Amorepacific makes and sells cosmetics and household goods through brands such as Sulwhasoo, Hera, Laneige, Innisfree, and Aestura, plus COSRX, which it consolidated in 2024. In Q1 2026 it generated about ₩626.4 billion in domestic revenue and about ₩497.1 billion overseas. A structural shift is underway to broaden sales into the U.S., Europe, and Japan in place of its long reliance on China; in particular, the derma brand Aestura posted triple-digit growth in North America and newly entered 17 European countries, and the dividend is ₩1,240 per share (payout ratio about 36%). Two points stand out: the strength of market diversification and core-business earnings improvement continuing into a second year on top of proprietary brand competitiveness and a solid balance sheet; and the caution that ROE is still low in the 4% range and that the offline adjustment in Greater China could weigh on overseas earnings for a while, both to be weighed together.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 9.5% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 6.4% higher than a year earlier.
- ROE is 4.3% (controlling-interest basis). It is below the sector average.
- Operating margin is 7.9%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Amorepacific Holdings 38.04% (corporate)
Controlling bloc incl. related parties 65.11%
With the controlling bloc holding 65%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Amorepacific makes and sells cosmetics and household goods.
- The core of revenue is its cosmetics brands: the luxury lines Sulwhasoo and Hera, the mass lines Laneige and Innisfree, the dermatological (derma) brand Aestura, and COSRX, consolidated as a subsidiary in 2024.
- Revenue splits broadly into domestic and overseas (China, the U.S., Japan, Europe, and others); as of Q1 2026, domestic was about ₩626.4 billion and overseas about ₩497.1 billion, so the domestic share is slightly larger.
- Recently a structural shift is underway to broaden sales into the U.S., Europe, and Japan in place of its long reliance on China; in particular, the derma brand Aestura posted triple-digit growth in North America and newly entered 17 European countries.
- The latest close was ₩116,300 and market cap is ₩6.8 trillion.
- The price sits above the 20-day line (₩110,260) and below the 60-day line (₩119,840).
- With short- and mid-term trends diverging, direction should be read separately.
- RSI (an auxiliary gauge that weighs upward versus downward strength over the past 14 days on a 0-100 scale) is 52.4, a neutral level.
- The one-month change is +4.0%, the three-month change is -8.9%, and the price sits -29.6% below its 52-week high.
- Relative strength versus the KOSPI is 23 (on a 1-99 scale that weights recent returns against the index over the past year more heavily; higher means stronger than the market).
- That places it in roughly the top 78% by strength among all stocks.
- Over the past three months it lagged the index by 28.1%.
- Chart reading is best done alongside trading volume and disclosure dates.
- The P/E ratio (how many times one year's earnings the price represents) is 28.86x, higher than the market average, and P/B (how many times book net assets the price represents) is 1.25x.
- But this P/E is based on 2025 net profit of ₩235.7 billion, and it is hard to read that figure at face value as 'expensive.' The prior year's 2024 net profit of about ₩593.2 billion included a one-off disposal gain (about ₩419.2 billion) from the revaluation of the COSRX stake, so excluding that special factor, 2024 core-business net profit was in the ₩220 billion range.
- In other words, 2025 net profit is a normal level with the optical distortion removed, and on a core-business basis it actually grew.
- The balance sheet is very solid: the debt ratio (debt relative to equity) is low at 26.8% and interest coverage (how many times operating profit covers interest) is ample at 13x.
- That said, ROE (how much is earned in a year on equity) is low at 4.3%, owing to the thick equity typical of a brand company and profitability still in early recovery.
- The operating margin is 7.9%.
- Revenue rose for three straight years to ₩4.25 trillion in 2025, up 9.5% year on year, with growth gradually picking up pace.
- Operating profit improved sharply for two straight years, from ₩108.2 billion in 2023 to ₩220.5 billion in 2024 to ₩335.8 billion in 2025.
- Net profit appears to have fallen -60% in 2025, but this is merely the base effect of the one-off gain in 2024 described above, not a deterioration of the core business.
- In Q1 2026 as well, revenue rose +6.4% year on year and operating profit +7.6%, continuing the profitable trend.
- This year's earnings direction is driven by a clear domestic recovery (Q1 domestic operating profit +65%) and U.S. and European expansion, partly offset by a revenue decline from Greater China offline efficiency measures.
- Reflecting this flow, this year's net profit is seen rising gently from last year's normal earnings (about ₩235.7 billion) by the extent of operating momentum.
- A distinctive feature is that U.S. and European expansion is still in its early stage, leaving room for growth beyond next year as well.
- Recent disclosures concentrate on results, shareholder returns, and IR.
- On April 29 the company gave a fair disclosure of provisional Q1 2026 consolidated results, and on the same day disclosed a decision to dispose of treasury stock, then reported the disposal result on May 4, showing its shareholder-return intent.
- The May 15 quarterly report finalized detailed results, and on May 22 there was a report of a change in a large holding.
- Through May and June, several IR sessions were announced, continuing communication with investors.
- On a fiscal-year 2025 settlement basis, the dividend per share is ₩1,240, a dividend yield of about 1.1%, and a payout ratio around 36%.
- The strengths are clear: the competitiveness of proprietary brands such as Sulwhasoo, Laneige, and Aestura; a solid balance sheet marked by low debt and ample interest coverage; and a structural shift diversifying markets into the U.S., Europe, and Japan while reducing reliance on China.
- Core-business earnings have been improving for a second year, and given that last year's plunge in net profit is the optical effect of a one-off gain, the real direction of earnings is up.
- Points to weigh: ROE is still low in the 4% range, so capital efficiency has not fully risen relative to brand value, and the offline adjustment in Greater China could weigh on overseas earnings for a while.
- In sum, if the domestic recovery and results in Western new markets continue as expected, it strengthens by justifying a premium valuation; conversely, if the Greater China slump drags on or the pace of new-market expansion slows, the high P/E could act as a burden.
🔎 Valuation vs peers Fairly valued
The peer set is direct competitors in the domestic cosmetics and beauty business, the related value chain (ODM), and holding companies.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| LG H&H | 0.00x | 0.68x | -1.84% |
| Kolmar Korea | 19.40x | 2.67x | 13.74% |
| Amorepacific Holdings | 14.49x | 0.52x | 3.56% |
Direct competitor LG Household & Health Care is recently in the red, making a P/E comparison difficult (P/B 0.66x), while the ODM Kolmar Korea has high capital efficiency at 13.7% ROE but carries a burden with a P/B of 2.77x. Amorepacific's P/E of 28.2x looks high versus this peer set, but this must account for 2025 net profit being a normal level with the one-off gain removed. If this year's core-business earnings grow by the extent of operating momentum, the forward P/E is around 26x, and considering premium brand value and being in the early stage of an earnings recovery, it is hard to call extremely expensive. That said, with ROE still low in the 4% range, it is also hard to call the valuation greatly cheap, so it is judged fairly valued, where the key is whether the premium is justified by the pace of the earnings recovery.
Price history Close · MA20 · MA60
The latest close is ₩116,300 and the market capitalization is ₩6.8 trillion. The price sits above its 20-day moving average (₩110,260) and below its 60-day moving average (₩119,840). 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 52.4, a neutral level. The one-month change is +4.0%, the three-month change is -8.9%, and the position relative to the 52-week high is -29.6%. Relative strength versus the KOSPI is 23 (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 28.1%. 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 -28.12% / 6M -40.79% / 12M -63.85%
Key metrics vs whole-market median
Valuation
The P/E of 28.86x is above the whole-market median (13.81x). The P/B of 1.25x is in line with the whole-market median (1.15x).
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 9.2%, initial growth 6.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.06x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 4.3%, in line with the whole-market average (5.0%). The operating margin is 7.9%. The debt ratio is 26.8%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $2.4B | $2.6B | $2.8B | +9.46% ↑ faster |
| Operating profit | $71.7M | $146.1M | $222.6M | +52.32% ↓ slower |
| Net profit | $119.4M | $393.1M | $156.2M | -60.27% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $3.2B | $2.7B | $2.4B | $2.6B | $2.8B |
| Operating profit | $227.6M | $142.0M | $71.7M | $146.1M | $222.6M |
| Net profit | $128.4M | $89.1M | $119.4M | $393.1M | $156.2M |
| Revenue CAGR | 4-yr avg -3.30% | ||||
Revenue rose 9.5% year over year (2023 ₩3.7 trillion → 2024 ₩3.9 trillion → 2025 ₩4.3 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 52.3% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is -3.3%. The two-year revenue CAGR is 7.6%. In the most recent quarter (Q1 2026), revenue was 6.4% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-04-29EarningsFair disclosure of provisional Q1 2026 consolidated results — revenue about ₩1.1358 trillion (+6%), operating profit about ₩126.7 billion (+8%). Domestic operating profit +65%, overseas operating profit -18%.Confirms core-business revenue and operating profit continuing to grow, with a clear domestic recovery. Net profit edged down about -5% year on year, essentially flat. Source
- 2026-04-29UpdateMaterial-fact report (decision to dispose of treasury stock) — a plan to use and return value through treasury-stock disposal decided.A signal of shareholder-return intent, though the disposal can add to circulating float on the supply-demand side. Source
- 2026-05-04UpdateTreasury-stock disposal result report disclosed — execution result of the previously decided disposal confirmed.Re-confirms execution of the shareholder-return policy. Source
- 2026-05-15FilingQ1 2026 quarterly report (2026.03) filed — detailed financial statements and segment results finalized.Detailed figures are finalized versus the provisional results, letting investors check the business and regional results structure. Source
- 2026-06-02IRNotice of investor-relations (IR) session — a schedule to explain results and strategy to investors.Maintains a communication channel to explain the earnings-recovery story and overseas expansion strategy to the market directly. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 revenue | 1 1,358 | 1 1,358 (+6%) | Confirmed | link |
| Q1 2026 operating profit | 1,267 | 1,267 (+8%) | Confirmed | link |
| Cause of the 2024 net-profit surge | 2024 net profit 5,932(base history) vs 2025 2,357 | approx. 4,192 | Confirmed | link |
| 2026 net profit (own estimate) | approx. 2,500 (forward PER 26.6x) | — | Unverified | link |
Recent filings
- 2026-06-02Disclosure
- 2026-06-01Large-business-group status disclosure
- 2026-05-28Corporate governance report
- 2026-05-28Disclosure
- 2026-05-26Disclosure
- 2026-05-22OwnershipOwnership-change filing
- 2026-05-15Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-08Disclosure
- 2026-05-04TreasuryTreasury-stock disposal decision
- 2026-04-29TreasuryMaterial-fact report
- 2026-04-29EarningsFair-disclosure notice
📖 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.