P/E of 289.71x is above the sector median (11.05x). The P/B of 0.86x is above the sector median (0.47x). 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.
Profitability & financials
Return on equity (ROE) is 1.8%, above the sector average (1.0%). The operating margin is 7.7%. The debt ratio is 195.8%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $4.5B | $4.6B | $4.9B | +5.47% ↑ faster |
| Operating profit | $449.4M | $335.1M | $337.2M | +0.62% ↑ faster |
| Net profit | $158.1M | $75.7M | $9.8M | -87.07% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $4.4B | $5.5B | $4.5B | $4.6B | $4.9B |
| Operating profit | $363.5M | $453.4M | $449.4M | $335.1M | $337.2M |
| Net profit | $215.5M | $285.3M | $158.1M | $75.7M | $9.8M |
| Revenue CAGR | 4-yr avg 2.34% | ||||
Revenue rose 5.5% year over year (2023 ₩6.4 trillion → 2024 ₩6.6 trillion → 2025 ₩6.9 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 0.6% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 2.3%. The two-year revenue CAGR is 4.4%. In the most recent quarter (Q1 2026), revenue was 10.9% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- —
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
- 2026-06-09EarningsFair disclosure of preliminary Q1 2026 operating results, a record quarterly operating profit of ₩197.8 billion, up about 49.5% year on year.The result of the department-store core and the duty-free and fashion subsidiaries recovering at once, a sign of normalization of the annual profit that plunged last year. An event that markedly raises the forward-profit bar for the mid term. Source
- 2026-05-15EarningsQ1 2026 quarterly report, confirming a profit rebound with consolidated revenue of ₩1.8471 trillion and net profit of ₩145.4 billion (up 88.5% year on year).The duty-free swing to profit and higher Shinsegae International earnings drove the surge in consolidated net profit. Supports the view that the earnings power depressed by last year's Q4 one-off costs is recovering. Source
- 2026-05-20IRNotice of an investor briefing (IR), explaining Q1 results and business conditions.Strengthens communication with the market during the recovery phase. A session to check the recovery strength by subsidiary and the second-half direction. Source
- 2026-05-29FilingFinalization of corporate-bond (debt-security) issuance terms, with a securities registration statement filed on the finalized terms.As a company with a lot of debt, the funding rate and maturity structure affect the interest burden. The funding itself is natural, but the financial cost bears watching depending on the rate environment. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 consolidated revenue and operating profit | revenue 1₩847.1 billion / operating profit ₩197.8 billion | revenue 1₩847.1 billion / operating profit ₩197.8 billion | Confirmed | link |
| Dividend per share (DPS) | ₩5,200 | — | Unverified | link |
| 2026 net profit forecast (in-house estimate) | approx. ₩340.0 billion(forward PER approx. 17x) | — | Unverified | link |
Recent filings Source
- 2026-06-09EarningsFair-disclosure notice
- 2026-06-01Earnings disclosure
- 2026-06-01Large-business-group status disclosure
- 2026-06-01Large-business-group status disclosure
- 2026-06-01Disclosure
- 2026-05-29Disclosure
- 2026-05-29Corporate governance report
- 2026-05-26Disclosure
- 2026-05-26Amended filing
- 2026-05-20Disclosure
- 2026-05-19Disclosure
- 2026-05-15PeriodicQuarterly report
📖 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.