F&F: High Margins and Low Trailing P/E, but Revenue Has Been Flat Since 2022

Thesis

The data supports a picture of a highly profitable apparel company with low leverage and strong cash generation. Trailing revenue of ₩2.0T and operating income of ₩500.9B (as of H1 2026) are the highest in the five-year record shown for revenue, and trailing ROE is 28.9%.

What the data does not show is sustained growth. Revenue rose 66.1% in 2022, then moved to ₩1.98T in 2023, ₩1.90T in 2024 and ₩1.93T in 2025. Operating margin has eased from 29.6% in 2021 to 24.2% in 2025, though trailing margin of 24.9% is slightly higher.

The share price is up 13.7% over one month and 16.2% over one year, but down 7.8% over three months. It sits at ₩73,700 within a 52-week range of ₩58,000 to ₩89,000. Net income exceeding operating income in the trailing period suggests non-operating gains, but the data does not explain their source.

Business overview

F&F is listed on KOSPI in the Textiles & Apparel sector. The data lists the company as founded on 2021-05-03 and listed on 2021-05-21, with 38,307,075 listed shares and a market cap of ₩2.8T. The CEO is listed as 김창수.

Annual revenue grew from ₩1.09T in 2021 to ₩1.93T in 2025. Product lines, brands and geographic mix are not available in the data provided. Peers in the data (LF, Handsome, Woosung Materials, Chokwang Leather, Hansae) have market caps of ₩347.6B to ₩671.1B, so F&F is several times larger than each of them by market value.

Financial analysis

All figures come from filed financial statements (DART), consolidated where available.

Trailing revenue to H1 2026 is ₩2.01T, operating income ₩500.9B and net income ₩523.2B. That gives an operating margin of 24.9% and a net margin of 26.0%. Trailing ROE is 28.9%.

Annual history: 2025 revenue ₩1.93T (+2.0%), operating income ₩468.6B, net income ₩398.5B, ROE 23.2%. 2024 revenue fell 4.2% to ₩1.90T with operating income of ₩450.7B. 2023 operating income was ₩551.8B at a 27.9% margin, and 2022 was ₩524.9B at 29.0%. ROE has fallen from 60.1% in 2022 to 23.2% in 2025 before rising in the trailing period.

The balance sheet is conservative: liabilities-to-equity is 26.7%, cash is ₩470.7B and borrowings are ₩31.8B. Trailing free cash flow is ₩479.8B. Enterprise value is ₩2.38T.

Valuation

Current multiples are a P/E of 5.4, P/B of 1.4 and P/S of 1.4, with a dividend yield of 3.6%. EV/EBITDA is not available.

The only historical comparison is year-end 2025, when P/E was 6.6 and P/B was 1.4. The current P/E is therefore lower than at that point, while P/B is unchanged. Earlier year-end multiples are not available.

Peer multiples are not available in the data, so a like-for-like comparison cannot be made. On size alone, F&F's market cap of ₩2.8T is well above the largest listed peer shown, LF at ₩671.1B. The low P/E partly reflects trailing net income that is above operating income.

Catalysts

• The half-year report filed on 2026-08-14 and preliminary earnings filed on 2026-07-31 are the latest official updates on results.
• A corporate value-up plan was filed on 2026-04-30, which may be relevant to shareholder returns, though details are not in the data.
• A filing on 2026-08-13 titled a major management matter relevant to investors may matter, but its content is not available in the data.
• An acquisition of shares in another company was filed on 2026-04-13, which could affect the business mix over time.
• A 5%+ holding report was filed on 2026-06-10, indicating a change in a significant shareholding.

Risks

• Revenue has been broadly flat between 2022 and 2025, so profit growth depends on margins rather than sales growth.
• Operating margin has fallen from 29.6% in 2021 to 24.2% in 2025, and ROE has dropped from 60.1% to 23.2% over 2022 to 2025.
• Trailing net income of ₩523.2B exceeds operating income, so part of earnings may come from non-operating items that may not recur.
• A response to a rumour or news report was filed on 2026-07-15, and no news headlines, investor flow, foreign ownership or short-selling data are available to assess sentiment.
• The share price fell 7.8% over three months and has a wide 52-week range of ₩58,000 to ₩89,000, showing notable volatility.

Closing view

The filed numbers show a very profitable, cash-rich and lightly indebted company trading at a trailing P/E of 5.4 and a P/B of 1.4. Against that, sales growth has stalled since 2022 and margins and returns are below earlier peaks. Missing data on peer multiples, investor flows and news limits the comparison. Overall the evidence shows strong current profitability alongside unresolved questions about growth and earnings quality.

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, 2026InitiationF&F: High Margins and Low Trailing P/E, but Revenue Has Been Flat Since 2022