Hyundai Motor is an automaker that makes and sells passenger cars, SUVs, electric vehicles and hybrids, with a larger share of sales overseas - in the United States and Europe - than at home; lately it has been lifting per-unit profit with high-value SUVs such as the Palisade and with eco-friendly vehicles. In the first quarter of 2026 it posted record quarterly revenue of ₩45,938.9 billion, but a ₩860 billion burden from U.S. auto tariffs cut operating profit 30.8% to ₩2,514.7 billion and pressed the operating margin down to 5.5%. The key points to watch are that the effect of the tariff rate easing from 25% to 15% starts feeding into results from the second quarter and, combined with new-model effects, gives room for profit to pass a trough and recover; and that, with heavy reliance on U.S. sales, profit can swing sharply on external variables such as tariffs, exchange rates and slowing demand.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 208.9%).
- Revenue rose 6.3% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 3.5% higher than a year earlier.
- ROE is 8.2% (controlling-interest basis). It is above the sector average.
- Operating margin is 6.2%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Hyundai Mobis 22.36% (individual)
Controlling bloc incl. related parties 30.67%
With the controlling bloc holding 31%, the ownership structure is stable.
🔎 In-depth analysis
- Hyundai Motor is an automaker that makes passenger cars, SUVs and commercial vehicles and sells them worldwide.
- A large part of revenue comes from overseas sales in the United States and Europe, and the U.S. is a particularly important market among them.
- Lately it has pursued a strategy of raising per-vehicle profit by increasing the share of high-value SUVs such as the Palisade and Santa Fe and of electric vehicles (EVs) and hybrids (HEVs).
- Beyond the vehicle business, it consolidates finance subsidiaries such as installment and lease arms, so the part of the financial statements where debt looks large includes the funding of this finance business.
- The latest closing price is ₩445,500 and the market capitalization is ₩91.2 trillion.
- The price sits below the 20-day moving average (₩532,675) and below the 60-day average (₩583,708).
- Trading below both its short- and medium-term averages, the trend is on the softer side.
- The RSI (a supplementary gauge that compares upward and downward force over the last 14 days on a 0-100 scale) is 29.7, close to the depressed zone.
- The one-month change is -26.0%, the three-month change is -5.8%, and the position versus the 52-week high is -40.6%.
- Relative strength against the KOSPI is 64 (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 36% of all stocks by strength.
- Over the last three months it lagged the index by 29.4%.
- Chart reading is best done alongside trading volume and the dates on which disclosures occurred.
- The P/E ratio (how many times one year's profit the share price is) is 9.66x.
- The P/B (how many times the company's net assets the share price is) is 0.79x, meaning it trades below its book equity.
- The ROE (how much is earned in a year per unit of equity) is a decent 8.2%.
- The operating margin is 6.2% and the net margin is 5.1%.
- The debt ratio (debt relative to equity) looks high at 208.9%, but this includes borrowings of the installment and lease finance subsidiaries, so it is somewhat overstated when viewed by a manufacturer's yardstick alone.
- The dividend yield is 2.2%, and about 28% of net profit is returned as dividends.
- EV/EBITDA (enterprise value, which also reflects debt, divided by operating cash-flow profit before depreciation) is 15.2x, but note that the EV (enterprise value) in this metric also includes the finance subsidiaries' borrowings and so is set higher than the actual manufacturing business.
- Revenue rose for five straight years to top ₩186 trillion in 2025 (a five-year average of +12% a year).
- By contrast, operating profit in 2025 was ₩11,467.9 billion, down 19.5% from the prior year, and net profit was ₩9,446.0 billion, down 24.6%.
- The main reasons revenue grew while profit fell are the U.S. auto tariff burden and expanded investment.
- In the first quarter of 2026, too, revenue rose 3.4% but operating profit fell 30.8%, continuing this pattern.
- The crux is what comes next.
- The effect of the U.S. tariff rate easing from 25% to 15% starts feeding into results from the second quarter.
- On top of that, expanded sales of high-value new models such as the Palisade and of hybrids support per-unit profit.
- The company set a 2026 consolidated operating-margin target of 6.3-7.3%, which is a direction of improvement over 6.2% in 2025.
- In other words, even though trailing (last year's) profit looks pressed, once the tariff trough passes there is ample room for this year's profit to move onto a recovery trajectory.
- So on a forward (current-year estimate) basis, the current share price is cheaper than the trailing P/E implies.
- Recent disclosures are clustered on two axes: shareholder returns and earnings.
- At the end of May the company issued a corporate value enhancement plan as a voluntary disclosure, reaffirming its shareholder-return direction, and in early June it decided on a cash dividend, continuing its quarterly-dividend stance.
- The company has institutionalized a minimum dividend of ₩10,000 per share and a quarterly dividend (₩2,500 per share), and set a target total shareholder-return ratio (TSR) of at least 35% for 2025-2027.
- In mid-May it confirmed first-quarter results through its quarterly report and held two investor-relations (IR) meetings to explain its tariff response and new-model plans.
- Even in a phase of pressed profit, the trend of maintaining and strengthening dividends is confirmed.
- Hyundai Motor is a stock where the crux is 'whether tariff-pressed profit will recover.' Three strengths stand out.
- First, at a P/B of 0.82x it trades below its book net assets.
- Second, the effect of the U.S. tariff rate easing from 25% to 15% starts loading into results from the second quarter.
- Third, shareholder returns - a minimum dividend, quarterly dividends and buybacks - are established as a system that supports the downside.
- The cautions are clear too.
- With heavy reliance on U.S. sales, profit swings sharply if tariffs, exchange rates or local demand wobble.
- Also worth watching are the optical illusion of a high-looking debt ratio (finance-subsidiary consolidation) and the fact that free cash flow is negative for the time being amid expanded EV and autonomous-driving investment.
- In sum, if tariff easing and new-model effects continue as expected, it is strong as an undervalued recovery play, and if U.S. demand or the trade environment worsens, its profit volatility grows again.
🔎 Valuation vs peers Undervalued
Domestic listed companies whose business substance overlaps, such as automakers and auto-parts makers.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Kia | 7.48x | 0.92x | 12.36% |
| Hyundai Mobis | 11.54x | 0.86x | 7.44% |
Compared with Kia (P/E 8.1, P/B 1.0), which overlaps in the vehicle business, and parts affiliate Hyundai Mobis (P/E 12.1, P/B 0.9), Hyundai Motor at a P/B of 0.82x is the lowest of the three and sits below its book equity. A trailing P/E of 10.0x reflects a trough where profit was pressed by U.S. tariffs from 2025 into early 2026, so for a stock in a recovery phase a forward (current-year estimate) basis is closer to reality. Once tariff-rate cuts and high-value new-model effects load in from the second quarter, there is ample room for this year's profit to move onto a recovery trajectory, in which case the forward valuation falls below the trailing one. Taken together, viewing asset value (a P/B below 1) alongside a recovering profit trajectory, it is judged to sit in undervalued territory. That said, with heavy reliance on U.S. sales, the high profit volatility from trade and exchange-rate variables needs to be taken into account.
Price history Close · MA20 · MA60
The latest close is ₩445,500 and the market capitalization is ₩91.2 trillion. The price sits below its 20-day moving average (₩532,675) and below its 60-day moving average (₩583,708). 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 29.7, near oversold territory. The one-month change is -26.0%, the three-month change is -5.8%, and the position relative to the 52-week high is -40.6%. Relative strength versus the KOSPI is 64 (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 64% of all stocks. Over the past three months it lagged the index by 29.4%. 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 -29.38% / 6M -10.23% / 12M -11.24%
Key metrics vs whole-market median
Valuation
The P/E of 9.66x is below the whole-market median (13.81x). The P/B of 0.79x 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 10.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 8.2%, above the whole-market average (5.0%). The operating margin is 6.2%. The debt ratio is 208.9%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $107.8B | $116.1B | $123.4B | +6.29% ↓ slower |
| Operating profit | $10.0B | $9.4B | $7.6B | -19.47% ↓ slower |
| Net profit | $7.9B | $8.3B | $6.3B | -24.59% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $77.9B | $94.5B | $107.8B | $116.1B | $123.4B |
| Operating profit | $4.4B | $6.5B | $10.0B | $9.4B | $7.6B |
| Net profit | $3.3B | $4.9B | $7.9B | $8.3B | $6.3B |
| Revenue CAGR | 4-yr avg 12.18% | ||||
Revenue rose 6.3% year over year (2023 ₩162.7 trillion → 2024 ₩175.2 trillion → 2025 ₩186.3 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit fell 19.5% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 12.2%. The two-year revenue CAGR is 7.0%. In the most recent quarter (Q1 2026), revenue was 3.5% 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
- Revenue rose 6.3% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-05-29FilingAnnounced a corporate value enhancement plan as a voluntary disclosure, reaffirming its shareholder-return directionOver the medium term, raises predictability about the continuation of shareholder returns such as dividends and buybacks Source
- 2026-06-01DividendDecided on a cash dividend, continuing its quarterly-dividend stance (around ₩2,500 per share)In the short term, confirmation that the dividend is maintained even in a phase of pressed profit supports the downside Source
- 2026-05-15EarningsFirst-quarter results confirmed via the quarterly report (March 2026) - revenue of ₩45,938.9 billion, operating profit of ₩2,514.7 billion, net profit of ₩2,584.9 billionIn the short term, confirms the 30.8% drop in operating profit from the tariff burden (₩860 billion) Source
- 2026-05-20IRHeld an investor-relations (IR) meeting to explain its tariff response and new-model launch plansIn the medium term, provides information on the timing of tariff-cut reflection and on new-model effects Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| First-quarter 2026 revenue, operating profit and net profit | revenue 459,389 / operating profit 25,147 / net profit 25,849 | revenue 459,389 / operating profit 25,147(-30.8%) / net profit 25,849, operating margin 5.5% | Confirmed | link |
| 2026 full-year operating-margin target | base (forecast basis=self-estimate) | operating margin 6.3~7.3%, approx. 416 | Unverified | link |
| Valuation (P/E / P/B / dividend yield) | PER 10.0 / PBR 0.82 / 2.2% | — | Unverified | link |
Recent filings
- 2026-06-01Large-business-group status disclosure (amended)
- 2026-06-01Corporate governance report
- 2026-06-01EarningsFair-disclosure notice
- 2026-05-29Disclosure
- 2026-05-29Disclosure
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Large-business-group status disclosure
- 2026-05-21Amended filing
- 2026-05-20Disclosure
- 2026-05-18Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-11Disclosure
📖 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.