BGF Retail (282330) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
BGF Retail runs the CU convenience-store chain spread across Korea, in a model where headquarters buys goods, supplies them to franchisees and collects royalties from franchise sales, and a strategy of differentiated products such as Doo-jjon-ku and butter rice cakes has pushed results higher. Preliminary results on May 7, 2026 confirmed a first-quarter surge in profit, and around the same time the company disclosed a corporate value-up plan targeting a shareholder-return ratio of 40% or more, along with dividend and treasury-share purchase disclosures. What stands out recently is that the strengths - profit growing again, net cash, and expanding shareholder returns while the forward valuation is not heavy - are balanced against the fact that the first-quarter rebound was partly driven by a one-off of favorable weather, so the growth trend needs to be confirmed in the summer peak-season results, and that the domestic convenience-store market is at a mature stage.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Offline Retail (Asset Plays)” (Retail, Consumer Goods & Food · Distribution & Wholesale/Retail), a type typically read first through P/E.
Offline retail is a consumer-facing business that earns steady profits from running stores, so price-to-earnings (P/E) — the price against the profits it makes — is a natural starting point. Sales and margins tend to be relatively stable, which makes the earnings stream easier to read.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 86.5%).
- Revenue rose 4.2% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 5.1% higher than a year earlier.
- ROE is 16.6% (controlling-interest basis). It is above the sector average.
- Operating margin is 2.9%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2024-12-31
Largest shareholder BGF 30% (corporate)
Controlling bloc incl. related parties 52.25%
With the controlling bloc holding 52%, control is very secure but the free float is thin.
🔎 In-depth analysis Reading
BGF Retail runs the CU convenience-store chain spread across Korea. The way it makes money is simple. Headquarters buys goods and supplies them to franchise stores, then collects a set percentage of franchise sales as royalties. Most revenue comes from the goods supplied to franchisees, added to which are directly operated store sales and franchise fees. Recently, a 'differentiated products' strategy - drawing customers with in-house desserts (hit items like Doo-jjon-ku, butter rice cakes and fruit sandwiches) and value-for-money ready meals - has pushed results higher.
The latest close is ₩133,500 and the market capitalization is ₩2.3 trillion. The price sits above its 20-day moving average (₩123,870) and above its 60-day moving average (₩125,205). 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 60.7, a neutral level. The one-month change is +5.8%, the three-month change is +3.4%, and the position relative to the 52-week high is -9.7%. Relative strength versus the KOSPI is 49 (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 49% of all stocks. Over the past three months it outpaced the index by 18.6%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
The valuation is not heavy relative to the convenience-store business's results. The P/E (how many times one year's profit the share price represents) is 11.82x. The ROE (how much is earned in a year on equity) is 14.9%, high for the retail industry - meaning capital is turned efficiently to generate profit. The net margin of 2.2% looks low, but that owes to the retail structure in which franchise supply revenue is booked in full; it should be viewed by turnover and ROE rather than margin rate. The balance sheet is in net cash. Net debt (total borrowings minus cash; negative means net cash) is about -₩414.0 billion. The FCF yield (the ratio of cash actually earned to market cap; higher is a more attractive cash generator) is a very high 25%. The EV/EBIT (an earnings multiple reflecting debt and cash - an expanded version of the P/E) comes to 6.5x, lower than the P/E. Accounting for the accumulated cash, the actual business is cheaper than the share price suggests.
Revenue rose steadily throughout all five years, at a five-year compound annual growth rate of 7.5%. That said, from 2023 to 2025 operating profit was nearly flat in the ₩250 billion range, showing the limits of a mature domestic convenience-store market. The change appeared in the first quarter of 2026. Operating profit rose 68.6% from a year earlier to ₩38.1 billion, and net profit surged 118.7% to ₩29.3 billion - the result of favorable weather boosting outdoor activity together with differentiated products catching on. Since the first quarter is a slow season for convenience stores, it is unreasonable to multiply this full rebound across the year; the summer peak-season results are the key. In its value-up roadmap (FASTER) the company has officially set targets of consolidated revenue of ₩10 trillion and operating profit of ₩300 billion or more by 2028. It appears to be entering a phase of returning to a growth trajectory.
The thread through 2026 is stronger shareholder returns. On April 30 the company disclosed a corporate value-up plan, setting a shareholder-return ratio of 40% or more as its target. A dividend decision came the same day. In April and May, disclosures related to treasury-share purchases followed - a move to return earned cash to shareholders. The May 7 preliminary-results disclosure confirmed the first-quarter surge in profit, and an investor relations (IR) briefing was held in early May. The coincidence of earnings improvement and shareholder returns in the same period is the stock's recent narrative.
The strengths are clear. Profit has started to grow again, the balance sheet is net cash with good cash-generating power, and the company is expanding shareholder returns through buybacks and dividends. On a forward basis, the valuation is not heavy either. There are points to watch as well. The first-quarter rebound includes a one-off factor of favorable weather, so the growth trend must actually be confirmed in the summer peak-season results. The domestic convenience-store market itself is at a mature stage, so explosive growth is hard to expect. In short, this is a stock combining stable cash flow and shareholder returns with a profit recovery. It is strong if the growth resumption carries through to the summer results, and weak if the weather effect fades and the profit rebound peters out.
🔎 Valuation vs peers Undervalued
Compared against listed companies in the same convenience-store and domestic-retail business, with GS Retail as the most direct comparison.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| GS Retail | 50.91x | 0.67x | 2.47% |
The most direct comparison, GS Retail, has a low ROE of 1.3% and a P/E in the 48x range, whereas BGF Retail has an ROE of 14.9% and a P/E of 10.6x. Profitability is far higher while the price relative to profit is actually lower. Viewed together with net cash and a high FCF yield (25%), the actual business is cheaper than the P/E suggests (EV/EBIT of 6.5x). There was a phase where the P/E looked high because last year's profit stagnated, but with the first-quarter 2026 profit rebound it has actually become cheaper on a forward basis. Even accounting for the limits of a mature market, taking cash flow, shareholder returns and the profit recovery together points to Undervalued.
Price history Close · MA20 · MA60
The latest close is ₩133,500 and the market capitalization is ₩2.3 trillion. The price sits above its 20-day moving average (₩123,870) and above its 60-day moving average (₩125,205). 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 60.7, a neutral level. The one-month change is +5.8%, the three-month change is +3.4%, and the position relative to the 52-week high is -9.7%. Relative strength versus the KOSPI is 49 (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 49% of all stocks. Over the past three months it outpaced the index by 18.6%. 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 +18.60% / 6M -12.76% / 12M -39.94%
Key metrics Computed vs sector median
Valuation
The P/E of 11.82x is in line with the sector median (11.05x). The P/B of 1.82x is above the sector median (0.47x). 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.
Profitability & financials
Return on equity (ROE) is 16.6%, above the sector average (1.0%). The operating margin is 2.9%. The debt ratio is 176.4%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $5.8B | $6.1B | $6.4B | +4.17% ↓ slower |
| Operating profit | $177.9M | $176.8M | $178.4M | +0.92% ↑ faster |
| Net profit | $137.6M | $137.1M | $137.2M | +0.02% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $4.8B | $5.4B | $5.8B | $6.1B | $6.4B |
| Operating profit | $140.1M | $177.3M | $177.9M | $176.8M | $178.4M |
| Net profit | $103.7M | $136.0M | $137.6M | $137.1M | $137.2M |
| Revenue CAGR | 4-yr avg 7.52% | ||||
Revenue rose 4.2% year over year (2023 ₩8.2 trillion → 2024 ₩8.7 trillion → 2025 ₩9.1 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 0.9% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 7.5%. The two-year revenue CAGR is 5.1%. In the most recent quarter (Q1 2026), revenue was 5.1% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- The dividend yield, at 3.1%, is on the high side.
- ROE of 16.6% points to solid profitability.
Points to watch
- Revenue rose 4.2% year over year, and the pace is slowing (3-year trend: rising).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-04-30FilingCorporate value-up plan disclosure. Targets a shareholder-return ratio of 40% or more and, by 2028, consolidated revenue of ₩10 trillion and operating profit of ₩300 billion or more.By specifying a medium-term direction of expanding dividends and buybacks, it raises the visibility of shareholder returns. Source
- 2026-04-30DividendCash-and-in-kind dividend decision disclosure.Shareholder returns continue through the dividend payout. The dividend yield is around 3.4%. Source
- 2026-05-07EarningsConsolidated preliminary-results disclosure. First-quarter operating profit rose sharply from a year earlier, confirming margin improvement.Stagnant profit rebounding signals a resumption of growth. A material for short-term re-valuation. Source
- 2026-05-29FilingDisclosure related to treasury-share purchases (status of trust-contract acquisitions, etc.).Reducing the shares outstanding supports per-share value and shareholder returns. Source
- 2026-05-06IRNotice of an investor relations (IR) briefing. Explains results and business direction to the market.Communicates the first-quarter improvement and the value-up plan directly. Positive on the transparency front. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| First-quarter 2026 operating profit | ₩38.1 billion | ₩38.1 billion | Confirmed | link |
| First-quarter 2026 net profit | ₩29.3 billion | ₩29.3 billion | Confirmed | link |
| Dividend (DPS) and dividend yield | DPS ₩4,100 / 3.4% | — | Confirmed | link |
| 2026 full-year net profit (internal estimate) | approx. ₩220.0 billion | — | Unverified | — |
Recent filings Source
- 2026-05-29OwnershipLargest-shareholder ownership change report
- 2026-05-29OwnershipOwnership-change filing
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-05-11Disclosure
- 2026-05-07EarningsFair-disclosure notice
- 2026-05-06Disclosure
- 2026-04-30Disclosure
- 2026-04-30EarningsEarnings disclosure
- 2026-04-01OwnershipLargest-shareholder ownership change report
- 2026-04-01OwnershipOwnership-change filing
📖 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.