F&F Holdings (KOSE:A007700) - Share price, News & Analysis

Q: What is the Fair Price of A007700 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

A007700 (₩19750) is trading below our estimate of [[fair value]] (₩2901452.02)

A007700 fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	6/6
Past Performance	4/6
Financial Health	4/6
Dividends	2/6

A007700 Stock Overview

F&F Holdings Co., Ltd., through its subsidiaries, operates in the fashion business.

Rewards

Trading at 99.3% below our estimate of its fair value

Earnings are forecast to grow 52.01% per year

Earnings grew by 7499.1% over the past year

Risk Analysis

Shareholders have been substantially diluted in the past year

F&F Holdings Competitors

Hansae

KOSE:A105630

₩665.1b

HANDSOME

KOSE:A020000

₩639.3b

KOSE:A093050

₩481.0b

Youngone Holdings

KOSE:A009970

₩538.5b

Price History & Performance

Summary of all time highs, changes and price drops for F&F Holdings
Historical stock prices
Current Share Price	₩19,750.00
52 Week High	₩56,400.00
52 Week Low	₩16,300.00
Beta	0.58
1 Month Change	9.12%
3 Month Change	-18.22%
1 Year Change	-46.26%
3 Year Change	-88.55%
5 Year Change	-64.68%
Change since IPO	878.06%

Shareholder Returns

	A007700	KR Luxury	KR Market
7D	-3.7%	1.4%	1.7%
1Y	-46.3%	-16.7%	-21.9%

Return vs Industry: A007700 underperformed the KR Luxury industry which returned -16.7% over the past year.

Return vs Market: A007700 underperformed the KR Market which returned -21.9% over the past year.

Price Volatility

Is A007700's price volatile compared to industry and market?
A007700 volatility
A007700 Average Weekly Movement	6.9%
Luxury Industry Average Movement	6.4%
Market Average Movement	6.5%
10% most volatile stocks in KR Market	11.0%
10% least volatile stocks in KR Market	4.0%

Stable Share Price: A007700 is not significantly more volatile than the rest of KR stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: A007700's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1992	45	Chang-Soo Kim	https://www.fnf.co.kr

F&F Holdings Co., Ltd., through its subsidiaries, operates in the fashion business. The company engages in the manufacturing and sale of clothing and accessories products. It is also involved in wholesale and retail, license, and investment businesses; and provision of management advisory and logistics services.

F&F Holdings Fundamentals Summary

How do F&F Holdings's earnings and revenue compare to its market cap?
A007700 fundamental statistics
Market Cap	₩771.63b
Earnings (TTM)	₩86.78b
Revenue (TTM)	₩1.16t

8.9x

P/E Ratio

0.7x

P/S Ratio

Is A007700 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
A007700 income statement (TTM)
Revenue	₩1.16t
Cost of Revenue	₩329.91b
Gross Profit	₩827.42b
Other Expenses	₩740.63b
Earnings	₩86.78b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.22k
Gross Margin	71.49%
Net Profit Margin	7.50%
Debt/Equity Ratio	9.8%

How did A007700 perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

6%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is A007700 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for A007700?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for A007700. This is calculated by dividing A007700's market cap by their current preferred multiple.
What is A007700's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₩771.63b

A007700 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.1x
Enterprise Value/EBITDA	3.3x
PEG Ratio	0.2x

Price to Earnings Ratio vs Peers

How does A007700's PE Ratio compare to its peers?

A007700 PE Ratio vs Peers

The above table shows the PE ratio for A007700 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	4.7x
A105630 Hansae	8.6x	8.0%	₩665.1b
A020000 HANDSOME	5.1x	9.2%	₩639.3b
A093050 LF	3.1x	n/a	₩481.0b
A009970 Youngone Holdings	2.1x	n/a	₩538.5b
A007700 F&F Holdings	8.9x	52.0%	₩771.6b

Price-To-Earnings vs Peers: A007700 is expensive based on its Price-To-Earnings Ratio (8.9x) compared to the peer average (4.7x).

Price to Earnings Ratio vs Industry

How does A007700's PE Ratio compare vs other companies in the KR Luxury Industry?

Price-To-Earnings vs Industry: A007700 is expensive based on its Price-To-Earnings Ratio (8.9x) compared to the KR Luxury industry average (8.6x)

Price to Earnings Ratio vs Fair Ratio

What is A007700's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

A007700 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8.9x
Fair PE Ratio	23.2x

Price-To-Earnings vs Fair Ratio: A007700 is good value based on its Price-To-Earnings Ratio (8.9x) compared to the estimated Fair Price-To-Earnings Ratio (23.2x).

Share Price vs Fair Value

What is the Fair Price of A007700 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: A007700 (₩19750) is trading below our estimate of fair value (₩2901452.02)

Significantly Below Fair Value: A007700 is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

Future Growth

How is F&F Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

6/6

Future Growth Score 6/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

52.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: A007700's forecast earnings growth (52% per year) is above the savings rate (3.6%).

Earnings vs Market: A007700's earnings (52% per year) are forecast to grow faster than the KR market (16.3% per year).

High Growth Earnings: A007700's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: A007700's revenue (35.9% per year) is forecast to grow faster than the KR market (9.8% per year).

High Growth Revenue: A007700's revenue (35.9% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: A007700's Return on Equity is forecast to be very high in 3 years time (53.4%).

Discover growth companies

Past Performance

How has F&F Holdings performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-13.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: A007700 has high quality earnings.

Growing Profit Margin: A007700's current net profit margins (7.5%) are higher than last year (4.7%).

Past Earnings Growth Analysis

Earnings Trend: A007700's earnings have declined by 13.8% per year over the past 5 years.

Accelerating Growth: A007700's earnings growth over the past year (7499.1%) exceeds its 5-year average (-13.8% per year).

Earnings vs Industry: A007700 earnings growth over the past year (7499.1%) exceeded the Luxury industry 47.2%.

Return on Equity

High ROE: A007700's Return on Equity (10.9%) is considered low.

Discover strong past performing companies

Financial Health

How is F&F Holdings's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: A007700's short term assets (₩585.7B) do not cover its short term liabilities (₩651.4B).

Long Term Liabilities: A007700's short term assets (₩585.7B) exceed its long term liabilities (₩21.2B).

Debt to Equity History and Analysis

Debt Level: A007700's net debt to equity ratio (1.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if A007700's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: A007700's debt is well covered by operating cash flow (136.9%).

Interest Coverage: A007700 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Discover healthy companies

Dividend

What is F&F Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.86%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: A007700's dividend (0.86%) isn’t notable compared to the bottom 25% of dividend payers in the KR market (0.94%).

High Dividend: A007700's dividend (0.86%) is low compared to the top 25% of dividend payers in the KR market (3%).

Stability and Growth of Payments

Stable Dividend: A007700 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: A007700 has only been paying a dividend for 3 years, and since then payments have fallen.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (5.8%), A007700's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (2.2%), A007700's dividend payments are thoroughly covered by cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

CEO

Chang-Soo Kim (61 yo)

no data

Tenure

Mr. Chang-Soo Kim is Chief Executive Officer, General Director and Representative Director at F&F Holdings Co., Ltd. He is a Director of Samsung Publishing Co., Ltd.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 407.5%.

Data	Last Updated (UTC time)
Company Analysis	2022/08/10 00:00
End of Day Share Price	2022/08/10 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31