CJ ENM is a diversified media company that earns money across four pillars: tvN dramas and theatrical films plus content from its listed subsidiary Studio Dragon (about 54%); tvN advertising and Tving OTT subscriptions; the CJ ONSTYLE home-shopping business; and music. Its 2025 annual revenue is about ₩5.1 trillion. In April-May a company-merger decision related to the subsidiary Contentwave was disclosed, advancing the process of integrating the Tving and Wavve OTT services (the Fair Trade Commission approved the combination on the condition, among others, of no fee increases through the end of 2026), and on May 7 there were first-quarter preliminary results and an investor briefing. What stands out lately is that the market value of the Studio Dragon stake alone explains roughly half the market cap, and adding the value of Tving, CJ ONSTYLE, and music leaves the share price low relative to net assets. The recovery is real, evidenced by the film and drama swing to profit and Tving's growth, but it must be weighed against weak TV advertising, music losses, ₩1.65 trillion of net debt with a low interest-coverage ratio, and net-profit volatility swayed by equity-method income and financing costs.
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 79.7%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue fell 1.8% year over year (3-year trend: mixed).
- Net profit swung from a loss a year earlier back into the black (a turnaround).
- Most recent quarter (Q1 2026) revenue was 16.8% higher than a year earlier.
- ROE is 1.1% (controlling-interest basis). It is below the sector average.
- Operating margin is 2.6%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder CJ Corporation 40.07% (corporate)
Controlling bloc incl. related parties 48.22%
With the controlling bloc holding 48%, the ownership structure is stable.
🔎 In-depth analysis
- CJ ENM earns money across four businesses.
- First is film and drama: it makes tvN dramas and theatrical films and, together with its listed subsidiary Studio Dragon (about 54% stake), produces content and sells it overseas to the likes of Netflix.
- Second is the media platform, where advertising on broadcast channels such as tvN and subscription fees for the OTT service Tving come from.
- Third is commerce, where the TV and mobile home-shopping business CJ ONSTYLE sells goods and earns commissions.
- Fourth is music, where artist management, music tracks, and concert planning generate revenue.
- Its 2025 annual revenue is about ₩5.1 trillion, a diversified structure in which these four pillars are evenly mixed.
- The recent closing price is ₩34,050 and the market cap is ₩746.7 billion.
- The price sits above the 20-day line (₩33,898) and below the 60-day line (₩42,535).
- With the short- and mid-term trends diverging, direction should be read separately.
- RSI (a supplementary gauge that compares upward and downward force over the past 14 days on a 0-100 scale) is 44.8, a neutral level.
- The one-month change is -6.3%, the three-month change is -34.5%, and the position relative to the 52-week high is -57.4%.
- Relative strength versus the KOSDAQ is 36 (on a 1-99 scale, converting return 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 64% of all stocks by strength.
- Over the past three months it lagged the index by 13.6%.
- Chart reading is best done alongside trading volume and disclosure dates.
- The valuation metrics diverge from one another.
- The P/E ratio (how many times one year of earnings the price represents) looks high at 25.31x.
- This is because 2025 was the first year net profit barely turned positive, so the earnings base itself is small.
- P/B (how many times book net assets the price represents), by contrast, is just 0.27x, meaning it trades at a quarter of net assets.
- Profitability is still in early recovery: ROE (how much is earned in a year on equity) is 1.1% and the operating margin is low at 2.6%.
- There is also a financial burden.
- The debt-to-equity ratio is 187%, and net debt (total borrowings minus cash) is about ₩1.65 trillion.
- Cash generation, however, stands out: FCF yield (the ratio of actual cash generated to market cap) is very high at about 30%.
- Relative to operating profit, EV/EBIT (enterprise value divided by operating profit, a P/E-like multiple that also reflects debt) is 17.7x and EV/Sales (enterprise value divided by revenue) is 0.46x, so enterprise value is priced lightly relative to the size of revenue.
- Results form a picture of recovery after passing the trough.
- Net profit swung from large losses of ₩315.9 billion in 2023 and ₩503.4 billion in 2024 to a positive ₩29.5 billion in 2025.
- Operating profit also rose for a second year, from a loss in 2023 to ₩104.5 billion in 2024 and ₩132.9 billion in 2025 (+27%).
- In the first quarter of 2026, revenue rose 16.8% year over year to ₩1.3297 trillion.
- By segment, film and drama revenue surged 44.8% to ₩457.3 billion and turned to an operating profit of ₩8.0 billion.
- Commerce posted revenue of ₩378.5 billion and operating profit of ₩23.9 billion.
- Tving grew subscribers 37% year over year and lifted ad revenue 35%.
- However, the media platform posted a quarterly operating loss of ₩21.2 billion on shrinking TV advertising, and music a ₩5.8 billion loss.
- This year is a phase of continued operating-quality improvement, and the true earnings picture is closer to the recovery trajectory ahead than to last year's confirmed figures.
- The core of recent disclosures is OTT integration and the earnings recovery.
- In April-May, a company-merger decision related to the subsidiary Contentwave (which operates Wavve) was disclosed.
- It is part of the process of integrating Tving and Wavve, the OTT services CJ ENM controls.
- Earlier, the Fair Trade Commission had approved the combination of the two OTT services on the condition, among others, of no fee increases through the end of 2026.
- On May 7, first-quarter preliminary results were disclosed under fair disclosure, and an investor briefing (IR) was held the same day.
- In June a large-business-group status disclosure was made.
- In short, the recent trend is toward bundling the content and OTT businesses to build scale.
- The strengths and cautions split clearly.
- The strength is asset value.
- The market value of the roughly 54% stake in listed subsidiary Studio Dragon alone explains about half of CJ ENM's market cap.
- Adding the value of the Tving, Wavve, CJ ONSTYLE, and music businesses, the share price sits low relative to net assets.
- The film-and-drama swing to profit and Tving's growth are also real signs of recovery.
- The cautions are profitability and finances.
- Weak TV advertising and losses in the music segment persist, and ₩1.65 trillion of net debt with a low interest-coverage ratio are burdens.
- Net profit swings heavily each year with subsidiary equity-method income and financing costs.
- In sum, the stock is stronger the more a TV-advertising recovery and Tving/OTT-integration results are confirmed, and weaker if the advertising slump and interest burden drag on.
🔎 Valuation vs peers Undervalued
A domestic listed peer group viewed through media, entertainment, content production, and OTT businesses.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Studio Dragon | 63.65x | 0.82x | 1.29% |
| CJ CGV | 0.00x | 1.31x | -25.22% |
| SM Entertainment | 4.92x | 1.70x | 34.63% |
This company is hard to judge on P/E and P/B alone. The trailing P/E of 23.5x looks high, but this is a distortion from a small earnings base because 2025 was the first year net profit turned positive. As an earnings-inflection stock, last year's P/E overstates the real valuation. More important is the P/B of 0.25x. It trades at a quarter of book net assets. This is a diversified group in which listed and unlisted subsidiary stakes are core to value, so a net-asset-value (NAV) view of the held stakes is more accurate than a consolidated P/E. The listed subsidiary Studio Dragon stake alone explains roughly half of CJ ENM's entire market cap, and the value of the Tving, Wavve, CJ ONSTYLE, and music businesses is added on top. Taking this position relative to assets together with an FCF yield reaching 30%, the share price sits low relative to net assets.
Price history Close · MA20 · MA60
The latest close is ₩34,050 and the market capitalization is ₩746.7 billion. The price sits above its 20-day moving average (₩33,898) and below its 60-day moving average (₩42,535). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 44.8, a neutral level. The one-month change is -6.3%, the three-month change is -34.5%, and the position relative to the 52-week high is -57.4%. Relative strength versus the KOSDAQ is 36 (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 36% of all stocks. Over the past three months it lagged the index by 13.6%. 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 -13.61% / 6M -33.77% / 12M -52.94%
Key metrics vs whole-market median
Valuation
The P/E of 25.31x is above the whole-market median (13.81x). The P/B of 0.27x is below the whole-market median (1.15x). 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 1.1%, below the whole-market average (5.0%). The operating margin is 2.6%. The debt ratio is 187.2%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $2.9B | $3.5B | $3.4B | -1.85% ↓ slower |
| Operating profit | -$9.7M | $69.2M | $88.1M | +27.19% |
| Net profit | -$209.4M | -$333.6M | $19.6M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $2.4B | $3.2B | $2.9B | $3.5B | $3.4B |
| Operating profit | $196.8M | $91.0M | -$9.7M | $69.2M | $88.1M |
| Net profit | $128.2M | -$79.6M | -$209.4M | -$333.6M | $19.6M |
| Revenue CAGR | 4-yr avg 9.65% | ||||
Revenue fell 1.8% year over year (2023 ₩4.4 trillion → 2024 ₩5.2 trillion → 2025 ₩5.1 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit rose 27.2% year over year. Over the 5 years on record, revenue compound annual growth (CAGR) is 9.7%. The two-year revenue CAGR is 8.4%. In the most recent quarter (Q1 2026), revenue was 16.8% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 79.7%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue fell 1.8% year over year (3-year trend: mixed).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-04-29FilingSubsidiary-related company-merger decision disclosed. Part of the process of integrating the OTT services Tving and Wavve (Contentwave) that CJ ENM controls, a move to build content scale and a user base.Over the mid term, expected to expand OTT scale and improve cost efficiency. But it will take time for integration effects to show up in earnings. Source
- 2026-05-07EarningsFirst-quarter 2026 consolidated preliminary results under fair disclosure. Revenue of ₩1.3297 trillion (+16.8%) and operating profit of ₩1.5 billion, improved from a year earlier. Film and drama swung to a profit and commerce was firm.In the short term, revenue growth and the film-and-drama swing to profit are recovery signals. Losses in the media-platform and music segments remain a task. Source
- 2026-05-07IRInvestor briefing (IR) held. Alongside the first-quarter results, the company itself explained its direction, including segment operating-quality improvement, expanded overseas content distribution, and mobile growth in commerce.An occasion to confirm the company's forward strategy (global distribution, Tving growth, commerce upgrades). Source
- 2026-06-01FilingLarge-business-group status disclosure (annual and first-quarter). Periodically discloses the CJ group's affiliate inclusion and governance status.Limited direct earnings impact, but a periodic disclosure to confirm intra-group governance and affiliate relationships. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-01Large-business-group status disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-07Disclosure
- 2026-05-07Disclosure
- 2026-05-07Disclosure
- 2026-05-07EarningsFair-disclosure notice
- 2026-05-04Merger decision (amended)
- 2026-05-04Merger decision (amended)
- 2026-04-29Merger decision
- 2026-04-09Disclosure
- 2026-04-09EarningsEarnings disclosure
- 2026-03-26Disclosure
📖 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.