GS E&C is a general contractor whose largest axis, by far, is the housing, redevelopment, and reconstruction work of its 'Xi' apartment brand (₩7.79 trillion in 2025), which is more than half of revenue, alongside plant EPC, infrastructure civil works, and overseas water-treatment subsidiary GS Inima. In April 2026 it secured the construction rights for Seongsu Strategic Redevelopment Zone 1 in Seoul (total construction cost about ₩2,154.0 billion) and won Osan Yangsan District 4 and other projects in succession, exceeding its annual plan by 34% with ₩19.2 trillion in 2025 new orders; the sale of GS Inima (about ₩1,680.0 billion) is going through regulatory approval. What stands out lately is the strength of operating profit recovering for a second year, a building backlog of large redevelopment orders, and a P/B of 0.54x that marks it as undervalued; on the other hand, with a debt ratio of 385% and an interest coverage ratio below 1x, high interest costs press on net profit, housing revenue is in a contracting phase, and whether the GS Inima sale closes remains the key to financial improvement.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 385.1%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue fell 3.2% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 21.6% lower than a year earlier.
- ROE is 1.9% (controlling-interest basis). It is below the sector average.
- Operating margin is 3.5%.
Ownership & governance As of 2022-12-31
Largest shareholder Huh Chang-soo 8.28% (individual)
Controlling bloc incl. related parties 15.8%
With the controlling bloc holding 16%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- GS E&C earns money across four businesses.
- First, the building and housing division builds housing, redevelopment, and reconstruction projects under the 'Xi' apartment brand, the largest axis at more than half of revenue (₩7.79 trillion in 2025).
- Second, the plant division does EPC work designing and building refining, petrochemical, and power facilities (₩1.32 trillion, +88% year over year); third, the infrastructure division handles civil works such as roads, bridges, and subways (₩1.46 trillion).
- Fourth, as a new business it has held overseas desalination and water-treatment subsidiary GS Inima.
- In short, it is a general contractor that earns most of its revenue from domestic housing and has broadened into plant, infrastructure, and overseas water treatment.
- The latest close is ₩29,250 and the market cap is ₩2.5 trillion.
- The price sits above the 20-day line (₩27,840) and below the 60-day line (₩32,152).
- With the short- and mid-term trends diverging, direction should be read separately.
- The RSI (a supporting indicator that weighs upward versus downward strength over the past 14 days on a 0-100 scale) is 51.8, a neutral level.
- The one-month change is +9.1%, the three-month change is +1.6%, and the position relative to the 52-week high is -32.1%.
- Relative strength versus the KOSPI is 59 (1-99, computed from returns against the index over the past year with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 41% of all stocks by strength.
- Over the past three months it lagged the index by 37.0%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- The trailing P/E (how many times the past year's net profit the share price is) of 26.77x looks high, but this is because 2025 net profit (₩93.4 billion) was heavily depressed by non-operating losses such as currency, interest, and the wind-down of an overseas subsidiary.
- In other words, the denominator was temporarily small, inflating the multiple, so it is hard to call the stock 'expensive' on this number alone.
- Conversely, the P/B (how many times net assets) is 0.52x, half of book equity, and the ROE (how much is earned in a year on equity) is low at 1.9%.
- On the balance sheet, the debt ratio (debt to equity) of 385% is heavy, and with an interest coverage ratio below 1x, the structure in which interest burden eats into earnings is a weakness.
- The dividend yield is 1.7% (₩500 per share).
- The key for this company is to distinguish 'operating-profit recovery' from 'net-profit distortion.' Operating profit recovered markedly for a second year, from -₩387.9 billion in 2023 (large costs related to the Geomdan site accident) to +₩286.0 billion in 2024 and +₩437.8 billion in 2025 (+53%).
- This is the result of housing costs normalizing and plant revenue surging.
- By contrast, 2025 net profit was ₩93.4 billion, down 65% from the prior year, the combined result of one-off and non-cash items unrelated to operations, such as foreign-currency translation losses from a rising exchange rate (about ₩316.4 billion), high interest costs, and the wind-down loss of the UK modular subsidiary.
- In fact, Q4 2025 net profit swung back to positive.
- Revenue is falling (₩2.40 trillion, -21.6% year over year as of Q1 2026), but over the same period operating profit rose +4.4%, a flow where the top line shrinks but profitability holds.
- This year, on the premise that such currency and one-off losses do not repeat, net profit has room to normalize substantially above last year, and on a forward basis the multiple is far lower than the headline trailing P/E.
- Recent disclosures are concentrated in large urban-redevelopment (redevelopment and reconstruction) orders.
- In April 2026 it secured the construction rights for the Seongsu Strategic Redevelopment Zone 1 redevelopment in Seoul (total construction cost about ₩2,154.0 billion, the largest along the Han River), in May it signed a supply contract for the Osan Yangsan District 4 apartments (about ₩565.1 billion), and it won redevelopment projects such as Geoyeo Saemaeul and Geumjeong District 4 one after another.
- 2025 new orders were ₩19.2 trillion, exceeding the company's annual plan (₩14.3 trillion) by 34%.
- Meanwhile, the sale of water-treatment subsidiary GS Inima (about ₩1,680.0 billion), pursued as a card for improving the financial structure, is going through regulatory approval, so the outcome is a point to watch.
- On the positive side, operating profit is recovering for a second year and large redevelopment orders are building up, so the underlying business strength is better than last year's net-profit figure suggests.
- The P/B of 0.54x is half of net assets, and if the currency and one-off losses that depressed net profit do not repeat, the forward-earnings multiple comes down substantially below the headline.
- The cautions are also clear.
- With a debt ratio of 385% and an interest coverage ratio below 1x, high interest costs keep pressing on net profit, and housing revenue is in a contracting phase, so the top line is shrinking.
- The GS Inima sale, if it closes, would be a major key to financial improvement, but regulatory-approval risk remains.
- In short, it is a stock whose strengths are 'operating recovery, low P/B, and redevelopment orders' and whose weaknesses are 'high debt, interest burden, and sale uncertainty,' with whether earnings normalize being the crux.
🔎 Valuation vs peers Undervalued
Compared against major domestic listed construction and EPC firms (general contractors spanning housing, plant, and civil works).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hyundai Engineering & Construction | 29.51x | 1.33x | 4.51% |
| DL E&C | 6.47x | 0.46x | 7.06% |
| Samsung E&A | 13.81x | 1.80x | 13.03% |
| Daewoo E&C | — | 1.94x | -27.25% |
The trailing P/E of 27.5x looks expensive on its own, but this is the result of 2025 net profit (₩93.4 billion) being temporarily small due to non-operating items such as foreign-currency translation losses, interest, and the wind-down of an overseas subsidiary, so the multiple itself is distorted. For an earnings-inflection stock the forward view is the true picture, and if currency and one-off losses do not repeat, the forward P/E falls into the 14x range, far cheaper than it appears. On the asset view too, the P/B of 0.54x is the lowest in the peer set (Hyundai E&C 1.6, Samsung E&A 2.14, Daewoo E&C 2.38), half of net assets. Given the support of the operating-profit recovery and large redevelopment orders, the read is undervalued on both the asset and earnings sides. That said, the high debt and interest burden are the real basis for the valuation discount, and should be viewed together.
Price history Close · MA20 · MA60
The latest close is ₩29,250 and the market capitalization is ₩2.5 trillion. The price sits above its 20-day moving average (₩27,840) and below its 60-day moving average (₩32,152). 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 51.8, a neutral level. The one-month change is +9.1%, the three-month change is +1.6%, and the position relative to the 52-week high is -32.1%. Relative strength versus the KOSPI is 59 (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 59% of all stocks. Over the past three months it lagged the index by 37.0%. 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 -37.02% / 6M -5.30% / 12M -41.31%
Key metrics vs sector median
Valuation
The P/E of 26.77x is above the sector median (8.02x). The P/B of 0.52x is in line with 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 1.9%, below the sector average (7.0%). The operating margin is 3.5%. The debt ratio is 385.1%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $8.9B | $8.5B | $8.3B | -3.21% ↑ faster |
| Operating profit | -$257.1M | $189.5M | $290.2M | +53.10% |
| Net profit | -$319.4M | $162.8M | $62.0M | -61.92% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $6.0B | $8.2B | $8.9B | $8.5B | $8.3B |
| Operating profit | $428.5M | $367.7M | -$257.1M | $189.5M | $290.2M |
| Net profit | $270.7M | $224.9M | -$319.4M | $162.8M | $62.0M |
| Revenue CAGR | 4-yr avg 8.34% | ||||
Revenue fell 3.2% year over year (2023 ₩13.4 trillion → 2024 ₩12.9 trillion → 2025 ₩12.5 trillion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Operating profit rose 53.1% year over year. Over the 5 years on record, revenue compound annual growth (CAGR) is 8.3%. The two-year revenue CAGR is -3.7%. In the most recent quarter (Q1 2026), revenue was 21.6% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Debt far exceeds equity (debt ratio 385.1%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue fell 3.2% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-04-25UpdateSelected as the contractor for the Seongsu Strategic Redevelopment Zone 1 redevelopment in Seoul (total construction cost about ₩2,154.0 billion; a large Han River-side redevelopment of up to 69 stories and 3,014 units).Short-term share momentum and mid-term expansion of the housing order backlog. A large project that raises revenue visibility in the urban-redevelopment segment. Source
- 2026-05-20UpdateSigned a supply contract for the Osan Yangsan District 4 urban-development apartment construction (contract value about ₩565.1 billion, ordered by Hana Asset Trust).Mid-term revenue contribution. A regional apartment supply contract that reinforces the order backlog. Source
- 2026-05-06UpdateSigned a single sales/supply contract (related to a building and housing redevelopment project; a correction was later disclosed on May 21).Reinforces mid-term revenue visibility. The redevelopment-focused order expansion continues. Source
- 2026-05-14EarningsQ1 2026 quarterly report. Revenue ₩2.40 trillion (-21.6% year over year), operating profit ₩73.5 billion (+4.4%), net profit ₩10.7 billion (-22.1%), defending profitability despite a shrinking top line.Revenue fell as the housing backlog was worked off, but operating profit rose, confirming that cost normalization continues. Source
- 2026-06-01FilingDisclosure of key management matters related to investment decisions (multiple order-related items such as redevelopment contractor selections).A disclosure supporting the redevelopment order flow, reconfirming the buildup of the housing order backlog. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 operating profit | ₩437.8 billion | ₩437.8 billion(+53.1%) | Confirmed | link |
| Q1 2026 operating profit | ₩73.5 billion | ₩73.5 billion(+4.39%) | Confirmed | link |
| Seongsu Zone 1 redevelopment construction rights | — | approx. 2₩154.0 billion | Confirmed | link |
| 2026 forward net-profit estimate | approx. ₩180.0 billion(self-estimate) | — | Unverified | link |
Recent filings
- 2026-06-01Disclosure
- 2026-06-01Large-business-group status disclosure
- 2026-06-01Disclosure
- 2026-06-01Disclosure
- 2026-06-01Corporate governance report
- 2026-05-27Disclosure
- 2026-05-21Single supply/sales contract (amended)
- 2026-05-20Single supply/sales contract
- 2026-05-14PeriodicQuarterly report
- 2026-05-14Disclosure
- 2026-05-06Single supply/sales contract (amended)
- 2026-05-04Disclosure
📖 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.