Hyundai Steel is an integrated steelmaker that draws molten iron itself and makes automotive steel sheet, bar and shape steel, plate and steel pipe; its results turn on automotive steel sheet going to Hyundai Motor and Kia, a large revenue pillar, and on bar and shape steel tied to construction, with the gap between raw-material and product prices (the spread) as the source of profit. Following provisional results on April 24, the quarterly report on May 15 confirmed Q1 revenue of ₩5.74 trillion, consolidated operating profit of ₩15.7 billion and net profit/loss of -₩39.3 billion, so the operating line stayed thinly positive while net was in the red; the same day, a ₩516.4 billion acquisition of shares in another company and investment in a US Louisiana electric-arc-furnace mill (US$5.8 billion, targeting groundbreaking in Q3 2026 and operation in 2029) are proceeding as a medium-term growth pillar, and the company kept a ₩500 per-share dividend even in a loss-making stretch. What stands out lately is that a 0.20x P/B, the lowest asset valuation among integrated steelmakers, together with anti-dumping tariffs and China's steel-export license system, makes the environment favorable for price recovery; yet net profit is still in the red and operating profit cannot cover the roughly ₩650.0 billion in annual interest expense, so spread improvement and turning the Louisiana investment into results are the key.
At-a-glance assessment financial health · growth · profitability · valuation
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full-year net result was a loss.
- Revenue fell 2.1% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 3.2% higher than a year earlier.
- ROE is -0.0% (controlling-interest basis). It is below the sector average.
- Operating margin is 1.0%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Kia 17.27% (corporate)
Controlling bloc incl. related parties 35.95%
With the controlling bloc holding 36%, the ownership structure is stable.
🔎 In-depth analysis
- Hyundai Steel is an integrated steelmaker that draws molten iron itself all the way to finished steel products.
- From blast furnaces in Dangjin, South Chungcheong, and electric-arc furnaces in Incheon, Pohang and elsewhere, it melts iron to make automotive steel sheet used in cars, bar and shape steel such as rebar and H-beams for construction sites, plate (thick steel plate) for ships and buildings, and steel pipe, which it sells.
- The large revenue pillars are automotive steel sheet going to Hyundai Motor and Kia and bar and shape steel tied to construction, so auto sales volumes and domestic construction orders drive results.
- The source of profit is the 'price gap (spread)' from buying raw materials such as iron ore and scrap and processing them into steel products; when the gap between raw-material and product prices widens, profit rises quickly, and when it narrows, profit falls quickly.
- The latest close is ₩26,000 and the market cap is ₩3.5 trillion.
- The price sits below its 20-day line (₩30,148) and its 60-day line (₩36,933).
- Trading below both the short- and medium-term moving averages, the trend looks subdued.
- The RSI (a supplementary gauge that scores upward versus downward force over the past 14 days on a 0-100 scale) is 30.7, a neutral level.
- The one-month change is -21.8%, the three-month change is -24.5%, and the price sits -44.1% below its 52-week high.
- Relative strength versus the KOSPI is 14 (on a 1-99 scale that weights recent performance versus the index over the past year more heavily; higher means stronger than the market).
- That places it in roughly the top 87% of all stocks by strength.
- Over the past three months it lagged the index by 44.7%.
- It is best to read the chart alongside trading volume and the dates of disclosures.
- Because last year's (2025) net profit was slightly negative, a P/E ratio (how many times a year's earnings the price is) cannot be calculated on last year's results.
- On an asset basis, the P/B (how many times the company's net assets the price is) is 0.20x, a price about one-fifth of book value per share (BPS) of roughly ₩145,000.
- At an inflection where earnings are just emerging from losses, a forward measure reflecting this year's earnings is closer to the company's real picture than a trailing measure built on last year's numbers.
- The whole steel sector is passing through an earnings trough, so multiples get pushed high, and within that Hyundai Steel is on the cheaper side.
- Profitability itself is still weak: ROE (how much is earned in a year on equity) is -0.04%, near break-even, and operating margin is 0.96%.
- Stability is relatively better: the debt ratio (debt relative to equity) of 75.4% is not excessive versus the manufacturing average, but with an interest coverage ratio (how many times interest is covered by operating profit) of 0.34x, thin operating profit alone cannot cover the roughly ₩650.0 billion in annual interest expense, leading to net losses; how far the earnings recovery lifts this metric is the point to watch.
- Over five years, revenue rose from ₩22.8 trillion in 2021 to ₩27.3 trillion in 2022, then fell three years running to ₩25.9 trillion in 2023, ₩23.2 trillion in 2024 and ₩22.7 trillion in 2025.
- Operating profit shrank from ₩2.4 trillion in 2021 to ₩219.2 billion in 2025, and net profit swung from a ₩146.1 billion profit in 2021 to consecutive losses in 2024 and 2025, the result of a slowing steel market compounded by weak construction.
- There are some signs of a change in direction.
- 2025 operating profit rose 37.5% from the prior year, returning to growth, and Q1 2026 revenue of ₩5.74 trillion was up 3.2% year over year while consolidated operating profit stayed thinly positive at ₩15.7 billion.
- But Q1 net profit/loss was -₩39.3 billion, with the loss actually widening, as thin operating profit could not cover heavy interest expense.
- On the demand side, through 2026 anti-dumping tariffs on Chinese and Japanese hot-rolled and galvanized steel sheet have been imposed and extended and China has implemented a steel-export license system, reducing inflows of low-priced material and producing favorable changes for domestic plate and sheet prices.
- If automotive steel-sheet demand holds and prices recover, the raw-material-to-product spread could widen from a trough, but raw-material costs, currency burdens and interest expense are offsetting this, so a full-year return to net profit is not yet confirmed.
- At this point there is no confirmed basis to view next year and beyond as lower than this year, so it is not a stage at which to conclude the cycle is at a top.
- Recent filings center on two things.
- First, Q1 2026 results: following the April 24 provisional-results fair disclosure, the quarterly report on May 15 confirmed revenue of ₩5.74 trillion, consolidated operating profit of ₩15.7 billion and net profit/loss of -₩39.3 billion.
- The consolidated operating line stayed thinly positive but did not carry through to a net profit.
- Second, a decision announced the same April 24 to acquire shares in another company for ₩516.4 billion (a 6.5% stake after acquisition) and a June 17 contribution to a related party.
- The amount, about 2.6% of equity, is structured to be paid in several installments from 2026 through 2030, and the company cited expansion of new businesses and business areas as the purpose (later revised on May 21).
- It ties in with automotive steel-sheet localization investment, such as the group-wide US Louisiana electric-arc-furnace mill (US$5.8 billion, targeting groundbreaking in Q3 2026 and operation in 2029), and is more a medium-term growth and portfolio change than a short-term cash burden.
- Beyond these, there was a January 30 decision on a ₩500 per-share cash dividend and a June 1 corporate governance report.
- Keeping the dividend even in a loss-making stretch shows a commitment to shareholder returns.
- The strengths are clear.
- A 0.20x P/B is the lowest asset valuation among integrated steelmakers, lower even than POSCO Holdings (0.45x) and than the similarly-businessed Dongkuk Steel (0.23x).
- Domestically, moreover, anti-dumping tariffs imposed and extended on Chinese and Japanese hot-rolled and galvanized steel sheet, plus China's steel-export license system, are reducing inflows of low-priced material and creating an environment favorable to price recovery.
- On top of this, the US Louisiana electric-arc-furnace mill (US$5.8 billion, targeting groundbreaking in Q3 2026 and operation in 2029) builds a localized automotive steel-sheet base to bypass tariff walls and stably secure group carmaker demand, a medium- to long-term growth pillar.
- There are cautions too.
- Even with consolidated operating profit thinly positive, net profit is still in the red, and because operating profit cannot cover the roughly ₩650.0 billion in annual interest expense, the breadth and durability of the profitability recovery need more confirmation in quarterly results.
- The Louisiana investment also carries the burden of large funding needs over the coming years.
- In sum, the wider the raw-material-to-product spread and the more prices recover, the more strongly the cheap price relative to asset value comes into focus, while prolonged raw-material and currency burdens or renewed pressure on steel prices could slow the return to net profit.
- The key is whether price recovery leads to spread improvement and earnings normalization that can cover interest expense, and whether the Louisiana investment connects to actual business results.
🔎 Valuation vs peers Undervalued
The comparison uses integrated steelmakers and electric-arc-furnace makers that draw molten iron themselves and for which data is available on the site. POSCO Holdings, the representative large integrated steelmaker, and Dongkuk Steel, an electric-arc-furnace maker centered on bar/shape steel and plate, are closest in business character, while Poongsan is kept for reference only as a non-ferrous (copper) processor.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| POSCO Holdings | 35.79x | 0.42x | 1.18% |
| Dongkuk Steel Mill | 48.70x | 0.21x | 0.44% |
| Poongsan | 11.71x | 0.75x | 6.40% |
(a) Position versus true peers: on an asset-value (P/B) basis it sits at the lowest among integrated steelmakers, valued most sparingly relative to net assets. Because an integrated steelmaker's book equity rests on physical assets such as facilities and inventory and is weakly prone to overstatement, P/B is a valid yardstick in this phase. (b) Nature of the discount: this discount stems from a lower ROE than peers and a net loss, a 'profitability discount' that should be distinguished from being cheap simply because the market ignores it. (c) Trailing limits and forward basis: because last year's net profit was slightly negative, no P/E is available, so comparison on last-year confirmed (trailing) multiples is hard. Instead, an environment of price recovery from anti-dumping tariffs and Chinese export restrictions, plus the consolidated operating line staying thinly positive, is read as a clue to forward improvement. Still, the key is whether net profit stabilizes into the black beyond the roughly ₩650.0 billion in annual interest expense, so it is undervalued on an asset basis, but for that undervaluation to resolve, earnings normalization must be confirmed.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩6.1 trillion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩26,000 and the market capitalization is ₩3.5 trillion. The price sits below its 20-day moving average (₩30,148) and below its 60-day moving average (₩36,933). 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 30.7, a neutral level. The one-month change is -21.8%, the three-month change is -24.5%, and the position relative to the 52-week high is -44.1%. Relative strength versus the KOSPI is 14 (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 13% of all stocks. Over the past three months it lagged the index by 44.7%. 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 -44.68% / 6M -45.58% / 12M -68.74%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 0.18x is below the sector median (0.50x).
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.
Profitability & financials
Return on equity (ROE) is -0.0%, below the sector average (2.0%). The operating margin is 1.0%. The debt ratio is 75.4%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $17.2B | $15.4B | $15.1B | -2.12% ↑ faster |
| Operating profit | $529.1M | $105.7M | $145.3M | +37.46% ↑ faster |
| Net profit | $305.7M | -$7.7M | -$4.6M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $15.1B | $18.1B | $17.2B | $15.4B | $15.1B |
| Operating profit | $1.6B | $1.1B | $529.1M | $105.7M | $145.3M |
| Net profit | $968.6M | $674.4M | $305.7M | -$7.7M | -$4.6M |
| Revenue CAGR | 4-yr avg -0.13% | ||||
Revenue fell 2.1% year over year (2023 ₩25.9 trillion → 2024 ₩23.2 trillion → 2025 ₩22.7 trillion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Operating profit rose 37.5% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is -0.1%. The two-year revenue CAGR is -6.3%. In the most recent quarter (Q1 2026), revenue was 3.2% 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.
Points to watch
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full-year net result was a loss.
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 2.1% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-05-15EarningsQ1 2026 quarterly report - revenue ₩5.74 trillion (+3.2% year over year), consolidated operating profit ₩15.7 billion, net profit/loss -₩39.3 billion confirmed.Short term: the consolidated operating line stayed thinly positive but the net loss widened. Medium term: the key is whether price recovery leads to earnings normalization that can cover interest expense. Source
- 2026-04-24FilingDecision to acquire shares and equity securities in another company - about ₩516.4 billion (a 6.5% stake after acquisition), paid in installments 2026-2030, for expansion of new businesses and business areas.Short term: about 2.6% of equity paid in installments over several years limits the immediate financial burden. Medium term: a business expansion tied to the group's overseas steel investment, such as US automotive steel-sheet localization; whether the investment materializes into results is the point to watch. Source
- 2026-06-17FilingContribution to a related party - additional contribution executed to an affiliated joint venture.Short term: confirms that funding continues to flow into affiliated joint investments. Medium term: a phase in which growth investment and cash needs proceed simultaneously. Source
- 2026-04-24EarningsQ1 2026 consolidated operating (provisional) results fair disclosure - revenue, consolidated operating profit and net profit/loss disclosed first at the provisional stage.Short term: a source that flagged the direction of results ahead of the confirmed quarterly-report figures. Medium term: confirmed with little difference between provisional and final. Source
- 2026-01-30DividendCash/in-kind dividend decision - ₩500 per share (a dividend yield of about 1.8% at the current price).Short term: keeping the dividend even in a loss-making stretch confirms a commitment to shareholder returns. Medium term: if the earnings recovery is slow, the durability of dividend capacity needs checking. Source
- 2026-06-01FilingCorporate governance report - disclosure of governance status such as the board and shareholder returns.Short term: little immediate earnings impact. Medium term: reference material for gauging the transparency of governance and shareholder policy. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 revenue | ₩5.74 trillion | ₩5,739,684,986,139 | Confirmed | link |
| Scale of the acquisition of shares in another company | — | approx. ₩516.4 billion(₩516,400,000,000), 6.5%, 2.6% | Confirmed | link |
| Dividend per share (DPS) | ₩500,x approx. 1.5% | (2026-01-30) | Confirmed | link |
| 2026 annual revenue (seasonality approximation) | approx. ₩23.0 trillion | — | Unverified | link |
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-21Amended filing
- 2026-05-15PeriodicQuarterly report
- 2026-04-24Disclosure
- 2026-04-24Amended filing
- 2026-04-24Disclosure
- 2026-04-24Disclosure
- 2026-04-24EarningsFair-disclosure notice (amended)
- 2026-04-24EarningsFair-disclosure notice (amended)
- 2026-04-24EarningsFair-disclosure notice
- 2026-04-24EarningsFair-disclosure notice
📖 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.