LF earns money in three streams: fashion (about 72% of revenue), selling brands such as Hazzys, DAKS, and Jill Stuart; food (about 17%), covering premium ingredients and ready meals; and real estate and finance (about 10%), where, through a real-estate trust and asset-management subsidiary acquired in 2019, it grows asset-based income such as data centers. In June 2026 it held an investor briefing, and repeated treasury-share disclosures from March to May pointed to continued buyback and treasury activity, with a dividend of ₩700 per share (yield 3.0%, payout ratio about 19%). The key point to watch is that profit has grown for a second straight year and Q1 net profit rose 38%, and with net cash of ₩200 billion, a 9.75% free-cash-flow yield, a P/E of 6.95x, and a P/B of 0.42x, the valuation is low; on the other hand, fashion depends on the domestic apparel cycle, and the real-estate and finance segment that carries much of the profit is sensitive to the property market and interest rates, so earnings can swing with the cycle.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 3.8% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 7.4% higher than a year earlier.
- ROE is 6.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 8.9%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2021-12-31
Largest shareholder Koo Bon-kul 19.11% (individual)
Controlling bloc incl. related parties 31.29%
With the controlling bloc holding 31%, the ownership structure is stable.
🔎 In-depth analysis
- LF is known as 'a clothing company,' but it actually earns in three streams.
- The first is its core business, fashion.
- It sells its own brands such as Hazzys, DAKS, Maestro, and Jill Stuart, along with imported brands, through department stores, outlets, and online.
- As of 2025, fashion accounts for about 72% of total revenue.
- The second is the food business, covering premium ingredients and ready meals, at about 17% of revenue.
- The third is the key one: real estate and finance.
- Through a real-estate trust and asset-management subsidiary whose control it acquired in 2019, LF develops and operates real estate and grows asset-based income such as data centers.
- This segment is small at about 10% of revenue, but its profit contribution is far larger.
- The latest close is ₩22,450 and market capitalization is ₩656.4 billion.
- The price sits below its 20-day line (₩22,572) and below its 60-day line (₩23,572).
- Trading below both the short- and medium-term moving averages, the trend is on the subdued side.
- The RSI (a gauge that weighs upward versus downward strength over the past 14 days on a 0-100 scale) is 47.9, a neutral level.
- The one-month change is +3.2%, the three-month change is -8.4%, and the price is -14.5% from its 52-week high.
- Relative strength versus the KOSPI is 44 (on a 1-99 scale, computed from the past year's return versus the index with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 56% of all stocks by strength.
- Over the past three months it lagged the index by 27.3%.
- Chart reading is best done alongside trading volume and disclosure dates.
- The valuation metrics are uniformly low.
- The P/E ratio (how many times a year's earnings the price represents) is 6.64x.
- The P/B ratio (the price relative to book net assets) is 0.40x, a price below half of net assets.
- The dividend yield is a steady 3.0% (₩700 per share).
- The balance sheet is sturdy.
- Net debt (total borrowings minus cash; negative means net cash) is -₩213.0 billion.
- That means it is in a net-cash state with over ₩200 billion more cash than debt.
- So debt-adjusted metrics look even better.
- EV/EBIT (enterprise value divided by operating profit, akin to a debt-adjusted P/E) is just 2.82x.
- The free-cash-flow yield (cash actually generated relative to market cap) is a high 9.75%, meaning it generates cash equal to about 10% of market cap each year.
- Profitability is not flashy: ROE (how much it earns per year on equity) is 6.1% and operating margin is 8.9%.
- The debt ratio (total debt relative to equity) looks like 186%, but that largely reflects contractual liabilities booked when the real-estate trust subsidiary is consolidated.
- It differs in nature from the actual net-cash position.
- Over five years, revenue has held roughly flat around ₩1.9 trillion with little change.
- The key to growth is not revenue but profit.
- Operating profit grew sharply for two straight years, from ₩57.4 billion in 2023 to ₩126.1 billion in 2024 and ₩168.1 billion in 2025.
- Net profit also rose 31% year over year to ₩98.9 billion in 2025.
- The real estate and finance segment led this improvement.
- The trend continued in 2026.
- In Q1 2026, revenue rose 7.4%, operating profit 47.5%, and net profit 38.3% year over year.
- It is a classic 'margin improvement' phase where revenue is flat but profit jumps.
- For such an inflection stock, the real picture appears when viewed on this year's earnings rather than last year's P/E.
- On this year's earnings, the stock is valued even lower than the current metrics suggest.
- Recent disclosures center on shareholder returns and routine results.
- In June 2026 it held an investor briefing (IR) to explain its business status.
- In May it filed the quarterly report covering Q1 results.
- Worth noting is that treasury-share disclosures appeared repeatedly from March through May - a signal that the company is continuing to buy back and handle its own shares.
- The dividend is maintained at ₩700 per share (3.0% yield).
- The payout ratio (the share of net profit paid out as dividends) is around 19%.
- With profit rising and ample net cash, its capacity for shareholder returns is fairly comfortable.
- In sum, LF generates revenue from clothing and grows profit from real estate and finance.
- The strengths are clear.
- First, profit has risen for a second straight year, and Q1 net profit rose 38% this year, keeping the trend alive.
- Second, with net cash of ₩200 billion and a 9.75% free-cash-flow yield, cash generation is good.
- Third, at a P/E of 6.95x and a P/B of 0.42x, the valuation is low versus fashion and diversified-company peers.
- There are cautions too.
- The core fashion business is tied to the domestic apparel cycle, so revenue is hard to grow much.
- The real estate and finance segment that carries much of the profit is sensitive to the property market and interest-rate environment.
- That profit can swing with the property cycle should be factored in.
- In short, if fashion results hold and real-estate and finance profit is sustained, the current low valuation reads as undervaluation; conversely, if the property market turns down, earnings volatility can rise.
🔎 Valuation vs peers Undervalued
Peers were chosen among apparel and diversified companies, considering both the core fashion business and the conglomerate structure whose revenue and profit sources differ.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Handsome | 10.43x | 0.34x | 3.22% |
| Misto Holdings | 12.40x | 1.44x | 11.61% |
| LX International | 10.15x | 0.52x | 5.12% |
LF's P/E of 6.95x is the lowest among the peers. Its P/B of 0.42x is also below half of net assets. Its ROE (6.1%) is actually higher than Handsome (3.2%) and LX International (5.1%), yet its earnings multiple is lower. That is a discount, not a premium. In particular, viewed on this year's earnings rather than last year's results, the multiple falls further to around 6x, because it is in an earnings-inflection phase with profit rising for a second year and net profit up 38% in Q1. Factoring in net cash and the free-cash-flow yield, the current price looks like an undervalued zone that does not fully reflect the company's earnings power and asset value. That said, the sensitivity of the real estate and finance segment - which carries much of the profit - to the property market is one reason the multiple stays low.
Price history Close · MA20 · MA60
The latest close is ₩22,450 and the market capitalization is ₩656.4 billion. The price sits below its 20-day moving average (₩22,572) and below its 60-day moving average (₩23,572). 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 47.9, a neutral level. The one-month change is +3.2%, the three-month change is -8.4%, and the position relative to the 52-week high is -14.5%. Relative strength versus the KOSPI is 44 (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 44% of all stocks. Over the past three months it lagged the index by 27.3%. 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 -27.25% / 6M -19.04% / 12M -47.97%
Key metrics vs sector median
Valuation
The P/E of 6.64x is in line with the sector median (7.55x). The P/B of 0.40x is in line with the sector median (0.39x).
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 6.1%, above the sector average (5.0%). The operating margin is 8.9%. The debt ratio is 185.6%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.3B | $1.3B | $1.2B | -3.77% ↓ slower |
| Operating profit | $38.0M | $83.6M | $111.4M | +33.27% ↓ slower |
| Net profit | $54.7M | $50.0M | $65.5M | +31.03% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.2B | $1.3B | $1.3B | $1.3B | $1.2B |
| Operating profit | $105.3M | $122.7M | $38.0M | $83.6M | $111.4M |
| Net profit | $78.6M | $100.9M | $54.7M | $50.0M | $65.5M |
| Revenue CAGR | 4-yr avg 1.22% | ||||
Revenue fell 3.8% year over year (2023 ₩1.9 trillion → 2024 ₩2.0 trillion → 2025 ₩1.9 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit rose 33.3% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 1.2%. The two-year revenue CAGR is -0.5%. In the most recent quarter (Q1 2026), revenue was 7.4% 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 3.1%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 3.8% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-06-02IRHeld an investor briefing (IR) to explain business status and resultsA communication channel to check the company's business strategy and segment-level status directly. Positive for investor understanding over the medium term. Source
- 2026-05-15EarningsQ1 2026 quarterly report filed (revenue +7.4%, operating profit +47.5%, net profit +38.3% YoY)Revenue is flat but profit improved sharply, confirming a margin-recovery trend. Favorable for short- and medium-term earnings momentum. Source
- 2026-05-18FilingDisclosure of changes in bulk holdings related to treasury shares (continued treasury acquisition and handling activity from March to May)Treasury activity is a signal of commitment to shareholder returns. Positive over the medium term for managing shares outstanding. Source
- 2026-06-01FilingCorporate governance report filed (fulfilling disclosure obligations on governance and shareholder rights)A routine disclosure on governance transparency. Limited direct impact on results, but a useful reference for credibility. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-02Disclosure
- 2026-06-01PeriodicAnnual business report (amended)
- 2026-06-01Corporate governance report
- 2026-05-18OwnershipOwnership-change filing
- 2026-05-15PeriodicQuarterly report
- 2026-05-11OwnershipOwnership-change filing
- 2026-04-07OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-03OwnershipLargest-shareholder ownership change report
- 2026-03-30OwnershipOwnership-change filing
- 2026-03-26OwnershipOwnership-change filing
- 2026-03-26OwnershipLargest-shareholder ownership change report
- 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.