# Meritz Financi (138040.KO)

Canonical: https://gigainvestors.com/s/138040.KO

Analysis as of: 2026-10-16T07:35:05.123Z. Financial observations: FY2011–FY2025.

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 130,700.00 per share; close as of 2026-10-15.

Estimated value: low KRW 153,754.18 per share, central KRW 174,953.52 per share, high KRW 203,174.34 per share. Buy at or below the central value KRW 174,953.52 per share. Valuation as of 2026-10-16T07:35:05.123Z; scenarios are not confidence intervals.

Expected annual return: 12.5% at the stated quote. About 12.5% 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

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

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.30×

Chart: Operating margin; fiscal year observations.

- FY2016: 1.04×

- FY2017: 0.91×

- FY2018: 0.70×

- FY2019: 0.68×

- FY2020: 0.51×

- FY2021: 0.56×

- FY2022: 0.68×

- FY2023: 1.15×

- FY2024: 1.21×

- FY2025: 1.21×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

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

- ROIC, median of available years: 13.6%

- ROIC, second-lowest year: 3.2%

- Years with nonpositive capital: 2

- Capital spending / revenue: 1.2%

- ROIC including acquisitions, ten-year median: 3.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 3.2%

- FY2017: 3.1%

- FY2018: 4.5%

- FY2019: 4.6%

- FY2020: 38.5%

- FY2021: 46.5%

- FY2022: 16.4%

- FY2023: 16.0%

- FY2024: 14.8%

- FY2025: 12.5%

### 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 5.25T

- Net income, five-year total: KRW 8.50T

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 19.4 pp

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

- FY2021: -3.21×

- FY2022: 1.00×

- FY2023: 1.02×

- FY2024: 1.00×

- FY2025: 1.02×

### management: fail

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

- potential debt-funded buybacks (informational)

- ROIC first 3 years vs last 3 years: 3.2% vs 14.8%

- Per-share earnings: 2518.59 to 12238.00 (three-year endpoint medians)

- material buybacks concentrated at lower earnings yields (Spearman rho below threshold)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 6.3%

- Market cap gain: KRW 18.60T

- Cumulative retained earnings: KRW 8.28T

- Diluted shares, 5-year annual growth: 6.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 25.3%

- Per-share value change: KRW 10K

- Per-share value, starting three-year median: KRW 3K

- Per-share value, ending three-year median: KRW 12K

- Buybacks concentrated in cheaper years (correlation): -0.54

- Average buyback yield: 3.2%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: KRW 8.4B

- Cumulative net income, 10 years: KRW 10.59T

- ROIC, first three-year median: 3.2%

- ROIC, last three-year median: 14.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: KRW 4K

- FY2017: KRW 3K

- FY2018: KRW 2K

- FY2019: KRW 3K

- FY2020: KRW 4K

- FY2021: KRW 6K

- FY2022: KRW 8K

- FY2023: KRW 11K

- FY2024: KRW 12K

- FY2025: KRW 13K

### accounting: fail

- earnings not backed by cash

- Sloan accruals: 6.5%

- Receivables to sales index (DSRI): 1.12×

- Earnings backed by cash: No

- Operating cash / earnings: -2.81×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.01×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 1.4%

- FY2017: 4.1%

- FY2018: 5.4%

- FY2019: 8.0%

- FY2020: 6.8%

- FY2021: 4.0%

- FY2022: -7.0%

- FY2023: 3.2%

- FY2024: 5.4%

- FY2025: 6.5%

## Holders

## Price story

Price needs cash profits to shrink 2.8% a year for ten years · sales +1.2%

Story as of 2026-10-16T10:00:03.615Z; price observation 2026-10-15.

Price needs cash profits to shrink 2.8% a year for ten years

### Sales · FY2024–2025

sales +1.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: KRW 1.89T 

- FY2017: KRW 2.39T 

- FY2018: KRW 2.45T 

- FY2019: KRW 3.12T 

- FY2020: KRW 3.52T 

- FY2021: KRW 4.25T 

- FY2022: KRW 4.70T 

- FY2023: KRW 4.10T 

- FY2024: KRW 4.24T 

- FY2025: KRW 4.29T 

## Owner memo

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

### How it makes money

Operates in capital markets; annual sales are KRW 4.3 trillion.

- Source: https://eodhd.com/api/fundamentals/138040.KO.json#2025-12-31 (filed 2026-10-16T07:35:05.123Z); FY2025: revenue 4286708075280; operatingIncome 5197791838310; margin = operatingIncome / revenue.

### Why customers stay

It earns 13.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:05.123Z); FY2023: operatingIncome / revenue = 114.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:05.123Z); FY2024: operatingIncome / revenue = 120.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:05.123Z); FY2025: operatingIncome / revenue = 121.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:05.123Z); 10-year return on capital observations [[2016,0.03211058037999143],[2017,0.03061558386482315],[2018,0.04547848413780645],[2019,0.0460900971443027],[2020,0.38549962413996647],[2021,0.46468224042466566],[2022,0.16373189924125386],[2023,0.1601224939024422],[2024,0.14759249371117242],[2025,0.12460756494691987]]; median 0.13610002932904613. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back KRW 1.3 trillion of shares.

- Source: https://eodhd.com/api/fundamentals/138040.KO.json#2022-12-31 (filed 2026-10-16T07:35:05.123Z); FY2022: growth capex 215197403010; upkeep 149669704290; owner earnings 1060497600570. Growth capex / owner earnings = 0.2029211597407999.

- Source: https://eodhd.com/api/fundamentals/138040.KO.json#2023-12-31 (filed 2026-10-16T07:35:05.123Z); FY2023: growth capex 0; upkeep 53842360210; owner earnings 2074691272330. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/138040.KO.json#2024-12-31 (filed 2026-10-16T07:35:05.123Z); FY2024: growth capex 0; upkeep 80298858620; owner earnings 2309712331660. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/api/fundamentals/138040.KO.json#2025-12-31 (filed 2026-10-16T07:35:05.123Z); FY2025: growth capex 0; upkeep 47781119000; owner earnings 2341834106960. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:05.123Z); Dividend observations: [[2016,121192329780],[2017,149702511780],[2018,199225645130],[2019,178040662460],[2020,194537847000],[2021,313473872000],[2022,120983996000],[2023,86939938350],[2024,510244842630],[2025,336090389630]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/api/fundamentals/138040.KO.json#2025-12-31 (filed 2026-10-16T07:35:05.123Z); FY2025: cash repurchases 1310114236000 KRW.

### Are managers owners

Insiders own 58.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 138040.KO SharesStats.PercentInsiders = 58.815 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 2.8% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:05.123Z); Ten-year compound average after fade. Initial solved rate -0.05170044486920139. Price 130700; 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)

- 2016-10: KRW 11,250.00 per share

- 2016-11: KRW 11,400.00 per share

- 2016-12: KRW 11,100.00 per share

- 2017-01: KRW 10,950.00 per share

- 2017-02: KRW 11,750.00 per share

- 2017-03: KRW 12,150.00 per share

- 2017-04: KRW 12,700.00 per share

- 2017-05: KRW 14,250.00 per share

- 2017-06: KRW 14,250.00 per share

- 2017-07: KRW 15,200.00 per share

- 2017-08: KRW 16,750.00 per share

- 2017-09: KRW 16,450.00 per share

- 2017-10: KRW 16,300.00 per share

- 2017-11: KRW 15,750.00 per share

- 2017-12: KRW 15,050.00 per share

- 2018-01: KRW 16,500.00 per share

- 2018-02: KRW 15,700.00 per share

- 2018-03: KRW 14,800.00 per share

- 2018-04: KRW 13,950.00 per share

- 2018-05: KRW 14,250.00 per share

- 2018-06: KRW 13,400.00 per share

- 2018-07: KRW 12,500.00 per share

- 2018-08: KRW 12,300.00 per share

- 2018-09: KRW 12,550.00 per share

- 2018-10: KRW 10,350.00 per share

- 2018-11: KRW 11,450.00 per share

- 2018-12: KRW 11,550.00 per share

- 2019-01: KRW 12,350.00 per share

- 2019-02: KRW 12,800.00 per share

- 2019-03: KRW 14,200.00 per share

- 2019-04: KRW 13,200.00 per share

- 2019-05: KRW 14,050.00 per share

- 2019-06: KRW 14,650.00 per share

- 2019-07: KRW 13,950.00 per share

- 2019-08: KRW 12,850.00 per share

- 2019-09: KRW 12,850.00 per share

- 2019-10: KRW 12,450.00 per share

- 2019-11: KRW 12,500.00 per share

- 2019-12: KRW 11,800.00 per share

- 2020-01: KRW 10,700.00 per share

- 2020-02: KRW 10,200.00 per share

- 2020-03: KRW 10,300.00 per share

- 2020-04: KRW 9,930.00 per share

- 2020-05: KRW 10,050.00 per share

- 2020-06: KRW 9,400.00 per share

- 2020-07: KRW 8,500.00 per share

- 2020-08: KRW 9,230.00 per share

- 2020-09: KRW 9,110.00 per share

- 2020-10: KRW 9,420.00 per share

- 2020-11: KRW 9,910.00 per share

- 2020-12: KRW 9,810.00 per share

- 2021-01: KRW 9,540.00 per share

- 2021-02: KRW 12,250.00 per share

- 2021-03: KRW 17,200.00 per share

- 2021-04: KRW 17,900.00 per share

- 2021-05: KRW 18,700.00 per share

- 2021-06: KRW 21,200.00 per share

- 2021-07: KRW 25,100.00 per share

- 2021-08: KRW 28,750.00 per share

- 2021-09: KRW 33,650.00 per share

- 2021-10: KRW 33,250.00 per share

- 2021-11: KRW 34,350.00 per share

- 2021-12: KRW 44,000.00 per share

- 2022-01: KRW 43,500.00 per share

- 2022-02: KRW 36,850.00 per share

- 2022-03: KRW 40,650.00 per share

- 2022-04: KRW 37,850.00 per share

- 2022-05: KRW 32,700.00 per share

- 2022-06: KRW 25,850.00 per share

- 2022-07: KRW 26,250.00 per share

- 2022-08: KRW 30,800.00 per share

- 2022-09: KRW 20,850.00 per share

- 2022-10: KRW 21,700.00 per share

- 2022-11: KRW 37,750.00 per share

- 2022-12: KRW 42,700.00 per share

- 2023-01: KRW 42,950.00 per share

- 2023-02: KRW 45,000.00 per share

- 2023-03: KRW 38,600.00 per share

- 2023-04: KRW 45,900.00 per share

- 2023-05: KRW 44,950.00 per share

- 2023-06: KRW 41,500.00 per share

- 2023-07: KRW 49,200.00 per share

- 2023-08: KRW 54,700.00 per share

- 2023-09: KRW 55,200.00 per share

- 2023-10: KRW 50,200.00 per share

- 2023-11: KRW 55,500.00 per share

- 2023-12: KRW 59,100.00 per share

- 2024-01: KRW 68,500.00 per share

- 2024-02: KRW 83,100.00 per share

- 2024-03: KRW 81,700.00 per share

- 2024-04: KRW 79,400.00 per share

- 2024-05: KRW 76,900.00 per share

- 2024-06: KRW 79,100.00 per share

- 2024-07: KRW 84,400.00 per share

- 2024-08: KRW 91,300.00 per share

- 2024-09: KRW 97,100.00 per share

- 2024-10: KRW 102,700.00 per share

- 2024-11: KRW 102,000.00 per share

- 2024-12: KRW 104,000.00 per share

- 2025-01: KRW 114,200.00 per share

- 2025-02: KRW 120,800.00 per share

- 2025-03: KRW 122,000.00 per share

- 2025-04: KRW 124,100.00 per share

- 2025-05: KRW 111,700.00 per share

- 2025-06: KRW 112,500.00 per share

- 2025-07: KRW 115,800.00 per share

- 2025-08: KRW 126,500.00 per share

- 2025-09: KRW 113,500.00 per share

- 2025-10: KRW 110,500.00 per share

- 2025-11: KRW 108,600.00 per share

- 2025-12: KRW 113,100.00 per share

- 2026-01: KRW 116,600.00 per share

- 2026-02: KRW 127,100.00 per share

- 2026-03: KRW 111,400.00 per share

- 2026-04: KRW 111,700.00 per share

- 2026-05: KRW 102,900.00 per share

- 2026-06: KRW 105,600.00 per share

- 2026-07: KRW 124,000.00 per share

- 2026-08: KRW 122,200.00 per share

- 2026-09: KRW 126,300.00 per share

- 2026-10: KRW 132,600.00 per share

## Annual estimated value (KRW per share)

- FY2024: low KRW 55,405.35 per share, central KRW 63,044.53 per share, high KRW 73,213.91 per share

- FY2025: low KRW 132,954.35 per share, central KRW 151,285.85 per share, high KRW 175,688.96 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 2026-10-15T06:40:49.579Z 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.

## Reported holder observations