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.
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 88.9%).
- 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 14.9% (controlling-interest basis). It is above the sector average.
- Operating margin is 2.8%.
- The forward P/E sits below the sector median.
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
- 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 recent close is ₩120,200 and the market cap is ₩2.1 trillion.
- The price sits above the 20-day line (₩120,155) and below the 60-day line (₩128,097).
- With the short- and mid-term trends diverging, direction is best read separately.
- The RSI (an auxiliary gauge that compares upward and downward strength over the past 14 days on a 0-100 scale) is 46.8, a neutral level.
- The one-month change is -7.6%, the three-month change is -12.0%, and the position versus the 52-week high is -18.7%.
- Relative strength against the KOSPI is 35 (1-99, computed from returns versus the index over the past year with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 66% of all stocks by strength.
- Over the past three months it lagged the index by 27.6%.
- Chart reading is best done alongside trading volume and disclosure dates.
- 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 10.64x.
- 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 | 48.12x | 0.64x | 1.32% |
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 ₩120,200 and the market capitalization is ₩2.1 trillion. The price sits above its 20-day moving average (₩120,155) and below its 60-day moving average (₩128,097). 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 46.8, a neutral level. The one-month change is -7.6%, the three-month change is -12.0%, and the position relative to the 52-week high is -18.7%. Relative strength versus the KOSPI is 35 (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 34% of all stocks. Over the past three months it lagged the index by 27.6%. 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 -27.55% / 6M -27.57% / 12M -59.39%
Key metrics vs sector median
Valuation
The P/E of 10.64x is below the sector median (16.77x). The P/B of 1.58x is above the sector median (0.56x). 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 14.9%, above the sector average (3.0%). The operating margin is 2.8%. The debt ratio is 170.8%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $5.4B | $5.8B | $6.0B | +4.17% ↓ slower |
| Operating profit | $167.8M | $166.8M | $168.3M | +0.92% ↑ faster |
| Net profit | $129.8M | $129.4M | $129.4M | +0.02% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $4.5B | $5.0B | $5.4B | $5.8B | $6.0B |
| Operating profit | $132.2M | $167.3M | $167.8M | $166.8M | $168.3M |
| Net profit | $97.9M | $128.3M | $129.8M | $129.4M | $129.4M |
| 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 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 3.4%, is on the high side.
- ROE of 14.9% points to solid profitability.
Points to watch
- Revenue rose 4.2% year over year, and the pace is slowing (3-year trend: rising).
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
- 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.