Binggrae is a food company that makes and sells ice cream, dairy products, and beverages, with steady sellers such as Melona and Together on the frozen side and Banana Flavored Milk and Yoplait on the dairy side. In April 2026 it absorbed its wholly owned subsidiary Haitai Ice Cream (maker of Bravocone and Nougat Bar), consolidating its frozen-dessert operations into a single company, and its sales carry a pronounced seasonality that concentrates in the summer peak. In March it approved a treasury-share cancellation and voluntarily disclosed a corporate-value enhancement plan, reaffirming a shareholder-return policy of at least 25% of separate net profit; even as 2025 earnings fell, it kept its dividend at ₩3,300 per share, pushing the payout ratio above 50%. What stands out lately is that a net-cash balance sheet, an FCF yield of roughly 10%, and a dividend yield of about 5% make shareholder returns notable, and a low P/E despite high ROE and dividends reads as an undervaluation signal; on the other side, domestic-demand stagnation has slowed revenue growth to the low single digits, and profit swings year to year with input costs and summer weather.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 1.8% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 1.3% higher than a year earlier.
- ROE is 7.5% (controlling-interest basis). It is above the sector average.
- Operating margin is 5.9%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Kim Ho-yeon 37.89% (individual)
Controlling bloc incl. related parties 42.16%
With the controlling bloc holding 42%, the ownership structure is stable.
🔎 In-depth analysis
- Binggrae is a food company that makes and sells ice cream, dairy products, and beverages.
- On the ice-cream side it owns steady sellers such as Melona, Bungeo Samanco, and Together.
- In dairy beverages, Banana Flavored Milk is its signature product, and Yoplait (yogurt) along with various processed milks and drinks form another major pillar.
- In April 2026 it absorbed Haitai Ice Cream (maker of Bravocone and Nougat Bar), which it had acquired six years earlier and held as a wholly owned subsidiary, folding its frozen-dessert operations into a single company.
- In effect, it has gathered a large share of Korea's ice-cream market under one roof.
- Sales carry a pronounced seasonality that concentrates in the summer peak (the second and third quarters).
- The latest close is ₩65,400 and the market cap is ₩606.2 billion.
- The price sits below its 20-day line (₩65,975) and below its 60-day line (₩70,607).
- Trading beneath both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that weighs upward versus downward force over the past 14 days on a 0-100 scale) is 44.9, a neutral level.
- The one-month change is -2.5%, the three-month change is -8.4%, and it stands -30.1% off its 52-week high.
- Its relative strength versus the KOSPI is 14 (1-99, converting the past year's return relative to the index with heavier weight on recent periods; higher means stronger than the market), placing it in roughly the top 87% for strength among all stocks.
- Over the past three months it lagged the index by 27.2%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- Valuation metrics tell somewhat different stories.
- The P/E (how many times a year's earnings the price trades at) is 10.91x.
- The P/B (how many times net asset value the price is) is 0.82x, below book value.
- Profitability shows ROE (how much is earned in a year on equity) of 7.5% and an operating margin of 5.9%.
- The balance sheet is solid.
- The debt ratio (debt relative to equity) is 144%, but interest coverage (the ability to service interest out of operating profit) is 10.6x and the current ratio is an ample 2.8x.
- Notably, net debt (total borrowings minus cash) is negative, meaning the company effectively holds more cash than debt, a net-cash position.
- EV/EBIT (enterprise value including debt divided by operating profit, the debt-adjusted counterpart of the P/E) is 6.85x, even lower than the P/E.
- The FCF yield (the ratio of actual cash generated to market cap) is a high roughly 10%.
- In short, once debt is taken into account, the shares look even cheaper than the headline P/E suggests.
- The top line is growing gradually.
- Revenue rose for three straight years, from ₩1,394.3 billion in 2023 to ₩1,463.0 billion in 2024 and ₩1,489.6 billion in 2025, though the growth rate slowed from 4.9% to 1.8%.
- Earnings tell a different story.
- The 2024 operating profit of ₩131.3 billion and net profit of ₩103.2 billion marked an unusually strong year, and 2025 came down to an operating profit of ₩88.4 billion (-32.7%) and net profit of ₩55.6 billion (-46.2%).
- This looks less like deterioration than a return to normal levels from an exceptionally high 2024.
- In the first quarter of 2026 the direction turned back up: Q1 revenue of ₩312.4 billion (+1.3%) and operating profit of ₩13.8 billion (+2.3%) put operating profit back into growth.
- The peak second and third quarters are still ahead, and the production and distribution integration effects from the Haitai Ice Cream merger have room to add in the second half.
- Reflecting this trajectory, it is natural for 2026 net profit to hold at or slightly above the 2025 level (₩55.6 billion).
- Applying the current market cap to that estimated profit yields a P/E of about 10.6x on this year's earnings, which actually calculates lower than the 11.1x on last year's confirmed results.
- The core of recent disclosures is governance and shareholder returns.
- In April 2026 the company completed its absorption of Haitai Ice Cream, which it already fully owned, without issuing new shares.
- Because it was a small-scale merger, there was no change in the controlling shareholder's stake and no separate share-opposition procedure.
- In March it decided to cancel treasury shares, reducing shares outstanding; alongside dividends, this strengthens shareholder returns.
- Also in March, the company voluntarily disclosed a corporate-value enhancement plan, reaffirming a mid-term policy of directing at least 25% of separate net profit to shareholder returns.
- For reference, even though earnings fell in 2025, it kept its dividend per share at ₩3,300, pushing the payout ratio above 50%.
- A spin-off and holding-company conversion plan pursued at the end of 2024 was withdrawn in early 2025, so Binggrae today is not a holding company but an operating business.
- The strengths are clear.
- Familiar brands generate stable cash, and with a net-cash structure the FCF yield is a high roughly 10%.
- The dividend yield of about 5% stands out even among food peers.
- From a valuation standpoint one point is striking: ROE (7.5%) and dividends (5.0%) are higher than peers, yet the P/E is actually lower, which can be read as an undervaluation signal.
- There are cautions too.
- Amid stagnating domestic population and demand, the revenue growth rate has slowed to the low single digits.
- Earnings swing year to year with input costs (raw milk, milk fat, sugar) and summer weather.
- In sum, the investment case rests on stable cash flow and dividends plus shareholder returns via the merger and treasury-share cancellation, rather than explosive growth.
- It is strong when peak-season results and merger synergies come through, and weaker when input-cost pressure builds or domestic demand contracts further.
🔎 Valuation vs peers Undervalued
Compared against listed Korean food companies (ice cream, dairy, instant noodles, confectionery) whose businesses overlap.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Nongshim | 12.50x | 0.75x | 6.01% |
| Lotte Wellfood | 12.97x | 0.43x | 3.30% |
| CJ CheilJedang | 0.00x | 0.41x | -8.10% |
Versus Nongshim (P/E 12.9) and Lotte Wellfood (P/E 12.9), Binggrae trades at a lower P/E of 11.1x while its ROE of 7.5% is higher than both (6.0% and 3.3%). In other words, it earns more yet trades cheaper. Its P/B of 0.82x is similar to Nongshim's (0.78), but a higher ROE justifies a correspondingly higher P/B, so it is hard to view as a premium. Including debt, EV/EBIT is 6.85x and the FCF yield is roughly 10%, cheap relative to its cash generation. Last year's (2024) earnings were unusually high, and the 2025 results that stepped down from that base make the valuation look heavier, but the P/E on this year's earnings, factoring in the Q1 return to profit growth, is about 10.6x, actually lower. Returns continue through dividends and treasury-share cancellation. This combination looks closer to undervalued than overvalued.
Price history Close · MA20 · MA60
The latest close is ₩65,400 and the market capitalization is ₩606.2 billion. The price sits below its 20-day moving average (₩65,975) and below its 60-day moving average (₩70,607). 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 44.9, a neutral level. The one-month change is -2.5%, the three-month change is -8.4%, and the position relative to the 52-week high is -30.1%. Relative strength versus the KOSPI is 14 (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 14% of all stocks. Over the past three months it lagged the index by 27.2%. 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 -27.15% / 6M -49.26% / 12M -68.91%
Key metrics vs sector median
Valuation
The P/E of 10.91x is above the sector median (8.80x). The P/B of 0.82x 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 4.5%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.045x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 7.5%, above the sector average (4.0%). The operating margin is 5.9%. The debt ratio is 143.7%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $924.1M | $969.7M | $987.3M | +1.81% ↓ slower |
| Operating profit | $74.4M | $87.0M | $58.6M | -32.69% ↓ slower |
| Net profit | $57.1M | $68.4M | $36.8M | -46.17% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $760.5M | $840.2M | $924.1M | $969.7M | $987.3M |
| Operating profit | $17.4M | $26.1M | $74.4M | $87.0M | $58.6M |
| Net profit | -$12.8M | $17.0M | $57.1M | $68.4M | $36.8M |
| Revenue CAGR | 4-yr avg 6.74% | ||||
Revenue rose 1.8% year over year (2023 ₩1.4 trillion → 2024 ₩1.5 trillion → 2025 ₩1.5 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 32.7% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 6.7%. The two-year revenue CAGR is 3.4%. In the most recent quarter (Q1 2026), revenue was 1.3% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 5.1%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue rose 1.8% 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
- 2026-04-02FilingCompleted the absorption merger of wholly owned subsidiary Haitai Ice Cream (a small-scale merger with no new shares issued and no change in the controlling shareholder's stake).Consolidating frozen-dessert production and distribution into one company leaves room for cost and sales efficiency gains over the medium term, with no change to shares outstanding or the ownership structure. Source
- 2026-03-11FilingDecided to cancel treasury shares (a shareholder return through reducing shares outstanding).Reducing the share count strengthens per-share value and shareholder returns; part of the return policy alongside dividends. Source
- 2026-03-04IRVoluntarily disclosed a corporate-value enhancement plan (reaffirming a mid-term policy of directing at least 25% of separate net profit to shareholder returns).Provides a policy basis for continued shareholder returns via dividends and treasury-share cancellation, keeping dividends steady even in years of lower earnings. Source
- 2026-05-15EarningsFirst-quarter 2026 report (revenue ₩312.4 billion, +1.3%; operating profit ₩13.8 billion, +2.3%, a return to profit growth).With operating profit turning back to growth, this may mark passage through the trough of the 2025 earnings decline. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-29Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-04-24OwnershipOwnership-change filing
- 2026-04-02Merger decision
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-11Disclosure
- 2026-03-11Disclosure
- 2026-03-11Shareholders' meeting notice
- 2026-03-11Shareholders' meeting notice
- 2026-03-06Fair-disclosure notice
- 2026-03-04Disclosure
📖 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.