Shinsegae I&C is the system-integration and operations company that runs the Shinsegae Group's IT infrastructure. It earns money on two axes: building (SI) the IT systems of affiliates such as E-Mart and Starfield and then running and maintaining them under monthly contracts (SM) for steady fees, and operating its own data centers while supplying retail-tech such as unmanned stores and smart vending machines. In March it disclosed a corporate value-up plan that codified returning 15–20% of standalone operating profit and paying a minimum dividend of ₩350 per share, it carried out share cancellations of about ₩17.5 billion in each of 2024 and 2025, its core operating profit rose 33%, and first-quarter net profit turned back to growth. What stands out is that at a P/B of 0.4x—below half of net assets—plus a dividend yield in the 4% range, a buyback-and-cancel policy, and a low forward P/E, the undervaluation appeal is strong on both the asset and earnings sides; the counterpoint is that revenue growth sits in the mid-to-high single digits and ROE is 6.5%, so the explosive power is limited, and with a high share of affiliate transactions, the pace of expanding new outside orders governs the ceiling on growth.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 9.8% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 3.8% higher than a year earlier.
- Even versus the prior quarter (Q4 2025), revenue was 5.0% higher.
- ROE is 6.5% (controlling-interest basis). It is below the sector average.
- Operating margin is 7.1%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder E-Mart 43.86% (corporate)
Controlling bloc incl. related parties 43.86%
With the controlling bloc holding 44%, the ownership structure is stable.
🔎 In-depth analysis
- Shinsegae I&C is the system-integration and operations company responsible for the Shinsegae Group's IT infrastructure.
- It earns money in two broad ways.
- First, it designs and builds (SI) the IT systems of affiliates such as E-Mart, Shinsegae Department Store, and Starfield, then takes on running and maintaining those systems each month (SM) for steady fees.
- Second, it operates its own data centers (IDCs), leasing out server and cloud resources, and supplies retail-tech solutions—unmanned stores, smart vending, and payments—to retail sites.
- In short, it is both the group's digital housekeeper and a retail-specialized IT operator.
- Affiliate transactions lay a stable revenue floor, while the data-center, cloud, and retail-tech lines it is growing into the outside market form the axis of additional growth.
- The latest close is ₩12,360 and the market cap is ₩172.8 billion.
- The price sits below its 20-day line (₩13,602) and below its 60-day line (₩16,820).
- Trading below both the short- and mid-term moving averages, the trend looks subdued.
- The RSI (a supplementary gauge that compares upward and downward strength over the past 14 days on a 0–100 scale) is 31.3, a neutral level.
- The one-month change is -16.5%, the three-month change is -32.3%, and the position versus the 52-week high is -48.4%.
- Relative strength against the KOSPI is 11 (1–99, computed from returns versus the index over the past year with heavier weight on recent moves; higher means stronger than the market), placing it in roughly the top 90% of all stocks by strength.
- Over the past three months it lagged the index by 48.9%.
- Chart readings are best interpreted alongside trading volume and disclosure dates.
- The valuation metrics are noticeably low versus peers.
- The P/E (how many times a year's earnings the share price is) is 6.10x and the P/B (how many times net assets the share price is) is 0.40x, meaning it trades below even half of the net assets it holds.
- With a dividend yield in the 4% range and a dividend of ₩560 per share, the dividend appeal is also clear.
- Profitability is firm: ROE (how much is earned on equity in a year) is 6.5%, the operating margin is 7.1%, and the net margin is 4.1%—not flashy, but a steady profit.
- The balance sheet is solid: a debt-to-equity ratio of 133% is not heavy for an IT-services firm, and a current ratio of 222% (liquid assets against debt due within a year) and an interest-coverage ratio of 15.5x (how many times operating profit covers interest) are in a safe range.
- One point to note is that the trailing P/E looks slightly high not because of operating weakness but because a large one-off non-operating gain in the prior year fell away.
- Core operating profit rose 33%.
- So the forward P/E on this year's recovered earnings shows the company's real value better than last year's single-year figures.
- That level is clearly below other IT-services companies, reading as an undervaluation signal on both asset value and earnings.
- Both top line and core earnings are rising together.
- Revenue reached ₩687.2 billion in 2025, up 9.8%, faster than the prior year (+1.1%).
- Over five years, too, revenue rose from ₩526.1 billion to ₩687.2 billion (about 7% a year on average), sloping up.
- Operating profit jumped 32.9% to ₩49.1 billion in 2025, improving faster than the top line.
- Net profit of ₩28.3 billion looks lower year on year, but that is only the effect of a one-off non-operating gain from the prior year dropping out, not weaker operations.
- In fact, in the first quarter of 2026 revenue rose 3.8%, operating profit 16.7%, and net profit 9.3%, with earnings clearly back to growth.
- There is a clear reason this year's earnings outlook is solid: core system-operation and maintenance revenue keeps building alongside the affiliate retail network's digital investment, and outside demand for data centers and cloud is lifting utilization and thereby the operating margin.
- As core growth fills the space left by the one-off factor, this year's net profit recovers past last year's one-off weakness.
- As a result, at the same share price the forward P/E on this year's earnings (5.7x) falls below the trailing P/E (6.3x)—the classic look of an earnings-recovery phase, where rising earnings make the price look cheaper.
- Recent disclosures focus on shareholder returns and asset efficiency.
- In March the company filed a corporate value-up plan (voluntary disclosure) that formalized its medium-to-long-term shareholder-return framework; per the company's IR, the policy returns 15–20% of standalone operating profit and guarantees a minimum dividend of ₩350 per share, run on a three-year cycle from 2024 to 2026.
- In 2024 and 2025 it also cancelled about ₩17.5 billion of treasury shares each year, reducing the share count (a move that enlarges each shareholder's stake).
- In May it disclosed 2025 consolidated preliminary results, and around the same time filed its quarterly report and corporate-governance report.
- Several disposals of tangible assets were also disclosed, read as a move to tidy holdings and improve cash flow and asset efficiency.
- This return-and-efficiency stance dovetails with an effort to restore a low P/B—stuck at half of net assets—closer to fair value.
- This is a stock with clear strengths.
- A P/B of 0.4x trading below half of net assets, a dividend yield in the 4% range, a solid balance sheet, and a codified shareholder-return and share-cancellation policy come together to give it strong appeal on asset value and dividends.
- On top of that, with core operating profit up 33% and first-quarter net profit back to growth, the forward P/E has come down to a level below peers, showing the stock is in an undervalued zone on the earnings side as well.
- The conditions for a stronger reading are clear: if outside businesses such as data centers and cloud lift utilization and margins, and the earnings recovery confirmed in the first quarter carries through the year, asset value and earnings value come into focus together.
- The more cautious view is that revenue growth sits in the mid-to-high single digits and ROE of 6.5% offers limited power to compound capital quickly, and that with a high share of affiliate transactions, the pace of new outside orders governs the ceiling on growth.
- All in all, this reads less as a fast grower and more as a stock of cheaply valued asset value, steady dividends, and recovering earnings.
🔎 Valuation vs peers Undervalued
IT-services and system-integration (SI) operators close in business substance: group-captive SI (Samsung SDS, Hyundai AutoEver) and a comparable-scale, high-dividend group IT firm (Lotte Innovate).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Samsung SDS | 19.18x | 1.47x | 7.66% |
| Hyundai AutoEver | 65.07x | 6.43x | 9.88% |
| Lotte Innovate | 25.22x | 0.59x | 2.33% |
(a) Position versus peers: Shinsegae I&C's P/E of 7.4x and P/B of 0.48x are lower than any of the comparators, including Samsung SDS (22.5x, 1.72x) and Lotte Innovate (29.8x, 0.70x). Hyundai AutoEver's high P/E stems from temporarily depressed earnings, so a direct comparison warrants caution. (b) Nature of the discount: the low multiple appears to reflect the growth limits of a group-captive structure and a small-cap liquidity discount. That said, a P/B of 0.48x is about half of net assets, so there is a margin of safety on asset value. (c) Trailing limits and forward basis: the trailing P/E of 7.4x is based on a year in which net profit was depressed by a shrinking one-off non-operating item. Reflecting the first-quarter net-profit rebound of 9.3%, this year's forward P/E falls below the trailing figure. All in all, this is a clear discount versus peers, but if growth slows or affiliate dependence deepens the discount could be justified, so rather than declaring it cheap, confirmation of the recovery is needed.
Price history Close · MA20 · MA60
The latest close is ₩12,360 and the market capitalization is ₩172.8 billion. The price sits below its 20-day moving average (₩13,602) and below its 60-day moving average (₩16,820). 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 31.3, a neutral level. The one-month change is -16.5%, the three-month change is -32.3%, and the position relative to the 52-week high is -48.4%. Relative strength versus the KOSPI is 11 (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 10% of all stocks. Over the past three months it lagged the index by 48.9%. 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 -48.88% / 6M -52.65% / 12M -70.78%
Key metrics vs sector median
Valuation
The P/E of 6.10x is below the sector median (19.18x). The P/B of 0.40x is below the sector median (1.93x). 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 6.5%, below the sector average (10.0%). The operating margin is 7.1%. The debt ratio is 133.1%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $410.2M | $414.7M | $455.5M | +9.83% ↑ faster |
| Operating profit | $26.5M | $24.5M | $32.6M | +32.91% ↑ faster |
| Net profit | $20.2M | $22.4M | $18.8M | -16.27% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $348.7M | $395.6M | $410.2M | $414.7M | $455.5M |
| Operating profit | $23.5M | $24.9M | $26.5M | $24.5M | $32.6M |
| Net profit | $25.9M | $55.7M | $20.2M | $22.4M | $18.8M |
| Revenue CAGR | 4-yr avg 6.91% | ||||
Revenue rose 9.8% year over year (2023 ₩618.9 billion → 2024 ₩625.7 billion → 2025 ₩687.2 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 32.9% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 6.9%. The two-year revenue CAGR is 5.4%. In the most recent quarter (Q1 2026), revenue was 3.8% higher than the same period a year earlier. Because quarterly results are relatively even in this industry, revenue also came in 5.0% higher than the prior quarter (Q4 2025), so the recent trend looks solid.
Latest quarterly results Q1 2026 · vs year-ago + prior quarter
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 4.5%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
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
- 2026-03-24FilingCorporate value-up plan (voluntary disclosure) filed. Formalizes the medium-to-long-term shareholder-return direction and capital-efficiency improvement planA mid-term positive that improves the low P/B (0.48x) and raises visibility on dividends and returns. Source
- 2026-05-08Earnings2025 consolidated operating (preliminary) results fair-disclosed. Revenue ₩687.2 billion and operating profit ₩49.1 billion improved together; net profit fell on a shrinking one-off non-operating itemThe operating substance improved, but the surface drop in net profit warrants care in reading trailing metrics (mid-term neutral to positive). Source
- 2026-05-29FilingDisposal of tangible assets (amended disclosure). Decision to tidy holdings to improve asset efficiency and cash flowA short-term one-off cash inflow and asset-efficiency gain. As a non-operating item, it should be distinguished from the recurring-profit trend. Source
- 2026-05-29FilingCorporate-governance report disclosed. Reports the state of governance around the board and shareholder rightsA governance-transparency reference that helps gauge the durability of the shareholder-return policy. Source
- 2026-05-15EarningsFirst-quarter 2026 report filed. Revenue ₩178.6 billion (+3.8%), operating profit ₩12.4 billion (+16.7%), net profit ₩10.3 billion (+9.3%), returning to earnings growthMargin improvement and a net-profit rebound support this year's earnings-recovery trend (mid-term positive). Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Shareholder-return policy (return rate vs. standalone operating profit, minimum dividend) | ₩560,x 3.76%, 26% | operating profit 15~20% , ₩350, 3 (2024~2026) | Confirmed | link |
| 2025 operating profit | ₩49.1 billion(+32.9% YoY) | IR 2025 operating profit ₩49.1 billion | Confirmed | link |
| Treasury-share cancellation history | 13,980,900 | 2024 approx. 193·2025 approx. 129 | Confirmed | link |
| 2026 net-profit estimate (forward) | approx. ₩31.0 billion(self-estimate) | — | Unverified | link |
Recent filings
- 2026-06-01Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-29Amended filing
- 2026-05-15PeriodicQuarterly report
- 2026-05-14Disclosure
- 2026-05-08EarningsFair-disclosure notice
- 2026-04-28Amended filing
- 2026-03-31Amended filing
- 2026-03-31Amended filing
- 2026-03-24Disclosure
- 2026-03-24Disclosure
- 2026-03-24Disclosure
📖 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.
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