CJ CheilJedang earns money along three lines: a food business selling processed products such as Bibigo and Hetbahn alongside staple ingredients like sugar and flour; a bio business supplying amino acids such as lysine worldwide; and its logistics subsidiary CJ Logistics, which is consolidated into the group. On a consolidated basis, revenue reaches ₩27.3 trillion. In its preliminary first-quarter 2026 results released in May, net profit more than doubled year on year as the one-off penalty provision fell away, confirming a normalization of earnings, and the company maintained its cash and stock dividend of ₩6,000 per share even through the loss-making stretch. What stands out lately is that, with the penalty behind it, profit has recovered sharply, and at a P/B of 0.4x, a dividend yield of 3.2%, and a valuation on normalized forward earnings that sits below peers (P/E of 12-14x), the stock looks inexpensive; on the other hand, if amino-acid selling prices wobble under low-priced Chinese competition or if food input costs rise, the profit margin narrows, and the high debt ratio leaves it sensitive to interest rates and currency swings.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 421.4%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 81.0%).
- The most recent full-year net result was a loss.
- Revenue rose 0.4% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 6.0% higher than a year earlier.
- ROE is -8.1% (controlling-interest basis). It is below the sector average.
- Operating margin is 4.5%.
- P/B is low versus peers too, so it looks cheap on an asset basis as well.
Ownership & governance As of 2025-12-31
Largest shareholder CJ 40.94% (corporate)
Controlling bloc incl. related parties 41.81%
With the controlling bloc holding 42%, the ownership structure is stable.
🔎 In-depth analysis
- CJ CheilJedang earns money along three broad lines.
- First, the food business sells processed products such as Bibigo dumplings, Hetbahn rice, and kimchi, along with staple ingredients like sugar, flour, and cooking oil, at home and abroad, with K-food exports built on the U.S. platform Schwan's driving growth.
- Second, the bio business supplies feed-grade amino acids such as lysine and tryptophan, along with food-grade amino acids, to global markets; for some items like lysine the company holds a top-tier global share, so this segment's margin heavily shapes the group's overall profit.
- Third, the logistics subsidiary CJ Logistics is consolidated into the group, so a large portion of the ₩27.3 trillion consolidated revenue, and most of the debt, comes from this logistics business.
- In other words, revenue looks like it reaches ₩27 trillion on the surface, but stripping out CJ Logistics narrows the picture to a food-and-bio core, which is where the real substance lies.
- The latest close is ₩191,200 and the market cap is ₩2.9 trillion.
- The price sits below its 20-day line (₩192,470) and below its 60-day line (₩211,610).
- Trading under both its short- and mid-term moving averages, the trend is on the subdued side.
- The RSI (a supplementary gauge that weighs upward against downward force over the past 14 days on a 0-100 scale) is 45.2, a neutral level.
- The one-month change is -1.8%, the three-month change is -20.0%, and the position versus the 52-week high is -29.0%.
- Relative strength against the KOSPI is 15 (1-99, computed from returns versus the index over the past year with more weight on recent periods; higher means stronger than the market).
- That places it in roughly the top 86% of all stocks by strength.
- Over the past three months it lagged the index by 32.8%.
- Chart reading is best done alongside trading volume and disclosure dates.
- In 2025, consolidated net profit was -₩571.4 billion, the first annual loss since the spin-off.
- Because of this, the P/E ratio (how many times a year's earnings the share price is) cannot be calculated, and financials look poor at first glance.
- But much of the loss came from a one-off cost, an antitrust penalty provision of about ₩334.9 billion tied to starch-sugar price collusion, layered on top of falling bio selling prices; strip out that special cost and the core earnings power remains intact.
- Indeed, the operating margin held positive at 4.5%.
- So last year's confirmed-results-based (trailing) figures do not reflect the company's ordinary earnings power.
- P/B (how many times net assets the share price is) is 0.41x, trading well below book value, and P/S (how many times a year's revenue the share price is) is also low at 0.12x.
- The debt ratio (debt against equity) looks high at 421%, but this largely reflects the consolidation of the large assets and liabilities of the logistics subsidiary CJ Logistics.
- The dividend yield is 3.2% (₩6,000 per share), with dividends paid steadily.
- The current ratio of 81% means short-term liquidity is on the tight side, so this point warrants continued monitoring.
- Revenue has held between ₩26 trillion and ₩30 trillion over five years, with little variation at a mature stage; 2025 was essentially flat at +0.4% year on year.
- The key is not the size of revenue but the normalization of profit.
- Looking at the net-profit trajectory, it fell from ₩802.7 billion in 2022 to ₩387.2 billion in 2023 and ₩132.3 billion in 2024 before dropping into a loss in 2025, a trough shaped by the one-off penalty and the bio downcycle.
- The grounds for a rebound are clear.
- First-quarter 2026 consolidated net profit was ₩119.8 billion, more than double year on year, and controlling-interest net profit, the portion attributable to CJ CheilJedang shareholders, jumped sharply to ₩81.8 billion.
- With the one-off provision gone, the food segment growing operating profit at double digits, and bio shifting weight from lysine, where low-price competition is fierce, toward higher-value specialties such as arginine to lift margins.
- Factoring in the seasonally stronger second half, this year's profit is clearly normalizing out of last year's loss, and on a forward basis the picture looks nothing like the trailing loss.
- Measured against that normalized profit, the stock sits at a lower multiple than peer food companies.
- In the first-quarter preliminary results announced on May 12, 2026, consolidated net profit more than doubled year on year, confirming a normalization of earnings (the effect of the absent one-off penalty provision).
- The May 15 quarterly report disclosed segment-level (food, bio, logistics) profit and loss, and on May 11 the company set a cash and stock dividend, continuing shareholder returns even through the loss period (₩6,000 per share).
- Investor briefings held in succession in April and May explained the direction of portfolio realignment and financial-structure improvement, and on June 1 the large-business-group status disclosure and corporate governance report laid out the group's governance.
- Overall, the flow shifts past last year's one-off headwind toward a focus this year on earnings recovery and maintained dividends.
- The heart of the observation is that last year's loss is essentially a closed chapter, and the question this year is how far profit returns to normal.
- The strong conditions are clear.
- With the one-off penalty gone, first-quarter net profit has already recovered sharply, the core food business is growing, and bio is reshaping its mix toward higher-value specialties.
- On top of a P/B of 0.4x and a 3.2% dividend yield, the valuation on normalized forward earnings sits below peer food companies (P/E of 12-14x), leaving room for the discount to close once profit normalizes.
- On the other hand, the cautionary conditions are cases where amino-acid selling prices wobble again under low-priced Chinese competition or food input costs rise, and the high debt ratio leaves it sensitive to interest-rate and currency swings.
- In sum, this is a stock that is strong once earnings normalization is confirmed, but whose profit margin narrows if bio selling prices and input costs deteriorate again.
🔎 Valuation vs peers Undervalued
Rather than a plain packaged-foods classification, the peer set is large diversified food companies that handle both processed and staple food ingredients; still, these peers lack CJ CheilJedang's distinctive structure of bio amino acids and the consolidated logistics arm (CJ Logistics), so a one-to-one comparison has limits.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Orion | 14.00x | 1.41x | 10.05% |
| Nongshim | 12.50x | 0.75x | 6.01% |
| Lotte Wellfood | 12.97x | 0.43x | 3.30% |
(a) The peers Orion, Nongshim, and Lotte Wellfood trade at a P/E of 12-14x, whereas CJ CheilJedang shows no trailing P/E because of last year's loss. (b) That loss, however, was driven mainly by a one-off cost, the collusion-penalty provision of about ₩334.9 billion, so on normalized forward earnings the stock trades at a lower multiple than peers. (c) With first-quarter controlling-interest net profit jumping sharply to confirm earnings normalization, and adding in the P/B of 0.4x and the 3.2% dividend, the forward view that strips away the trailing distortion places it in undervalued territory. That said, continued recovery in bio selling prices is the underlying premise.
Price history Close · MA20 · MA60
The latest close is ₩191,200 and the market capitalization is ₩2.9 trillion. The price sits below its 20-day moving average (₩192,470) and below its 60-day moving average (₩211,610). 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 45.2, a neutral level. The one-month change is -1.8%, the three-month change is -20.0%, and the position relative to the 52-week high is -29.0%. Relative strength versus the KOSPI is 15 (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 14% of all stocks. Over the past three months it lagged the index by 32.8%. 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 -32.76% / 6M -42.26% / 12M -69.68%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.41x is below the sector median (0.51x).
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 -8.1%, below the sector average (4.0%). The operating margin is 4.5%. The debt ratio is 421.4%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $17.8B | $18.1B | $18.1B | +0.38% ↓ slower |
| Operating profit | $908.0M | $962.4M | $817.6M | -15.04% ↓ slower |
| Net profit | $256.6M | $87.7M | -$378.7M | -532.03% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $17.4B | $19.9B | $17.8B | $18.1B | $18.1B |
| Operating profit | $1.0B | $1.1B | $908.0M | $962.4M | $817.6M |
| Net profit | $591.5M | $532.0M | $256.6M | $87.7M | -$378.7M |
| Revenue CAGR | 4-yr avg 0.99% | ||||
Revenue rose 0.4% year over year (2023 ₩26.8 trillion → 2024 ₩27.2 trillion → 2025 ₩27.3 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 15.0% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 1.0%. The two-year revenue CAGR is 1.0%. In the most recent quarter (Q1 2026), revenue was 6.0% 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.
Points to watch
- Debt far exceeds equity (debt ratio 421.4%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 81.0%).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue rose 0.4% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-05-12EarningsFirst-quarter 2026 consolidated preliminary results disclosed — net profit of ₩119.8 billion (more than double year on year), controlling-interest net profit of ₩81.8 billion, confirming an earnings recoveryShort term: with last year's one-off penalty provision gone, net profit returns to a normal track. Mid term: positive as it confirms a trough in forward earnings. Source
- 2026-05-15FilingFirst-quarter 2026 quarterly report filed — segment-level (food, bio, logistics) profit and loss and financial detail disclosedShort term: confirms the finalized figures behind the preliminary results. Mid term: a basis for checking food operating-profit growth and the shift toward bio specialties. Source
- 2026-05-11DividendCash and stock dividend approved and record date set — ₩6,000 per share (a dividend yield of about 3.2% at the current price)Short term: maintaining the dividend through the loss period shows the stability of shareholder returns. Mid term: the cash-flow capacity to sustain dividends warrants checking. Source
- 2026-04-20IREarnings-announcement pre-notice and investor briefing notice — explaining the direction of portfolio realignment and financial-structure improvementShort term: limited direct profit-and-loss impact. Mid term: material for gauging the bio business direction and financial-improvement plan. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| First-quarter 2026 consolidated net profit | ₩119.8 billion | ₩119.8 billion, net profit ₩81.8 billion | Confirmed | link |
| First-quarter 2026 consolidated operating profit (cumulative) | ₩238.1 billion (-17.2% YoY) | ₩238.1 billion | Confirmed | link |
| Cash dividend per share (DPS) | ₩6,000,x 3.2% | ₩6,000 | Confirmed | link |
| Estimated 2026 controlling-interest net profit | approx. ₩370.0 billion(self-estimate) | — | Unverified | link |
Recent filings
- 2026-06-01Corporate governance report
- 2026-06-01Large-business-group status disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-12EarningsFair-disclosure notice
- 2026-05-11Disclosure
- 2026-05-11Disclosure
- 2026-05-11Disclosure
- 2026-05-11DividendCash/stock dividend decision
- 2026-05-11DividendCash/stock dividend decision
- 2026-05-06Disclosure
- 2026-04-20Disclosure
- 2026-04-20EarningsEarnings disclosure
📖 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.