F&F makes money by running its own apparel brands and selling clothing and accessories directly. The centerpiece is 'MLB,' and it is joined by the outdoor brand 'Discovery Expedition'; MLB generates substantial revenue in China through licensing and local sales, so Chinese consumption forms one axis of results. In the first quarter of 2026 net profit more than doubled, putting earnings back on a growth path, and in April the company's value-up plan positioned the dividend as its core capital-return tool, with a dividend yield of 3.5%. What stands out lately is that, with an ROE in the 21% range and an operating margin in the 24% range, profitability runs three to four times that of peers, so a forward P/E of about 6x is actually lower than the group; at the same time one axis of earnings is tied to Chinese consumption and brand popularity, so a slowdown in Chinese sales could cap the pace of growth. Both sides deserve a balanced read.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 2.0% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 10.9% higher than a year earlier.
- ROE is 21.2% (controlling-interest basis). It is above the sector average.
- Operating margin is 24.2%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder F&F Holdings 33.98% (corporate)
Controlling bloc incl. related parties 62.81%
With the controlling bloc holding 63%, control is very secure but the free float is thin.
🔎 In-depth analysis
- F&F makes money by running its own apparel brands and selling clothing and accessories directly.
- The core of revenue is the 'MLB' brand, well known for caps, footwear, and clothing, joined by the outdoor brand 'Discovery Expedition.' It does not simply sell clothing at home: MLB generates substantial revenue in China through licensing and local sales, so Chinese consumption forms one axis of results.
- In other words, the company's earnings come from two axes, brand popularity and sales volume at home and abroad (especially in China), and are shaped by both fashion trends and Chinese consumption.
- The latest close is ₩78,500 and the market cap is ₩3.0 trillion.
- The price sits below its 20-day moving average (₩78,720) but above its 60-day line (₩75,420).
- With the short- and medium-term trends pointing in opposite directions, the two need to be read separately.
- The RSI (a gauge that scores upward versus downward momentum over the past 14 days on a 0-100 scale) is 51.4, a neutral reading.
- The stock is down 0.6% over one month and up 28.5% over three months, and it stands 8.8% below its 52-week high.
- Its relative strength versus the KOSPI is 43 (on a 1-99 scale that converts one-year return against the index, weighting recent performance more heavily; higher means stronger than the market), placing it in roughly the top 57% by strength across all stocks.
- Over the past three months it has edged out the index by 0.4%.
- Chart signals are best read alongside trading volume and disclosure dates.
- On last year's confirmed (2025) results, the P/E is 7.55x and the P/B is 1.60x.
- ROE (how much is earned on equity in a year) is 21.2%, far above the roughly 5% average of apparel peers, making profitability stand out.
- The operating margin (the share of revenue left as profit) is 24.2%, very high for the apparel sector.
- The debt ratio (debt relative to equity) is 141.1%, but read alongside a current ratio of 161.6% and an interest coverage of 10.9x, there is ample capacity to carry that debt.
- A P/B of 1.52x looks higher than peers (0.3-0.5x), but that is natural: this is a company whose profitability is three to four times that of the group, so it is priced above net assets.
- More to the point, the P/E and P/B above are all based on last year's confirmed earnings and net assets.
- Reflecting this year's sharp first-quarter earnings gain, the value on a this-year basis (a forward P/E of about 6x, a forward P/B of 1.21x) is actually lower, so at the same price you are buying more cheaply on this year's earnings.
- For a company whose earnings are rising, this forward-year value gives a truer picture than last year's figures.
- Over five years revenue stepped up from ₩1.1 trillion in 2021 to ₩1.8 trillion in 2022, then firmed at the ₩2 trillion threshold through ₩1.98 trillion in 2023, ₩1.90 trillion in 2024, and ₩1.93 trillion in 2025.
- Operating profit went through ₩551.8 billion in 2023 and ₩450.7 billion in 2024 before rising again to ₩468.6 billion (+4.0%) in 2025, and net profit recovered to ₩398.5 billion (+10.6%) in 2025.
- The change is sharpest in this year's first quarter: revenue of ₩560.9 billion (+10.9% year over year), operating profit of ₩153.5 billion (+24.2%), and net profit of ₩197.6 billion (+139.3%), with single-digit revenue growth amplifying into double digits at operating profit and more than doubling at net profit.
- This is the classic pattern of a high-margin company earning far more as revenue rises, and a recovery in MLB's China sales and higher brand pricing appear to have lifted profit.
- That is why this year's earnings are forming a notch above last year's.
- In short, demand (recovering Chinese consumption), price (brand pricing), and profitability (amplification of high-margin revenue) are aligning, and the this-year value that reflects this (a forward P/E of about 6x) is below the confirmed 2025 basis (7.4x).
- It is hard to argue that this year's earnings recovery is fully in the price yet.
- Recent disclosures center on the earnings recovery and capital return.
- The provisional results on April 30 and the quarterly report on May 15 confirmed the first-quarter earnings jump in hard numbers, and on the same April 30 the value-up plan disclosed its 2025 progress and 2026 plan.
- On March 26 there was a re-disclosure of the value-up plan flagging the company as a high-dividend name, showing that it is positioning the dividend as its core capital-return tool.
- The April 13 decision to acquire shares in another company is an expansion and equity-investment move whose cash use and future effect on consolidated results can be tracked through follow-up disclosures.
- This is a company with clear strengths.
- It carries an ROE in the 21% range and an operating margin in the 24% range, both rare in apparel, plus a dividend yield of 3.5%, and in the first quarter net profit more than doubled, putting earnings back on a growth path.
- Last year's confirmed P/E and P/B look higher than peers, but that is because profitability runs three to four times the group; reflecting this year's earnings, the forward P/E of about 6x is actually lower than the peer level, marking a 'far superior profitability at a price that isn't heavy' zone.
- The point to watch is that one axis of earnings is tied to Chinese consumption and brand popularity: if China sales and brand momentum hold, earnings growth gains more traction, but if Chinese consumption slows, the pace of growth could be capped.
- In sum, in a phase where China sales recover and the brand stays strong, high profitability and a low forward value shine together, making this a strength name, while the variable to check is the durability of Chinese consumption, a balanced view that fits well.
🔎 Valuation vs peers Undervalued
We picked domestic apparel makers with comparable business structures that manufacture and sell their own branded clothing, pairing own-brand fashion houses LF and Handsome with Hansae, whose core is global garment production (OEM/ODM), to see where F&F's high profitability comes from.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| LF | 6.64x | 0.40x | 6.06% |
| Handsome | 10.43x | 0.34x | 3.22% |
| Hansae | 6.29x | 0.49x | 7.79% |
On P/B, F&F (1.5x) is higher than the peer group (0.3-0.5x), but that is because its ROE of 21% is three to four times the group's; a company that puts capital to work well trading above net assets is natural. The key is the P/E. F&F's confirmed 2025 P/E of 7.4x is already mid-pack among peers (LF 6.7x, Handsome 10.1x, Hansae 5.7x), but the problem is that this figure is based on the stagnant year of 2025. Reflecting that earnings began rising again, with first-quarter operating profit +24% and net profit +139%, the P/E on this year's earnings drops to roughly 6x. In other words, despite profitability more than double the peer group, the valuation is similar to or even lower than peers, so the profitability premium is not fully in the price, which we read as an undervalued zone. That view rests on a continued recovery in Chinese consumption and tourism demand, and if demand turns down again, earnings volatility could rise, which must be weighed together.
Price history Close · MA20 · MA60
The latest close is ₩78,500 and the market capitalization is ₩3.0 trillion. The price sits below its 20-day moving average (₩78,720) and above its 60-day moving average (₩75,420). 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 51.4, a neutral level. The one-month change is -0.6%, the three-month change is +28.5%, and the position relative to the 52-week high is -8.8%. Relative strength versus the KOSPI is 43 (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 43% of all stocks. Over the past three months it outpaced the index by 0.4%. 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 +0.35% / 6M -24.47% / 12M -59.24%
Key metrics vs sector median
Valuation
The P/E is 7.55x. The P/B of 1.60x is above the sector median (0.39x). 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 21.2%, above the sector average (5.0%). The operating margin is 24.2%. The debt ratio is 141.1%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.3B | $1.3B | $1.3B | +2.00% ↑ faster |
| Operating profit | $365.7M | $298.7M | $310.6M | +3.96% ↑ faster |
| Net profit | $281.7M | $238.8M | $264.1M | +10.59% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $721.9M | $1.2B | $1.3B | $1.3B | $1.3B |
| Operating profit | $213.9M | $347.9M | $365.7M | $298.7M | $310.6M |
| Net profit | $149.6M | $292.8M | $281.7M | $238.8M | $264.1M |
| Revenue CAGR | 4-yr avg 15.44% | ||||
Revenue rose 2.0% year over year (2023 ₩2.0 trillion → 2024 ₩1.9 trillion → 2025 ₩1.9 trillion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 4.0% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 15.4%. The two-year revenue CAGR is -1.1%. In the most recent quarter (Q1 2026), revenue was 10.9% 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 21.2% points to solid profitability.
- 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
- 2026-04-30EarningsFirst-quarter 2026 consolidated provisional results disclosure. Revenue, operating profit, and net profit all rose year over year, with net profit in particular up sharply, disclosed first by the company.Short term: positive for sentiment as the earnings recovery is confirmed in hard numbers. Medium term: whether the first-quarter improvement carries through the year is the crux, so later quarters are needed to confirm durability. Source
- 2026-04-30FilingValue-up plan voluntary disclosure. Sets out capital-return and capital-efficiency direction with 2025 progress and the 2026 plan.Short term: reflects capital-return expectations as dividend and capital-policy visibility improves. Medium term: how strongly dividends and buybacks are actually carried out, and whether ROE is sustained, determine the effectiveness of the value-up effort. Source
- 2026-05-15UpdateFirst-quarter 2026 quarterly report filed. Cumulative first-quarter revenue of ₩560.9 billion, operating profit of ₩153.5 billion, and net profit of ₩197.6 billion confirmed in an audited/reviewed formal report.Short term: reinforces credibility as provisional figures are confirmed in a formal report. Medium term: the primary source for the most precise read of revenue mix by division and region and of the cost structure. Source
- 2026-04-13FilingDecision to acquire shares and investment securities of another company. The board decided to acquire an equity stake in an outside entity.Short term: possible financial change from using cash on hand. Medium term: depending on the acquired business's nature, the effect added to consolidated revenue and profit will emerge through follow-up disclosures. Source
- 2026-03-26DividendValue-up plan re-disclosure (for high-dividend flagging). Names the dividend as a core capital-return tool.Short term: possible inflow of income-seeking demand as the high-dividend feature is highlighted. Medium term: if earnings stagnate, dividend durability (with room from a 25.4% payout ratio) faces a test. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| First-quarter 2026 operating profit | ₩153.5 billion | ₩153.5 billion | Confirmed | link |
| First-quarter 2026 net profit (year over year) | ₩197.6 billion(+139.3%) | ₩197.6 billion | Confirmed | link |
| Dividend per share (DPS) | ₩2,700 | — | Confirmed | link |
| 2026 expected net profit (in-house estimate) | approx. ₩500.0 billion(forward PER approx. 5.9x) | — | Unverified | link |
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-04-30Disclosure
- 2026-04-30EarningsFair-disclosure notice
- 2026-04-24EarningsEarnings disclosure
- 2026-04-13Disclosure
- 2026-03-26Dividend disclosure
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-18Audit report
- 2026-03-11OwnershipOwnership-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.