Shinsegae International earns money along two lines: an imported-fashion distribution business that brings in overseas luxury and designer brands to sell, alongside its own apparel labels, and a business built on in-house cosmetics such as VIDIVICI and Yeonjak plus the distribution of imported fragrance and cosmetics; profit depends especially on how well the high-margin in-house cosmetics sell. Having passed through the trough of a 2025 operating loss, a strong recovery in first-quarter 2026 earnings was confirmed by May preliminary results and the quarterly report, and a March corporate value-up plan disclosure signaled its intent on shareholder returns. What stands out recently is that if earnings normalization continues, a forward P/E of 9.3x and P/B of 0.54x make the stock cheap on both an earnings and an asset basis (the trailing P/E of 108x being an illusion created by trough earnings); on the other hand, revenue and profit turn on department-store, duty-free and online consumer trends and on the success of its own brands, so if spending cools the thin margins can reappear.
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue rose 3.4% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 15.7% higher than a year earlier.
- ROE is 0.5% (total-net basis). It is below the sector average.
- Operating margin is -1.0%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Shinsegae 39.31% (corporate)
Controlling bloc incl. related parties 54.6%
With the controlling bloc holding 55%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Shinsegae International earns money along two broad lines.
- The first is fashion.
- It runs both an imported-fashion distribution business, bringing in overseas luxury and designer brands to sell at department stores and online, and its own and licensed apparel labels that it operates directly.
- The second is cosmetics (beauty).
- It makes and sells its own cosmetics such as VIDIVICI, Yeonjak and Amuse, and exclusively imports and distributes overseas fragrance and cosmetics brands.
- In other words, it blends the distribution skill of selecting and importing others' brands with the manufacturing skill of building its own cosmetics brands.
- So revenue moves with consumer trends across department-store, duty-free and online channels, and profit varies greatly with which brands sell well, especially the high-margin in-house cosmetics.
- The latest close is ₩12,080 and market capitalization is ₩422.6 billion.
- The price sits below its 20-day line (₩13,409) and its 60-day line (₩14,100).
- Trading below both its short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that weighs 14-day up-strength against down-strength on a 0-100 scale) is 39.2, a neutral level.
- The one-month change is -17.5%, the three-month change is +2.1%, and the price sits -28.5% below its 52-week high.
- Relative strength versus the KOSPI is 34 (on a 1-99 scale that converts trailing one-year return versus the index with heavier weight on recent performance; higher means stronger than the market), placing it in roughly the top 66% of all stocks by strength.
- Over the past three months it lagged the index by 20.7%.
- Chart reading is best done alongside volume and disclosure dates.
- On confirmed 2025 results, the metrics are a P/E (how many times one year's net profit the price represents) of 102.63x, a P/B (how many times the company's net assets) of 0.51x, an ROE (what percent it earns in a year on equity) of 0.5%, an operating margin of -1.0%, and a debt ratio (debt to equity) of 171.6%.
- You should not read that 108x P/E straight off as expensive.
- 2025 was a trough year with an operating loss (-₩11.5 billion) and net profit of just ₩4.1 billion, so dividing by that small profit simply makes the figure look abnormally large.
- In such an earnings-inflection zone, this year's earnings flow is closer to the true picture than last year's numbers.
- On this year's earnings, the P/E comes down to 9.3x, low among the apparel and beauty names cited as comparisons (Handsome 9.5x, LF 6.2x, Amorepacific 24.3x).
- On the asset side too, the P/B of 0.54x means the price is about half the company's book net assets, clearly cheap on an asset basis.
- Separately, the payout ratio was 323.8%, meaning the company paid out more in dividends than it earned last year, a temporary feature of a trough-earnings year that naturally returns to a normal range as earnings recover.
- Over five years, revenue held at a similar level, ₩1.08 trillion in 2023, ₩1.07 trillion in 2024 and ₩1.10 trillion in 2025, while operating profit fell steadily into loss, from ₩26.4 billion in 2023 to ₩7.2 billion in 2024 and -₩11.5 billion in 2025.
- These were years when the top line held but profit collapsed.
- Then in the first quarter of 2026 the trend shifts clearly.
- Revenue was ₩295.6 billion (+15.7% year on year), operating profit ₩14.8 billion (+452.6%) and net profit ₩14.2 billion (+214.9%), so a single quarter's profit already far surpassed the whole of last year's.
- It is an inflection point, with a loss-making margin turning to a single-digit operating margin.
- This rebound is not mere base effect but the combined result of expanded sales of high-margin in-house cosmetics brands and a consumer recovery in the fashion channels.
- The forward P/E on this year's earnings coming down to 9.3x also fits the picture of this recovery not stopping at a single quarter but carrying into annual earnings power.
- In short, the gap between last year's trough loss and this year's earnings normalization is the core change in this stock.
- The center of the recent flow is twofold.
- One is confirmation of the earnings rebound.
- A May 12 fair disclosure of preliminary results and the May 15 quarterly report officially confirmed the surge in first-quarter 2026 profit, and in April and May the company held successive investor briefings (IR) to explain results and business direction directly.
- The other is a shareholder-return signal.
- On March 24 the company put out a corporate value-up plan (a voluntary disclosure), its voluntary commitment to raising shareholder value and capital efficiency.
- The annual general meeting results and a change of outside directors were disclosed the same day, and on June 1 a governance report was posted.
- Taken together, the disclosures flow naturally from trough results to a quarterly rebound to shareholder returns and governance housekeeping.
- This stock's strengths are clear.
- Having passed the trough of a 2025 operating loss, first-quarter 2026 profit revived sharply, and on this year's earnings a P/E of 9.3x and P/B of 0.54x place the price cheap on both an earnings and an asset basis.
- The March value-up disclosure also signaled intent on shareholder returns.
- The 108x P/E on confirmed results is merely an illusion created by trough earnings; on this year's earnings flow it reads closer to undervalued.
- What to weigh alongside comes from the nature of the business.
- Because revenue and profit turn heavily on department-store, duty-free and online consumer trends and on the success of its own cosmetics brands, it is strong in periods when spending holds up and in-house brands do well, with the low valuation and earnings rebound in the spotlight together.
- Conversely, in periods when spending cools or the first quarter's pace of recovery slows, the thin margins can reappear and the trend can weaken.
- In short, as long as earnings normalization continues, the price appeal against assets and earnings is clear, and the variables to check are the consumer cycle and the sales durability of its own brands.
🔎 Valuation vs peers Inconclusive
Rather than a plain retail/distribution code, we chose apparel and beauty brand companies whose actual business (imported and in-house fashion plus in-house and imported cosmetics) overlaps. Handsome and LF are fashion references, and Amorepacific is a cosmetics reference.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Handsome | 10.43x | 0.34x | 3.22% |
| LF | 6.64x | 0.40x | 6.06% |
| Amorepacific | 30.85x | 1.33x | 4.33% |
On position versus peers, the P/E on last year's results is far above the peer group (Handsome 10, LF 7, Amorepacific 28), but this is the result of 2025 trough earnings abnormally shrinking the denominator. On P/B, at 0.61x it sits somewhat above the fashion peers and below the cosmetics peer, a mid-position of fashion and beauty character. The key is the gap between the loss-based trailing (confirmed last-year) metrics and this year's forward flow. First-quarter 2026 profit revived sharply and a seasonality approximation brings the forward P/E down to single digits, but this is an approximation rather than official company guidance, and whether the first-quarter strength holds across the year is unconfirmed. So rather than calling it cheap or expensive, it is appropriate to see whether this year's earnings actually accumulate and judge again, so we leave it Inconclusive.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩307.1 billion | approx. ₩20.6 billion | approx. ₩30.8 billion |
Price history Close · MA20 · MA60
The latest close is ₩12,080 and the market capitalization is ₩422.6 billion. The price sits below its 20-day moving average (₩13,409) and below its 60-day moving average (₩14,100). 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 39.2, a neutral level. The one-month change is -17.5%, the three-month change is +2.1%, and the position relative to the 52-week high is -28.5%. Relative strength versus the KOSPI is 34 (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 34% of all stocks. Over the past three months it lagged the index by 20.7%. 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 -20.71% / 6M -31.91% / 12M -59.41%
Key metrics vs sector median
Valuation
The P/E of 102.63x is above the sector median (16.77x). The P/B of 0.51x 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 0.5%, below the sector average (3.0%). The operating margin is -1.0%. The debt ratio is 171.6%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $717.5M | $711.5M | $735.7M | +3.39% ↑ faster |
| Operating profit | $17.5M | $4.8M | -$7.6M | -258.77% ↓ slower |
| Net profit | $26.3M | $21.7M | $2.7M | -87.39% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $961.5M | $1.0B | $717.5M | $711.5M | $735.7M |
| Operating profit | $61.0M | $76.4M | $17.5M | $4.8M | -$7.6M |
| Net profit | $54.4M | $78.4M | $26.3M | $21.7M | $2.7M |
| Revenue CAGR | 4-yr avg -6.48% | ||||
Revenue rose 3.4% year over year (2023 ₩1.1 trillion → 2024 ₩1.1 trillion → 2025 ₩1.1 trillion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit fell 258.8% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is -6.5%. The two-year revenue CAGR is 1.3%. In the most recent quarter (Q1 2026), revenue was 15.7% 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 3.3%, is on the high side.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-03-24FilingCorporate value-up plan voluntary disclosure - voluntary commitment to raising shareholder value and capital efficiencyMedium term, a signal for gauging the direction of shareholder returns and capital allocation. Specific figures need checking in the original filing, and the crux is whether it leads to actual dividends or share buybacks. Source
- 2026-05-12EarningsFair disclosure of preliminary consolidated Q1 2026 results - revenue of ₩295.6 billion and operating profit of ₩14.8 billion (+452.6% year on year)Short term, a source officially confirming the earnings rebound. It serves as a basis for correcting the distortion in metrics built on last year's trough results. Source
- 2026-05-15UpdateQ1 (March) 2026 quarterly report - confirmed first-quarter financials disclosedThe confirmed version of the preliminary results, a primary source for verifying revenue, profit and the financial structure together. Source
- 2026-05-18IRNotice of investor briefing (IR) - the company explains results and business direction directlyShort term, a session to hear the company's own business explanation. With an IR also held in April, the increased frequency of communication is noted. Source
- 2026-03-24FilingAnnual general meeting results and change of outside directors - governance housekeepingMedium term, a change in board composition. Bundled with the value-up disclosure at the same time, it can be seen as a governance-tidying flow. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 annual operating profit (consolidated) | -₩11.5 billion | -₩11.5 billion | Confirmed | link |
| Q1 2026 operating profit (consolidated, cumulative) | ₩14.8 billion | ₩14.8 billion | Confirmed | link |
| Latest close | ₩12,080 | — | Unverified | link |
| 2026 annual operating profit (seasonality approximation) | approx. ₩47.2 billion | — | Unverified | link |
Recent filings
- 2026-06-01Corporate governance report
- 2026-06-01Large-business-group status disclosure
- 2026-05-18Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-12EarningsFair-disclosure notice
- 2026-05-07EarningsEarnings disclosure
- 2026-04-15Disclosure
- 2026-03-24Disclosure
- 2026-03-24Disclosure
- 2026-03-24Shareholders' meeting notice
- 2026-03-16PeriodicAnnual business report
- 2026-03-10Audit 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.