Eugene Corporation's core business is ready-mixed concrete (RMC) delivered and poured while still liquid, alongside aggregates, asphalt concrete, and building-materials distribution. It holds the No. 1 position in domestic RMC shipment volume, and it also effectively serves as the holding company of the Eugene Group, owning roughly a 30% stake in Dongyang and units such as Eugene Investment & Securities, so its enterprise value combines operating profit with the value of those subsidiary stakes. After posting a net loss in 2025, the company swung back to a net profit of ₩63.7 billion in Q1 2026, with revenue up 18.4% year on year; that net profit far exceeded operating profit of ₩11.8 billion because it reflects consolidated and equity-method gains from subsidiaries, and a dividend of ₩180 per share (about 5.3%) was also declared. What stands out lately is that when demand for construction materials bottoms out and subsidiary value comes into focus, the appeal of a 0.3x P/B, a roughly 5% dividend yield, and a low single-digit forward P/E works strongly in its favor — but if the core business recovers slowly or financing costs rise with a debt ratio around 150%, that appeal can dull, together with the volatility of subsidiary equity gains and losses.
At-a-glance assessment financial health · growth · profitability · valuation
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 54.5%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full-year net result was a loss.
- Revenue fell 4.3% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 18.4% higher than a year earlier.
- ROE is -1.2% (controlling-interest basis). It is below the sector average.
- Operating margin is 2.4%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2022-12-31
Largest shareholder Yoo Kyung-sun 11.54% (individual)
Controlling bloc incl. related parties 32.15%
With the controlling bloc holding 32%, the ownership structure is stable.
🔎 In-depth analysis
- Eugene Corporation's mainstay is ready-mixed concrete (RMC), a product delivered and poured while the concrete is still liquid, before it sets.
- With more than 40 plants and some 1,500 delivery trucks nationwide, it holds the top position in domestic RMC shipment volume, and it also produces aggregates quarried from sand and rock as well as asphalt concrete for road paving.
- On top of this, it runs a building-materials distribution business, importing thousands of items such as timber, cement, tile, and windows and doors and selling them to builders — so revenue comes from two axes: making materials (RMC and aggregates) and simultaneously buying and selling them (distribution).
- Its governance is another point that cannot be overlooked: the company is effectively the holding company of the Eugene Group, holding roughly a 30% stake in the cement and RMC firm Dongyang along with group affiliates such as Eugene Investment & Securities.
- In other words, its enterprise value is made up of both the operating profit it earns directly and the value derived from its subsidiary stakes, and only by looking at the two together does the company's real value come into proper view.
- The latest close is ₩3,410 and market capitalization is ₩263.6 billion.
- The price sits below the 20-day line (₩3,604) and below the 60-day line (₩3,733).
- Trading below both the short- and medium-term moving averages, the trend is on the subdued side.
- The RSI (a supplementary gauge comparing upward and downward force over the last 14 days on a 0-100 scale) is 46.1, a neutral level.
- The one-month change is +2.1%, the three-month change is -12.3%, and the position versus the 52-week high is -33.0%.
- Relative strength against the KOSDAQ is 73 (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 26% of all stocks by strength.
- Over the past three months it outpaced the index by 12.4%.
- Chart interpretation is best done alongside trading volume and disclosure dates.
- Measuring the share price against assets and earnings shows a clear undervaluation signal.
- The P/B (how many times book net assets the price is) is 0.30x, meaning the stock trades at a third of its book shareholders' equity (₩11,409 per share).
- The P/S (how many times annual revenue the price is) is also low at 0.2x, and the dividend yield is a relatively high 5.3% (₩180 per share).
- A P/E for last year (2025) cannot be computed because of the net loss, but that is simply a limitation of the trailing (last-year confirmed results) metric.
- Applying a single loss-making year masks the company's normal earnings power, so in an inflection phase where earnings are recovering, the forward (this-year projected results) picture drawn from this year's expected earnings is closer to the true shape.
- That forward P/E is in the single digits (about 5.6x), a clear undervaluation signal against comparable RMC and building-materials peers, which mostly trade at double-digit P/Es.
- On the balance sheet, the debt ratio (borrowings against equity) is about 150%, the current ratio (assets that can be turned into cash within a year against debt due within a year) is 54.5%, and the interest coverage ratio (the degree to which operating profit can cover interest) is around 1x, so the borrowing structure is worth watching.
- That said, the balance is also propped up by thick subsidiary equity value and a roughly 5% dividend.
- Over five years revenue moved sideways between ₩1.3 and ₩1.5 trillion without much change, while operating profit fell along the construction-starts contraction cycle, from ₩84.4 billion in 2023 to ₩55.0 billion in 2024 and ₩32.4 billion in 2025.
- The mood shifted in Q1 2026, when revenue recovered to ₩335.5 billion, up 18.4% from the same period a year earlier, and net profit swung sharply into the black at ₩63.7 billion.
- The key point here is that net profit (₩63.7 billion) was far larger than operating profit for the same quarter (₩11.8 billion) — this is not an accounting illusion but the structure of the holding company itself.
- It arises because valuation and disposal gains and losses from subsidiary stakes such as Dongyang and Eugene Investment & Securities are added to the core operating profit, so as subsidiary value revives, the profit booked separately from the core business grows.
- This year's earnings must therefore be viewed as considerably larger than a simple sum of core operating profit alone, and it is on this combined this-year earnings basis that the forward P/E drops to the single digits.
- Core margins themselves also leave room for recovery, backed by the No.
- 1 shipment share and pricing power as demand for construction materials bottoms out, so this year's earnings picture reads as the joint result of asset value coming into focus and a core-business recovery.
- The flow of disclosures tells two stories.
- One is the earnings inflection: after a net loss was confirmed in the 2025 annual profit-and-loss-structure change disclosure, the Q1 2026 quarterly report revealed a revenue recovery (up 18.4% year on year) and a swing to a net profit of ₩63.7 billion.
- That net profit, far exceeding operating profit (₩11.8 billion), is the result of consolidated and equity-method gains and losses from subsidiaries being fully reflected.
- The other is stable shareholder returns and governance: a cash and in-kind dividend (₩180 per share, about a 5.3% yield) was decided in March, and a large-enterprise-group status disclosure confirmed its standing as the group's holding company.
- Earnings swing with the cycle, but the dividend and holding structure are maintained relatively consistently.
- This stock has clearly divided strengths and points to watch.
- The strengths are (a) its top position in RMC shipments and the revenue resilience of building-materials distribution, (b) a clear undervaluation — a low 0.3x P/B and 0.2x P/S with a roughly 5% dividend, plus a low single-digit forward P/E on this year's earnings versus peers, and (c) the fact that subsidiary equity value in Dongyang, Eugene Investment & Securities, and others is thick relative to market cap.
- Add asset value to core-business earnings and the current price sits well below the company's real value.
- The points to watch are (a) core operating profit being pressed by the construction cycle, (b) a borrowing structure that warrants attention with a debt ratio of 150% and interest coverage around 1x, and (c) the fact that a large portion of net profit comes from subsidiary equity gains and losses, so that flow can swing quarter to quarter.
- In sum, when demand for construction materials bottoms out and subsidiary value comes into focus, the appeal of a low P/B, a high dividend, and a low forward P/E works strongly, whereas if the core business recovers slowly or financing costs rise, that appeal dulls.
🔎 Valuation vs peers Undervalued
The peer set is domestic listed makers of basic construction materials such as ready-mixed concrete and cement; note, however, that Eugene Corporation has a holding-company character beyond its core RMC business, holding thick stakes in group subsidiaries, so net assets and equity value must be viewed alongside a simple P/E comparison.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Sampyo Cement | 20.39x | 1.06x | 5.19% |
| Hanil Cement | 14.53x | 0.58x | 3.97% |
| Asia Cement | 19.93x | 0.31x | 1.55% |
(a) Position versus peers: comparable cement and RMC companies trade at P/Bs of 0.33x to 1.39x, while Eugene at 0.3x is among the lowest, and its revenue decline (-4.3%) is milder than peers' (-7.9% to -18.2%), so core-business resilience is relatively better. (b) Premium/discount: a price at a third of shareholders' equity and 0.2x revenue is a deep discount against both assets and revenue. (c) Limits of trailing and the forward basis: a P/E cannot be computed for last year because of the net loss, but the swing to profit in Q1 2026 marks an earnings inflection. On this year's expected earnings the forward P/E is estimated in the single digits (approximated from the quarterly results trend). That said, the Q1 net profit includes some one-off non-operating gains and the borrowing burden is heavy, so while the asset and dividend side is clearly cheap, the durability of earnings is still at a confirmation stage — better read conditionally than declared unconditionally cheap.
Price history Close · MA20 · MA60
The latest close is ₩3,410 and the market capitalization is ₩263.6 billion. The price sits below its 20-day moving average (₩3,604) and below its 60-day moving average (₩3,733). 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 46.1, a neutral level. The one-month change is +2.1%, the three-month change is -12.3%, and the position relative to the 52-week high is -33.0%. Relative strength versus the KOSDAQ is 73 (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 74% of all stocks. Over the past three months it outpaced the index by 12.4%. 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 +12.38% / 6M +14.84% / 12M -8.41%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.30x is below the sector median (0.45x).
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 10.1%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is -1.2%, below the sector average (2.0%). The operating margin is 2.4%. The debt ratio is 149.6%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $976.5M | $923.4M | $883.3M | -4.35% ↑ faster |
| Operating profit | $56.0M | $36.5M | $21.5M | -41.14% ↓ slower |
| Net profit | $43.6M | -$38.2M | -$6.8M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $891.6M | $933.0M | $976.5M | $923.4M | $883.3M |
| Operating profit | $36.7M | $36.3M | $56.0M | $36.5M | $21.5M |
| Net profit | $50.8M | $18.9M | $43.6M | -$38.2M | -$6.8M |
| Revenue CAGR | 4-yr avg -0.24% | ||||
Revenue fell 4.3% year over year (2023 ₩1.5 trillion → 2024 ₩1.4 trillion → 2025 ₩1.3 trillion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Operating profit fell 41.1% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is -0.2%. The two-year revenue CAGR is -4.9%. In the most recent quarter (Q1 2026), revenue was 18.4% 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 5.3%, is on the high side.
Points to watch
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 54.5%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 4.3% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-05-15EarningsQ1 2026 quarterly report filed. Consolidated revenue of about ₩335.5 billion (up 18.4% versus the same period a year earlier), operating profit of about ₩11.8 billion, and net profit of about ₩63.7 billion — a swing to profit. Net profit far exceeded operating profit, reflecting a large impact from consolidated subsidiary and non-operating gains and losses.Short term: the swing to profit signals an earnings inflection. Medium term: with net profit far above core operating profit, confirming the durability of the non-operating gains is the key. Source
- 2026-02-27EarningsAnnual profit-and-loss-structure change disclosure. For 2025, consolidated revenue of about ₩1.3 trillion, operating profit of about ₩32.4 billion, and a net loss of about ₩10.2 billion — a continued loss. Core operating profit contracted for a third straight year on the construction slowdown.Short term: the confirmed loss weighs on valuation on a trailing basis. Medium term: whether the downtrend in core operating profit is bottoming out is the crux. Source
- 2026-03-12DividendCash and in-kind dividend decided. A cash dividend of ₩180 per share (a dividend yield of about 5.3% at the current price), maintaining the shareholder-return stance with a dividend even in a loss-making year.Short term: the high-dividend appeal comes into focus. Medium term: if dividends continue without an earnings recovery, dividend capacity and cash flow need checking. Source
- 2026-03-20Filing2025 business report filed. An annual periodic report covering revenue, earnings, financial structure, and subsidiary stakes, showing borrowing burdens such as a debt ratio of about 150% and interest coverage below 1x.Short term: the direct effect on the share price is limited. Medium term: primary material for checking core earnings power and financial strength. Source
- 2026-05-29FilingLarge-enterprise-group status disclosure filed. A routine procedure disclosing the status of the Eugene Group enterprise group, showing the company also serves as the group's holding entity.Short term: the direct effect on the share price is limited. Medium term: a reminder that the holding and affiliate structure is one axis of the enterprise valuation. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| P/B (price versus book net assets per share) | 0.3x | ₩11,409 | Confirmed | link |
| Dividend (cash dividend per share) | ₩180,x approx. 5.3% (₩180/₩3,420) | ₩180 | Confirmed | link |
| Q1 2026 consolidated results | revenue approx. 3,355 , operating profit approx. 118 , net profit approx. 637 | — | Confirmed | link |
| 2026 forward P/E (on this year's expected earnings) | approx. 5.3x | — | Unverified | link |
Recent filings
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Large-business-group status disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-04-30Disclosure
- 2026-04-09OwnershipOwnership-change filing
- 2026-04-09OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-30Disclosure
- 2026-03-30Shareholders' meeting notice
- 2026-03-20PeriodicAnnual business report
- 2026-03-20Audit report
- 2026-03-12Disclosure
- 2026-03-12Shareholders' meeting notice
📖 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.