DB Financial Investment is a securities company within the DB Group that earns money from intermediating trades of stocks and bonds, S&T (making and selling structured products such as ELS and DLS) and proprietary trading, wealth management (WM), and IB covering IPOs, M&A, and real-estate PF; of about ₩1.0 trillion in Q1 2026 operating revenue, S&T accounts for 83% on a gross basis and drives the top line, but pre-tax profit is carried more by WM (about 44%) and IB (about 41%). On June 9 the company issued ₩150 billion of 30-year perpetual capital securities at a 5.9% coupon to bolster shareholders' equity, and earnings have recovered for three straight years from a 2023 trough. What stands out lately is an undervaluation zone - the price is down nearly half from its 52-week high, putting the forward P/E on this year's earnings at about 3.8x and the P/B at 0.33x, with a dividend yield in the 5% range - set against the fact that the large S&T weight means profit can swing more than the top line if bond and derivative markets wobble, and that the 5.9% coupon on the perpetual securities remains a cost.
At-a-glance assessment financial health · growth · profitability · valuation
- For financial companies, debt and interest costs are large by the nature of the business, so the debt ratio and interest coverage cannot be read on the same yardstick as an ordinary company.
- Revenue rose 45.8% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 145.9% higher than a year earlier.
- ROE is 7.4% (controlling-interest basis). It is above the sector average.
- Operating margin is 6.1%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder DB Insurance 26.71% (corporate)
Controlling bloc incl. related parties 35.43%
With the controlling bloc holding 35%, the ownership structure is stable.
🔎 In-depth analysis
- DB Financial Investment is a securities company within the DB Group that earns money from intermediating trades of stocks and bonds (fees for taking retail and corporate orders and completing trades), from proprietary trading and S&T (a business that trades bonds and derivatives with the firm's own capital and makes and sells structured products such as ELS and DLS), from wealth management (WM), and from investment banking (IB) covering IPOs, M&A, and real-estate PF.
- Of about ₩1.0 trillion in Q1 2026 operating revenue, S&T accounts for 83% and makes up most of the top line, but this is because the gross value of bond and derivative trades is large; the actual pre-tax profit contribution is greater from wealth management (about 44%) and IB (about 41%).
- In short, high-turnover trading inflates the revenue figure while fee-based WM and IB carry the profit.
- The latest close is ₩9,120 and the market capitalization is ₩387.1 billion.
- The price sits below its 20-day moving average (₩9,800) and its 60-day line (₩11,845).
- Trading below both its short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that scores upward versus downward momentum over the last 14 days on a 0-100 scale) is 37.3, a neutral level.
- The one-month change is -12.0%, the three-month change is -24.9%, and it stands -48.0% below its 52-week high.
- Its relative strength versus the KOSPI is 24 (1-99, converting the past year's return relative to the index with more weight on recent performance; higher means stronger than the market), which places it in roughly the top 77% of all stocks by strength.
- Over the past three months it lagged the index by 44.2%.
- It is best to read the chart alongside trading volume and disclosure dates.
- On confirmed full-year (2025) figures, the P/E ratio (how many times a year's profit the price represents) is about 4.8x, the P/B is 0.35x, the ROE (how much is earned in a year on equity) is 7.4%, and the operating margin is 6.1%.
- Book value per share (BPS) is in the mid-₩20,000s, so the price is only about a third of net asset value, the dividend yield is about 5.3%, and the payout ratio is 23.3%.
- The debt-to-equity ratio is 1,295.7%, which would read as high for an ordinary manufacturer, but a securities company's structure books items such as customer deposits, structured-product issuance balances like ELS, and repurchase agreements as accounting liabilities, so it cannot be compared on the same yardstick as manufacturing.
- The key point is that because earnings are in a recovery phase, the forward P/E on this year's earnings is more meaningful than the confirmed prior-year P/E; the forward P/E on this year's earnings is lower than last year, and the P/B falls to 0.33x.
- Compared with peer securities companies trading at P/Es of 10-15x and P/Bs above 1x, it is clearly priced cheaply on both profitability and asset value.
- Consolidated revenue rose from ₩1.2 trillion in 2023 to ₩1.3 trillion in 2024 to ₩1.9 trillion in 2025, an increasing three-year trend, with a confirmed three-year CAGR of 26.2%.
- Operating profit grew sharply from ₩21.3 billion in 2023 to ₩61.9 billion in 2024 to ₩116.7 billion in 2025, and net profit from ₩6.2 billion in 2023 to ₩81.4 billion in 2025.
- Most recently, in Q1 2026 revenue surged +145.9% year on year, and profit continued double-digit growth with operating profit +24.9% and net profit +48.0%.
- When the trading top line grows, the margin is somewhat compressed, but as long as trading value is alive, profit itself trends upward.
- Carrying this recovery through the full year would put net profit above last year's level, and the forward P/E on this year's earnings falls.
- This is not simply Q1 multiplied by four but a figure reflecting the business structure and the recovery trend, a textbook case of a securities company's profit expanding like leverage during a recovery in trading value.
- That said, this forward is strictly this year's picture, and there is no guarantee that the years after next are higher than this one, which should be viewed separately.
- Recent disclosures center on capital reinforcement and routine IR.
- On June 9 the company issued ₩150 billion of 30-year perpetual capital securities (debt securities recognized as capital) at a 5.9% coupon via private placement.
- It filled the entire ₩150 billion issuance ceiling approved by the board on May 26; the stated purpose is to improve financial soundness through a capital buildup, and it is used as operating funds.
- At a size not small relative to market capitalization (about ₩393.9 billion) and equity (about ₩1.1 trillion), it has two sides - the effect of raising the capital ratio (net capital ratio) and expanding business capacity, and a 5.9% interest burden.
- Otherwise, there are numerous ELS and DLS structured-product shelf registrations and issuance results, and officer and major-shareholder holding reports; the frequency of structured-product issuance shows that S&T is a standing business axis for this firm.
- This stock's most distinct feature is value.
- Earnings have recovered for three straight years from a 2023 trough, and this year revenue and profit grew together in Q1, yet the price has instead fallen nearly half from its 52-week high, bringing the forward P/E on this year's earnings to about 3.8x and the P/B to 0.33x.
- Given that most peer securities companies trade above a 10x P/E and above a 1x P/B, it reads as an undervaluation zone where the market has barely marked the price up despite recovering earnings.
- On top of this, a dividend yield in the 5% range and the capital reinforcement add safety cushions in cash return and financial headroom.
- Meanwhile, a caution comes from the nature of the business.
- With the large S&T weight, profit can swing more than the top line if bond and derivative markets wobble or trading value cools, and the 5.9% coupon on the perpetual securities remains a future cost.
- In sum, when trading value is alive and bond and derivative operations are favorable, the low multiple and high dividend stand out as strengths; if the trading environment sharply worsens, profit can wobble.
🔎 Valuation vs peers Undervalued
The comparison uses domestic-listed securities companies with overlapping business mixes; in particular, a small-to-mid-cap firm of similar market cap and scale (Daol Investment & Securities) and large firms with a bigger top line (Samsung, NH, Mirae Asset) are placed together to gauge its valuation position. P/E, P/B, and ROE are on-site values calculated at the current price.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Daol Investment & Securities | 4.91x | 0.32x | 6.47% |
| Samsung Securities | 9.90x | 1.24x | 12.48% |
| NH Investment & Securities | 10.10x | 1.10x | 10.94% |
| Mirae Asset Securities | 14.35x | 1.69x | 11.80% |
Versus large securities companies, its P/E and P/B are in a range below half theirs, so the price burden relative to assets and earnings is low. However, this discount also reflects its smaller scale, lower ROE, and high trading dependence together, and against a firm of the same weight class (Daol Investment & Securities) it is at a similar level. In other words, a balanced reading is 'ordinary within its weight class, in an undervaluation zone versus large firms.' One caveat is the limit of the confirmed prior-year (trailing) P/E. The margin was compressed in Q1 and there is no official company forecast, so the P/E on forward net profit converted from seasonality (about ₩94.1 billion) comes out lower than trailing (5.4x), but this is an unverified approximation and hard to use as a basis for a firm conclusion. Because this is a high price-volatility stock, rather than declaring it cheap or expensive in a word, the durability of earnings and whether return on capital improves should be watched together.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩1.1 trillion | approx. ₩32.4 billion | approx. ₩29.2 billion |
Price history Close · MA20 · MA60
The latest close is ₩9,120 and the market capitalization is ₩387.1 billion. The price sits below its 20-day moving average (₩9,800) and below its 60-day moving average (₩11,845). 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 37.3, a neutral level. The one-month change is -12.0%, the three-month change is -24.9%, and the position relative to the 52-week high is -48.0%. Relative strength versus the KOSPI is 24 (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 23% of all stocks. Over the past three months it lagged the index by 44.2%. 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 -44.19% / 6M -54.35% / 12M -53.15%
Key metrics vs sector median
Valuation
The P/E of 4.75x is below the sector median (8.97x). The P/B of 0.35x is below the sector median (0.45x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
Profitability & financials
Return on equity (ROE) is 7.4%, above the sector average (6.0%). The operating margin is 6.1%. The debt ratio is 1295.7%, but for financial firms deposits and insurance liabilities count as debt, so it cannot be read on the same yardstick as an ordinary company.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $800.0M | $873.9M | $1.3B | +45.77% ↑ faster |
| Operating profit | $14.1M | $41.0M | $77.3M | +88.65% ↓ slower |
| Net profit | $4.1M | $33.2M | $54.0M | +62.48% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $800.0M | $873.9M | $1.3B |
| Operating profit | — | — | $14.1M | $41.0M | $77.3M |
| Net profit | — | — | $4.1M | $33.2M | $54.0M |
| Revenue CAGR | 2-yr avg 26.19% | ||||
Revenue rose 45.8% year over year (2023 ₩1.2 trillion → 2024 ₩1.3 trillion → 2025 ₩1.9 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 88.6% year over year. The pace of that profit growth is gradually easing. Over the 3 years on record, revenue compound annual growth (CAGR) is 26.2%. The two-year revenue CAGR is 26.2%. In the most recent quarter (Q1 2026), revenue was 145.9% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- The dividend yield, at 6.0%, is on the high side.
- Revenue grew 45.8% year over year, a sign of growth.
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
- 2026-06-09FilingIssued ₩150 billion of 30-year perpetual capital securities (debt securities recognized as capital) at a 5.9% coupon via private placement. The full ₩150 billion issuance ceiling approved by the board. The purpose is a capital buildup and improved financial soundness, and it is used as operating funds.Short term: financial headroom expands as the capital ratio (net capital ratio) is reinforced. Mid term: at a size not small relative to market cap and capital, the capital cushion thickens while the 5.9% interest remains a fixed cost that burdens earnings. Source
- 2026-05-21IRThe company held an IR (investor briefing). Q1 2026 results and key business status were released via IR materials posted on the company website and a webcast.Short term: explaining Q1 results and status directly through an official channel improves information access. Mid term: a primary source for gauging whether the quarterly results are sustained through the year. Source
- 2026-05-15EarningsQ1 2026 quarterly report submitted. Of about ₩1.0 trillion in operating revenue, S&T is about 83%; pre-tax profit confirmed as structured with a larger contribution from wealth management (WM) and investment banking (IB).Short term: the revenue surge (+145.9%) versus the milder operating-profit growth (+24.9%) confirms margin compression. Mid term: the durability of fee (WM/IB) profit matters more than the trading top line. Source
- 2026-05-21FilingFilings related to holdings, including a large-holding report (general) and a report of changes in shares owned by the largest shareholder and others.Short term: shifts in major shareholders' stakes are not directly linked to results. Mid term: reference material for checking governance and supply-demand. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Perpetual capital securities issuance size and rate | ₩150.0 billion / 5.9% / 30 | ₩150.0 billion / 5.9% / 2056-06-09 | Confirmed | link |
| Q1 2026 segment mix | S&T approx. 83%, WM·IB | WM 572· 119 / IB 421·109 / S&T 8,423·14 / 687·27 | Confirmed | link |
| Latest close | ₩9,120 | — | Unverified | link |
| 2026 seasonality-approximated annual operating profit | approx. ₩96.9 billion | — | Unverified | link |
Recent filings
- 2026-06-10Disclosure
- 2026-06-10Disclosure
- 2026-06-10Disclosure
- 2026-06-10Disclosure
- 2026-06-09Material-fact report
- 2026-06-08Earnings disclosure
- 2026-06-05OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-05Earnings disclosure
- 2026-06-05Earnings disclosure
- 2026-06-05Earnings disclosure
- 2026-06-05Earnings disclosure
- 2026-06-04Disclosure
📖 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.