Shinsegae Food is a diversified food company that combines home meal replacement (HMR) manufacturing and sales, food-materials distribution, bakery, and a restaurant franchise business. Because it spans manufacturing, distribution and store operations, one segment can wobble while others hold it up. A February 2026 disclosure outlined annual revenue of about ₩1.2 trillion and net profit of ₩77.2 billion, and in March the company lightened its structure by transferring a low-margin institutional catering business (industrial and office group meals) for about ₩118.9 billion. What stands out now is that if the proceeds from that restructuring feed through to a stronger balance sheet and the profitability of the remaining core business recovers, the low valuation of a P/E of 1.95x and P/B of 0.42x on an ROE of 21.6% becomes a strength; on the other side, if top-line stagnation drags on, the core recovery is slow, or the interest burden implied by a 227.3% debt ratio comes to the fore, the undervaluation may unwind only slowly.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 227.3%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue fell 2.1% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 3.5% higher than a year earlier.
- ROE is 21.6% (controlling-interest basis). It is above the sector average.
- Operating margin is 0.4%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder E-Mart 55.47% (corporate)
Controlling bloc incl. related parties 55.48%
With the controlling bloc holding 55%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Shinsegae Food earns money by bundling several food-related businesses into one diversified food company.
- Broadly, there are four branches.
- First, HMR (home meal replacement) manufacturing and sales, where it develops and produces its own branded products such as 'Olbareugo Bandeushan' and 'Shinsegae Food Hotel Collection' and sells them online and offline through hypermarkets and e-commerce.
- Second, food-materials distribution, supplying ingredients to restaurants and catering sites.
- Third, bakery, making and selling bread through its 'Boulangerie' and 'E-Bakery' brands inside E-Mart stores.
- Fourth, the restaurant franchise business.
- Because it holds manufacturing, distribution and store operations together, one segment can wobble while others hold it up.
- The market cap is not especially large, so it is worth watching not only operating results but also how a single big disclosure, such as a business transfer, affects financials and earnings.
- The latest close is ₩39,000 and the market cap is ₩151.0 billion.
- The price sits below its 20-day line (₩41,518) and below its 60-day line (₩46,362).
- Trading under both its short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a supporting gauge that scores upward versus downward momentum over the past 14 days on a 0-100 scale) is 39.2, a neutral reading.
- It is down 9.6% over one month and 19.1% over three months, and sits 31.2% below its 52-week high.
- Its relative strength versus the KOSPI is 22 (on a 1-99 scale, converting the past year's return against the index with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 78% of all stocks by strength.
- Over the past three months it lagged the index by 34.5%.
- Chart reading is best done alongside volume and disclosure dates.
- On a recent annual basis, revenue is about ₩1.2 trillion and net profit is ₩77.2 billion.
- What stands out is capital efficiency: ROE (a gauge of how much the company earns on its own equity in a year) is 21.6%, above the sector average.
- That means it earns well relative to its capital.
- On valuation, the P/E ratio (how many times one year's earnings the price represents) is 1.95x and P/B (how many times book value the price represents) is 0.42x, both quite low.
- That said, this low P/E includes a one-off gain from the business transfer, so it does not cleanly show the company's normal earning power from operations.
- A this-year forecast basis that strips out the one-off is therefore closer to the true picture, and even the forecast P/E is still on the low side.
- A P/B of 0.42x means buying the company for less than half of book value, so it is cheap relative to assets too.
- The debt ratio is 227.3%, so debt somewhat exceeds equity, and the ability to cover interest with operating profit (interest coverage) is tight; these are points to weigh in balance alongside the attractive-looking valuation.
- Over the past few years revenue has held between ₩1.2 trillion and ₩1.3 trillion with little variation.
- The top line is close to stagnant, but within it the texture of profit is changing.
- Recent annual operating profit recovered sharply from the prior year's slim level, and net profit rose to ₩77.2 billion, up about six-fold year on year.
- Much of that jump in net profit came from the gain on transferring the catering (group meals) business for about ₩118.9 billion, and that should be made clear.
- In other words, this year's large profit is not a figure that repeats every year through ordinary business; it includes a portion that arose once in the course of restructuring.
- This year's forecast earnings are therefore set to a normal operating flow that accounts for that one-off effect, and the forecast P/E is derived on that basis.
- In the most recent quarter (Q1 2026), revenue rose 3.5% year on year, so the top line held up, but operating profit fell 20.3%, suggesting core profitability is still in the middle of recovery.
- It is natural to read this as a phase of trimming fat by clearing a low-margin business amid a stagnant top line.
- Recent disclosures center on restructuring, results and shareholder returns.
- On February 11, 2026 an earnings-structure change disclosure outlined results including annual revenue of about ₩1.2 trillion and net profit of ₩77.2 billion, and on the same day a record-date closing disclosure for a cash dividend set the shareholder-return schedule.
- The heart of the flow is the business transfer around March 19: a decision to transfer the catering business, covering industrial and office group meals, for about ₩118.9 billion, followed by its completion report.
- Because this is a decision to clear a large segment, the key is to check, alongside quarterly results, whether the transfer proceeds feed through to a stronger balance sheet and what changes appear in the revenue and earnings of the remaining business.
- This is a stock where the strengths and the things to watch are relatively clearly split.
- The strength is that, despite high capital efficiency (ROE 21.6%), the stock sits low against both earnings and assets at a P/E of 1.95x and P/B of 0.42x, and even the forecast P/E that accounts for the one-off is low.
- Lightening the structure by clearing the low-margin catering business is also positive in direction.
- The things to watch are that top-line growth is stagnant and the core operating margin is still low, so ordinary earning power needs further recovery, along with the 227.3% debt ratio and a tight interest burden.
- In short, if the restructuring proceeds feed through to a stronger balance sheet and the profitability of the remaining core business gradually rises, this is a phase where the low valuation comes alive as a strength; if top-line stagnation drags on and the core recovery is slow, the low valuation may unwind only slowly.
🔎 Valuation vs peers Undervalued
The peer set is drawn from food/restaurant names with a nearby market cap.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Shinsegae Food | 1.96x | 0.42x | 21.57% |
Within food and restaurants, we looked first at a public-data peer set with a nearby market cap. The current P/E ratio (how many times one year's earnings the price represents) is 1.96x and P/B (how many times book value the price represents) is 0.42x. That said, for smaller-cap names, earnings swings and funding disclosures have a large effect, so we did not draw a firm conclusion from last year's confirmed-results-based metrics alone. The basis for the forecast box is a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩1.2 trillion | ₩20.0 billion | ₩59.2 billion |
| Next quarter | Q2 2026 | ₩322.4 billion | ₩6.0 billion | ₩10.9 billion |
Price history Close · MA20 · MA60
The latest close is ₩39,000 and the market capitalization is ₩151.0 billion. The price sits below its 20-day moving average (₩41,518) and below its 60-day moving average (₩46,362). 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 -9.6%, the three-month change is -19.1%, and the position relative to the 52-week high is -31.2%. Relative strength versus the KOSPI is 22 (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 22% of all stocks. Over the past three months it lagged the index by 34.5%. 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 -34.50% / 6M -49.26% / 12M -58.33%
Key metrics vs whole-market median
Valuation
The P/E of 1.96x is below the whole-market median (13.81x). The P/B of 0.42x is below the whole-market median (1.15x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
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 21.6%, above the whole-market average (5.0%). The operating margin is 0.4%. The debt ratio is 227.3%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $802.9M | $834.6M | $817.4M | -2.07% ↓ slower |
| Operating profit | $4.6M | $69,084 | $3.2M | +4475.70% ↑ faster |
| Net profit | $7.1M | $7.4M | $51.2M | +589.53% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $881.0M | $935.4M | $802.9M | $834.6M | $817.4M |
| Operating profit | $19.9M | $13.6M | $4.6M | $69,084 | $3.2M |
| Net profit | $1.6M | -$3.6M | $7.1M | $7.4M | $51.2M |
| Revenue CAGR | 4-yr avg -1.86% | ||||
Revenue fell 2.1% year over year (2023 ₩1.2 trillion → 2024 ₩1.3 trillion → 2025 ₩1.2 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit rose 4475.7% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is -1.9%. The two-year revenue CAGR is 0.9%. In the most recent quarter (Q1 2026), revenue was 3.5% 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.
- ROE of 21.6% points to solid profitability.
Points to watch
- Revenue fell 2.1% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-02-11EarningsChange in revenue or profit structure of 30% or more (15% for large corporations): annual revenue ₩1.2 trillion, operating profit ₩4.8 billion, net profit ₩77.2 billionThis is recent confirmed or preliminary results data. Check whether it points the same way as the annual trend and whether one-off factors are present. Source
- 2026-03-19FilingMerger-etc. completion report (business transfer): based on the separate financial statements as of the 31st. Note 2) The change in the capital surplus above reflects the treasury-share acquisition arising from dissenting shareholders exercising their share-purchase right under this business-transfer agreement. Note 3) The summarized 'post-transfer' financial information above is a simple addition/subtraction of amounts related to this transfer only, and the actual figures per the external auditor's audit or review, etc.This is a recent change confirmed in the official disclosure text. It should be checked whether it carries through to actual results and financial metrics. Source
- 2026-03-19Filing[Amended] Report on material matters (business-transfer decision): (name) Kim Sung-woong (tel) 02-3397-6204. Business-transfer decision. 1. Business transferred: catering segment. 2. Main content of the transferred business: industrial and office group-meal catering. 3. Transfer value (won): 118,904,071,260. Financial content (won): transferred business segment (A), whole company (B), share (%) (A/B); assets 57,9This is a recent change confirmed in the official disclosure text. It should be checked whether it carries through to actual results and financial metrics. Source
- 2026-02-11UpdateDecision to close the register of shareholders (record date) for a cash/in-kind dividend: confirm the return termsThis is a disclosure related to a cash return or a change in share count. Check whether earnings strength and cash flow support it. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩39,000 | ₩39,000 | Confirmed | link |
| Latest quarterly results | revenue ₩309.4 billion, operating profit ₩3.4 billion | revenue ₩309.4 billion, operating profit ₩3.4 billion | Confirmed | link |
| Annual results | revenue ₩1.2 trillion, operating profit ₩4.8 billion | revenue ₩1.2 trillion, operating profit ₩4.8 billion | Confirmed | link |
| Results disclosure text | revenue30%: revenue ₩1.2 trillion · operating profit ₩4.8 billion · net profit ₩77.2 billion | revenue30%: revenue ₩1.2 trillion · operating profit ₩4.8 billion · net profit ₩77.2 billion | Confirmed | link |
| Disclosure text | : 31 .2) approx. .3) ' ' approx. | : 31 .2) approx. .3) ' ' approx. | Confirmed | link |
| Disclosure text | []: ) 02-3397-6204 1. 2. , 3. 118,904,071,260 - (A) (B) (%)(A/B) 57,9 | []: ) 02-3397-6204 1. 2. , 3. 118,904,071,260 - (A) (B) (%)(A/B) 57,9 | Confirmed | link |
| Forecast-box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-06-05Disclosure
- 2026-06-05Shareholders' meeting notice
- 2026-06-01Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-21Amended filing
- 2026-05-21Material-fact report (amended)
- 2026-05-14PeriodicQuarterly report
- 2026-04-30Disclosure
- 2026-04-16Material-fact report (amended)
- 2026-04-15Disclosure
- 2026-04-15Amended filing
- 2026-04-14Material-fact report (amended)
📖 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.