# Dongwon Ind (006040.KO)

Canonical: https://gigainvestors.com/s/006040.KO

Analysis as of: 2026-10-16T07:43:20.750Z. Financial observations: FY2009–FY2026.

Listing currency: KRW. Reporting currency: KRW.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: KRW 35,650.00 per share; close as of 2026-10-15.

Estimated value: low KRW 79,184.30 per share, central KRW 109,328.04 per share, high KRW 126,880.80 per share. Buy at or below the central value KRW 109,328.04 per share. Valuation as of 2026-10-16T07:43:20.750Z; scenarios are not confidence intervals.

Expected annual return: 27.2% at the stated quote. About 27.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; KR 10-year bond 4.2% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.32×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.09×

- FY2018: 0.05×

- FY2019: 0.04×

- FY2020: 0.10×

- FY2021: 0.09×

- FY2022: 0.05×

- FY2023: 0.05×

- FY2024: 0.06×

- FY2025: 0.05×

- LTM to Jun 2026: 0.06×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 8.1%

- ROIC, second-lowest year: 4.5%

- Typical minus recent gross margin: -0.3 pp

- Typical gross margin (annual median): 17.1%

- Recent gross margin (lower of latest and 3-year median): 17.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.9%

- ROIC including acquisitions, ten-year median: 4.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 7.9%

- FY2017: 9.3%

- FY2018: 4.5%

- FY2019: 3.8%

- FY2020: 10.3%

- FY2021: 8.2%

- FY2022: 8.6%

- FY2023: 8.2%

- FY2024: 7.2%

- FY2025: 8.0%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.62×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: KRW 630B

- Net income, five-year total: KRW 1.02T

- Return on incremental invested capital: 21.0%

- Working capital / revenue, annual change: -0.9 pp

- Working capital / revenue, change between three-year averages: -7.4 pp

- Working capital / revenue, final three-year average: 20.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.54×

- FY2022: 1.10×

- FY2023: -0.16×

- FY2024: 0.40×

- FY2025: 0.92×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 7.9% vs 8.0%

- Per-share earnings: 22300.07 to 5154.55 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 65.0%

- Market cap gain: KRW 1.51T

- Cumulative retained earnings: KRW 1.72T

- Diluted shares, 5-year annual growth: 65.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -18.9%

- Per-share value change: KRW -17K

- Per-share value, starting three-year median: KRW 22K

- Per-share value, ending three-year median: KRW 5K

- Buybacks concentrated in cheaper years (correlation): 0.03

- Average buyback yield: 8.8%

- Buyback history: 6 years

- Debt-funded buybacks: No

- Acquisition spending: KRW 170B

- Cumulative net income, 10 years: KRW 1.62T

- ROIC, first three-year median: 7.9%

- ROIC, last three-year median: 8.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: KRW 22K

- FY2017: KRW 50K

- FY2018: KRW 21K

- FY2019: KRW 12K

- FY2020: KRW 71K

- FY2021: KRW 50K

- FY2022: KRW 6K

- FY2023: KRW 5K

- FY2024: KRW 2K

- FY2025: KRW 9K

### accounting: pass

- Sloan accruals: -1.3%

- Receivables to sales index (DSRI): 0.96×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.27×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.11×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -7.1%

- FY2017: -4.5%

- FY2018: 0.6%

- FY2019: -5.0%

- FY2020: -5.2%

- FY2021: -13.7%

- FY2022: -4.4%

- FY2023: -5.7%

- FY2024: -4.8%

- FY2025: -1.3%

## Holders

## Price story

Down 29% since Feb 2023 · sales +4.4%

Story as of 2026-10-16T10:00:12.671Z; price observation 2026-10-15.

Price needs cash profits to shrink 10.2% a year for ten years

### Sales · FY2025–2026

sales +4.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: KRW 2.38T 

- FY2018: KRW 2.44T 

- FY2019: KRW 2.68T 

- FY2020: KRW 2.86T 

- FY2021: KRW 2.80T 

- FY2022: KRW 9.03T 

- FY2023: KRW 8.95T 

- FY2024: KRW 8.94T 

- FY2025: KRW 9.58T 

- FY2026: KRW 10.01T 

### Gross margin · FY2025

gross margin 17.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 19.2% 

- FY2017: 17.2% 

- FY2018: 14.8% 

- FY2019: 15.2% 

- FY2020: 17.3% 

- FY2021: 16.2% 

- FY2022: 16.5% 

- FY2023: 17.0% 

- FY2024: 18.0% 

- FY2025: 17.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in packaged foods; annual sales are KRW 9.6 trillion.

- Source: https://eodhd.com/api/fundamentals/006040.KO.json#2025-12-31 (filed 2026-10-16T07:43:20.750Z); FY2025: revenue 9583673896990; grossProfit 1665271346080; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 006040.KO: Dongwon Industries Co., Ltd. engages in the marine and fisheries, distribution, and logistics businesses in South Korea and internationally. The company operates through General Food, Seasoning Distribution, Feed Sector segments. It operates tuna purse seiners in the Western and Central Pacific Ocean, and the Indian Ocean to catch skipjack and yellowfin tuna fishes; tuna longliners in the Pacific Ocean and the Indian Ocean to catch yellowfin and bigeye tunas; trawler in the Antarctic Ocean to catch krill and pelagic fish; and reefer carriers. It involves in import and export of marine products and general cargo, and offers canned food, refrigerated food, ham, and dairy products. The company also processes and distributes tuna and salmon; and distributes fisheries goods. In addition, it operates Dongwon Tuna Restaurant, a franchise restaurant. Further, the company engages in wholesale and retail of sauces, group meals, food, and livestock distribution; and processing and storage of edible seaweed. Additionally, it manufactures livestock product mixed feed. The company was founded in 1969 and is headquartered in Seoul, South Korea. Dongwon Industries Co., Ltd. operates as a subsidiary of Dongwon Enterprise Co., Ltd.

### Why customers stay

Margins ranged from 17% to 18% during 2023–25; it earns 8.1% on its capital.

- Source: https://eodhd.com/api/fundamentals/006040.KO.json#2023-12-31 (filed 2026-10-16T07:43:20.750Z); FY2023: grossProfit / revenue = 17%.

- Source: https://eodhd.com/api/fundamentals/006040.KO.json#2024-12-31 (filed 2026-10-16T07:43:20.750Z); FY2024: grossProfit / revenue = 18%.

- Source: https://eodhd.com/api/fundamentals/006040.KO.json#2025-12-31 (filed 2026-10-16T07:43:20.750Z); FY2025: grossProfit / revenue = 17.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:20.750Z); 10-year return on capital observations [[2016,0.07918637530962752],[2017,0.09325044818415251],[2018,0.044732901985395916],[2019,0.03789082089905999],[2020,0.10278348149679363],[2021,0.08162597350397552],[2022,0.08613730215048411],[2023,0.08190292629354205],[2024,0.07152753912570706],[2025,0.08007407163068397]]; median 0.08085002256732975. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 17% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:20.750Z); Gross margin observations: [[2021,0.1620090110916055],[2022,0.16526262485066243],[2023,0.16976054400516485]]; range within 2 percentage points.

### Where the cash goes

Spends 20.1% of cash earnings on expansion; earns 21% on new investment.

- Source: https://eodhd.com/api/fundamentals/006040.KO.json#2016-12-31 (filed 2026-10-16T07:43:20.750Z); FY2016: growth capex 0; upkeep 73391772210; owner earnings 136755654700. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/006040.KO.json#2017-12-31 (filed 2026-10-16T07:43:20.750Z); FY2017: growth capex 0; upkeep 154648663060; owner earnings 126448991840. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/006040.KO.json#2019-12-31 (filed 2026-10-16T07:43:20.750Z); FY2019: growth capex 0; upkeep 87228210300; owner earnings 73418088890. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/006040.KO.json#2020-12-31 (filed 2026-10-16T07:43:20.750Z); FY2020: growth capex 0; upkeep 71243328480; owner earnings 255709910750. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/006040.KO.json#2021-12-31 (filed 2026-10-16T07:43:20.750Z); FY2021: growth capex 0; upkeep 186419315450; cash acquisitions 25232999960; owner earnings 91548182170. Growth capex plus acquisitions / owner earnings = 0.2756253522668936.

- Source: https://eodhd.com/api/fundamentals/006040.KO.json#2022-12-31 (filed 2026-10-16T07:43:20.750Z); FY2022: growth capex 0; upkeep 238524847960; cash acquisitions 2255113040; owner earnings 205994084839.00085. Growth capex plus acquisitions / owner earnings = 0.010947465029214468.

- Source: https://eodhd.com/api/fundamentals/006040.KO.json#2024-12-31 (filed 2026-10-16T07:43:20.750Z); FY2024: growth capex 0; upkeep 342183441750; cash acquisitions 7836049850; owner earnings 30415305857.707436. Growth capex plus acquisitions / owner earnings = 0.25763508302890514.

- Source: https://eodhd.com/api/fundamentals/006040.KO.json#2025-12-31 (filed 2026-10-16T07:43:20.750Z); FY2025: growth capex 67882912280; upkeep 307756327630; owner earnings 338066515448. Growth capex / owner earnings = 0.20079750338492625.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:20.750Z); Incremental return on capital 0.2096647372216547, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:20.750Z); Dividend observations: [[2016,6726400000],[2017,10089600000],[2018,13609123830],[2019,10089600000],[2020,7355282000],[2021,23711397970],[2022,25831178950],[2023,46089035940],[2024,47116452590],[2025,76705401320]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/006040.KO.json#2025-12-31 (filed 2026-10-16T07:43:20.750Z); FY2025: cash repurchases 299686570 KRW.

### Are managers owners

Insiders own 78.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 006040.KO SharesStats.PercentInsiders = 78.247 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 10.2% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:43:20.750Z); Ten-year compound average after fade. Initial solved rate -0.15516044170947735. Price 35650; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (KRW per share)

- 2016-11: KRW 63,049.85 per share

- 2016-12: KRW 71,065.49 per share

- 2017-01: KRW 66,764.42 per share

- 2017-02: KRW 70,576.73 per share

- 2017-03: KRW 66,471.16 per share

- 2017-04: KRW 65,982.41 per share

- 2017-05: KRW 66,177.91 per share

- 2017-06: KRW 63,147.61 per share

- 2017-07: KRW 54,154.45 per share

- 2017-08: KRW 56,304.98 per share

- 2017-09: KRW 54,447.70 per share

- 2017-10: KRW 55,816.23 per share

- 2017-11: KRW 62,952.10 per share

- 2017-12: KRW 65,689.15 per share

- 2018-01: KRW 65,786.90 per share

- 2018-02: KRW 59,726.30 per share

- 2018-03: KRW 60,019.55 per share

- 2018-04: KRW 66,080.16 per share

- 2018-05: KRW 65,298.14 per share

- 2018-06: KRW 66,862.17 per share

- 2018-07: KRW 62,170.09 per share

- 2018-08: KRW 58,944.28 per share

- 2018-09: KRW 58,455.52 per share

- 2018-10: KRW 47,214.08 per share

- 2018-11: KRW 40,566.96 per share

- 2018-12: KRW 39,687.20 per share

- 2019-01: KRW 45,943.30 per share

- 2019-02: KRW 43,988.27 per share

- 2019-03: KRW 45,552.30 per share

- 2019-04: KRW 52,199.41 per share

- 2019-05: KRW 49,169.11 per share

- 2019-06: KRW 48,875.86 per share

- 2019-07: KRW 44,868.04 per share

- 2019-08: KRW 44,770.29 per share

- 2019-09: KRW 41,935.48 per share

- 2019-10: KRW 41,837.73 per share

- 2019-11: KRW 43,401.76 per share

- 2019-12: KRW 41,348.97 per share

- 2020-01: KRW 39,491.69 per share

- 2020-02: KRW 38,318.67 per share

- 2020-03: KRW 33,724.34 per share

- 2020-04: KRW 44,183.77 per share

- 2020-05: KRW 44,183.77 per share

- 2020-06: KRW 39,198.44 per share

- 2020-07: KRW 36,754.64 per share

- 2020-08: KRW 43,499.51 per share

- 2020-09: KRW 40,860.21 per share

- 2020-10: KRW 39,393.94 per share

- 2020-11: KRW 42,424.24 per share

- 2020-12: KRW 43,499.51 per share

- 2021-01: KRW 47,116.32 per share

- 2021-02: KRW 50,733.14 per share

- 2021-03: KRW 50,244.38 per share

- 2021-04: KRW 52,785.92 per share

- 2021-05: KRW 57,771.26 per share

- 2021-06: KRW 51,417.40 per share

- 2021-07: KRW 47,507.33 per share

- 2021-08: KRW 47,702.84 per share

- 2021-09: KRW 45,063.54 per share

- 2021-10: KRW 44,477.03 per share

- 2021-11: KRW 41,251.22 per share

- 2021-12: KRW 44,379.28 per share

- 2022-01: KRW 42,815.25 per share

- 2022-02: KRW 41,837.73 per share

- 2022-03: KRW 49,266.86 per share

- 2022-04: KRW 48,778.11 per share

- 2022-05: KRW 46,432.06 per share

- 2022-06: KRW 43,792.77 per share

- 2022-07: KRW 43,890.52 per share

- 2022-08: KRW 44,183.77 per share

- 2022-09: KRW 45,454.55 per share

- 2022-10: KRW 44,965.79 per share

- 2022-11: KRW 45,992.18 per share

- 2022-12: KRW 48,240.47 per share

- 2023-01: KRW 45,112.41 per share

- 2023-02: KRW 50,342.13 per share

- 2023-03: KRW 50,048.88 per share

- 2023-04: KRW 45,405.67 per share

- 2023-05: KRW 44,770.29 per share

- 2023-06: KRW 37,976.54 per share

- 2023-07: KRW 35,863.64 per share

- 2023-08: KRW 31,818.18 per share

- 2023-09: KRW 28,181.82 per share

- 2023-10: KRW 27,136.36 per share

- 2023-11: KRW 29,727.27 per share

- 2023-12: KRW 30,272.73 per share

- 2024-01: KRW 33,909.09 per share

- 2024-02: KRW 35,363.64 per share

- 2024-03: KRW 34,818.18 per share

- 2024-04: KRW 34,363.64 per share

- 2024-05: KRW 31,681.82 per share

- 2024-06: KRW 32,545.46 per share

- 2024-07: KRW 30,590.91 per share

- 2024-08: KRW 27,590.91 per share

- 2024-09: KRW 28,181.82 per share

- 2024-10: KRW 30,681.82 per share

- 2024-11: KRW 33,863.64 per share

- 2024-12: KRW 36,950.00 per share

- 2025-01: KRW 33,650.00 per share

- 2025-02: KRW 35,100.00 per share

- 2025-03: KRW 34,700.00 per share

- 2025-04: KRW 41,650.00 per share

- 2025-05: KRW 46,500.00 per share

- 2025-06: KRW 47,250.00 per share

- 2025-07: KRW 45,850.00 per share

- 2025-08: KRW 43,650.00 per share

- 2025-09: KRW 45,450.00 per share

- 2025-10: KRW 48,450.00 per share

- 2025-11: KRW 45,500.00 per share

- 2025-12: KRW 41,900.00 per share

- 2026-01: KRW 41,550.00 per share

- 2026-02: KRW 42,900.00 per share

- 2026-03: KRW 37,900.00 per share

- 2026-04: KRW 38,550.00 per share

- 2026-05: KRW 35,500.00 per share

- 2026-06: KRW 32,150.00 per share

- 2026-07: KRW 35,400.00 per share

- 2026-08: KRW 38,450.00 per share

- 2026-09: KRW 35,300.00 per share

- 2026-10: KRW 35,350.00 per share

## Annual estimated value (KRW per share)

- FY2016: low KRW 276,884.39 per share, central KRW 301,180.43 per share, high KRW 333,523.62 per share

- FY2017: low KRW 314,199.39 per share, central KRW 350,897.58 per share, high KRW 399,750.67 per share

- FY2018: low KRW 149,647.66 per share, central KRW 167,588.33 per share, high KRW 191,471.17 per share

- FY2019: low KRW 242,306.56 per share, central KRW 272,392.20 per share, high KRW 312,442.56 per share

- FY2020: low KRW 562,164.54 per share, central KRW 629,205.52 per share, high KRW 718,451.30 per share

- FY2021: low KRW 379,037.11 per share, central KRW 419,484.07 per share, high KRW 473,327.54 per share

- FY2022: low KRW 111,443.94 per share, central KRW 154,804.11 per share, high KRW 180,052.82 per share

- FY2023: low KRW 95,156.37 per share, central KRW 127,848.52 per share, high KRW 146,885.21 per share

- FY2024: low KRW 76,025.79 per share, central KRW 106,039.08 per share, high KRW 123,515.88 per share

- FY2025: low KRW 84,524.63 per share, central KRW 115,050.23 per share, high KRW 132,825.34 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:49:16.342Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.