SK Hynix makes memory chips such as DRAM and NAND flash, and profit is especially concentrated in high-bandwidth memory (HBM), which sits next to the GPUs in AI servers and where it holds the world's top market share. In the first quarter of 2026 it posted record results for the company's history, topping ₩50 trillion in quarterly revenue for the first time at ₩52.6 trillion, with operating profit of ₩37.6 trillion (a 72% operating margin). The key points to watch are that, while AI demand and tight memory supply persist, the company is strong thanks to high profitability and a net-cash balance sheet, but that once signs of oversupply or slowing AI investment appear, its cyclical nature means prices and profits could wobble together.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 46.8% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 198.1% higher than a year earlier.
- ROE is 35.6% (controlling-interest basis). It is above the sector average.
- Operating margin is 48.6%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder SK Square 20.07% (corporate)
Controlling bloc incl. related parties 20.07%
With the controlling bloc holding 20%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- For SK Hynix, memory chips that store data are almost the entire business.
- It mainly makes DRAM (chips that temporarily hold data during computation) and NAND flash (storage chips that retain data even when power is off).
- The core of profit these days is HBM, a high-value type of DRAM.
- HBM is stacked right next to the GPUs used for AI training so that data can be exchanged quickly.
- Here the company holds the world's top market share and supplies Nvidia as its main customer, while it also sells high-capacity DRAM modules for servers and enterprise SSDs.
- The latest closing price is ₩2,186,000 and the market capitalization is ₩1,558.0 trillion.
- The price sits below the 20-day moving average (₩2,484,500) and above the 60-day average (₩1,964,083).
- With short- and medium-term trends diverging, the direction should be read separately.
- The RSI (a supplementary gauge that compares upward and downward force over the last 14 days on a 0-100 scale) is 46.3, a neutral level.
- The one-month change is +6.7%, the three-month change is +138.7%, and the position versus the 52-week high is -25.1%.
- Relative strength against the KOSPI is 95 (on a 1-99 scale, converted from the past year's return versus the index with recent periods weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 4% of all stocks by strength.
- Over the last three months it outpaced the index by 70.4%.
- Chart reading is best done alongside trading volume and the dates on which disclosures occurred.
- Profitability is very high.
- The ROE (how much is earned in a year per unit of equity) is 35.6%, a rare level in manufacturing.
- The operating margin reaches 48.6%.
- The balance sheet is solid too.
- The debt ratio (debt relative to equity) is a low 46%, and the company is in a net-cash position with more cash than borrowings.
- Net debt is about minus ₩12 trillion, meaning cash would remain even after repaying all its debt.
- The free-cash-flow yield (actual cash generated relative to market cap) is about 1.6%.
- The current share price is priced more on future profit growth than on this cash-generating power.
- The headline P/E ratio (how many times one year's profit the share price is) of 36.30x and P/B (how many times net assets the share price is) of 12.93x look high, but they should be read bearing in mind that they are based on 2025 results, when profits had only just begun to surge.
- Earnings are climbing quickly from a cycle trough toward a peak.
- In 2023 the company was in the red, with a ₩7.7 trillion operating loss amid a memory downturn.
- It turned profitable in 2024, and in 2025 it posted ₩97.1 trillion in revenue and ₩42.9 trillion in net profit, a 117% year-on-year rise in net profit.
- The rebound grew steeper heading into 2026.
- First-quarter 2026 net profit was ₩40.3 trillion, up roughly 398% from the same quarter a year earlier.
- Going forward, while AI server investment continues, the company sees demand for HBM and high-capacity DRAM outstripping supply.
- Given that it earned this much even though the first quarter was a seasonally slow period, annual profit this year is on track to jump well above last year's.
- Recent disclosures are clustered around earnings, shareholder returns and governance.
- The April earnings release confirmed the first quarter to top ₩50 trillion in revenue and the largest operating profit ever.
- In May the company decided on a disposal of treasury shares and filed its first-quarter report and corporate governance report.
- There were no capital-raising disclosures such as large contracts or rights offerings, and June's disclosures were mostly reports of changes in executive and major-shareholder stakes.
- The dividend is around ₩3,000 per share, so the payout relative to profit is a low roughly 5%.
- This shows a growth phase in which most of the cash earned is spent on capital investment.
- The strengths are clear.
- As the world's number one in HBM, profit is concentrated there, and it also has a net-cash position with high profitability.
- The reason the headline P/E is high now is that profit is at an inflection point where it is just surging.
- On this year's expected profit the share price is actually on the lower side, and even against pure-play memory peers it sits in a cheap spot.
- The caution is that memory is inherently a cyclical industry.
- Prices are rising now because of tight supply, but at some point, if capacity expansion outstrips demand, prices and profits could bend downward together.
- Whether AI investment slows or a rival's volumes surge notably is the key condition to watch for this stock.
🔎 Valuation vs peers Undervalued
Compared against a representative domestic listed diversified chipmaker on the basis of the pure memory-chip business; Samsung Electronics mixes foundry, mobile and appliances in with memory, so it serves only as a reference for pure-memory profitability.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Samsung Electronics | 36.72x | 3.83x | 10.43% |
The headline P/E of around 34x and P/B of around 12x look more expensive than reality because they are calculated using 2025 results, when profits had only just begun to surge, as the denominator. For an inflection stock like this, whose profit springs from a cycle trough to a peak, judging by last year's metrics alone misses the picture. In the first quarter of 2026 alone it earned ₩40.3 trillion in net profit, and with memory prices continuing to rise as the year progresses, recalculating on this year's expected profit brings the share price down to a far lower multiple. Even compared with overseas pure-play memory peers, the price relative to profit is on the cheap side. Although its ROE is more than three times that of fellow domestic chip leader Samsung Electronics, relative to profit growth it is judged to sit in undervalued territory.
Price history Close · MA20 · MA60
The latest close is ₩2,186,000 and the market capitalization is ₩1,558.0 trillion. The price sits below its 20-day moving average (₩2,484,500) and above its 60-day moving average (₩1,964,083). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 46.3, a neutral level. The one-month change is +6.7%, the three-month change is +138.7%, and the position relative to the 52-week high is -25.1%. Relative strength versus the KOSPI is 95 (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 96% of all stocks. Over the past three months it outpaced the index by 70.4%. 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 +70.42% / 6M +86.87% / 12M +235.44%
Key metrics vs whole-market median
Valuation
The P/E of 36.30x is above the whole-market median (13.81x). The P/B of 12.93x is above the whole-market median (1.15x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
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 11.0%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 3x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 35.6%, above the whole-market average (5.0%). The operating margin is 48.6%. The debt ratio is 46.0%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $21.7B | $43.9B | $64.4B | +46.76% ↓ slower |
| Operating profit | -$5.1B | $15.6B | $31.3B | +101.16% |
| Net profit | -$6.0B | $13.1B | $28.4B | +116.89% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $28.5B | $29.6B | $21.7B | $43.9B | $64.4B |
| Operating profit | $8.2B | $4.5B | -$5.1B | $15.6B | $31.3B |
| Net profit | $6.4B | $1.5B | -$6.0B | $13.1B | $28.4B |
| Revenue CAGR | 4-yr avg 22.60% | ||||
Revenue rose 46.8% year over year (2023 ₩32.8 trillion → 2024 ₩66.2 trillion → 2025 ₩97.1 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 101.2% year over year. Over the 5 years on record, revenue compound annual growth (CAGR) is 22.6%. The two-year revenue CAGR is 72.2%. In the most recent quarter (Q1 2026), revenue was 198.1% 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.
- ROE of 35.6% points to solid profitability.
- Revenue grew 46.8% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-04-23EarningsFirst-quarter 2026 revenue of ₩52.6 trillion, operating profit of ₩37.6 trillion (a 72% operating margin) and net profit of ₩40.3 trillion. The first-ever quarter above ₩50 trillion in revenue and the largest operating profit in the company's history.Strong earnings momentum over both the short and medium term. High-value sales centered on HBM and high-capacity server DRAM lifted the margin. Source
- 2026-05-13FilingDecision to dispose of treasury shares (material report). A decision to dispose of treasury shares held by the company.A short-term supply-demand and shareholder-return event. It affects the free float and capital policy. Source
- 2026-05-15FilingFirst-quarter 2026 (as of March) report filed. Official reporting of first-quarter financial statements and business status.A medium-term perspective. As the official basis for earnings, it confirms the announced figures against the financial statements. Source
- 2026-05-29FilingCorporate governance report disclosed. Routine disclosure of board operations and governance status.A medium-to-long-term perspective. Material for gauging the direction of management transparency and shareholder-return policy. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| First-quarter 2026 revenue, operating profit and net profit | revenue 52.58, 37.61, 40.35 (base quarter) | revenue 52.576, 37.610(operating margin 72%), 40.346 | Confirmed | link |
| 2025 full-year net profit | 42.92 | 42.92 | Confirmed | link |
| 2026 expected net profit (annual) | approx. 170 | — | Unverified | — |
Recent filings
- 2026-06-09OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-09OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-09OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-09OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-09OwnershipOfficers'/major-shareholders' holdings report
- 2026-06-09OwnershipOwnership-change filing
- 2026-05-29Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Amended filing
- 2026-05-15OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15PeriodicQuarterly report
- 2026-05-13TreasuryMaterial-fact report
📖 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.