BGF is a holding company whose portfolio includes BGF Retail, the listed operator of the CU convenience-store chain, and BGF Eco Materials in eco-friendly materials. The parent itself earns its money mainly from dividends paid up by these subsidiaries plus trademark and management-advisory fees. The Q1 quarterly report filed on May 15 confirmed Q1 revenue of ₩104.9 billion and operating profit of ₩8.5 billion, with operating profit up 64.6% and net profit up 101.0% as earnings returned to a normal footing. On this year's earnings the P/E has fallen to 4.19x and the P/B to 0.20x, the dividend yield is around 3.5%, and the balance sheet is solid. The point worth watching is that the undervaluation stands out when the Q1 earnings recovery carries through the full year and subsidiary dividends flow back steadily, but because the parent's profit depends on subsidiary dividend policy and one-off items, quarterly results can swing.
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 8.2% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 1.0% lower than a year earlier.
- ROE is 3.3% (controlling-interest basis). It is below the sector average.
- Operating margin is 13.0%.
- P/B is low versus peers too, so it looks cheap on an asset basis as well.
Ownership & governance As of 2025-12-31
Largest shareholder Hong Seok-jo 32.4% (individual)
Controlling bloc incl. related parties 69.7%
With the controlling bloc holding 70%, control is very secure but the free float is thin.
🔎 In-depth analysis
- BGF does not sell goods directly; it is a holding company that owns the operating subsidiaries.
- The center of the group's value is BGF Retail, the listed subsidiary that runs the CU convenience-store chain, and it also holds other subsidiaries such as BGF Eco Materials, which handles eco-friendly materials (bio-based and biodegradable plastics and the like).
- On a consolidated basis, most revenue comes from the subsidiaries' operations, but what the BGF parent earns is mainly dividends received from those subsidiaries plus trademark and management-advisory fees.
- So the first thing to grasp about BGF is that its structure runs 'how well the convenience-store business does' through the subsidiaries' results and into BGF's own value.
- The latest close is ₩3,850 and the market cap is ₩368.5 billion.
- The price sits below its 20-day line (₩3,972) and below its 60-day line (₩4,503).
- Trading beneath both the short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a gauge that scores the strength of up-moves versus down-moves over the past 14 days on a 0-100 scale) is 37.6, a neutral level.
- The one-month change is -5.1%, the three-month change is -21.2%, and the price is -27.4% from its 52-week high.
- Relative strength versus the KOSPI is 27 (1-99, converting the past year's return against the index with more weight on recent performance; higher means stronger than the market), placing it in roughly the top 73% of all stocks by strength.
- Over the past three months it lagged the index by 39.8%.
- It is best to read the chart alongside volume and disclosure dates.
- On confirmed annual (2025) figures the P/E (how many times one year's net profit the price is) is 6.23x, the P/B (how many times net assets the price is) is 0.21x, ROE (how much is earned in a year on equity) is 3.3%, the operating margin is 13.0%, and the debt ratio (debt against equity) is 21.0%.
- The low debt ratio and a current ratio of 2.6x point to a solid balance sheet.
- The key here is this year's trajectory rather than the trailing (last twelve months' confirmed) figures.
- This stock is at an earnings inflection: net profit dipped once last year as one-off gains rolled off and is now turning back up, so on this year's earnings the forward P/E falls to 4.19x.
- Compared with peer holding companies (LG, CJ and others) trading at P/Es in the 20s and 30s, a forward P/E in the 4x range reads naturally not as a burden but as a signal of undervaluation.
- The P/B of 0.20x is likewise far below the company's book net assets, so on an asset basis too it trades cheap.
- Five-year revenue grew from ₩150.2 billion in 2021 to ₩469.5 billion in 2025, and operating profit rose from ₩37.9 billion to ₩61.2 billion over the same span.
- The 35.8% drop in 2025 net profit (₩59.2 billion) from the prior year (₩92.1 billion) is a base effect from one-off gains booked in 2024 rolling off, not a deterioration of the core business.
- In fact, in Q1 2026 revenue was little changed at ₩104.9 billion (-1.0%) while operating profit rose 64.6% year on year to ₩8.5 billion and net profit rose 101.0% to ₩9.1 billion, so earnings clearly revived.
- The steady store sales and average ticket of the CU convenience-store chain flow back as subsidiary dividends, and with the parent's one-off swings cleared away, this year's earnings power has stepped up a level.
- The forward P/E of 4.19x on this year's basis reflects exactly this: the picture that the Q1 recovery is not confined to one quarter but carries through the year.
- The pace of top-line growth in the core business has moderated (revenue +8.2%), but the essence of this year's story is a return of earnings to a normal track.
- Recent disclosures are largely about confirming results and governance.
- A fair disclosure of preliminary consolidated operating results on May 7 first sketched the outline of Q1, and the quarterly report on May 15 confirmed revenue of ₩104.9 billion and operating profit of ₩8.5 billion.
- The April 30 earnings-announcement pre-notice flagged that release schedule in advance.
- On May 28-29 a large-business-group status disclosure and a corporate-governance report were filed, allowing a check of the group's governance and shareholding structure as a holding company.
- The March 26 disclosure of AGM results covers the year's decisions on dividends, director appointments and the like.
- This is a stock with clear strengths.
- As a holding company that owns the stable cash-generating CU convenience-store subsidiary, its dividend yield is on the high side at around 3.5% (payout ratio 21%), and with a debt ratio of 21% and a current ratio of 2.6x the balance sheet is solid.
- Above all, with Q1 operating profit up 64.6% and net profit up 101.0%, earnings returned to a normal track, pulling this year's P/E down to 4.19x, while the P/B of 0.20x means it trades cheap versus peers on both an asset and an earnings basis.
- Points to note are that the parent's profit is affected by subsidiary dividend policy and one-off items, so quarterly results can swing, and that as a holding company the value of its stakes in subsidiaries may not translate straight into the share price.
- In short, BGF's undervaluation stands out when the Q1 earnings recovery carries through the full year and subsidiary dividends flow back steadily; when the parent's quarterly profit swings or subsidiary results slow, the pace of recovery can slacken.
🔎 Valuation vs peers Inconclusive
Because BGF is a holding company, rather than compare its business directly we set the peer set as other listed holding companies (structures where subsidiary stakes and dividends are the core of value), while also referencing BGF Retail, the key subsidiary that is the source of value.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| BGF Retail | 10.64x | 1.58x | 14.87% |
| LG Corp | 21.19x | 0.54x | 2.57% |
| CJ Corporation | 27.91x | 0.77x | 2.75% |
| Samsung C&T | 25.17x | 1.23x | 4.89% |
BGF's P/E of 6.6x is lower than peer holding companies (LG 22.5x, CJ 35.2x, Samsung C&T 27.3x) and its P/B of 0.22x is among the lowest, so on the surface it sits at a discount. That said, a holding company is hard to call cheap or expensive on consolidated P/E and P/B alone; it is more appropriate to view it through net asset value (NAV) or a sum-of-the-parts (SOTP) approach that adds subsidiary stake values to the parent's operating value. Also, the current P/E is on last year's confirmed results, and last year's net profit shrank as one-off gains rolled off, a limitation of a trailing figure at an earnings inflection. Placing this year's earnings on a seasonal approximation (operating profit about ₩57.4 billion, net profit about ₩70.4 billion) alongside it lowers the burden versus last year's basis, but since this is an approximation rather than an official company forecast, we do not pin it down and leave the verdict as Inconclusive.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩112.7 billion | approx. ₩16.1 billion | approx. ₩16.5 billion |
Price history Close · MA20 · MA60
The latest close is ₩3,850 and the market capitalization is ₩368.5 billion. The price sits below its 20-day moving average (₩3,972) and below its 60-day moving average (₩4,503). 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 37.6, a neutral level. The one-month change is -5.1%, the three-month change is -21.2%, and the position relative to the 52-week high is -27.4%. Relative strength versus the KOSPI is 27 (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 27% of all stocks. Over the past three months it lagged the index by 39.8%. 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 -39.80% / 6M -38.10% / 12M -61.87%
Key metrics vs sector median
Valuation
The P/E of 6.23x is in line with the sector median (6.67x). The P/B of 0.21x is below the sector median (0.49x). 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 3.3%, below the sector average (5.0%). The operating margin is 13.0%. The debt ratio is 21.0%, 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 | $236.2M | $287.7M | $311.2M | +8.15% ↓ slower |
| Operating profit | $40.1M | $36.6M | $40.5M | +10.76% ↑ faster |
| Net profit | $51.6M | $61.1M | $39.2M | -35.84% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $99.5M | $288.3M | $236.2M | $287.7M | $311.2M |
| Operating profit | $25.1M | $40.6M | $40.1M | $36.6M | $40.5M |
| Net profit | $43.4M | $15.7M | $51.6M | $61.1M | $39.2M |
| Revenue CAGR | 4-yr avg 32.97% | ||||
Revenue rose 8.2% year over year (2023 ₩356.4 billion → 2024 ₩434.1 billion → 2025 ₩469.5 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 10.8% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 33.0%. The two-year revenue CAGR is 14.8%. In the most recent quarter (Q1 2026), revenue was 1.0% lower 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 3.4%, is on the high side.
Points to watch
- Revenue rose 8.2% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-05-15FilingQ1 2026 quarterly report filed. Consolidated revenue of ₩104.9 billion, operating profit of ₩8.5 billion and net profit of ₩9.1 billion confirmed.Short term: operating and net profit rose sharply from a year earlier, confirming the base-effect recovery in the numbers. Medium term: whether the Q1 recovery carries through the full year is the point to watch. Source
- 2026-05-07EarningsFair disclosure of preliminary operating results on a consolidated basis. Outlined Q1 results ahead of the quarterly report.Short term: the preliminary release conveyed the direction of the earnings recovery to the market first. Medium term: material for checking consistency with the later confirmed figures (quarterly report). Source
- 2026-05-28FilingLarge-business-group status disclosure (representative company). Periodic disclosure of the group's affiliates and investment structure as a holding company.Short term: direct share-price impact is limited. Medium term: a basis for checking the structure of subsidiary stakes and control relationships to assess the holding-company value (the value of subsidiary stakes). Source
- 2026-03-26DividendDisclosure of AGM results. Approval of financial statements, dividends, director appointments and other major annual decisions confirmed.Short term: with the dividend confirmed, dividend expectations are reflected. Medium term: the sustainability of the dividend policy is tied to the inflow of subsidiary dividends, so it should be watched together with subsidiary results. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-29Corporate governance report
- 2026-05-29Large-business-group status disclosure (amended)
- 2026-05-28Large-business-group status disclosure
- 2026-05-28Large-business-group status disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-07EarningsFair-disclosure notice
- 2026-05-06Disclosure
- 2026-04-30EarningsEarnings disclosure
- 2026-04-16OwnershipOwnership-change filing
- 2026-04-01OwnershipLargest-shareholder ownership change report
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-26Shareholders' 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.