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Inca Financial Service (211050) 🔎 In-depth

KOSDAQ · Price as of 2026-07-09 · Updated 2026-07-10

Inca Financial Service is not an insurer that underwrites its own policies; it is a general insurance agency (GA) that gathers products from many life and non-life insurers and sells them through its agents. The bulk of revenue is the placement commission it receives from insurers when a contract closes, and it bears no claims-payment risk. In 2025 it posted revenue of ₩1.0218 trillion and net profit of ₩72.3 billion, and in the first quarter of 2026 revenue rose 30.9% to ₩301.2 billion and net profit 43.7% to ₩22.5 billion, reviving the pace of profit growth. In May it absorbed Dream Life, a wholly owned subsidiary, expanding its agent force to about 21,000. The most important thing to note is that this is a high-efficiency structure generating ROE in the 33% range while using almost no capital, so profit grows quickly while agent recruitment and contract retention run well, but a change in insurers' commission policies or a rise in agent turnover could dampen the growth pace.

At-a-glance assessment financial health · growth · profitability · valuation

Financial healthModerate
  • 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.
GrowthGrowing
  • Revenue rose 22.8% year over year, and the pace is slowing (3-year trend: rising).
  • Most recent quarter (Q1 2026) revenue was 30.9% higher than a year earlier.
ProfitabilityStrong
  • ROE is 33.4% (controlling-interest basis). It is above the sector average.
  • Operating margin is 9.3%.
ValuationUndervalued
  • The forward P/E sits below the sector median.

Ownership & governance As of 2025-12-31

Largest shareholder Choi Byung-chae 23.1% (individual)

Controlling bloc incl. related parties 34.19%

With the controlling bloc holding 34%, the ownership structure is stable.

🔎 In-depth analysis

🏢Business
  • This company is not an insurer that underwrites its own policies.
  • It is a general insurance agency (GA, an independent sales organization that sells other insurers' products) that gathers the products of some 30 domestic life and non-life insurers and sells them to customers through its own agents.
  • The way it makes money is simple.
  • When an agent closes a contract, it receives a placement commission from the insurer, and while that contract stays in force it also receives an ongoing contract-management commission.
  • Because these commissions make up the bulk of revenue, results ultimately hinge on 'number of agents x contract performance.' Since it does not underwrite insurance directly, it bears no claims-payment risk.
  • As of 2025 it had about 18,000 agents, among the top tier of independent GAs, and after the Dream Life merger in May 2026 it grew to about 21,000.
  • As a capital-light business that earns through people and a sales network rather than plants or equipment, a distinctive feature is that the capital required does not grow much even as revenue expands.
📈Price & chart
  • The recent close was ₩9,990, with a market cap of ₩492.1 billion.
  • The price is near the 20-day line (₩9,920) and below the 60-day (₩10,240) and 120-day (₩11,709) lines, so the medium-term trend is weak.
  • The six-month return is -23%, and it sits about 41% below the 52-week high.
  • The one-month return, however, was +7.3%, showing a rebound.
  • RSI (a gauge that compares upward and downward force over the last 14 days on a 0-100 scale) is 50.3, neutral.
  • With results rising while the share price is depressed, this can be seen as a phase where valuation burden relative to earnings has eased.
  • The chart is best read alongside trading volume and filing dates.
📊Key metrics
  • On last year's confirmed results, the P/E ratio (how many times one year's earnings the share price is) is 6.81x, P/B (how many times net assets) is 2.28x, and the dividend yield is 3.7%.
  • Profitability is very high.
  • ROE (how much is earned in a year on equity) is 33.4%; because a GA earns from commissions without needing large capital, profit comes readily even from a small capital base.
  • The P/B in the 2x range is also a natural result of that small capital base, and is hard to read as meaning the shares are expensive relative to assets.
  • The operating margin of 9.3% does not run as high as in manufacturing because a large share of the commissions is paid back out to agents, and the fact that it generates ROE in the 33% range even on a single-digit margin is a strength of this business.
  • The debt-to-equity ratio of 463% looks high on the number alone.
  • But most of it is operating liabilities inherent to the business, such as commissions and accrued amounts owed to agents, not bank borrowings.
  • In fact, the interest-coverage ratio of operating profit to interest expense is 20.6x, leaving ample capacity to service debt.
  • For a business like a GA that uses almost no capital, it is hard to judge on P/B and debt-to-equity figures alone; ROE and the durability of earnings matter more.
🚀Growth
  • Growth is clear.
  • Revenue rose from ₩314.6 billion in 2021 to ₩1.0218 trillion in 2025, a five-year average of 34% per year.
  • Over the same period operating profit grew from ₩21.1 billion to ₩94.8 billion and net profit from ₩16.4 billion to ₩72.3 billion.
  • In 2025 revenue rose 22.8% and net profit 16.6% year on year.
  • In the first quarter of 2026 the pace even quickened, with revenue up 30.9% to ₩301.2 billion and net profit up 43.7% to ₩22.5 billion.
  • Net profit growth outpacing revenue growth means the structure of improving cost efficiency at greater scale is at work.
  • If this trend holds, this year's net profit has room to step up another notch.
  • On our own estimate, this year's net profit is in the low-to-mid ₩90 billion range, giving a forward P/E of about 5.3x, actually lower than last year's 6.8x.
  • In a phase of rising earnings, the forward P/E is closer to the real picture than last year's P/E, and even measured against listed GA peers, the low multiple relative to earnings reads as a signal of undervaluation.
📰Recent news & filings
  • Recent filings can be summed up along two lines: business expansion and shareholder returns.
  • First, it completed the absorption of Dream Life, a wholly owned GA subsidiary.
  • The merger date was May 8, 2026, and because it was a no-new-share merger, existing shareholders' stakes were not diluted.
  • This folded Dream Life's agent organization into the parent, enlarging the sales base.
  • Second, in June it decided to enter a trust agreement to acquire treasury shares.
  • A buyback is a move to lift shareholder value by reducing outstanding shares, a signal of shareholder-return intent alongside earnings growth.
  • In between, the quarterly report (Mar 2026) disclosed confirmed first-quarter results, and several filings on changes in shares held by executives and major shareholders followed, which are personal-stake notifications separate from company results.
🧭Bottom line
  • This company's strengths are clear.
  • A commission-based structure that generates ROE in the 33% range while using almost no capital is the core.
  • On top of that, revenue and net profit are growing at double-digit rates each year, and the Dream Life merger has enlarged the sales base.
  • Valuation is not a heavy burden either: a P/E of 6.8x on last year and around the low 5x on this year's estimate, low relative to earnings even against listed GA peers.
  • The point to watch is that a GA's results ultimately depend on 'agent numbers and contract performance.' With a single-digit operating margin, profit is relatively sensitive to changes in the cost structure such as commission rates and agent costs.
  • If insurers change their sales-commission policies, or if agent turnover or mis-selling issues grow, the growth pace can be dampened.
  • In sum, while agent recruitment and contract retention run well, the high-ROE, low-valuation combination works powerfully, but in a phase where the commission environment worsens, growth momentum can slow.
  • That said, the current price sits at a level that does not fully reflect those strengths.

🔎 Valuation vs peers Undervalued

Since the company is in substance a general insurance agency (GA), it is compared with other listed independent GAs, using the business reality of a distribution model that earns commissions by selling many insurers' products rather than underwriting insurance.

PeerP/EP/BROE
A Plus Asset10.40x1.36x13.04%

(a) A-Plus Asset, a fellow listed GA, has a P/E of 10.4x and ROE of 13.0%, whereas Inca Financial Service has a lower P/E of 6.8x while its ROE of 33.4% is more than twice as high. In other words, its earnings efficiency is far higher yet its price relative to earnings is actually cheaper. (b) With clearly higher profitability but a lower earnings multiple, it is in a state of relative discount on an earnings basis. The P/B of 2.28x is higher than the peer's 1.36x, but this simply reflects high ROE in a business like a GA that uses almost no capital and is hard to view as a burden; it is more appropriate to judge on ROE and the durability of earnings than on P/B. (c) The 6.8x P/E on last year is a trailing figure using last year's earnings. In a phase of rising earnings, on this year's expected earnings it drops to the low 5x range, reading as even more undervalued on a forward basis.

₩9,990 -2.25%
Market cap $326.2M

Price history Close · MA20 · MA60

Close MA20MA60

The latest close is ₩9,990 and the market capitalization is ₩492.1 billion. The price sits above its 20-day moving average (₩9,920) and below its 60-day moving average (₩10,240). 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 50.3, a neutral level. The one-month change is +7.3%, the three-month change is -15.3%, and the position relative to the 52-week high is -41.2%. Relative strength versus the KOSDAQ is 64 (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 64% of all stocks. Over the past three months it outpaced the index by 15.0%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.

Relative performance stock vs index · start = 100

64Relative strength vs KOSDAQ1–99 · last 12 months’ return vs the index, recency-weighted · higher = stronger than the marketTop 36% strength

Excess return vs index · 3M +15.04% / 6M -5.37% / 12M -25.79%

StockKOSDAQ

Key metrics vs sector median

Valuation

P/E (trailing)6.81x
Forward P/E5.30x
P/B2.28x
Forward P/B1.73x
P/S0.50x
EPS₩1,468
BPS (book value/share)₩4,390
Dividend yield3.70%
DPS₩370

The P/E of 6.81x is below the sector median (10.40x). The P/B of 2.28x is above the sector median (1.67x).

Profitability & financials

ROE33.43%
Operating margin9.28%
Net margin7.08%
Debt ratio463.00%
Payout ratio25.21%

Return on equity (ROE) is 33.4%, above the sector average (15.0%). The operating margin is 9.3%. The debt ratio is 463.0%, 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)

Item202320242025YoY
Revenue$369.0M$551.6M$677.2M+22.77% ↓ slower
Operating profit$30.9M$57.2M$62.9M+9.94% ↓ slower
Net profit$19.6M$41.1M$47.9M+16.56% ↓ slower
5-year20212022202320242025
Revenue$208.5M$266.1M$369.0M$551.6M$677.2M
Operating profit$14.0M$18.2M$30.9M$57.2M$62.9M
Net profit$10.9M$13.8M$19.6M$41.1M$47.9M
Revenue CAGR4-yr avg 34.24%

Revenue rose 22.8% year over year (2023 ₩556.8 billion → 2024 ₩832.3 billion → 2025 ₩1.0 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 9.9% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 34.2%. The two-year revenue CAGR is 35.5%. In the most recent quarter (Q1 2026), revenue was 30.9% higher than the same period a year earlier.

Latest quarterly results Q1 2026 · vs year-ago

Revenue$199.6M
Revenue YoY+30.91%
Operating profit$17.2M
Op. profit YoY+22.99%
Net profit$14.9M
Net profit YoY+43.70%

Technical indicators

RSI (14)50.3
MA20₩9,920
MA60₩10,240
1-month+7.30%
3-month-15.34%
vs 52-wk high-41.20%

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 3.7%, is on the high side.
  • ROE of 33.4% points to solid profitability.
  • Revenue grew 22.8% year over year, a sign of growth.

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

Figure cross-check computed ↔ external

MetricComputedExternalStatusSource
First-quarter 2026 revenue and net profitrevenue ₩301.2 billion(+30.9%)·net profit ₩22.5 billion(+43.7%)(2026.03)Confirmedlink
Completion of the Dream Life absorption merger2026-05-08—Confirmedlink
Estimated full-year 2026 net profit (in-house estimate)approx. ₩90.0 billion—Unverified—

Recent filings

📖 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.

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