Gwangju Shinsegae is a single-store retail company that earns money by operating the Shinsegae Department Store Gwangju branch and the U-Square Gwangju Bus Terminal in Gwangju; most of its revenue comes from the department store, so it is directly linked to the local economy and spending power in Gwangju, and it is currently carrying out an expansion and mixed-use investment using land near the store. In May it decided on a dividend of ₩2,400 per share (payout ratio about 41%), in March it disclosed the implementation status of its corporate-value-enhancement plan, and in June's preliminary Q1 results it confirmed that revenue, operating profit and net profit all improved by double digits year over year. What stands out most recently is that a forward P/E of 6.60x and P/B of 0.36x are far cheaper than peer department stores (P/E around 20x), appearing together with an operating margin in the 28% range, a dividend in the 6% range and a Q1 profit rebound, whereas revenue is concentrated in the single Gwangju trade area, making it sensitive to the local economy, while a current ratio of 40% and debt ratio of 146% come with the ongoing burden of a large expansion investment.
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 40.2%).
- Revenue rose 0.4% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 7.1% higher than a year earlier.
- ROE is 5.1% (total-net basis). It is above the sector average.
- Operating margin is 28.5%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Shinsegae 62.84% (corporate)
Controlling bloc incl. related parties 62.84%
With the controlling bloc holding 63%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Gwangju Shinsegae is a company that earns money by operating the Shinsegae Department Store Gwangju branch and the U-Square Gwangju Bus Terminal together in Gwangju.
- Most of its revenue comes from the department store business, with terminal operations adding a portion.
- It is not a large retailer with a nationwide store network but a single-store business concentrated on one city's trade area, so its results are directly linked to the local economy and spending power in Gwangju.
- It is currently carrying out an expansion and mixed-use project that greatly increases the number of tenant brands using land near the store, so its top line and financials over the next few years will hinge on the pace of this investment.
- The latest close is ₩41,600 and market capitalization is ₩317.3 billion.
- The price sits above its 20-day line (₩41,288) and above its 60-day line (₩38,293).
- Being above both the short- and mid-term moving averages, the trend is on the favorable side.
- The RSI (a supplementary gauge that scores upward versus downward strength over the past 14 days on a 0-100 scale) is 50.7, a neutral level.
- The one-month change is +17.2%, the three-month change is +14.0%, and the position versus the 52-week high is -21.4%.
- Relative strength against the KOSPI is 48 (1-99, converting return versus the index over the past year with more recent periods weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 52% of all stocks by strength.
- Over the past three months it lagged the index by 9.2%.
- Chart reading is best done alongside trading volume and disclosure dates.
- On a confirmed last-year basis the P/E (how many times one year's profit the price is) is 7.14x and the P/B (how many times net asset value the price is) is 0.37x, both low.
- That said, this is a company whose net profit dipped slightly last year and began rising again this year, an earnings-inflection stock, so the trailing P/E computed on the past year's profit does not capture the current recovery.
- On a this-year-profit basis the forward P/E is 6.60x, less than half the level of peer department stores (around 20x), a signal that the price is clearly cheap relative to profit.
- On profitability, an operating margin of 28.5% and a net margin of 24.1% show the core business itself is solid.
- ROE (how much is earned in a year on equity) is 5.1%, above the peer average but low in absolute terms, because the company's accumulated net assets (about ₩113,000 per share) are thick, making capital turn slowly.
- In other words, assets are abundant and the core business earns well, yet the price sits at just 0.36x those assets.
- With a debt ratio (debt to equity) of 146% and a current ratio (assets to be turned to cash soon versus debt due within a year) of 40.2%, short-term liquidity is on the tight side, but interest coverage of 12x means operating profit amply covers interest.
- Over five years revenue grew at only about 2% a year, and last year it was effectively flat, with revenue +0.4% and net profit -3.7%.
- Yet in the most recent quarter (Q1 2026) it rebounded clearly, with revenue +7.1%, operating profit +21.6% and net profit +19.1% (all year over year).
- The key point is that profit growth (around +20%) far exceeded revenue growth (+7%): department stores carry a large share of fixed costs, so once revenue passes a certain level, most of the added revenue drops through to profit, operating leverage at work.
- Combined with a high operating margin in the 28% range, the picture is one where profit recovers faster than revenue.
- This year's forward P/E of 6.60x embeds the assumption that this profit recovery continues through the year, reflecting the inflection from a flat annual trend to quarterly profit turning up by double digits.
- That said, there is no separate basis to expect next year onward to be better than this year, so it is reasonable to take this year's recovery as the reference.
- In March 2026 the company disclosed the implementation status of its corporate-value-enhancement plan (so-called value-up), reviewing the direction of shareholder returns and capital-efficiency improvement.
- In May it decided on a cash dividend of ₩2,400 per share, a payout ratio of about 41%.
- The low P/B and a dividend yield in the 6% range align with this shareholder-return stance.
- In June it disclosed preliminary Q1 results under fair disclosure, confirming that revenue, operating profit and net profit all improved by double digits year over year, and the same month there was one clarification disclosure (undetermined) regarding rumors or media reports.
- The heaviest ongoing matter is the store expansion and mixed-use investment, which brings a short-term financial burden and, over the mid term, expectations of top-line expansion at the same time.
- This stock's strengths are clear.
- With a forward P/E of 6.60x and P/B of 0.36x it sits far cheaper than peer department stores (P/E around 20x), and an operating margin in the 28% range, a dividend in the 6% range and a Q1 profit rebound appear together.
- Relative to abundant net assets the price stays at 0.36x, leaving plenty of room on the asset-value side as well.
- Points to note are that revenue is concentrated in the single Gwangju trade area, making it sensitive to the local economy; that a current ratio of 40% and debt ratio of 146% leave short-term financial room tight; and that the funding burden continues until the large expansion investment normalizes.
- Taken together, the undervaluation and high-dividend appeal come through most clearly when the Q1 profit recovery continues through the year and the expansion investment settles as planned, whereas the pace of recovery slows if local spending cools or the investment burden grows larger than expected.
🔎 Valuation vs peers Undervalued
The peer set was set by the business substance of department-store-centered offline retail, while accounting for the fact that Gwangju Shinsegae is a single-region store rather than a nationwide network.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hyundai Department Store | 17.40x | 0.79x | 4.56% |
| E-Mart | 16.13x | 0.20x | 1.24% |
Compared with department-store peer Hyundai Department Store (P/E in the 21x range), Gwangju Shinsegae's P/E in the 6x range and P/B of 0.31x sit in a clear discount zone. That said, it is reasonable to see this as partly reflecting the structural limit of being a single-region business rather than a nationwide network, and the short-term financial burden from the ongoing expansion investment. Because net profit fell last year, an inflection period, it is hard to assert cheapness on the trailing P/E alone, and if the Q1 rebound continues through the year, it could look even lower on a forward basis. The price relative to operating margin, dividend and asset value is clearly on the low side, but for that undervaluation to resolve, a recovery in local spending and normalization of the investment need to be confirmed together.
Price history Close · MA20 · MA60
The latest close is ₩41,600 and the market capitalization is ₩317.3 billion. The price sits above its 20-day moving average (₩41,288) and above its 60-day moving average (₩38,293). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 50.7, a neutral level. The one-month change is +17.2%, the three-month change is +14.0%, and the position relative to the 52-week high is -21.4%. Relative strength versus the KOSPI is 48 (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 48% of all stocks. Over the past three months it lagged the index by 9.2%. 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 -9.21% / 6M -17.65% / 12M -42.28%
Key metrics vs sector median
Valuation
The P/E of 7.14x is below the sector median (16.77x). The P/B of 0.37x is below the sector median (0.56x). 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.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 8.6%, initial growth 8.2%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.082x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 5.1%, above the sector average (3.0%). The operating margin is 28.5%. The debt ratio is 145.9%, so the financial structure is moderate.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $119.0M | $121.7M | $122.1M | +0.35% ↓ slower |
| Operating profit | $36.4M | $34.7M | $34.8M | +0.28% ↑ faster |
| Net profit | $32.0M | $30.6M | $29.5M | -3.70% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $112.7M | $122.5M | $119.0M | $121.7M | $122.1M |
| Operating profit | $40.2M | $43.5M | $36.4M | $34.7M | $34.8M |
| Net profit | $34.7M | $37.7M | $32.0M | $30.6M | $29.5M |
| Revenue CAGR | 4-yr avg 2.03% | ||||
Revenue rose 0.4% year over year (2023 ₩179.6 billion → 2024 ₩183.6 billion → 2025 ₩184.2 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 0.3% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 2.0%. The two-year revenue CAGR is 1.3%. In the most recent quarter (Q1 2026), revenue was 7.1% 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.
- The dividend yield, at 5.8%, is on the high side.
Points to watch
- Revenue rose 0.4% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-03-26FilingDisclosure of the 2026 implementation status of the corporate-value-enhancement plan (voluntary disclosure) - reviewing the direction of shareholder returns and capital-efficiency improvementMid term: confirms the intent to enhance shareholder value, tied to the low P/B and high-dividend stance. Source
- 2026-05-13DividendCash dividend decision - ₩2,400 per share, payout ratio about 41% (accompanied by a record-date decision)Short term: cash-flow returns that underpin the dividend yield in the 6% range. Source
- 2026-06-09EarningsPreliminary operating-results fair disclosure - Q1 revenue, operating profit and net profit improved by double digits year over yearShort term: a signal confirming a quarterly rebound against a previously flat annual trend. Source
- 2026-06-05UpdateClarification disclosure regarding rumors or media reports (undetermined) - the company's position stated on an unconfirmed matterShort term: since the matter is pre-confirmation, it can be a source of volatility depending on the outcome. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-09EarningsFair-disclosure notice
- 2026-06-05Disclosure
- 2026-06-01Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-05-13DividendCash/stock dividend decision
- 2026-05-13DividendCash/stock dividend decision
- 2026-05-12EarningsFair-disclosure notice
- 2026-05-12EarningsFair-disclosure notice
- 2026-04-09EarningsFair-disclosure notice
- 2026-03-26Shareholders' meeting notice
- 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.