Taeyoung E&C is a general construction company that earns its revenue by building apartments and housing, civil-engineering works such as roads and railways, and public projects ordered by government bodies. A crisis in real-estate project financing (PF) pushed it into a creditor-led workout in early 2024, but through repeated debt-to-equity swaps and asset sales it climbed out of capital impairment and restored a profitable footing, posting consolidated 2025 revenue of ₩2.17 trillion and operating profit of ₩52.8 billion. The key point to note recently is that while it has shifted its focus toward public works and returned to profit at the operating level, its debt-to-equity ratio remains high at 573% and its operating profit is barely enough to cover interest, so the direction of the share price hinges on how quickly its financial structure improves.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 573.4%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 67.5%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue fell 19.1% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 44.1% lower than a year earlier.
- ROE is 10.5% (controlling-interest basis). It is above the sector average.
- Operating margin is 2.4%.
- P/B is high versus peers, a stretch on an asset basis.
Ownership & governance As of 2025-12-31
Largest shareholder TY Holdings 58.22% (corporate)
Controlling bloc incl. related parties 58.69%
With the controlling bloc holding 59%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Taeyoung E&C makes money along three main lines.
- The first is housing and building construction, such as apartments and mixed-use residential complexes.
- The second is civil-engineering (SOC) work, including roads, railways, bridges and environmental facilities.
- The third is public projects ordered by the central government, local authorities and state-owned enterprises.
- In the past, private real-estate development made up a large share, but after a funding crisis in that segment the company is now shifting its weight toward lower-risk public works.
- The company has stated that in 2025 it secured the largest volume of new public-sector orders among construction firms.
- The share price is weak at ₩1,605.
- It sits below its 20-day (₩1,699), 60-day (₩1,805) and 120-day (₩1,780) moving averages, meaning both the short- and medium-term trends point downward.
- The three-month return is -10%, leaving the stock about 45% below its 52-week high.
- The RSI (a gauge of the balance between recent upward and downward momentum on a 0-100 scale) is 42, slightly below neutral.
- This is not yet a position where a clear rebound signal has emerged.
- The valuation metrics look different on the surface than they are in reality.
- The P/E ratio (how many times a year's earnings the price represents) is 7.5x and the P/B (how many times the book net asset value the price represents) is 0.79x, both of which look low.
- But this low P/E is largely an illusion, because 2025 net profit of ₩63.8 billion includes one-off gains from asset sales and debt restructuring.
- In fact, in the first quarter of 2026, even though operating profit was positive, net profit swung back to a loss of about ₩3 billion.
- The picture is only accurate when the financial burden is viewed alongside it.
- The debt-to-equity ratio (debt relative to equity) is very high at 573%.
- The current ratio (assets that can be turned into cash immediately versus debt due within a year) is 67.5%, below 100%.
- The interest coverage ratio (how many times operating profit covers interest) is below 1x, meaning operating profit alone does not fully cover interest.
- Net debt (total borrowings less cash) is about ₩1.14 trillion.
- So when debt is factored into enterprise value, the EV/EBIT (a P/E-like multiple that also reflects debt, dividing enterprise value by operating profit) comes out at 31x, far higher than the 7.5x P/E.
- The FCF yield (actual cash generated relative to market cap) is high at 22%, but much of it stems from temporary cash from asset sales and is unlikely to continue at that pace.
- Revenue is shrinking while earnings are rising off the bottom.
- Revenue fell from ₩3.35 trillion in 2023 to ₩2.17 trillion in 2025 (-19% year on year), the result of the company deliberately downsizing by winding down risky private-development projects.
- Earnings, by contrast, are on a recovery path.
- Operating profit rose from a loss of ₩404.5 billion in 2023 to a profit of ₩20.6 billion in 2024 and ₩52.8 billion in 2025.
- Net profit also turned from a loss of ₩1.40 trillion in 2023 to a profit of ₩63.8 billion in 2025.
- That said, first-quarter 2026 revenue plunged 44% year on year to ₩354.9 billion.
- Operating profit actually rose 14% to ₩17.7 billion, but net profit was a loss of about ₩3 billion.
- Future earnings are hard to forecast, because net profit is heavily swayed by interest costs and non-operating items such as asset sales and debt restructuring.
- So rather than pin this year's net profit to a specific number, it is more accurate to separate out whether the operating profit trend holds and how much the interest burden eases.
- Recent disclosures fall into two broad streams.
- The first is order intake.
- Between March and June 2026, several disclosures of single-sale and supply contracts appeared, part of the process of filling the order book with public works.
- The second concerns financial and governance structure.
- An April 2026 disclosure of major management matters relevant to investment judgment was followed by a May corporate governance report and a large-scale enterprise group status disclosure.
- These show the company is pursuing financial improvement and governance restructuring under a creditor-led workout.
- The backdrop is the creditor-led workout it entered in early 2024 amid the real-estate PF crisis.
- Since then, through repeated debt-to-equity swaps and asset sales including its headquarters and land, it has climbed out of capital impairment, and the compliance-agreement period is ongoing.
- This company can be summed up as "operations have revived, but the balance sheet is still heavy." The strengths are clear.
- Operations have returned to profit at the operating level.
- It has reduced high-risk private development and reshaped itself toward stable public works.
- The debt-to-equity ratio is also trending down from the 720% range in 2024.
- If this improvement continues and the interest burden eases, there is room for the currently low-looking P/B to be justified.
- The cautions are just as clear.
- The 573% debt-to-equity ratio is still very high.
- Operating profit does not fully cover interest.
- The 2025 net profit was flattered by one-off gains, so it looked better than the underlying strength, and the first quarter swung back to a net loss.
- In other words, this is a stretch where it is hard to declare the stock undervalued based on a "cheap-looking P/E" alone.
- It is strong if the creditor-led workout wraps up smoothly and the financial structure improves faster, and weak if the construction cycle or unsold-inventory conditions worsen, which could again enlarge the interest and funding burden.
🔎 Valuation vs peers Inconclusive
Compared against domestic general and civil-engineering construction firms, using large builders that differ in scale and financial structure as a reference set.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hyundai Engineering & Construction | 29.51x | 1.33x | 4.51% |
| DL E&C | 6.47x | 0.46x | 7.06% |
| GS E&C | 26.77x | 0.52x | 1.95% |
| Samsung E&A | 13.35x | 1.74x | 13.03% |
On a trailing P/E of 7.5x alone, it looks low alongside DL E&C (6.5x) and far cheaper than Hyundai E&C (29.5x) and GS E&C (26.8x). But this low P/E is hard to trust, because 2025 net profit of ₩63.8 billion includes one-off gains from asset sales and debt restructuring, and the first quarter of 2026 swung back to a net loss. Because earnings are at an inflection point, the informational value of a P/E based on last year's earnings is low. The EV/EBIT, which reflects net debt of about ₩1.14 trillion, is 31x, so once debt is taken into account it is hard to declare the stock undervalued. The 0.79x P/B is below book, but that book equity itself was reset by debt-to-equity swaps during the workout. Taking the financial risk (573% debt-to-equity, interest coverage below 1x) together with the lack of earnings stability, at this stage it is better to view this as a stretch to watch for the end of the workout and the pace of financial improvement rather than to declare it undervalued or overvalued.
Price history Close · MA20 · MA60
The latest close is ₩1,605 and the market capitalization is ₩477.6 billion. The price sits below its 20-day moving average (₩1,699) and below its 60-day moving average (₩1,805). 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 42.0, a neutral level. The one-month change is -3.3%, the three-month change is -10.0%, and the position relative to the 52-week high is -44.8%. Relative strength versus the KOSPI is 16 (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 16% of all stocks. Over the past three months it lagged the index by 35.9%. 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 -35.85% / 6M -40.53% / 12M -75.98%
Key metrics vs sector median
Valuation
The P/E of 7.49x is in line with the sector median (8.02x). The P/B of 0.79x is above 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.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 10.4%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 10.5%, above the sector average (7.0%). The operating margin is 2.4%. The debt ratio is 573.4%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $2.2B | $1.8B | $1.4B | -19.05% ↑ faster |
| Operating profit | -$268.1M | $13.7M | $35.0M | +155.73% |
| Net profit | -$928.3M | $23.2M | $42.3M | +82.46% |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.8B | $1.7B | $2.2B | $1.8B | $1.4B |
| Operating profit | $115.7M | $60.7M | -$268.1M | $13.7M | $35.0M |
| Net profit | $49.8M | $41.6M | -$928.3M | $23.2M | $42.3M |
| Revenue CAGR | 4-yr avg -5.72% | ||||
Revenue fell 19.1% year over year (2023 ₩3.4 trillion → 2024 ₩2.7 trillion → 2025 ₩2.2 trillion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Operating profit rose 155.7% year over year. Over the 5 years on record, revenue compound annual growth (CAGR) is -5.7%. The two-year revenue CAGR is -19.5%. In the most recent quarter (Q1 2026), revenue was 44.1% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- ROE of 10.5% points to solid profitability.
Points to watch
- Debt far exceeds equity (debt ratio 573.4%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 67.5%).
- Revenue fell 19.1% year over year (3-year trend: falling).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-06-05UpdateDisclosure of a single-sale and supply contract. A new order continuing work in the public and building segments.Short term: secures a revenue base. Medium term: supports the shift in business mix from private development toward public works. Source
- 2026-05-29FilingCorporate governance report and large-scale enterprise group status disclosure, covering governance and group-status restructuring under the creditor-led workout.Medium term: a review of financial and governance transparency, and a basis for checking the progress of the workout's compliance. Source
- 2026-05-15EarningsFirst-quarter 2026 quarterly report. Consolidated revenue of ₩354.9 billion (-44% year on year), operating profit of ₩17.7 billion (+14%), and a net loss of about ₩3 billion.Short term: confirms operating profit was maintained despite a sharp revenue drop. Medium term: the recurrence of a net loss reveals that earnings stability is still low. Source
- 2026-04-01FilingDisclosure of major management matters relevant to investment judgment. Items related to financial-structure improvement under the creditor-led workout.Medium term: a basis for checking progress on financial improvement, and a variable at the point the workout ends. Source
- 2026-03-30UpdateDisclosure of a single-sale and supply contract. A new order secured in the first quarter.Short term: reinforces the order backlog. Medium term: part of the recovery in public-works-centered order intake. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-05Single supply/sales contract
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Corporate governance report
- 2026-05-27Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-04-16Single supply/sales contract (amended)
- 2026-04-01Disclosure
- 2026-03-30Single supply/sales contract
- 2026-03-30Disclosure
- 2026-03-27Disclosure
- 2026-03-27Disclosure
- 2026-03-26Single supply/sales contract (amended)
📖 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.