S&D is a B2B ingredient company that supplies flavor materials — such as seasoning powders for noodles and sauces, concentrates, and cheese powders — along with natural functional ingredients to food and health-food makers, so it grows as its customers add new products. In 2025 revenue reached ₩150.9 billion (+30.0%) on a 23.9% ROE, Q1 2026 operating profit jumped +51.2% as growth re-accelerated, and a value-up disclosure plus a ₩1,790-per-share dividend (a payout ratio of about 25%) extended a shareholder-friendly stance. What stands out lately is that, as long as customer demand and margin improvement continue, a trailing P/E of 6.63x and a forward P/E of 5.5x look more like buying a well-earning growth company at a low multiple, and a price that has pulled back from its 52-week high lowers the entry bar — though if a major customer or agricultural-raw-material cost swings shake the pace of growth, the volatility typical of a small-cap could surface.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 30.0% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 27.3% higher than a year earlier.
- ROE is 23.9% (total-net basis). It is above the sector average.
- Operating margin is 15.2%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Yeo Kyung-mok 33.28% (individual)
Controlling bloc incl. related parties 44.17%
With the controlling bloc holding 44%, the ownership structure is stable.
🔎 In-depth analysis
- S&D is a B2B ingredient company that supplies food materials to food-and-beverage firms.
- Its largest pillar is seasoning materials: it makes flavor ingredients such as seasoning powders used in ramen, noodles, pastes, and sauces, concentrates made by simmering down items like roasted chicken, cheese powders, and spicy-base powders, then delivers them to food manufacturers.
- Its second pillar is health-functional-food materials, extracting functional ingredients from natural sources with biotech and supplying them to health-food companies.
- Adding bio-industry materials used in food, cosmetics, and pharmaceuticals, the essence of this company is selling not finished consumer goods but 'the ingredients that go into products others make.' Rather than being directly exposed to finished-brand competition, it grows in step with its customers as they add new products.
- The latest close is ₩50,700, with a market cap of ₩146.7 billion.
- The price sits above the 20-day line (₩48,055) and below the 60-day line (₩54,116).
- With short- and mid-term trends diverging, direction should be read in parts.
- The RSI (a gauge comparing upward and downward strength over the last 14 days on a 0–100 scale) is 52.0, a neutral level.
- The one-month change is +5.3%, the three-month change is -3.2%, and the price stands -63.8% from its 52-week high.
- Relative strength versus the KOSDAQ is 53 (on a 1–99 scale that weights recent returns against the index over the past year more heavily; higher means stronger than the market).
- That places it in roughly the top 47% of all stocks by strength.
- Over the past three months it has outpaced the index by 25.6%.
- Chart signals are best read alongside trading volume and the dates of disclosures.
- The trailing P/E (how many times last year's finalized earnings the price represents) is 7.12x, the P/B (how many times shareholders' equity the price represents) is 1.70x, and the dividend yield is 3.71% (₩1,790 per share, a payout ratio of about 25%).
- Profitability is very high, with a 23.9% ROE (how much a company earns in a year on its own equity), and margins are thick for an ingredient company at a 15.2% operating margin and 13.7% net margin.
- On the balance sheet, the debt-to-equity ratio (borrowings relative to equity) is 126%, but with a 344% current ratio and interest coverage of 1,430x, the practical debt burden is nearly nonexistent — a stable structure.
- A P/E of 6.63x and P/B of 1.58x are by no means expensive against a 23.9% ROE; if anything they lean toward 'buying a well-earning company cheaply.' Moreover, this trailing P/E is based on 2025's finalized earnings, so in a phase where this year's profit steps up again, the effective multiple at the same price is even lower.
- The forward P/E on this year's expected earnings is 5.5x, lower still than trailing, so the undervaluation signal versus peers is fairly clear.
- Revenue grew from ₩61.4 billion in 2021 to ₩150.9 billion in 2025, a roughly 25% five-year CAGR, and rose 30.0% year over year in 2025 as well.
- That same year, operating profit (+14.4%) and net profit (+21.0%) grew alongside it.
- Then in Q1 2026, growth re-accelerated with revenue +27.3%, operating profit +51.2%, and net profit +45.2%, while the operating margin stepped up to 17.9%.
- The key point, on top of top-line growth, is that earnings are growing faster than revenue — showing that customer demand for seasoning and health-functional-food materials is firm and the product mix is shifting toward higher-margin items.
- The forward P/E on this year's expected earnings dropping to 5.5x from last year's basis (6.63x) directly reflects this year's profit rising again over last year.
- The fact that Q1 operating profit grew at nearly twice the pace of revenue as margins improved supports the view that this company's growth is not mere top-line expansion but growth accompanied by profitability.
- The company's key developments are confirmed through disclosures.
- On March 24, 2026, it issued a 'corporate value-up plan (voluntary disclosure),' formalizing its intent to join the exchange's value-up program, and held its regular shareholders' meeting the same day.
- On March 5 it decided on a cash dividend (₩1,790 per share, a payout ratio of about 25%), continuing its shareholder-return tone.
- On March 16, the 2025 business report finalized a high-return structure with revenue of ₩150.9 billion (+30.0%) and a 23.9% ROE, and on May 15, the Q1 2026 report showed the re-acceleration of growth with operating profit +51.2% and margin improvement in the numbers.
- Even judged solely by disclosures rather than general reporting, the shareholder-friendly pattern of 'earnings growth + dividends + value-up disclosure' is clearly visible.
- S&D's strengths are clear across several fronts: high profitability at a 23.9% ROE, steady revenue growth of a roughly 25% five-year CAGR and 30% last year, the Q1 acceleration to +51% operating profit with margin improvement, a stable balance sheet with interest coverage of 1,430x and almost no debt burden, plus a 3.7% dividend and a value-up disclosure.
- Against that profitability and growth, a trailing P/E of 6.63x and forward P/E of 5.5x are not expensive; if anything they lean toward 'buying a well-earning growth company at a low multiple.' The fact that the price has fallen well below its 52-week high is, for a name backed by fundamentals, a factor that lowers the entry bar.
- There are variables to watch.
- A B2B ingredient company's quarterly results can move with customer orders, and because it uses agricultural raw materials, input costs can weigh on margins.
- In sum, as long as customer demand and margin improvement continue, the current valuation is an attractive zone relative to profitability; but if a major customer or a cost variable shakes the pace of growth, the volatility typical of a small-cap could appear as well.
🔎 Valuation vs peers Undervalued
We chose the comparison set by business substance: a B2B ingredient company that makes the raw materials going into health-functional foods and foods rather than finished consumer goods. The closest is Novarex, which is in health-functional-food ingredients and ODM, while a large diversified food maker (Ottogi) differs in business character and is treated only for reference.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Novarex | 6.79x | 0.95x | 13.99% |
| Ottogi | 19.19x | 0.64x | 3.34% |
The closest comparison, Novarex, trades at a P/E of 7.05x with a 14% ROE, whereas S&D trades at a lower P/E of 6.77x with a much higher ROE of 23.9%. In other words, it is positioned as 'earning more yet trading cheaper,' so allowing for profitability it can be read as at a discount. That said, the trailing P/E based on last year's finalized earnings is only a mirror of the past in a phase where earnings shift quickly, as in Q1. If this year's profit is seen rising further, the forward (this year's expected earnings) multiple falls below trailing; this forward basis rests on an in-house estimate adjusting for the prior quarter's trend and seasonality. In conclusion, the undervaluation signal relative to profitability is clear, but given the customer and cost volatility of a B2B ingredient company, it is more appropriate to watch whether growth persists than to declare it 'cheap without question.'
Price history Close · MA20 · MA60
The latest close is ₩50,700 and the market capitalization is ₩146.7 billion. The price sits above its 20-day moving average (₩48,055) and below its 60-day moving average (₩54,116). 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 52.0, a neutral level. The one-month change is +5.3%, the three-month change is -3.2%, and the position relative to the 52-week high is -63.8%. Relative strength versus the KOSDAQ is 53 (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 53% of all stocks. Over the past three months it outpaced the index by 25.6%. 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 +25.62% / 6M -11.79% / 12M -59.89%
Key metrics vs sector median
Valuation
The P/E of 7.12x is below the sector median (8.80x). The P/B of 1.70x is above the sector median (0.51x). 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 9.2%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.667x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 23.9%, above the sector average (4.0%). The operating margin is 15.2%. The debt ratio is 126.3%, so the financial structure is moderate.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $58.5M | $77.0M | $100.0M | +29.96% ↓ slower |
| Operating profit | $8.5M | $13.3M | $15.2M | +14.37% ↓ slower |
| Net profit | $7.9M | $11.3M | $13.7M | +21.00% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $40.7M | $48.6M | $58.5M | $77.0M | $100.0M |
| Operating profit | $6.1M | $7.3M | $8.5M | $13.3M | $15.2M |
| Net profit | $5.1M | $6.5M | $7.9M | $11.3M | $13.7M |
| Revenue CAGR | 4-yr avg 25.21% | ||||
Revenue rose 30.0% year over year (2023 ₩88.3 billion → 2024 ₩116.1 billion → 2025 ₩150.9 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 14.4% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 25.2%. The two-year revenue CAGR is 30.8%. In the most recent quarter (Q1 2026), revenue was 27.3% 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 3.5%, is on the high side.
- ROE of 23.9% points to solid profitability.
- Revenue grew 30.0% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
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
- 2026-03-24FilingFormalized intent to join the exchange's value-up program via a corporate value-up plan (voluntary disclosure)A signal that the company itself has laid out a direction for medium-term shareholder returns and improved capital efficiency, raising the visibility of dividend and capital policy. Source
- 2026-03-05DividendCash and in-kind dividend decision (₩1,790 per share, payout ratio about 25%, yield about 3.7% at the current price)Offers near-term dividend appeal and confirms a shareholder-friendly stance of returning part of earnings while still a growth-stage company. Source
- 2026-05-15EarningsQ1 2026 report: on a standalone basis, revenue +27.3%, operating profit +51.2%, net profit +45.2% — growth re-acceleratingA metric confirming near-term earnings momentum and operating-margin improvement (about 17.9%), the starting point for this year's earnings trajectory. Source
- 2026-03-16Filing2025 business report: revenue ₩150.9 billion (+30.0%), operating profit ₩23.0 billion, net profit ₩20.6 billion, ROE 23.9% finalizedThe baseline results that confirmed the medium-term growth trend and high-return structure, the foundation of the trailing valuation. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-15PeriodicQuarterly report
- 2026-03-24Disclosure
- 2026-03-24Shareholders' meeting notice
- 2026-03-16PeriodicAnnual business report
- 2026-03-16Audit report
- 2026-03-05Disclosure
- 2026-03-05Shareholders' meeting notice
- 2026-03-05Shareholders' meeting notice
- 2026-03-05DividendCash/stock dividend decision
📖 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.