Hankook & Company is an operating holding company that earns money from dividends, trademark royalties and rental income from affiliates such as Hankook Tire & Technology (a 30.67% stake), plus a storage-battery (ATLAS BX) manufacturing and sales business absorbed by merger in 2024; its visible consolidated revenue of about ₩1.46 trillion is generated by the battery business, while the large share of net profit is reflected from the Hankook Tire stake under the equity method. On May 13 it released Q1 results, followed by disclosures on investments in related parties and a governance report, and the May 8 disclosure confirming an embezzlement and breach-of-trust matter as a major management item of the company and its subsidiary is a point to watch carefully. What stands out lately is that the market value of the Hankook Tire stake (about ₩2.39 trillion) already exceeds the company's market cap (about ₩2.30 trillion), so the battery business, unlisted affiliates and net cash are effectively thrown in for free - an NAV undervaluation - and a 4.5% dividend as strengths, while net profit hinges on non-cash equity-method income and is uneven quarter to quarter, and if governance issues such as embezzlement and breach of trust flare up, the holding-company discount can widen.
At-a-glance assessment financial health · growth · profitability · valuation
- For financial companies, debt and interest costs are large by the nature of the business, so the debt ratio and interest coverage cannot be read on the same yardstick as an ordinary company.
- Revenue rose 4.8% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 2.6% lower than a year earlier.
- ROE is 7.3% (controlling-interest basis). It is above the sector average.
- Operating margin is 28.2%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Cho Hyun-bum 42.03% (individual)
Controlling bloc incl. related parties 47.24%
With the controlling bloc holding 47%, the ownership structure is stable.
🔎 In-depth analysis
- Hankook & Company is the holding company of the Hankook Group.
- The company earns money in two broad ways.
- The first is income coming up from subsidiaries - dividends, trademark (brand) royalties, real-estate rental income and management-advisory service income received from affiliates including its largest subsidiary, Hankook Tire & Technology (a 30.67% stake).
- The second is the storage-battery (lead-acid battery, automotive battery, ATLAS BX brand) manufacturing and sales business it came to operate directly by absorbing subsidiary Hankook AtlasBX in 2024.
- With this merger the company became not a pure holding company but an 'operating holding company' that also runs a battery business, and a substantial part of consolidated revenue of about ₩1.46 trillion comes from this battery revenue.
- In other words, the visible revenue is generated by the battery business, while the large axis of net profit is governed by profit reflected from the Hankook Tire & Technology stake under the equity method.
- The latest close is ₩25,450 and the market cap is ₩2.4 trillion.
- The price sits above the 20-day line (₩25,072) and above the 60-day line (₩24,819).
- Above both the short-term and mid-term moving averages, the trend is on the favorable side.
- The RSI (a supplementary gauge that weighs the strength of gains against losses over the last 14 days on a 0-100 scale) is 53.1, a neutral level.
- The one-month change is -1.6%, the three-month change is +11.6%, and the position versus the 52-week high is -26.6%.
- Relative strength against the KOSPI is 37 (1-99, a conversion of returns versus the index over the past year that weights recent performance more heavily; higher means stronger than the market).
- That places it in roughly the top 63% of all stocks by strength.
- Over the past three months it lagged the index by 14.6%.
- Chart readings are best interpreted alongside trading volume and disclosure dates.
- The valuation metrics show a clear undervaluation signal.
- The P/E ratio (how many times one year's earnings the share price represents) is 6.96x and the P/B (how many times book net asset value) is 0.51x, trading at less than half of net asset value.
- The dividend yield is 4.55% (dividend of ₩1,100 per share, payout ratio 30%), on the high side.
- On profitability, ROE (how much is earned in a year on equity) is 7.3%, the operating margin 28.2% and the net margin 23.8%; given the holding-company nature, subsidiary profit is layered on and margins are captured high.
- Financially, with a current ratio of 233% and interest coverage of 13.6x, it is stable.
- That said, a holding company's P/B and P/E cannot be taken at face value.
- Book equity reflects the Hankook Tire & Technology stake at low historical cost, making P/B look higher than reality, and net profit is buffeted by swings in non-cash equity-method income.
- So this company is more accurately viewed by the value of its holdings (NAV), explained below, than by the metric multiples.
- Over five years, revenue grew about 11% a year on average from ₩963.3 billion in 2021 to ₩1,457.6 billion in 2025, and net profit briefly dipped from ₩198.0 billion in 2021 to ₩187.2 billion in 2023 before jumping sharply to ₩350.7 billion in 2024 and ₩347.2 billion in 2025.
- The 2024 AtlasBX merger and improved subsidiary results lifted earnings a notch.
- Q1 2026 consolidated revenue was ₩378.4 billion (-2.6% year on year) and operating profit ₩121.7 billion (-4.1%), so the surface metrics edged back, but net profit rose 8.0% year on year to ₩124.7 billion.
- Net profit improving more than operating profit is because the subsidiary share reflected under the equity method grew larger.
- In fact, largest subsidiary Hankook Tire & Technology saw Q1 2026 consolidated operating profit surge about 43% from a year earlier (on a strong tire segment and the Hanon Systems consolidation effect), and this improvement flows into the holding company's net profit.
- Reflecting this trajectory, this year's net profit can be seen at around ₩385.0 billion, modestly above last year's (₩347.2 billion), and applying this to the current market cap gives a forward earnings multiple of about 6.0x, below last year's 6.6x.
- In other words, in a phase of rising earnings, the current multiple looks cheaper on a forward basis.
- Recent disclosures center on governance and capital-allocation signals typical of a holding company.
- On May 13 a consolidated provisional-results fair disclosure released Q1 results, and on May 6 an investor-relations event was announced.
- The May 14 disclosure of an investment in a related party is of the nature of capital support and stake adjustment for affiliates.
- On June 1 a large-business-group status report and a corporate-governance report were disclosed together, updating group governance information.
- Meanwhile, the May 8 disclosure confirming an embezzlement and breach-of-trust matter as a major management item of the company and its subsidiary is a point to watch carefully, as governance-related risk must always be checked together in evaluating a holding company.
- There was also a March 30 notice of a change of representative director (representative executive officer).
- The strengths are clear.
- The market value (about ₩2.39 trillion) of the 30.67% stake in listed subsidiary Hankook Tire & Technology already exceeds the company's entire market cap (about ₩2.30 trillion).
- In other words, the current share price is barely enough to cover the Hankook Tire stake alone, meaning the battery business, unlisted affiliates, brand royalties, rentals and net cash are effectively thrown in for free.
- Added to this are a 4.5% dividend and a phase of rising earnings (Q1 2026 net profit +8%, surging subsidiary operating profit).
- On the flip side, points to watch must be considered together.
- For a holding company, the value of its holdings is essentially the company's value, so if the Hankook Tire share price wavers it wavers along with it, and net profit is governed by non-cash equity-method income and can be uneven quarter to quarter.
- If governance issues flare up, as with the recent embezzlement and breach-of-trust disclosure, the holding company's characteristic discount (the margin by which it trades cheaper than subsidiary value) can widen.
- In sum, when subsidiary results are good and governance noise subsides, the undervaluation versus net asset value tends to come to the fore, whereas if governance risk comes to the fore or the tire cycle rolls over, the discount can persist.
🔎 Valuation vs peers Undervalued
A comparison against listed subsidiary Hankook Tire & Technology - the core asset - and from an equity-value and NAV perspective.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hankook Tire & Technology | 8.04x | 0.72x | 9.00% |
For a holding company, calling it over- or undervalued by consolidated P/E and P/B is distorting. Book equity captures the Hankook Tire stake at historical cost, making P/B look higher than reality, and net profit is buffeted by non-cash equity-method income. This company's true value is the market value of its holdings (NAV). The listed subsidiary Hankook Tire stake alone (about ₩2.39 trillion) exceeds the company's entire market cap (about ₩2.30 trillion). In other words, the market assigns effectively zero or negative value to the battery business, unlisted affiliates, trademark and rental income, and net cash, a clear discount to net asset value. The trailing P/E of 6.6x last year looks low, and on a forward basis with rising subsidiary earnings it falls further to about 6.0x. That said, the holding-company discount widens or narrows with governance risk (such as the recent embezzlement and breach-of-trust disclosure) and swings in the subsidiary share price, so the timing at which the undervaluation unwinds depends on these conditions.
Price history Close · MA20 · MA60
The latest close is ₩25,450 and the market capitalization is ₩2.4 trillion. The price sits above its 20-day moving average (₩25,072) and above its 60-day moving average (₩24,819). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 53.1, a neutral level. The one-month change is -1.6%, the three-month change is +11.6%, and the position relative to the 52-week high is -26.6%. Relative strength versus the KOSPI is 38 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 37% of all stocks. Over the past three months it lagged the index by 14.6%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -14.60% / 6M -36.18% / 12M -48.21%
Key metrics vs sector median
Valuation
The P/E of 6.96x is in line with the sector median (6.67x). The P/B of 0.51x is in line with the sector median (0.49x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 8.6%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.103x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 7.3%, above the sector average (5.0%). The operating margin is 28.2%. The debt ratio is 110.0%, but for financial firms deposits and insurance liabilities count as debt, so it cannot be read on the same yardstick as an ordinary company.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $722.2M | $921.9M | $966.0M | +4.78% ↓ slower |
| Operating profit | $170.0M | $277.2M | $272.8M | -1.59% ↓ slower |
| Net profit | $124.1M | $232.4M | $230.1M | -0.99% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $638.5M | $726.3M | $722.2M | $921.9M | $966.0M |
| Operating profit | $151.3M | $162.5M | $170.0M | $277.2M | $272.8M |
| Net profit | $131.2M | $108.6M | $124.1M | $232.4M | $230.1M |
| Revenue CAGR | 4-yr avg 10.91% | ||||
Revenue rose 4.8% year over year (2023 ₩1.1 trillion → 2024 ₩1.4 trillion → 2025 ₩1.5 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 1.6% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 10.9%. The two-year revenue CAGR is 15.7%. In the most recent quarter (Q1 2026), revenue was 2.6% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 4.3%, is on the high side.
Points to watch
- Revenue rose 4.8% year over year, and the pace is slowing (3-year trend: rising).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-13EarningsQ1 2026 consolidated provisional-results fair disclosure. Revenue ₩378.4 billion (-2.6% YoY) and operating profit ₩121.7 billion (-4.1%), but net profit rose 8.0% to ₩124.7 billion.Surface revenue and operating profit edged down, but net profit rose on expanded subsidiary equity-method income, confirming an earnings-improvement phase. A mid-term factor lowering the forward earnings multiple. Source
- 2026-05-08UpdateDisclosure confirming an embezzlement and breach-of-trust matter (major management item of the company and its subsidiary). A governance and internal-control matter.A near-term burden on investor sentiment and the holding-company discount. Depending on the scale and follow-up measures, it can affect mid-term governance credibility. Source
- 2026-05-14FilingDisclosure of an investment in a related party. A capital-allocation decision on capital support and stakes for affiliates.A signal of the holding company's support for subsidiaries and changes in the ownership structure. Information for gauging the capital-allocation direction. Source
- 2026-06-01FilingCorporate-governance report and large-business-group status disclosure. Updated information on group governance and affiliate status.An update on governance transparency, which is central to evaluating a holding company. Neutral, informational. Source
- 2026-03-30FilingNotice of a change of representative director (representative executive officer). A change of management.A change related to governance and business direction. Continuity of capital-allocation and shareholder-return policy needs to be checked. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Hankook Tire & Technology stake | — | 30.67% | Confirmed | link |
| Market value of the Hankook Tire stake held vs the company's own market cap | ₩2.4 trillion | ₩2.4 trillion | Confirmed | link |
| Q1 2026 net profit | ₩124.7 billion (+8.0% YoY) | — | Confirmed | link |
| 2026 net profit estimate | approx. ₩385.0 billion (self-estimate) | — | Unverified | link |
Recent filings
- 2026-06-01Large-business-group status disclosure
- 2026-06-01Large-business-group status disclosure
- 2026-06-01Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-05-14Disclosure
- 2026-05-13EarningsFair-disclosure notice
- 2026-05-08Embezzlement/breach disclosure
- 2026-05-08Embezzlement/breach disclosure
- 2026-05-08Disclosure
- 2026-05-06Disclosure
- 2026-03-30Disclosure
- 2026-03-27Disclosure
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.