Cosmecca Korea is an ODM company that plans, develops, and manufactures cosmetics on behalf of other brands, with skincare and sun-care basic cosmetics at its core, built on two pillars: its Korean operations and its U.S. subsidiary Englewood Lab. Raising its Englewood Lab stake from 50% to 66.7% in March 2026 was the reason first-quarter net profit more than doubled, and a June 5 disclosure on the acquisition of tangible assets pointed to a move to expand capacity. What stands out lately is that profitability with an ROE of 18% and an operating margin of 13%, faster-than-peer revenue growth (+22.2%), and a valuation that comes down on this year's earnings are strengths; on the other hand, an ODM's results swing with customer order volumes and exchange rates, growth could slow if K-beauty exports or U.S. consumption falter, and the negative FCF yield bears watching.
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue rose 22.2% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 56.4% higher than a year earlier.
- ROE is 18.0% (controlling-interest basis). It is above the sector average.
- Operating margin is 13.0%.
- P/B is high versus peers, a stretch on an asset basis.
Ownership & governance As of 2025-12-31
Largest shareholder Park Eun-hee 25.2% (individual)
Controlling bloc incl. related parties 38.9%
With the controlling bloc holding 39%, the ownership structure is stable.
🔎 In-depth analysis
- Cosmecca Korea is not a company that sells its own-brand cosmetics.
- It is an ODM company (contract manufacturing where the maker also handles the formulation and design and delivers a finished product) that plans, develops, and manufactures cosmetics on behalf of other brands.
- Put simply, it is the cosmetics industry's 'made-to-order factory.' Its mainstay is basic cosmetics, and within that, skincare and sun-care (UV protection) products.
- Revenue splits broadly between its Korean operations and its U.S. subsidiary Englewood Lab.
- Korea is growing fast as K-beauty indie-brand customers increase, while the U.S. serves North American customers as a local production base.
- The company's direction is to build global cosmetics ODM competitiveness on the two pillars of Korea and the U.S.
- As a result, its results are driven more by client brands' order volumes, the pace of new-product launches, and exchange rates than by the popularity of any own brand.
- The latest close is ₩85,500 and the market cap is ₩913.1 billion.
- The price sits above its 20-day line (₩72,980) and above its 60-day line (₩76,818).
- Trading above both its short- and mid-term moving averages, the trend is on the favorable side.
- The RSI (a supplementary gauge comparing upward and downward strength over the past 14 days on a 0-100 scale) is 63.2, a neutral level.
- The one-month change is +22.1%, the three-month change is +17.6%, and the position versus the 52-week high is -17.0%.
- Relative strength against the KOSDAQ is 89 (on a 1-99 scale, converted from returns versus the index over the past year with heavier weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 11% of all stocks by strength.
- Over the past three months it outpaced the index by 56.1%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- Start with the valuation metrics.
- On a confirmed annual (2025) basis, the P/E (how many times a year's net profit the share price is) is 20.10x and the P/B (how many times the company's net assets the share price is) is 3.61x.
- Profitability is solid.
- The ROE (how much was earned in a year on equity, i.e. capital efficiency) is 18.0%, high even against peer cosmetics ODM companies.
- The operating margin is 13.0% and the net margin is 7.1%.
- The debt ratio (size of debt relative to equity) of 117% is not excessive for manufacturing, and the interest coverage ratio (how many times operating profit can cover interest) of 7.0x leaves no interest burden.
- Debt-inclusive metrics also warrant a look.
- EV/EBIT (enterprise value divided by operating profit, a debt-adjusted counterpart to the P/E) is 11.9x.
- Net debt (total borrowings minus cash) is roughly ₩96.6 billion, a net-borrowing rather than net-cash position.
- The FCF yield (actual cash generated relative to market cap) is -0.7%, a phase in which cash is still going out for growth investment.
- One point is worth flagging: the 19.8x P/E is calculated on 'last year's' earnings.
- With first-quarter 2026 net profit up 113% year over year, an earnings inflection point, a multiple measured on last year's earnings makes the current earnings power look more expensive than it is.
- Reviewed on this year's earnings, the P/E comes down to about 10.6x.
- The top line has trended steadily higher.
- Revenue rose for three straight years, from ₩470.7 billion in 2023 to ₩524.3 billion in 2024 and ₩640.9 billion in 2025.
- Operating profit grew from ₩49.2 billion to ₩83.5 billion over the same span (a two-year revenue CAGR of 16.7% and operating-profit CAGR of 30.4%).
- In particular, 2025 saw revenue up +22.2% and operating profit up +38.4%, with earnings growing faster than revenue.
- The pace of growth itself is accelerating.
- In the first quarter of 2026, growth stepped up another notch, with revenue of ₩185.1 billion (+56.4%), operating profit of ₩21.9 billion (+78.0%), and net profit of ₩19.6 billion (+112.8%).
- There is a reason net profit more than doubled: raising the U.S.
- Englewood Lab stake from 50% to 66.7% increased the share of subsidiary profit booked to the company.
- On top of that, expanding K-beauty indie-brand customers and U.S. local production came together.
- Full-year 2026 operating profit is on track to top ₩100 billion for the first time in the company's history.
- Even if the P/E looks high on last year's basis, because this year's earnings rise sharply, the forward-looking P/E comes down to about 10.6x.
- This reflects the picture of the first quarter's earnings leap carrying through the full year.
- The recent narrative can be summed up as 'strengthening U.S. control.' In March 2026, the company raised its stake in U.S. subsidiary Englewood Lab from 50% to 66.7% via a tender offer, in order to speed up decision-making in the North American business and book a larger share of subsidiary profit to itself.
- This effect is the backdrop for first-quarter net profit more than doubling.
- On May 8 it announced preliminary first-quarter results on a consolidated basis via fair disclosure, and on the same day announced an investor briefing (IR).
- On May 15 the detailed figures were confirmed in the quarterly report.
- On June 5 it disclosed the acquisition of tangible assets (a decision to purchase tangible assets such as plants and equipment), read as a move to expand capacity to meet rising orders.
- These disclosures together show both the fact that results have improved and the fact that capacity is being added to support those results.
- Capital investment sends cash out in the short term, but it builds the foundation for growth by expanding the capacity to take future orders.
- Start with the strengths.
- In its core cosmetics ODM business, profitability is solid, with an ROE of 18% and an operating margin of 13%.
- Revenue growth (+22.2%) is faster than that of the two large peer companies.
- Earnings growth was even steeper and accelerated again in the first quarter.
- There was also a structural change: expanding the U.S.
- Englewood Lab stake means more subsidiary profit is booked to the company.
- Valuation is not ahead of this growth, either.
- The 19.8x P/E on last year's basis looks high.
- But because earnings are in a phase of sharp growth, on this year's earnings it comes down to about 10.6x, the lowest among the three peers.
- Growth is the fastest, yet the forward-looking multiple is the lowest.
- On that basis, relative to growth it sits in undervalued territory.
- The cautions are just as clear.
- An ODM's results are driven by client brands' order volumes and exchange rates.
- If the K-beauty export cycle and U.S. consumption falter, the growth rate could slow.
- With the FCF yield negative, whether capital investment translates into actual cash generation also bears watching.
- In sum, it is strong when K-beauty exports and U.S. local production turn together, and weaker when that demand cools.
🔎 Valuation vs peers Undervalued
Grouped by the same business structure of contract-manufacturing and supplying cosmetics rather than selling own brands, with Kolmar Korea and Cosmax, Korea's two leading cosmetics ODM companies, taken as the peer set (figures calculated on-site at the current price).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Kolmar Korea | 19.40x | 2.67x | 13.74% |
| Cosmax | 16.00x | 3.53x | 22.05% |
(a) Position versus peers: on last year's (2025) confirmed earnings, the P/E is 19.8x, a middle position higher than Cosmax (15.4x) and lower than Kolmar Korea (21.5x). The ROE of 18.0% is also in the middle, higher than Kolmar Korea (13.7%) and lower than Cosmax (22.1%). (b) Premium/discount: among the three, its revenue growth is the fastest, and earnings growth accelerated again in the first quarter of 2026. (c) Trailing limits and forward basis: with first-quarter net profit up 112.8% year over year, an inflection point, a P/E on last year's earnings overstates the true value. The multiple on this year's earnings comes down to about 10.6x, the lowest among the three peers. Given that growth is the fastest yet the forward-looking multiple is the lowest, the current price is judged to sit in undervalued territory.
Price history Close · MA20 · MA60
The latest close is ₩85,500 and the market capitalization is ₩913.1 billion. The price sits above its 20-day moving average (₩72,980) and above its 60-day moving average (₩76,818). 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 63.2, a neutral level. The one-month change is +22.1%, the three-month change is +17.6%, and the position relative to the 52-week high is -17.0%. Relative strength versus the KOSDAQ is 89 (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 90% of all stocks. Over the past three months it outpaced the index by 56.1%. 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 +56.06% / 6M +51.61% / 12M +45.78%
Key metrics vs sector median
Valuation
The P/E of 20.10x is above the sector median (14.79x). The P/B of 3.61x is above the sector median (0.97x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
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 9.8%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 18.0%, above the sector average (4.0%). The operating margin is 13.0%. The debt ratio is 117.0%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $312.0M | $347.5M | $424.8M | +22.24% ↑ faster |
| Operating profit | $32.6M | $40.0M | $55.4M | +38.39% ↑ faster |
| Net profit | $14.8M | $28.4M | $30.1M | +6.17% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $262.8M | $264.7M | $312.0M | $347.5M | $424.8M |
| Operating profit | $13.3M | $6.9M | $32.6M | $40.0M | $55.4M |
| Net profit | $5.9M | $1.8M | $14.8M | $28.4M | $30.1M |
| Revenue CAGR | 4-yr avg 12.76% | ||||
Revenue rose 22.2% year over year (2023 ₩470.7 billion → 2024 ₩524.3 billion → 2025 ₩640.9 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 38.4% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 12.8%. The two-year revenue CAGR is 16.7%. In the most recent quarter (Q1 2026), revenue was 56.4% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 18.0% points to solid profitability.
- Revenue grew 22.2% year over year, a sign of growth.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-08EarningsFair disclosure of preliminary Q1 2026 consolidated operating results — both revenue and operating profit up sharply year over yearShort term: officially confirms the strong first quarter and supports the growth trend. Medium term: whether this earnings level carries into the second half is the key to the forward valuation. Source
- 2026-05-08IRHeld an investor briefing (IR) — explaining Q1 results and business statusShort term: shares the background to results through investor communication. Medium term: a channel to confirm the business direction the company states directly. Source
- 2026-05-15FilingQ1 2026 quarterly report — revenue of ₩185.1 billion, operating profit of ₩21.9 billion, and net profit of ₩19.6 billion confirmedShort term: confirms the detailed figures of the preliminary results and reinforces confidence. Medium term: a primary source for confirming revenue composition by division and region. Source
- 2026-06-05FilingMaterial-fact report on the decision to acquire tangible assets — acquisition of tangible assets such as production equipmentShort term: a cash outflow and depreciation burden from the investment. Medium term: a signal of capacity expansion to meet rising orders. Source
- 2026-03-23UpdateRaised the stake in U.S. subsidiary Englewood Lab from 50% to 66.7% via tender offer (completed) — strengthening control of the North American business and the share of profit consolidatedShort term: a cash outflow from deploying its own funds. Medium term: a structural plus to net profit as a larger share of subsidiary profit is booked to the company. The main backdrop to the surge in Q1 net profit (+112.8%). Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 annual revenue | ₩640.9 billion | ₩640.9 billion | Confirmed | link |
| Q1 2026 operating profit | ₩21.9 billion | approx. ₩21.9 billion | Confirmed | link |
| Latest close | ₩85,500 | — | Unverified | link |
| U.S. Englewood Lab stake | 66.7% | 66.7% | Confirmed | link |
| 2026 estimated net profit (internal estimate) | approx. ₩85.0 billion(self-estimate) | — | Unverified | — |
Recent filings
- 2026-06-05Material-fact report (amended)
- 2026-06-05Material-fact report
- 2026-05-15PeriodicQuarterly report
- 2026-05-15PeriodicAnnual business report (amended)
- 2026-05-08EarningsFair-disclosure notice
- 2026-05-08Disclosure
- 2026-04-30OwnershipOwnership-change filing
- 2026-04-29EarningsEarnings disclosure
- 2026-04-07Disclosure
- 2026-04-02OwnershipOfficers'/major-shareholders' holdings report
- 2026-03-30PeriodicAnnual business report (amended)
- 2026-03-27Shareholders' meeting 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.