Shinsegae's core business is directly running the Shinsegae Department Store at flagships such as Gangnam, Centum City, and the main store, where fees from tenant brands together with directly purchased goods, luxury, and food make up the large axis of profit; on top of this it consolidates duty-free, fashion, mixed-use retail, furniture, and home-shopping subsidiaries plus the associate SSG.COM, making it a diversified retail company. Its Q1 2026 provisional results were a record quarterly high, and it paid a first-ever quarterly dividend of ₩1,300 per share, while with a large debt weight it also filed corporate-bond registrations and issuance results in May and June. The points to weigh are the strengths: with the duty-free one-off burden gone and the department-store core business extending record results on luxury and foreign-visitor demand, profit returns to a normal track as losses at duty-free, fashion, and online shrink, and the valuation burden comes down. Against that, with a debt ratio of 355% and a current ratio of 53.5%, financial headroom is not ample, leaving it sensitive to interest rates and softening consumption.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 355.4%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 53.5%).
- 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 0.3% (controlling-interest basis). It is below the sector average.
- Operating margin is 6.9%.
- P/B is high versus peers, a stretch on an asset basis.
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
- Shinsegae's core business is directly running the "Shinsegae Department Store." At large stores such as Gangnam, Centum City, and the main store, it builds the large axis of profit from sales-commission fees on tenant brands, directly purchased goods, and luxury and food sales.
- On top of this it holds, as consolidated subsidiaries, duty-free (Shinsegae DF), fashion and cosmetics (Shinsegae International), mixed-use retail and real estate around the Gangnam Express Bus Terminal (Shinsegae Central / Central City), furniture (Shinsegae Casa), and home shopping (Shinsegae Live Shopping), while the online mall SSG.COM is an associate (reflected by the equity method).
- In other words, it is a diversified retail company that consolidates "the department-store core plus a bundle of retail subsidiaries," and the root of profit is the department store (a solid cash cow that still earned about ₩510 billion in net profit in 2025), while duty-free, fashion, and online are the variable factors that swing results.
- The recent close is ₩606,000 and the market cap is ₩5.7 trillion.
- The price sits below the 20-day line (₩710,900) and above the 60-day line (₩556,333).
- With the short- and medium-term trends diverging, the direction should be read separately.
- The RSI (a gauge that scores upward versus downward force over the past 14 days on a 0-100 scale) is 41.5, a neutral level.
- The one-month change is -11.5%, the three-month change is +94.9%, and the position versus the 52-week high is -21.9%.
- Relative strength against the KOSPI is 89 (on a 1-99 scale that weights recent returns versus the index over the past year more heavily; higher means stronger than the market).
- That places it in roughly the top 11% of all stocks by strength.
- Over the past three months it outpaced the index by 47.9%.
- It is best to read the chart alongside trading volume and the dates of disclosures.
- The surface metrics are misleading.
- The P/E ratio (how many times one year's net profit the share price represents) is an extreme 525x, but this is because 2025 net profit was pressed down to a "one-off bottom" of ₩13.9 billion by a non-cash impairment of duty-free assets (about ₩147.8 billion) and losses at the online and duty-free subsidiaries.
- The actual operating margin is 6.9%, around the retail-industry average, and the department-store core business still earned about ₩510 billion in net profit in 2025.
- The P/B (how many times net assets the share price represents) is 1.28x, but this should be read bearing in mind that subsidiary stakes are carried on the books at low acquisition cost, making net assets look smaller than they really are.
- The debt ratio (debt against equity) is 355%, high given the nature of retail and real estate, and the current ratio (cashable assets against debt due within a year) is low at 53.5%, so the point to watch is the pace of earnings normalization rather than financial headroom.
- Five-year net profit (controlling interest) collapsed step by step: ₩306.8 billion in 2021, ₩406.1 billion in 2022, ₩225.1 billion in 2023, ₩107.8 billion in 2024, and ₩13.9 billion in 2025.
- The core of the decline was not core-business weakness but non-cash, one-off factors such as duty-free impairment and equity-method losses at SSG.COM.
- Once that burden lifted, an inflection appeared immediately in Q1 2026.
- Consolidated gross revenue was ₩3.2144 trillion, operating profit ₩197.8 billion (+49.5%), and controlling-interest net profit ₩145.4 billion (+88.5%), a record quarterly high.
- By segment, too, department-store operating profit rose +30.7%, duty-free turned to profit (+₩10.6 billion), fashion +452.6%, and furniture and home shopping improved evenly.
- If impairments do not recur and duty-free and online losses keep shrinking, this year's earnings are on a track back to a normal level for the first time in several years, and with room for the recovery to extend into next year, it is hard to see this year as an earnings peak.
- Recent disclosures fall into two branches.
- First, earnings normalization: on June 9, 2026 the company gave fair disclosure of Q1 2026 provisional results (a record quarterly high), on May 15 it filed the quarterly report, and on May 20 it disclosed the holding of an investor briefing (IR).
- In particular, in Q1 the company strengthened shareholder returns by paying a "first-ever quarterly dividend" of ₩1,300 per common share.
- Second, funding: over May and June it filed debt-security (corporate-bond) registrations and issuance results in succession.
- As a company with a large debt weight, its funding rates and maturity structure affect future earnings.
- On June 1 it disclosed the large business group status and the corporate governance report.
- Strong conditions: one-off burdens such as the duty-free impairment are gone, the department-store core business extends record results on luxury and foreign-tourist demand, and losses at duty-free, fashion, and online keep shrinking so that profit returns to a normal track.
- In that case the 525x P/E on last year's basis is meaningless, and on this year's normalized earnings the valuation burden comes down to a level comparable to peer retail stocks.
- Cautionary conditions: with a debt ratio of 355% and a current ratio of 53.5%, financial headroom is not ample, leaving it sensitive to interest rates and softening consumption, and with the stock up +211% over six months, much of the recovery expectation is already reflected, so near-term volatility can rise.
- In conclusion, this is an earnings-inflection stock that "looks expensive on last year's numbers but not on this year's normalized earnings," with the durability of the recovery and financial management as the points to watch.
🔎 Valuation vs peers Fairly valued
Domestic large-retail (department-store and mixed-retail) peers on a business-substance basis.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hyundai Department Store | 17.40x | 0.79x | 4.56% |
| Lotte Shopping | 86.91x | 0.30x | 0.34% |
(a) Position versus peers: the P/B of 1.65x is higher than Hyundai Department Store (0.92) and Lotte Shopping (0.34), but given that subsidiary stakes are carried at acquisition cost and net assets are stated low, it is hard to view this as a pure premium. (b) Limits of the P/E comparison: the surface P/E of 525x results from 2025 net profit being pressed down to ₩13.9 billion by a one-off impairment, so it cannot be used on the same yardstick as peers in the 17-100x range. (c) Forward basis: since impairments do not recur and all segments are recovering, on this year's normalized earnings the valuation level comes down to a range comparable to peers (Hyundai Department Store's trailing P/E of about 20x). Unlike Lotte Shopping's deep book discount, Shinsegae's core-business profitability leads, so there is an aspect in which the premium is justified; taken together, it is judged "fairly valued."
Price history Close · MA20 · MA60
The latest close is ₩606,000 and the market capitalization is ₩5.7 trillion. The price sits below its 20-day moving average (₩710,900) and above its 60-day moving average (₩556,333). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 41.5, a neutral level. The one-month change is -11.5%, the three-month change is +94.9%, and the position relative to the 52-week high is -21.9%. Relative strength versus the KOSPI is 89 (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 89% of all stocks. Over the past three months it outpaced the index by 47.9%. 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 +47.89% / 6M +57.36% / 12M +35.24%
Key metrics vs sector median
Valuation
The P/E of 410.68x is above the sector median (16.77x). The P/B of 1.28x is above the sector median (0.56x). 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 0.3%, below the sector average (3.0%). The operating margin is 6.9%. The debt ratio is 355.4%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $4.2B | $4.4B | $4.6B | +5.47% ↑ faster |
| Operating profit | $424.0M | $316.2M | $318.1M | +0.62% ↑ faster |
| Net profit | $149.2M | $71.4M | $9.2M | -87.07% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $4.2B | $5.2B | $4.2B | $4.4B | $4.6B |
| Operating profit | $342.9M | $427.8M | $424.0M | $316.2M | $318.1M |
| Net profit | $203.4M | $269.1M | $149.2M | $71.4M | $9.2M |
| 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 Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Debt far exceeds equity (debt ratio 355.4%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 53.5%).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-06-09EarningsQ1 2026 provisional results fair disclosure — consolidated gross revenue ₩3.2144 trillion, operating profit ₩197.8 billion (+49.5%), controlling-interest net profit ₩145.4 billion (+88.5%), a record quarterly highNear-term: confirmation of the earnings inflection as a catalyst for the share price. Medium-term: resolution of the trailing-P/E distortion and entry to a normalized-earnings track. Source
- 2026-05-12IRQ1 2026 results summary released — department-store operating profit +30.7%, Shinsegae DF (duty-free) turned to profit, Shinsegae International (fashion) operating profit +452.6%, first-ever quarterly dividend of ₩1,300 per common share paidNear-term: confirms broad-based improvement across all segments and strengthened shareholder returns. Medium-term: highlights the sustainability of the duty-free and fashion recovery. Source
- 2026-05-15FilingMarch 2026 quarterly report filed — reflecting consolidated financial statements and the status of subsidiaries and associatesNear-term: a routine disclosure. Medium-term: allows checking of the source detail on how subsidiary results feed into consolidated profit. Source
- 2026-05-20IRDisclosure of an investor briefing (IR) — a setting where the company explains business conditions and results directlyNear-term: a channel for communicating results and strategy. Medium-term: shares segment-recovery strategy such as store renovations. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 consolidated operating profit | ₩197.8 billion (base quarter op_income) | ₩197.8 billion (+49.5% YoY) | Confirmed | link |
| Nature of the 2025 net-profit plunge | net profit ₩13.9 billion | net profit | Confirmed | link |
| 2026 normalized net profit estimate | approx. ₩450.0 billion | — | Unverified | link |
Recent filings
- 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.