Nongshim is Korea's leading instant-noodle food company, built on flagship brands such as Shin Ramyun and Chapagetti. Bagged and cup noodles are its core revenue source, complemented by snacks and Baeksansu bottled water, and exports have become the main growth engine, recently lifting the company to the No. 2 spot in the North American instant-noodle market at roughly 21.5% share. First-quarter 2026 results are confirmed at revenue of ₩1.09 trillion and operating profit of ₩67.4 billion, and the company has raised its investment in the export-only plant in Noksan, Busan to ₩204.3 billion, explicitly citing "expanding export demand." The dividend is ₩6,000 per share (a 20.6% payout ratio). What stands out recently is that the combination of a domestic No. 1 moat, a sturdy balance sheet, margin gains as profit grows faster than revenue, and the export-plant expansion makes the story strong if growth continues, though stagnant domestic revenue, margin swings from flour, palm oil and the exchange rate, and the burden of managing overseas plant utilization are all points to watch.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 3.7% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 6.2% higher than a year earlier.
- ROE is 6.0% (controlling-interest basis). It is above the sector average.
- Operating margin is 4.5%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Nongshim Holdings 32.72% (corporate)
Controlling bloc incl. related parties 44.24%
With the controlling bloc holding 44%, the ownership structure is stable.
🔎 In-depth analysis
- Nongshim is the No.
- 1 food company in Korea's instant-noodle market, with noodles forming the largest pillar of revenue.
- Alongside its signature Shin Ramyun, bagged and cup noodles such as Ansungtangmyun, Chapagetti and Neoguri are the core revenue drivers, supplemented by a food segment that includes snacks like Shrimp Crackers and Onion Rings, Baeksansu bottled water, and soups and cereals.
- The recent key to growth is exports.
- The company sells Shin Ramyun through local subsidiaries and plants in markets including the United States, China, Japan and Australia, and in North America in particular it has climbed to the No.
- 2 position in the instant-noodle market at roughly 21.5% share, shifting toward a structure in which overseas sales offset domestic stagnation.
- In other words, its character is moving from "a noodle maker familiar at home" to "an exporter selling Shin Ramyun as a global brand."
- The recent close is ₩349,500 and the market cap is ₩2.1 trillion.
- The price sits below the 20-day line (₩353,125) and below the 60-day line (₩371,717).
- Trading under both the short- and mid-term moving averages, the trend is on the softer side.
- The RSI (an auxiliary gauge that compares upward and downward strength over the past 14 days on a 0-100 scale) is 45.3, a neutral level.
- The one-month change is -3.6%, the three-month change is -4.4%, and the position versus the 52-week high is -33.1%.
- Relative strength against the KOSPI is 18 (1-99, computed from returns versus the index over the past year with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 83% of all stocks by strength.
- Over the past three months it lagged the index by 24.2%.
- Chart reading is best done alongside trading volume and disclosure dates.
- The P/E ratio (how many times one year's net profit the share price represents) is 12.50x, not especially expensive among large-cap food names.
- The P/B (how many times the company's net assets the share price represents) is 0.75x, meaning the stock trades below its book equity, which for a company holding a No.
- 1 brand is closer to an undervaluation signal on an asset-value basis.
- Profitability, with an ROE (how much is earned in a year on shareholders' equity) of 6.0% and an operating margin of 4.5%, is not explosive but is steady, as is typical for the food industry.
- The balance sheet is solid.
- The debt ratio (debt relative to equity) is a low 35%, the current ratio (cash-like assets against debt due within a year) is 235%, and the interest coverage ratio (how many times operating profit covers interest) is 8.65x, leaving almost no debt burden.
- That said, the P/E based on last year's (2025) confirmed results reflects figures from before profit grew, so factoring in the currently expanding export earnings pushes the actual valuation lower still.
- Revenue grew at more than an 11% annual average over five years, expanding from ₩2.66 trillion in 2021 to ₩4.08 trillion in 2025.
- That said, the revenue growth rate has eased to the 3-4% range over the past two years.
- What deserves attention is the turn in profit direction.
- Operating profit dipped once in 2024 (from ₩212.0 billion in 2023 to ₩163.0 billion in 2024), then rebounded 12.8% to ₩183.9 billion in 2025, and in the first quarter of 2026 the increase widened further, with operating profit up 20.3% and net profit up 16.3% year on year.
- Profit growing much faster than revenue (+6.2%) means margins are improving, and the driver is high-margin export and North American sales.
- Extending this first-quarter profit trajectory across the full year points to net profit clearly exceeding last year's ₩170.1 billion, and in the second half the startup of the export-only Noksan plant and expanding North American sales leave room for further profit gains.
- The most important disclosure is the "new facility investment" amended on April 30, 2026.
- The company raised the investment in the export-only plant in Noksan, Busan from ₩191.8 billion to ₩204.3 billion and pushed completion back to October 2026, with the stated purpose of "strengthening production and supply competitiveness in response to expanding export demand" - in effect the company itself acknowledging that export volumes are growing enough to warrant the expansion.
- On April 9, 2026 it disclosed an investor relations (IR) briefing to communicate results and strategy to the market, and on May 15 the quarterly report confirmed first-quarter results (revenue of ₩1.09 trillion, operating profit of ₩67.4 billion).
- Through May and June, routine governance disclosures such as the corporate governance report and the large-business-group status filing followed.
- The dividend is held steadily at ₩6,000 per share (a dividend yield of roughly 1.66% and a 20.6% payout ratio).
- The strengths are clear: a moat as Korea's No.
- 1 noodle brand, a solid balance sheet with low debt and high liquidity, and export and North American growth that offsets domestic stagnation.
- It is in a phase where profit is growing faster than revenue and margins are improving, and the fact that the company is expanding an export-only plant reflects its confidence in continued growth.
- With the P/B below book value and, on a basis that reflects this year's growing profit, the valuation burden is not heavy either.
- Points to watch are the gentle stagnation of domestic revenue, the risk that margins swing with raw-material prices such as flour and palm oil and with the exchange rate, and the burden of managing overseas plant utilization.
- In short, this is a stock with "considerable room for a profit and share-price re-valuation if export growth continues and costs and the exchange rate stay favorable," while "margins could be squeezed if weak domestic demand or a cost spike coincide."
🔎 Valuation vs peers Undervalued
Compared against Korea's representative large-cap food, confectionery and noodle names, focusing on stocks with a similar business substance (branded consumer goods plus exports).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Orion | 14.00x | 1.41x | 10.05% |
| Lotte Wellfood | 12.97x | 0.43x | 3.30% |
| CJ CheilJedang | 0.00x | 0.41x | -8.10% |
The trailing P/E of 12.94x is lower than Orion (14.4x) and similar to Lotte Wellfood (12.9x), but Nongshim leads Lotte Wellfood in both ROE (6.0% vs. 3.3%) and profit growth. In particular, on a basis reflecting the first-quarter 2026 profit trajectory, the valuation falls further into undervalued territory relative to peers. The P/B of 0.78x sits below book net assets, meaning that for a company with a No. 1 brand and export growth it is also depressed on an asset-value basis. The P/E based on last year's confirmed results is limited in that it uses figures from before profit grew, and reflecting this year's expanding export earnings makes the actual valuation burden smaller still. Taking all of this together, the assessment is Undervalued.
Price history Close · MA20 · MA60
The latest close is ₩349,500 and the market capitalization is ₩2.1 trillion. The price sits below its 20-day moving average (₩353,125) and below its 60-day moving average (₩371,717). 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 45.3, a neutral level. The one-month change is -3.6%, the three-month change is -4.4%, and the position relative to the 52-week high is -33.1%. Relative strength versus the KOSPI is 18 (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 17% of all stocks. Over the past three months it lagged the index by 24.2%. 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 -24.24% / 6M -48.36% / 12M -63.07%
Key metrics vs sector median
Valuation
The P/E of 12.50x is above the sector median (8.80x). The P/B of 0.75x is above the sector median (0.51x).
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 9.2%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.166x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 6.0%, above the sector average (4.0%). The operating margin is 4.5%. The debt ratio is 35.0%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $2.5B | $2.6B | $2.7B | +3.66% ↓ slower |
| Operating profit | $140.6M | $108.1M | $121.9M | +12.79% ↑ faster |
| Net profit | $113.9M | $104.3M | $112.8M | +8.16% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.8B | $2.1B | $2.5B | $2.6B | $2.7B |
| Operating profit | $70.3M | $74.3M | $140.6M | $108.1M | $121.9M |
| Net profit | $66.2M | $77.0M | $113.9M | $104.3M | $112.8M |
| Revenue CAGR | 4-yr avg 11.27% | ||||
Revenue rose 3.7% year over year (2023 ₩3.8 trillion → 2024 ₩3.9 trillion → 2025 ₩4.1 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 12.8% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 11.3%. The two-year revenue CAGR is 3.8%. In the most recent quarter (Q1 2026), revenue was 6.2% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue rose 3.7% year over year, and the pace is slowing (3-year trend: rising).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-04-30FilingAmendment to the new facility investment in the export-only plant in Noksan, Busan - investment raised from ₩191.8 billion to ₩204.3 billion (8.37% of shareholders' equity), with completion adjusted to October 2026. The purpose is to strengthen production and supply capacity in response to expanding export demand.A capacity expansion to meet rising export volumes, providing grounds for medium-term growth. The delayed completion pushes the point at which the added capacity is reflected in operations to the second half or later. Source
- 2026-05-15EarningsFirst-quarter 2026 quarterly report - revenue of ₩1,090.8 billion (+6.2%), operating profit of ₩67.4 billion (+20.3%), and net profit of ₩60.7 billion (+16.3%). Profit growth well ahead of revenue confirms margin improvement.Export-led profit improvement confirmed in the results, providing grounds for full-year profit exceeding last year's. Source
- 2026-04-09IRNotice of an investor relations (IR) briefing - the company explains its results and business strategy to the market directly.A channel for communicating results and export strategy, with continued investor communication. Source
- 2026-05-29FilingCorporate governance report disclosure - a routine release of governance status covering the board and shareholder returns.A routine disclosure related to governance transparency, with limited direct impact on results. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-01Large-business-group status disclosure (amended)
- 2026-06-01Disclosure
- 2026-05-29Corporate governance report (amended)
- 2026-05-29Corporate governance report
- 2026-05-28Large-business-group status disclosure
- 2026-05-28Large-business-group status disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-08Disclosure
- 2026-04-30Amended filing
- 2026-04-27OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-22OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-09Disclosure
📖 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.