Amorepacific: Profit Recovery Continues, Valuation Still Elevated Against Earnings

Thesis

The data supports a profit recovery. Revenue grew 9.5% in 2025 and operating income rose from ₩108.2B in 2023 to ₩335.8B in 2025. The trailing twelve months to H1 2026 show operating income of ₩388.5B. The balance sheet looks conservative, with liabilities at 25.8% of equity and cash of ₩522.8B against borrowings of ₩230.7B.

The data is less supportive on returns and valuation. ROE is 5.3% trailing, and the P/E of 27.0 is high relative to that return. Revenue of ₩4.49T trailing is still below the 2021 level of ₩4.86T. Investor flows, foreign ownership, short balance and news headlines are not available, so sentiment cannot be assessed from this data.

Business overview

Amorepacific is a KOSPI-listed cosmetics company, founded on 2006-06-01 and listed on 2006-06-29. It has 58,492,759 listed shares and a market capitalization of about ₩7.73T. Co-CEOs are listed as 서경배 and 김승환. Revenue fell 15.0% in 2022 and 11.1% in 2023, then grew 5.7% in 2024 and 9.5% in 2025. The 52-week range is ₩94,000 to ₩169,000, so the current price sits about 21.8% below the high and 40.6% above the low.

Financial analysis

These figures come from filed financial statements (DART). Revenue was ₩4.25T in 2025, up from ₩3.89T in 2024 and ₩3.67T in 2023. Operating margin improved from 2.9% in 2023 to 5.7% in 2024 and 7.9% in 2025, and reached 8.6% on a trailing basis.

Net income was ₩235.7B in 2025. The 2024 figure of ₩593.2B was well above operating income of ₩220.5B, which suggests non-operating gains, though the data does not give the reason. Trailing net income is ₩286.0B, a net margin of 6.4%. ROE was 4.4% in 2025 and 5.3% trailing, against 11.7% in 2024. Trailing free cash flow is ₩437.8B, above net income.

Valuation

The current P/E is 27.0, P/B 1.4, P/S 1.7 and dividend yield 1.3%. Enterprise value is about ₩7.44T. EV/EBITDA is not available. At the end of 2025 the P/E was 29.7 and the P/B 1.3, so the P/E is slightly lower now while the P/B is slightly higher. Earlier year-end multiples are not available.

Among peers, APR shows a P/E of 31.0 and a P/B of 20.7, with a market cap of ₩13.39T. LG H&H, Cosmax, Kolmar Korea and d'Alba Global have market caps of ₩2.11T to ₩4.10T, but no multiples are given, so a broader peer comparison is not possible.

Catalysts

• Continued margin improvement, from 7.9% in 2025 to 8.6% trailing, could support earnings if it persists.
• Several insider shareholding reports were filed between 2026-09-30 and 2026-10-07, which may show changes in insider positions.
• A change in the largest shareholder's holdings was filed on 2026-09-30, and a 5%+ holding report on 2026-10-02.
• Strong free cash flow of ₩437.8B trailing leaves room for dividends or investment, though the data gives no plans.

Risks

• A P/E of 27.0 against a trailing ROE of 5.3% leaves the valuation dependent on further earnings growth.
• Revenue is still below its 2021 level of ₩4.86T, and past declines of 15.0% in 2022 and 11.1% in 2023 show earnings volatility.
• The shares fell 5.9% over the past month, showing short-term price weakness.
• The 2024 net income appears to include non-operating items, so earnings quality in that year is hard to judge from this data.
• Investor flows, foreign ownership, short interest and news data are unavailable, which limits visibility on market positioning.

Closing view

The filed numbers show a clear recovery in revenue, margins and cash generation, backed by a low-leverage balance sheet. Returns on equity remain modest and the P/E of 27.0 already reflects expectations of further improvement. The missing flow, short-interest and news data means this view rests on financial statements and prices alone.

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Report history

1. Oct 13, 2026InitiationAmorepacific: Profit Recovery Continues, Valuation Still Elevated Against Earnings