Hyundai Corporation makes nothing itself; it is a general trading company that brokers deals in industrial goods such as steel, auto parts, chemicals and industrial plants — or buys and resells them directly — and it is also growing its own-brand home appliances and household goods plus new businesses in secondary-battery materials and renewable energy. Revenue is large at over ₩7 trillion a year, but because of the brokerage nature of the business it keeps a thin operating margin of 1.8%; in Q1 2026 revenue and operating profit grew while net profit fell on non-operating costs, and ROE of 12.5% exceeds the industry average. The point to watch is that a forward P/E of 7.94x and a P/B of 0.42x sit at less than half the level of comparable trading-company peers — trading cheaper despite better earnings — while a debt ratio of 235% and an interest-coverage ratio of 1.67x make net profit prone to swings with interest rates and exchange rates, so it must be confirmed whether the Q1 drop in net profit was a one-off.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 235.3%).
- Revenue rose 8.0% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 11.6% higher than a year earlier.
- ROE is 12.5% (controlling-interest basis). It is above the sector average.
- Operating margin is 1.8%.
- P/B is low versus peers too, so it looks cheap on an asset basis as well.
Ownership & governance As of 2025-12-31
Largest shareholder Hyundai Corporation Holdings 21.79% (corporate)
Controlling bloc incl. related parties 24.31%
With the controlling bloc holding 24%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- Hyundai Corporation is not a manufacturer that makes goods itself; it is a general trading company that brokers deals — or buys and resells directly — in industrial goods such as steel, auto parts, chemicals and industrial plants.
- Using its worldwide sales network and trade finance, it handles imports and exports on others' behalf and earns money from the spread and commissions.
- On top of this, it plans and distributes home appliances and household goods under its own brands (such as Hyundai Zes) and is growing new businesses like secondary-battery materials and renewable energy.
- So while revenue is large at over ₩7 trillion a year, the brokerage and intermediation nature of the business means it keeps a thin margin on revenue (operating margin 1.8%) and instead grows profit by scaling up transaction volume.
- The latest close is ₩22,500 and market capitalization is ₩297.7 billion.
- The price sits below both the 20-day line (₩23,572) and the 60-day line (₩26,406).
- Trading below both its short- and mid-term moving averages, the trend is subdued.
- RSI (a supplementary gauge comparing upward and downward force over the past 14 days on a 0-100 scale) is 40.0, a neutral level.
- The one-month change is -6.6%, the three-month change is -16.2%, and the position versus the 52-week high is -30.9%.
- Relative strength against the KOSPI is 28 (1-99, computed from returns versus the index over the past year with recent periods weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 73% of all stocks by strength.
- Over the past three months it lagged the index by 33.8%.
- Chart readings are best viewed alongside trading volume and disclosure dates.
- On confirmed full-year 2025 figures, the P/E ratio (how many times one year's net profit the price represents) is 3.43x and the P/B (how many times the company's net assets) is 0.43x.
- Both are far below the industry medians (P/E 10.95x, P/B 0.92x).
- What matters here is that the forward P/E, which reflects this year's earnings as well, is also almost unchanged at 3.56x.
- In other words, it did not merely look cheap because last year was unusually strong — it sits equally cheap even on this year's earnings.
- Profitability is solid too: ROE (how much it earns in a year on equity) is 12.5%, above the industry average (7.0%), and the dividend yield is about 3.1%.
- The point to note is that the debt ratio (debt against equity) is high at 235.3% and the interest-coverage ratio (how far operating profit can cover interest) is only 1.67x; part of the debt looks large because trading is a business that rolls purchase payments through short-term borrowing.
- Still, since high rates make interest costs eat into net profit, it is best to watch not the absolute size of the debt but whether interest is comfortably covered.
- Over five years revenue doubled from ₩3.8 trillion in 2021 to ₩7.6 trillion in 2025 (a five-year average of +18.9%), and operating profit grew nearly fourfold from ₩35.1 billion to ₩140.1 billion.
- Both the top line and operating-level profit are clearly rising, and in the latest Q1 2026, revenue grew +11.6% and operating profit +24.9% year on year, so the core business keeps growing.
- Because the core business grows steadily like this, the forward P/E is 7.94x, holding a level of undervaluation almost identical to last year's confirmed figure (3.38x).
- In other words, this year's profit — supported by growth in core revenue and transaction volume — is holding up last year's level.
- One point to flag is that Q1 net profit was ₩11.1 billion, down -53.5% year on year, while over the same period revenue and operating profit actually rose; that suggests non-operating factors (interest, exchange rates, equity-method effects) likely acted temporarily.
- Whether this is a one-off or a trend is best confirmed through Q2 results and the cost items.
- Recent disclosures center on results, stake and financial filings rather than large new orders.
- The April 29 preliminary-results fair disclosure and the May 15 quarterly report revealed confirmed Q1 results, showing revenue and operating profit rising while net profit fell.
- In April, several disclosures on debt-guarantee decisions for subsidiaries and affiliates emerged, so the effect of intra-group funding support on the finances should be checked alongside.
- In early June, large-holding and largest-shareholder stake-change filings followed, offering clues to movements on the governance side.
- At the late-March annual shareholders' meeting, dividend and director-appointment agenda items were confirmed.
- This stock's strengths are clear.
- Revenue and operating profit rose throughout the five years and the core business kept growing in Q1, and ROE of 12.5% exceeds the industry average.
- Above all, a forward P/E of 7.94x and P/B of 0.42x sit at less than half the level of comparable trading-company peers (whose forward P/Es are double-digit), an undervalued zone where it trades cheaper despite better earnings.
- Adding a dividend yield of 3.1%, it also has defensiveness on the asset and dividend side.
- The points to weigh are that a debt ratio of 235% and interest-coverage of 1.67x make net profit prone to swings with rate and exchange-rate moves, and that Q1 net profit fell sharply on non-operating costs.
- In short, this stock's undervaluation appeal shines when core growth carries through to net profit and exchange-rate and interest variables settle, and it comes under pressure when the drop in net profit becomes a trend rather than temporary or when borrowing burdens grow.
- The point to watch is confirming through Q2 results whether the Q1 plunge in net profit was a one-off.
🔎 Valuation vs peers Undervalued
The peer set was chosen by the substance of the business — general trading and industrial-goods trading, not simple wholesale. It was viewed against POSCO International, another general trading company, and SK Networks, which has a large trading and distribution weighting.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| POSCO International | 13.97x | 1.28x | 9.15% |
| SK Networks | 33.41x | 0.82x | 2.46% |
(a) Position: compared with POSCO International (P/E 17.0, P/B 1.6) and SK Networks (P/E 52.3, P/B 1.3), both general trading companies, Hyundai Corporation at a P/E of 3.8x and P/B of 0.47x sits at the lowest spot in the peer group. (b) Discount: with an ROE that is actually higher yet a multiple at less than half, there is a basis to see it as undervalued relative to assets and earnings. That said, with a market cap of ₩328.1 billion it is far smaller than peers, so part of the discount also comes from trading volume and liquidity. (c) Limits of trailing figures: the P/E of 3.8x is on last year's confirmed net profit, but with net profit turning down -28% for the year and -54% in Q1, the multiple rises on this year's basis. Applying this year's net profit approximated by DART seasonality (about ₩37.5 billion) lifts the forward P/E into the 8x range. So rather than declaring it cheap, it is better read as a spot where the degree of undervaluation shifts depending on whether the decline in net profit stops.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | ₩2.0 trillion | ₩49.9 billion | ₩9.1 billion |
Price history Close · MA20 · MA60
The latest close is ₩22,500 and the market capitalization is ₩297.7 billion. The price sits below its 20-day moving average (₩23,572) and below its 60-day moving average (₩26,406). 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 40.0, a neutral level. The one-month change is -6.6%, the three-month change is -16.2%, and the position relative to the 52-week high is -30.9%. Relative strength versus the KOSPI is 28 (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 27% of all stocks. Over the past three months it lagged the index by 33.8%. 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 -33.75% / 6M -34.75% / 12M -64.97%
Key metrics vs sector median
Valuation
The P/E of 3.43x is below the sector median (9.68x). The P/B of 0.43x is below the sector median (0.80x). 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 9.2%, initial growth 2.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 12.5%, above the sector average (7.0%). The operating margin is 1.8%. The debt ratio is 235.3%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $4.4B | $4.6B | $5.0B | +7.99% ↑ faster |
| Operating profit | $65.8M | $88.5M | $92.9M | +4.94% ↓ slower |
| Net profit | $55.5M | $80.2M | $57.5M | -28.31% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $2.5B | $4.1B | $4.4B | $4.6B | $5.0B |
| Operating profit | $23.2M | $44.3M | $65.8M | $88.5M | $92.9M |
| Net profit | $25.0M | $52.2M | $55.5M | $80.2M | $57.5M |
| Revenue CAGR | 4-yr avg 18.88% | ||||
Revenue rose 8.0% year over year (2023 ₩6.6 trillion → 2024 ₩7.0 trillion → 2025 ₩7.6 trillion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating profit rose 4.9% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 18.9%. The two-year revenue CAGR is 7.1%. In the most recent quarter (Q1 2026), revenue was 11.6% 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.
- The dividend yield, at 3.1%, is on the high side.
- ROE of 12.5% points to solid profitability.
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
- 2026-04-29EarningsQ1 2026 consolidated preliminary-results fair disclosure — revenue and operating profit rose, but net profit fell sharply year on yearNear term, net profit turned down despite top-line and operating-profit growth, so the quality of earnings needs checking. Medium term, a reference point for confirming whether non-operating costs (interest, exchange rates, etc.) are structural. Source
- 2026-05-15FilingMarch 2026 quarterly report — Q1 cumulative revenue ₩2.07 trillion, operating profit ₩46.1 billion, net profit ₩11.1 billion confirmedNear term, it confirms the preliminary-results figures. Medium term, primary source material for verifying quarterly seasonality and the cost structure. Source
- 2026-04-23UpdateDecision on a debt guarantee for others — multiple debt-guarantee disclosures during AprilNear term, not a direct loss but a matter classified as a contingent liability. Medium term, it can affect the burden of group and affiliate funding support and financial soundness, so monitoring is needed. Source
- 2026-06-01FilingLarge-holding report and filing on a change in the largest shareholders' holdingsNear term, the stake change itself is unrelated to results. Medium term, a clue for checking movements in governance and the largest shareholder's stake. Source
- 2026-03-31FilingAnnual shareholders' meeting results and director-appointment filingNear term, meeting agenda items such as the dividend and executive appointments were confirmed. Medium term, material for checking shareholder-return policy and changes in board composition. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 cumulative operating profit | ₩46.1 billion | ₩46.1 billion | Confirmed | link |
| Q1 2026 net profit change rate | -53.5% | 1 net profit ₩11.1 billion | Confirmed | link |
| FY2025 annual net profit | ₩86.8 billion | ₩86.8 billion | Confirmed | link |
| This year's annual operating profit (seasonality approximation) | approx. ₩188.8 billion | — | Unverified | link |
| Latest closing price | ₩22,500 | — | Unverified | link |
Recent filings
- 2026-06-01OwnershipLargest-shareholder ownership change report
- 2026-06-01OwnershipOwnership-change filing
- 2026-06-01OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-29Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-04-29EarningsFair-disclosure notice
- 2026-04-23Disclosure
- 2026-04-22OwnershipOfficers'/major-shareholders' holdings report
- 2026-04-02Disclosure
- 2026-04-01Disclosure
- 2026-03-31Disclosure
- 2026-03-31Shareholders' meeting 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.