Kia is a carmaker that designs and sells its own vehicles, including SUVs such as the Sportage, Sorento and Seltos and its EV series of electric cars, with a heavy share of sales coming from overseas markets like the United States, Europe and India. Revenue reached a record ₩114 trillion in 2025, but operating profit fell 28% year on year to ₩9 trillion, and in the first quarter of 2026 sales volume and revenue again hit all-time highs even as operating profit dropped 26.7% under the weight of U.S. tariffs and currency effects. What stands out lately is that the company's underlying selling power remains solid — it has laid out targets of ₩122 trillion in revenue and ₩10 trillion in operating profit for 2026 — and its finances are sturdy, with a 4.3% dividend yield and a net-cash position; the swing factor is how U.S. tariff rates and the won-dollar exchange rate steer the direction of profit.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 6.2% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 5.3% higher than a year earlier.
- ROE is 12.4% (controlling-interest basis). It is above the sector average.
- Operating margin is 8.0%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Hyundai Motor 35.17% (individual)
Controlling bloc incl. related parties 36.99%
With the controlling bloc holding 37%, the ownership structure is stable.
🔎 In-depth analysis
- Kia is a carmaker that designs, builds and sells passenger cars, SUVs and electric vehicles in-house.
- Its core lineup runs from SUVs such as the Sportage, Sorento and Seltos, to sedans like the K5 and K8, and an EV series made up of the EV3, EV6 and EV9.
- Because a large part of revenue comes from overseas markets such as the United States, Europe and India, global unit sales and exchange rates move earnings far more than the domestic market does.
- Full-year 2025 revenue was ₩114 trillion, and unit sales topped 3 million vehicles.
- The latest close is ₩144,800 and market capitalization is ₩56.5 trillion.
- The price sits below its 20-day moving average (₩151,015) and below its 60-day line (₩157,518).
- It trades under both the short- and mid-term averages, so the trend is on the soft side.
- The RSI (a gauge that scores the strength of gains versus losses over the past 14 days on a 0–100 scale) is 44.7, a neutral level.
- The price is down 9.3% over one month, down 4.0% over three months, and sits 29.7% below its 52-week high.
- Relative strength against the KOSPI is 46 (on a 1–99 scale that weights recent returns versus the index over the past year more heavily; higher means stronger than the market).
- That places it near the top 54% of all stocks by strength.
- Over the past three months it lagged the index by 26.8%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- The P/E ratio (how many times one year's earnings the price represents) is 7.48x, on the low side versus peers.
- The P/B (price relative to the company's net assets) is 0.92x.
- ROE (how much the company earns in a year on its equity) is 12.4%, high profitability for an automaker.
- The debt ratio (borrowings relative to equity) is a stable 61.8%, and an interest coverage ratio of 15.7x means the interest burden is light.
- Notably, net debt is negative — a net-cash position, with ₩11.7 trillion more cash than total borrowings.
- On a debt-inclusive basis, EV/EBIT (enterprise value divided by operating profit — a debt-adjusted counterpart to P/E) is 5.0x and EV/EBITDA is 3.8x, both low.
- The free-cash-flow yield (actual cash generated relative to market cap — higher means more cash-generative appeal) is 7.2%, indicating strong cash generation.
- The dividend yield is a relatively high 4.3% (₩6,800 per share).
- Revenue has grown at a 13% annual average over five years, reaching ₩114 trillion in 2025.
- Profit, however, moves with the cycle.
- Operating profit fell 28% from ₩12.7 trillion in 2024 to ₩9.1 trillion in 2025, and net profit declined from ₩9.8 trillion to ₩7.6 trillion.
- This drop was not because sales shrank, but because of external costs — U.S. tariff charges and a larger warranty provision tied to a sharp currency move.
- In fact, actual unit sales and revenue set records in the first quarter of 2026 (a first-quarter high and an all-time quarterly high, respectively).
- The company has laid out 2026 targets of ₩122 trillion in revenue and ₩10 trillion in operating profit.
- In other words, selling power is holding up, and profit hinges on how much the tariff and currency burden eases.
- Because last year's earnings reflect a depressed low, the forward P/E that reflects this year's recovery works out to the low-7x range, lower than the current 8.1x.
- On June 1, 2026, Kia gave a fair-disclosure release of preliminary first-quarter results.
- Revenue was a record-quarterly ₩29.5 trillion, but operating profit fell 26.7% year on year to ₩2.2 trillion.
- In early June it disclosed the notice for its regular shareholders' meeting and the reference materials for proxy voting.
- On June 2 it announced an investor briefing.
- In late May it disclosed its large-business-group status filing and its corporate governance report.
- On May 21 it filed an amended disclosure on a decision to acquire shares in another company.
- Overall, the flow centers on earnings releases and routine events such as the shareholders' meeting and investor briefings.
- Kia is an automaker where low valuation, a high dividend and strong profitability come together.
- ROE of 12.4% points to solid profitability, while a P/E of 8.1x and P/B of 1.0x keep valuation demands modest.
- A net-cash position, a 7.2% free-cash-flow yield and a 4.3% dividend yield make its finances and shareholder returns sturdy.
- When the tariff and currency burden eases and sales of new models, hybrids and EVs grow, profit climbs again and the stock is strong.
- Conversely, if U.S. tariff rates stay higher than expected or the won-dollar rate spikes, profit can be squeezed even as sales rise.
- In short, unit sales and revenue are firm, while the external variables of tariffs and currency are what divide the profit trajectory.
🔎 Valuation vs peers Undervalued
Global vehicle manufacturing, compared against a leading domestic automaker in the same field.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hyundai Motor | 9.66x | 0.79x | 8.18% |
| Kia | 7.48x | 0.92x | 12.36% |
Against its main comparison, Hyundai Motor, Kia has higher ROE (12.4% versus 8.2%) and a lower P/E (8.1x versus 10.0x) — better profitability at a cheaper price. Its P/B of 0.92x is a touch higher than Hyundai Motor's (0.82x), but that is a fair gap arising from Kia's higher return on equity. Because 2025 earnings mark a low depressed by tariffs and currency, the trailing P/E of 8.1x can look heavier than it really is; reflecting the company's stated 2026 operating-profit target of ₩10 trillion, the forward figure looks lower still. Factoring in the net-cash position and the 4.3% dividend, we assess it as undervalued relative to the automaker average.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩122.3 trillion | ₩10.2 trillion | — |
Price history Close · MA20 · MA60
The latest close is ₩144,800 and the market capitalization is ₩56.5 trillion. The price sits below its 20-day moving average (₩151,015) and below its 60-day moving average (₩157,518). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 44.7, a neutral level. The one-month change is -9.3%, the three-month change is -4.0%, and the position relative to the 52-week high is -29.7%. Relative strength versus the KOSPI is 46 (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 46% of all stocks. Over the past three months it lagged the index by 26.8%. 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 -26.75% / 6M -26.64% / 12M -38.18%
Key metrics vs whole-market median
Valuation
The P/E of 7.48x is below the whole-market median (13.81x). The P/B of 0.92x is below the whole-market median (1.15x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
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 9.8%, initial growth 9.5%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.095x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 12.4%, above the whole-market average (5.0%). The operating margin is 8.0%. The debt ratio is 61.8%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $66.2B | $71.2B | $75.6B | +6.23% ↓ slower |
| Operating profit | $7.7B | $8.4B | $6.0B | -28.33% ↓ slower |
| Net profit | $5.8B | $6.5B | $5.0B | -22.63% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $46.3B | $57.4B | $66.2B | $71.2B | $75.6B |
| Operating profit | $3.4B | $4.8B | $7.7B | $8.4B | $6.0B |
| Net profit | $3.2B | $3.6B | $5.8B | $6.5B | $5.0B |
| Revenue CAGR | 4-yr avg 13.06% | ||||
Revenue rose 6.2% year over year (2023 ₩99.8 trillion → 2024 ₩107.4 trillion → 2025 ₩114.1 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 28.3% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 13.1%. The two-year revenue CAGR is 6.9%. In the most recent quarter (Q1 2026), revenue was 5.3% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- The dividend yield, at 4.7%, is on the high side.
- ROE of 12.4% points to solid profitability.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue rose 6.2% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-06-01EarningsFair-disclosure release of preliminary Q1 2026 results — revenue of ₩29.5 trillion (a record quarterly high), operating profit of ₩2.2 trillion (down 26.7% year on year), net profit of ₩1.83 trillion.Sales and revenue are at record levels, but the release confirms that margins are pressed by tariff and currency costs. The near-term direction of profit is tied to tariff rates and the exchange rate. Source
- 2026-06-02IRDisclosure of an investor briefing.A channel for communicating earnings and sales outlook. Whether the annual target is maintained affects earnings expectations. Source
- 2026-06-05FilingNotice of the regular shareholders' meeting and disclosure of reference materials for the solicitation of proxy voting.Agenda items relating to shareholder returns and governance, such as dividends and director appointments. Useful for reading the mid-term direction of shareholder policy. Source
- 2026-05-21FilingAmended disclosure on a decision to acquire shares and equity securities of another company.An equity acquisition tied to business cooperation or investment. Depending on size, it can affect mid-term capital allocation. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-05Disclosure
- 2026-06-05Shareholders' meeting notice
- 2026-06-02Disclosure
- 2026-06-01EarningsFair-disclosure notice
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-21Amended filing
- 2026-05-20Disclosure
- 2026-05-20Shareholders' meeting notice
- 2026-05-19Disclosure
- 2026-05-19Disclosure
- 2026-05-18Disclosure
📖 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.