GS Retail is a distribution company built around some 17,000 GS25 convenience stores nationwide, and it also runs GS The Fresh (supermarkets), GS Shop (home shopping) and the Parnas Hotel. Of its roughly ₩12 trillion in annual revenue, convenience stores account for around 70%, and quick-commerce revenue has approached 10% of the total. Preliminary results disclosed on May 7, 2026 confirmed that every segment - convenience stores, supermarkets and home shopping - improved together, and the quarterly report of May 15 formally confirmed the figures. What stands out recently is that a recovery in the core convenience-store business is lifting profit step by step, so on a forward basis the story differs from the trailing P/E, which was distorted by a depressed net profit; at the same time the debt ratio is somewhat high, liquidity is tight, and revenue growth itself is gentle, so the recovery leans more on margin improvement than on top-line expansion.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 227.8%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 90.1%).
- Revenue rose 3.3% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 3.8% higher than a year earlier.
- ROE is 1.3% (controlling-interest basis). It is below the sector average.
- Operating margin is 2.4%.
Ownership & governance As of 2025-12-31
Largest shareholder GS 58.62% (corporate)
Controlling bloc incl. related parties 58.62%
With the controlling bloc holding 59%, control is very secure but the free float is thin.
🔎 In-depth analysis
- GS Retail is a distribution company that operates 'GS25,' Korea's flagship convenience-store brand.
- Most of its revenue comes from the roughly 17,000 GS25 stores nationwide.
- Added to this are the corporate-style supermarket 'GS The Fresh,' the home-shopping channel 'GS Shop,' and the Parnas Hotel business in Samseong-dong, Seoul.
- Annual revenue is around ₩12 trillion, of which convenience stores form the core pillar at roughly 70% of the total.
- Recently, 'quick-commerce' revenue - meaning delivery and immediate fulfillment - has grown rapidly to approach 10% of the total.
- The recent close is ₩25,000 and the market cap is ₩2.1 trillion.
- The price sits above the 20-day line (₩23,902) and above the 60-day line (₩24,462).
- Trading above both the short- and mid-term moving averages, the trend is on the favorable side.
- The RSI (an auxiliary gauge that compares upward and downward strength over the past 14 days on a 0-100 scale) is 54.6, a neutral level.
- The one-month change is +7.3%, the three-month change is +12.4%, and the position versus the 52-week high is -15.1%.
- Relative strength against the KOSPI is 50 (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 50% of all stocks by strength.
- Over the past three months it lagged the index by 6.6%.
- Chart reading is best done alongside trading volume and disclosure dates.
- The valuation metrics look very different on the surface than underneath.
- On last year's results, the P/E (how many times one year's profit the share price represents) is 48.12x, which looks high.
- But that is because last year's net profit was heavily depressed by restructuring costs and the like.
- The P/B (how many times book equity the share price represents) is 0.64x, so it trades below asset value.
- The dividend yield is 2.4%.
- On the balance sheet, the debt ratio (debt relative to equity) is somewhat high at 228%, and the current ratio (assets that can be turned into cash immediately against debt due within a year) is tight at 90%.
- That said, actual cash-generating power is firm.
- The FCF yield (the ratio of cash actually earned to market cap) reaches 34%, so the cash the company brings in is abundant.
- The EV/EBIT (enterprise value reflecting debt divided by operating profit - a debt-adjusted version of the P/E) is around 15x.
- Top-line growth is gentle, with revenue rising at low single digits on average over the past three years.
- The real change shows up in profitability.
- Last year's operating profit was ₩292.1 billion, up 14% from the prior year, and net profit rebounded off the bottom to ₩43.4 billion.
- The pace of that rebound steepened in 2026.
- First-quarter operating profit was ₩58.3 billion, a 39% surge from a year earlier.
- Notably, first-quarter net profit of ₩42.5 billion is on par with the entire net profit for all of last year.
- Years of exiting loss-making businesses and improving the cost structure are now being reflected in earnest in consolidated results.
- Extending this trend, this year's net profit is in a phase of normalizing to several times last year's.
- That is precisely why, even though last year's P/E looks high, it works out much lower on this year's profit.
- The heart of recent disclosures is the first-quarter earnings turnaround.
- The preliminary-results disclosure on May 7 confirmed that every segment improved together.
- GS25 convenience stores, GS The Fresh supermarkets and GS Shop home shopping all grew profit.
- An investor relations (IR) briefing was also announced the same day.
- On May 15 the first-quarter report was filed, formally confirming the results.
- In June, routine disclosures such as the large-business-group status filing and the governance report followed.
- The observation points are clear.
- This company is at the very start of an earnings-recovery phase.
- Its strength is that as the stable core convenience-store business recovers, profit is climbing step by step.
- The P/E on last year's results is high, but that owes to a depressed net profit, and on this year's basis the story differs.
- Cash-generating power is also ample.
- The point to watch is that the debt ratio is somewhat high and liquidity is tight.
- Revenue growth itself is also gentle, so the engine of the recovery leans toward margin improvement rather than top-line expansion.
- In short, the structure is strong if profit normalization continues and weak if the core convenience-store recovery loses momentum.
🔎 Valuation vs peers Undervalued
Compared against listed large-cap Korean distributors - department stores, hypermarkets and general retailers - whose business structure overlaps.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| E-Mart | 16.13x | 0.20x | 1.24% |
| Hyundai Department Store | 17.40x | 0.79x | 4.56% |
| Lotte Shopping | 86.91x | 0.30x | 0.34% |
On last year's results, the P/E of 48x looks higher than peer distributors. But that is because last year's net profit was temporarily depressed by restructuring costs. The fact that first-quarter 2026 net profit (₩42.5 billion) is nearly equal to last year's full-year net profit (₩43.4 billion) makes this clear. On this year's basis, as profit normalizes, the earnings multiple actually falls to a range below E-Mart (17x) and Hyundai Department Store (19x). The P/B is also low relative to asset value at 0.64x, and actual cash-generating power is ample. Given that the profit recovery is now confirmed in the financial statements, it is hard to conclude the stock is overvalued from last year's metrics alone; on a forward basis it is closer to undervalued territory.
Price history Close · MA20 · MA60
The latest close is ₩25,000 and the market capitalization is ₩2.1 trillion. The price sits above its 20-day moving average (₩23,902) and above its 60-day moving average (₩24,462). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 54.6, a neutral level. The one-month change is +7.3%, the three-month change is +12.4%, and the position relative to the 52-week high is -15.1%. Relative strength versus the KOSPI is 50 (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 50% of all stocks. Over the past three months it lagged the index by 6.6%. 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 -6.58% / 6M -22.27% / 12M -38.46%
Key metrics vs sector median
Valuation
The P/E of 48.12x is above the sector median (16.77x). The P/B of 0.64x is in line with 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 1.3%, below the sector average (3.0%). The operating margin is 2.4%. The debt ratio is 227.8%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $7.3B | $7.7B | $7.9B | +3.26% ↓ slower |
| Operating profit | $208.4M | $169.8M | $193.6M | +14.05% ↑ faster |
| Net profit | $11.7M | $1.7M | $28.8M | +1604.87% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $6.4B | $7.4B | $7.3B | $7.7B | $7.9B |
| Operating profit | $145.5M | $162.5M | $208.4M | $169.8M | $193.6M |
| Net profit | $531.1M | $31.6M | $11.7M | $1.7M | $28.8M |
| Revenue CAGR | 4-yr avg 5.40% | ||||
Revenue rose 3.3% year over year (2023 ₩11.1 trillion → 2024 ₩11.6 trillion → 2025 ₩12.0 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 14.1% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 5.4%. The two-year revenue CAGR is 3.9%. In the most recent quarter (Q1 2026), revenue was 3.8% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Revenue rose 3.3% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-05-07EarningsFirst-quarter 2026 preliminary-results disclosure. Revenue of ₩2,854.9 billion (+3.8% year on year), operating profit of ₩58.3 billion (+39.4%). Profit improved across all segments - convenience stores, supermarkets and home shopping.Restructuring effects reflected in earnest in consolidated results confirm entry into a profit-turnaround phase. A factor for raising the medium-term earnings outlook. Source
- 2026-05-15FilingFirst-quarter 2026 quarterly report filed. Cumulative net profit of ₩42.5 billion, up about eightfold from a year earlier, on par with all of last year's net profit.Net-profit normalization confirmed in the financial statements. Grounds that show the limitation of valuation on last year's trailing basis. Source
- 2026-05-07IRNotice of an investor relations (IR) briefing. A venue arranged to explain first-quarter results and business conditions to the market directly.The company officially communicates the earnings-improvement trend. Strengthened short-term investor communication. Source
- 2026-03-11Filing2025 business report filed. Full-year operating profit of ₩292.1 billion (+14%) and net profit of ₩43.4 billion, rebounding off the bottom.Confirms the wind-down phase of restructuring. The starting point for the subsequent acceleration in quarterly results. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-01Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-05-11Disclosure
- 2026-05-07Disclosure
- 2026-05-07EarningsFair-disclosure notice
- 2026-04-30EarningsEarnings disclosure
- 2026-03-20Disclosure
- 2026-03-19Disclosure
- 2026-03-19Shareholders' meeting notice
- 2026-03-11PeriodicAnnual business report
- 2026-03-11Audit 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.