BGF Retail Co Ltd

BGF Retail Co Ltd maintains a capital structure characterized by a debt-to-equity ratio of 0.64 and a current ratio of 0.89. The balance sheet shows total assets of 3.56 trillion KRW against total liabilities of 2.24 trillion KRW, resulting in total equity of 1.31 trillion KRW. Long-term debt stands at 843.58 billion KRW, while cash and equivalents amount to 399.12 billion KRW, leading to a net cash position that is negative after subtracting total debt. The company generates robust operating cash flow of 770.79 billion KRW and free cash flow of 387.29 billion KRW, supporting its liquidity despite the sub-1.0 current ratio.

Profitability metrics indicate a return on equity of 16.08% and a return on assets of 5.94%. The company reports a net income of 195.26 billion KRW on revenue of 9.06 trillion KRW, yielding a net margin of approximately 2.15%. Operating income is recorded at 233.98 billion KRW, reflecting an operating margin of roughly 2.58%. The valuation snapshot shows a price-to-earnings ratio of 10.06 and an EV/EBITDA of 9.54, suggesting the market prices the earnings at a moderate multiple relative to the cash flow generation.

Revenue concentration and segment details are not explicitly provided in the available data, preventing a detailed analysis of geographic or product mix exposure. The company operates within the Broadline & Specialty Retail activity, implying a diversified retail footprint, but specific segment revenue breakdowns are absent from the current snapshot.

Growth trajectory analysis is limited by the absence of historical period data in the input. Without 5-year annual or 8-quarter quarterly revenue and net income trends, it is not possible to quantify the recent growth rate or momentum of the business.

Risk assessment highlights medium liquidity risk and low dilution risk. A key flag notes that net cash is negative after subtracting total debt, which aligns with the balance sheet figures showing long-term debt exceeding cash holdings. The current ratio of 0.89 further underscores potential short-term liquidity pressures, although strong operating cash flow mitigates immediate solvency concerns.

Recent investor relations observations indicate strong analyst sentiment, with a mean recommendation of 1.71 (where 1 is strong buy) and a mean price target of 166,187.50 KRW. The median price target is 162,500.00 KRW, with a high target of 198,000.00 KRW and a low of 140,000.00 KRW. There are 8 strong-buy ratings and 11 buy ratings, compared to only 2 hold ratings, suggesting significant upside potential from the current market price of 123,000.00 KRW.

Analysts project 34.5% upside to the mean price target of 166,187.5 KRW, reflecting strong market confidence.

Cash conversion of 3.65 is best-in-class compared to the 1.37 cohort median, demonstrating exceptional cash generation capabilities.

Revenue grew at a 7.5% CAGR over four years, reaching 9.06 trillion KRW in the latest fiscal year.

Free cash flow increased to 387.3 billion KRW in FY2026, up from 283.6 billion KRW in FY2022.

Net income growth stalled at 0.0% year-over-year, failing to keep pace with the 4.2% revenue increase.

The company faces a medium level of liquidity risk, which could constrain financial flexibility during market stress.

Revenue KRW 2.12T, +5,2% YoY; Operating income +68,4% YoY.

• ▍Revenue KRW 2.12T, +5,2% YoY
• ▍Operating income +68,4% YoY
• ▍Net income +119,2% YoY
• ▍Free cash flow +6,7% YoY
• ▍Net margin 1.4%

Revenue KRW 2.29T, +3,4% YoY; Operating income +24,4% YoY.

• ▍Revenue KRW 2.29T, +3,4% YoY
• ▍Operating income +24,4% YoY
• ▍Net income +14,6% YoY
• ▍Free cash flow +5,2% YoY
• ▍Net margin 2.2%

Revenue KRW 2.46T, +5,9% YoY; Operating income +7,1% YoY.

• ▍Revenue KRW 2.46T, +5,9% YoY
• ▍Operating income +7,1% YoY
• ▍Net income +13,5% YoY
• ▍Free cash flow +9,6% YoY
• ▍Net margin 3.2%

Revenue KRW 2.29T, +4,0% YoY; Operating income −8,9% YoY.

• ▍Revenue KRW 2.29T, +4,0% YoY
• ▍Operating income −8,9% YoY
• ▍Net income −9,7% YoY
• ▍Free cash flow −1,3% YoY
• ▍Net margin 2.3%

Revenue KRW 2.02T; Operating income KRW 22.63B.

• ▍Revenue KRW 2.02T
• ▍Operating income KRW 22.63B
• ▍Net margin 0.7%

Revenue KRW 2.22T; Operating income KRW 51.64B.

• ▍Revenue KRW 2.22T
• ▍Operating income KRW 51.64B
• ▍Net margin 2.0%

Revenue KRW 2.33T; Operating income KRW 91.16B.

• ▍Revenue KRW 2.33T
• ▍Operating income KRW 91.16B
• ▍Net margin 3.0%

Revenue KRW 2.20T; Operating income KRW 76.21B.

• ▍Revenue KRW 2.20T
• ▍Operating income KRW 76.21B
• ▍Net margin 2.7%

Revenue KRW 9.06T, +4,2% YoY; Operating income −3,2% YoY.

• ▍Revenue KRW 9.06T, +4,2% YoY
• ▍Operating income −3,2% YoY
• ▍Net income +0,0% YoY
• ▍Free cash flow +0,4% YoY
• ▍Net margin 2.2%

Revenue KRW 8.70T, +6,2% YoY; Operating income −1,7% YoY.

• ▍Revenue KRW 8.70T, +6,2% YoY
• ▍Operating income −1,7% YoY
• ▍Net income −0,3% YoY
• ▍Free cash flow +15,6% YoY
• ▍Net margin 2.2%

Revenue KRW 8.19T, +7,6% YoY; Operating income −0,8% YoY.

• ▍Revenue KRW 8.19T, +7,6% YoY
• ▍Operating income −0,8% YoY
• ▍Net income +1,2% YoY
• ▍Free cash flow +17,0% YoY
• ▍Net margin 2.4%

Revenue KRW 7.62T, +12,3% YoY; Operating income +25,9% YoY.

• ▍Revenue KRW 7.62T, +12,3% YoY
• ▍Operating income +25,9% YoY
• ▍Net income +31,1% YoY
• ▍Free cash flow +0,6% YoY
• ▍Net margin 2.5%