Meritz Financial Group is a financial holding company that owns non-life insurer Meritz Fire & Marine Insurance and Meritz Securities as wholly owned subsidiaries, consolidating the earnings of both businesses in full. Its profit comes mainly from insurance underwriting and investment income plus securities trading, trade-intermediation, and investment-banking revenue. The group reported consolidated net profit of ₩680.2 billion in the first quarter of 2026, and in March it signed a ₩700 billion share-buyback trust agreement to repurchase and retire stock, continuing a policy it has actually upheld for several years of returning more than 50% of consolidated net profit to shareholders. What stands out lately is that a high ROE in the 20% range, the pairing of insurance and securities businesses that ride different cycles, and steady share retirements are clear strengths, while the fact that securities earnings are sensitive to market conditions such as real-estate project financing and trading, and that insurance is exposed to interest-rate and loss-ratio swings, are points to watch.
At-a-glance assessment financial health · growth · profitability · valuation
- For financial companies, debt and interest costs are large by the nature of the business, so the debt ratio and interest coverage cannot be read on the same yardstick as an ordinary company.
- ROE is 22.3% (controlling-interest basis). It is above the sector average.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Cho Jung-ho 55.78% (individual)
Controlling bloc incl. related parties 56.13%
With the controlling bloc holding 56%, control is very secure but the free float is thin.
Financial-group subsidiaries stake
| Meritz Hyundai Investment Real Estate Strategy Private Equity Fund No. 1 | sub-subsidiary | 49.3% |
🔎 In-depth analysis
- Meritz Financial Group does not run operations directly; it is a financial holding company that owns subsidiaries and reports their combined results.
- Two units are central.
- The first is non-life insurer Meritz Fire & Marine Insurance, which collects premiums on auto and long-term personal insurance, underwrites policies, and invests those funds to generate returns.
- The second is Meritz Securities, which earns money from real-estate project financing, bonds, proprietary trading, client-order intermediation, and investment banking.
- In 2023 the two firms became wholly owned subsidiaries through the comprehensive 'One Meritz' share swap and were delisted, so only Meritz Financial Group now trades on the market, and the earnings of both businesses flow in on a fully consolidated basis.
- In short, the main streams of profit are insurance underwriting and investment income together with securities trading, trade-intermediation, and investment-banking revenue.
- The recent closing price is ₩112,900 and the market cap is ₩18.9 trillion.
- The price sits above its 20-day line (₩108,800) and above its 60-day line (₩110,017).
- Being above both short- and medium-term moving averages, the trend looks favorable.
- The RSI (a gauge that compares upward and downward strength over the last 14 days on a 0–100 scale) is 58.2, a neutral level.
- The price is up 4.3% over one month and up 1.9% over three months, and sits 22.8% below its 52-week high.
- Relative strength versus the KOSPI is 31 (1–99, a measure of return versus the index over the past year weighted toward recent performance; higher means stronger than the market).
- That places it in roughly the top 70% of all stocks by strength.
- Over the past three months it lagged the index by 22.6%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- The P/E is 8.21x and the P/B is 1.83x.
- The most striking figure is ROE (how much a company earns in a year on its equity), at 22.3% for 2025 and rising to an annualized level in the mid-20% range in the first quarter of 2026.
- Compared with bank holding companies within finance, whose ROE runs in the 7–9% range, its capital efficiency stands out.
- The debt ratio is a holding-company standalone figure and does not fully reflect the underlying business, but with insurance and securities subsidiaries, the large consolidated assets (about ₩144 trillion) are simply a feature of the financial industry.
- In sum, its ability to generate profit (profitability) is a clear strength, and its valuation metrics are not heavy relative to that profitability.
- Net profit over the past three years — ₩2.04 trillion in 2023, ₩2.31 trillion in 2024, and ₩2.30 trillion in 2025 — settled at a high level without wide swings.
- Operating profit slipped 9.9% in 2025 from the prior year, but net profit, the key figure, held almost flat at −0.25%.
- The inflection appears in 2026: first-quarter consolidated net profit rose 9.6% year on year to ₩680.2 billion, and operating profit rose 18.4% to ₩854.8 billion.
- By subsidiary, Meritz Securities' first-quarter net profit jumped sharply (up in the 30% range) year on year, and insurance also held firm.
- Because this first-quarter trend is not a one-off but reflects both insurance underwriting profit and securities revenue rising together, full-year 2026 net profit looks set to step up to around ₩2.5 trillion, above last year's ₩2.30 trillion.
- In that case, the forward P/E on this year's earnings relative to the current market cap actually comes down below the 7.3x figure based on last year's results.
- The focus of recent disclosures is shareholder returns.
- The company reaffirms its medium-term policy of returning more than 50% of consolidated net profit to shareholders through quarterly disclosures on the progress of its corporate value-up plan, and in March 2026 it signed a ₩700 billion share-buyback trust agreement, actually executing purchases and retirements — buying roughly ₩146.1 billion (about 1.26 million shares) by the end of April.
- In May it disclosed preliminary first-quarter 2026 results (consolidated net profit of ₩680.2 billion), and in April it announced an investor briefing (IR).
- Because buying back and canceling shares raises the value of each remaining share, such returns act to support the floor under the share price.
- The strengths are clear.
- First, ROE in the 20% range is among the highest in finance, reflecting efficient use of capital.
- Second, with insurance and securities combined as wholly owned subsidiaries, their earnings flow straight into the consolidated results, and because the two ride different cycles, one can cushion the other when it weakens.
- Third, the company has actually upheld a policy of returning more than half of net profit through share buybacks and retirements for several years, producing a large cumulative effect on shareholder value.
- With earnings rising again in 2026, the price multiple on this year's earnings falls below last year's, placing it close to undervalued.
- On the cautionary side, securities earnings are sensitive to market conditions such as real-estate project financing and trading, and insurance is exposed to interest-rate and loss-ratio swings.
- In other words, it is strong when financial markets are stable and insurance results hold firm, and its securities earnings can wobble when real-estate or interest-rate shocks arrive.
🔎 Valuation vs peers Undervalued
Because the bulk of consolidated results comes from non-life insurance (Meritz Fire & Marine) and securities (Meritz Securities), it is compared against financial peers that generate profit by deploying their own equity, such as non-life insurers and bank holding companies.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Samsung Fire & Marine Insurance | 13.76x | 1.31x | 9.49% |
| Woori Financial Group | 7.06x | 0.61x | 8.67% |
| BNK Financial Group | 6.56x | 0.50x | 7.55% |
| Samsung Life Insurance | 28.31x | 1.04x | 3.67% |
The P/B of 1.6x is higher than that of bank holding companies (0.5–0.6x), but given that its ROE is two to three times theirs, it is not heavy relative to capital efficiency. The 7.3x P/E is based on last year's results; with first-quarter 2026 earnings rising again, converting to this year's earnings brings it down further to about 6.7x. When earnings are inflecting upward, the multiple on this year's earnings is closer to reality than the multiple on last year's results. Even compared with fellow non-life insurer Samsung Fire & Marine (P/E of 14x), Meritz carries a higher ROE and a lower earnings multiple, so weighing capital efficiency and returns together, we judge it to be in undervalued territory.
Price history Close · MA20 · MA60
The latest close is ₩112,900 and the market capitalization is ₩18.9 trillion. The price sits above its 20-day moving average (₩108,800) and above its 60-day moving average (₩110,017). 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 58.2, a neutral level. The one-month change is +4.3%, the three-month change is +1.9%, and the position relative to the 52-week high is -22.8%. Relative strength versus the KOSPI is 31 (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 30% of all stocks. Over the past three months it lagged the index by 22.6%. 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 -22.62% / 6M -35.30% / 12M -58.48%
Key metrics vs whole-market median
Valuation
The P/E of 8.21x is below the whole-market median (13.81x). The P/B of 1.83x is above the whole-market median (1.15x).
Profitability & financials
Return on equity (ROE) is 22.3%, above the whole-market average (5.0%). The debt ratio is 1312.2%, but for financial firms deposits and insurance liabilities count as debt, so it cannot be read on the same yardstick as an ordinary company.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | — | — | — | — |
| Operating profit | $1.9B | $2.1B | $1.9B | -9.91% ↓ slower |
| Net profit | $1.4B | $1.5B | $1.5B | -0.25% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | — | — | — |
| Operating profit | — | — | $1.9B | $2.1B | $1.9B |
| Net profit | — | — | $1.4B | $1.5B | $1.5B |
Operating profit fell 9.9% year over year. The decline widened.
Latest quarterly results
No recent quarterly results confirmed from DART.
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.
- ROE of 22.3% points to solid profitability.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-05-14FilingCorporate value-up plan (voluntary disclosure), Q1 2026 progress — reaffirming the policy of returning more than 50% of consolidated net profit, with a 14.6% buyback yield against a 10% required rate of returnConfirms the commitment to sustain the return policy. Share buybacks and retirements raise per-share value, a medium-term factor supporting the floor under the price. Source
- 2026-05-14EarningsPreliminary Q1 2026 consolidated results — operating profit of ₩854.8 billion (+18.4%) and net profit of ₩680.2 billion (+9.6%)Confirms an earnings re-acceleration inflection, with insurance and securities improving together. Grounds for an upward path in full-year earnings. Source
- 2026-03-26DividendSigned a share-buyback trust agreement (₩700 billion in scale) and executed purchases — acquiring about ₩146.1 billion, roughly 1.26 million shares, by the end of AprilLarge-scale buybacks and retirements reduce the free float, lifting per-share earnings and net asset value. Source
- 2026-04-22IRAnnouncement of an investor briefing (IR) — schedule for explaining results and the shareholder-return policyA positive for information transparency, in that the company regularly communicates results and its return policy directly. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 consolidated net profit | ₩680.2 billion | ₩680.2 billion(+9.6%) | Confirmed | link |
| Shareholder-return policy (target for returning consolidated net profit) | — | net profit 50% , 2026 ₩700.0 billion approx. | Confirmed | link |
| Subsidiary governance (wholly owned subsidiaries, single listing) | — | (2023-02-01)·(2023-04-05) 100% | Confirmed | link |
| Full-year 2026 net profit | approx. ₩2.5 trillion(self-estimate) | — | Unverified | link |
Recent filings
- 2026-05-29OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-29OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-29PeriodicQuarterly report (amended)
- 2026-05-15PeriodicQuarterly report
- 2026-05-14Disclosure
- 2026-05-14EarningsFair-disclosure notice
- 2026-05-14EarningsFair-disclosure notice
- 2026-05-14EarningsFair-disclosure notice
- 2026-04-29OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-29OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-22Disclosure
- 2026-04-06PeriodicAnnual business report (amended)
📖 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.