Muhak: Low Book Multiple and High Yield Sit Beside Thinner Operating Margins and a Model Estimate Below the Share Price

Thesis

The data supports a picture of a small, low-valued company: price to book is 0.3, price to earnings is 6.1 and the dividend yield is 7.3%. These are low against most listed food peers shown.

The data does not show a clear operating recovery. Revenue fell 5.4% in 2025, operating income dropped from ₩16.9B in 2024 to ₩10.2B in 2025, and trailing operating income is ₩6.1B. Trailing net income of ₩33.5B is more than five times operating income, which suggests earnings come from items outside the core business. The data does not say what those items are.

The valuation model's base estimate is below the current price, so the low multiples are not matched by the model's cash flow view.

Business overview

Muhak is listed on the KOSPI in the Food & Beverage sector. It was founded on 1973-09-19 and listed on 2010-07-20, with 28.5M listed shares. It has two co-CEOs, 최낙준 and 최재호.

Revenue has ranged between ₩126.9B in 2021 and ₩152.8B in 2022. It was ₩143.8B in 2025 and ₩141.3B on a trailing basis to H1 2026. The company posted losses in 2021 and 2022 and profits from 2023. No business segment detail or news headlines are available in the data.

Financial analysis

These figures come from filed financial statements.

Revenue: ₩152.1B in 2024, ₩143.8B in 2025 (-5.4%), ₩141.3B trailing to H1 2026.

Operating income: ₩16.9B in 2024, ₩10.2B in 2025, ₩6.1B trailing. Operating margin went from 11.1% to 7.1% to 4.4%.

Net income: ₩48.4B in 2024, ₩50.3B in 2025, ₩33.5B trailing (net margin 23.7%). Return on equity was 8.5% in 2025 and is 5.6% trailing, versus 12.8% in 2023.

Balance sheet: liabilities to equity is 25.8%, cash is ₩13.3B and borrowings are ₩106.2B. Trailing free cash flow is negative at -₩4.2B.

Valuation

Current multiples: P/E 6.1, P/B 0.3, P/S 1.4, EV/EBITDA 13.9, dividend yield 7.3%. Enterprise value is ₩288.2B. Year-end P/B was 0.3 to 0.5 across 2021 to 2025, so the low book multiple is in line with its own history. Year-end P/E was 2.3 in 2023, 3.7 in 2024 and 5.4 in 2025, so the earnings multiple has risen.

Peers: Samyang Foods P/E 18.9, P/B 6.0; Orion 10.5, 1.1; Nongshim 12.4, 0.8; Otoki 17.2, 0.6; CJ Cheiljedang P/E not available, P/B 0.4. Muhak is below most peers on both measures.

The model (5-year discounted cash flow, 6.4% rate, based on trailing figures to H1 2026) gives a base estimate of ₩3,056 per share, with a bear case of ₩262 and a bull case of ₩8,130. This is a model estimate based on the assumptions shown, not a target. The base case is well below the ₩7,170 price, and only the bull case is above it. The range is very wide.

Catalysts

• A cash dividend decision was filed on 2026-10-22, following another on 2026-07-22, which is relevant given the 7.3% yield.
• The half-year report for June 2026 was amended on 2026-10-02 after an attachment was added on 2026-08-14.
• Changes in the largest shareholder's holdings and insider shareholding reports were filed on 2026-08-25 and 2026-08-28.
• Corporate governance report amendments and a record date determination were filed on 2026-09-15.

Risks

• Operating margin has fallen for two straight periods to 4.4%, and revenue is shrinking.
• Net income is much higher than operating income, so reported earnings may not reflect the core business.
• Free cash flow is negative at -₩4.2B while borrowings are ₩106.2B against cash of ₩13.3B.
• The model's base estimate is below the current price and its bear-to-bull range is very wide.
• The price is near its 52-week low, and foreign ownership has slipped from 2.4% to 2.0% over 60 days with net foreign selling over 20 days.

Closing view

The data shows a stock with low multiples and a high dividend yield, but also falling revenue, shrinking operating margins, negative free cash flow and profits that depend on non-operating items. The model's base estimate sits below the price, though the range is wide and sensitive to assumptions. The picture is mixed, and the low valuation reflects real weakness in the numbers. No news headlines were available to add context.

Model estimate of fair value

Bear

₩262

-96%

Base

₩3,056

-57%

Bull

₩8,130

+14%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 6.4%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

• Cash dividend decisionOct 22, 2026
• Amended: Half-year report (Jun 2026)Oct 2, 2026
• [Amendment] Disclosure of Corporate Governance ReportSep 15, 2026
• [Amendment] Disclosure of Corporate Governance ReportSep 15, 2026
• [Amendment] Disclosure of Corporate Governance ReportSep 15, 2026
• Determination of Shareholder Register Closure Period or Record DateSep 15, 2026
• Change in largest shareholder's holdingsAug 28, 2026
• Insider shareholding reportAug 28, 2026
• Change in largest shareholder's holdingsAug 25, 2026
• Insider shareholding reportAug 25, 2026
• Added attachment: Half-year report (Jun 2026)Aug 14, 2026
• Cash dividend decisionJul 22, 2026
• Daily prices up to 2026-10-23
• Financial statements, trailing 12 months as of H1 2026
• Our fair value model, statements as of TTM to H1 2026

Report history

1. Oct 25, 2026InitiationStart of coverage (reader request)Muhak: Low Book Multiple and High Yield Sit Beside Thinner Operating Margins and a Model Estimate Below the Share Price