Daewoo E&C is a general contractor that builds apartments (its Prugio and Summit brands) and infrastructure such as roads, bridges, LNG facilities, and nuclear plants directly. About two-thirds of revenue comes from housing and building construction, with civil engineering and plant work behind it, so its new order backlog and site-by-site cost control drive results. After pre-emptively clearing out unsold-unit and overseas losses last year, it swung back to an operating profit of ₩255.6 billion in Q1 2026, confirmed in the quarterly report, and a run of large order disclosures followed in April and May alongside items of a contingent-liability nature such as debt-guarantee decisions. The strengths to note are that, having taken its losses and passed the earnings trough, normalizing to profit strips away the P/B illusion and leaves valuation not overly burdensome. The cautions are that revenue has fallen for three straight years so the recovery of profitability is the key, and that a debt ratio of 295%, its debt guarantees, and any slowdown in domestic housing sales or recurrence of overseas cost overruns could shake profit again.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 295.2%).
- The most recent full-year net result was a loss.
- Revenue fell 23.3% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 6.0% lower than a year earlier.
- ROE is -27.3% (controlling-interest basis). It is below the sector average.
- Operating margin is -10.1%.
- P/B is high versus peers, a stretch on an asset basis.
Ownership & governance As of 2025-12-31
Largest shareholder Jungheung Engineering & Construction 40.6% (corporate)
Controlling bloc incl. related parties 50.75%
With the controlling bloc holding 51%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Daewoo E&C is a general contractor that earns its money by directly building apartments (its Prugio and Summit brands) and infrastructure.
- About two-thirds of revenue comes from the housing and building segment, which constructs apartments, offices, and the like, backed by civil engineering — roads, bridges, ports, and railways (about a fifth) — and plants such as LNG, petrochemical, nuclear, and gas-power facilities (about a tenth).
- In other words, 'building and selling apartments' is the core of results, while large overseas projects such as an Iraqi new port or LNG work in Nigeria and Mozambique fill out the civil-engineering and plant revenue.
- Because it takes orders and recognizes revenue and profit in step with construction progress, the new order backlog and site-by-site cost control are the heart of its results.
- So domestic apartment-sales conditions and the cost of overseas sites drive this company's profit.
- The latest close is ₩16,040 and the market cap is ₩6.6 trillion.
- The price sits below its 20-day line (₩20,074) and below its 60-day line (₩25,686).
- Trading below both its short- and mid-term moving averages, the trend looks subdued.
- The RSI (a supplementary gauge that weighs up-days against down-days over the past 14 days on a 0-100 scale) is 34.2, a neutral reading.
- The one-month change is -22.7%, the three-month change is -7.5%, and the price is -56.8% from its 52-week high.
- Relative strength versus the KOSPI is 97 (on a 1-99 scale that converts the past year's return against the index with more weight on recent moves; higher means stronger than the market).
- That places it in roughly the top 2% of all stocks by strength.
- Over the past three months it lagged the index by 42.7%.
- It is best to read the chart alongside trading volume and disclosure dates.
- Judged on last year's (2025) figures alone, the metrics look poor.
- With net profit negative, the P/E (how many times a year's profit the price reflects) cannot even be calculated, ROE (how much it earns in a year on its equity) was -27.3%, and the operating margin was -10.1% — a loss-making year.
- The P/B (price against book net asset value) looks high at 2.38x, but this is closer to an illusion, where a large loss shrank shareholders' equity (book net assets) and thus the denominator, than a sign of quality.
- These trailing (last-year) metrics make the company look worse than it actually is.
- The key point is that this loss is not one that will keep recurring but a 'one-time clean-out' of unsold-unit provisions and overseas cost overruns.
- On a normalized-profit basis for this year (forward), the P/E is in the mid-teens — the multiple of an ordinary profitable builder, not a loss-maker.
- The debt ratio (debt against equity) is 295.2%, high even allowing for the construction business, but the current ratio, which gauges short-term solvency, is 194%, leaving room for immediate liquidity.
- Over five years, revenue rose from ₩8.7 trillion in 2021 to ₩11.6 trillion in 2023, then fell for three straight years to ₩10.5 trillion in 2024 and ₩8.1 trillion in 2025.
- Profit was more dramatic: after posting annual net profit of ₩480-660 billion from 2021 to 2023, it plunged to a ₩815.4 billion operating loss and a ₩916.1 billion net loss in 2025.
- That plunge was a 'pre-emptive loss recognition' that put provisions on domestic unsold sites (about ₩550 billion) and cost overruns at overseas civil and plant sites into the accounts all at once.
- The turn came in Q1 2026.
- Revenue was ₩1.95 trillion, down 6% year on year, but operating profit surged 68.9% to ₩255.6 billion, and net profit jumped 237.9% to ₩195.8 billion, lifting the operating margin to 13% in a single quarter.
- With the loss items already cleared, this signals cost ratios returning to normal, and we see this year as a return to a profitable track out of last year's one-off loss.
- For a stock at such a profit inflection, reality shows through only when viewed on this year's (forward) basis, not last year's numbers.
- Recent disclosures show both recovery and volatility.
- From late April through late May, several single sale-and-supply contract (large order) disclosures came in a row, bringing in new work whose contract value will be recognized as revenue as construction progresses.
- The May 15 quarterly report officially confirmed the swing from a 2025 loss to a ₩255.6 billion Q1 2026 operating profit.
- Meanwhile, the debt-guarantee decisions of May 7 and 14 are of a contingent-liability nature tied to real-estate project financing and the like, so they belong in the financial picture too.
- A June 2 clarification (unconfirmed) on rumors or media reports had the company stating that nothing was a confirmed fact.
- Taken together, the narrative runs 'loss recognition → order wins → confirmation of the swing to profit.'
- The strong case is clear.
- After pre-emptively clearing out last year's unsold-unit and overseas losses, first-quarter operating profit rose sharply, passing the earnings trough, and it has an order base in plants such as nuclear and LNG.
- Because of last year's loss the P/E cannot be calculated and the P/B looks high, but that is only an illusion at the moment earnings bottomed; on the premise of a normalized profit this year, the valuation burden is not large.
- The cautions are just as clear.
- With revenue down for three straight years, the recovery of profitability, not growth, is the key, and a 295% debt ratio plus several debt guarantees mean the financial safety cushion is not thick.
- A slowdown in domestic housing sales or additional cost overruns at overseas sites could shake profit again.
- In the end, it is strong if domestic sales hold, overseas costs stay controlled, and quarterly profits keep recurring, and weak if unsold units rise again, overseas losses recur, or contingent liabilities materialize.
🔎 Valuation vs peers Fairly valued
Among large general contractors that directly build housing, civil-engineering, and plant projects, this compares the peers whose figures are confirmed on the site.
| 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% |
(a) Against large peers, Daewoo E&C's P/B of 2.38x looks higher on the surface than Hyundai E&C's 1.6x, DL E&C's 0.49x, and GS E&C's 0.54x. (b) But that premium is not a sign of quality — it results from a large 2025 loss shrinking shareholders' equity (book net assets) and thus the denominator. Because last year's loss means the P/E cannot even be calculated, trailing metrics alone are easily misread as overvaluation. (c) Yet this is a profit-inflection stock that pre-emptively took its losses, so it should be viewed on this year's (forward) basis. Allowing for the Q1 swing to profit, the forward P/E on this year's normalized profit is in the mid-teens — neither extremely expensive nor cheap versus large peers, so we judge it fairly valued. That said, whether profit persists needs reconfirming in second-quarter and later results.
Price history Close · MA20 · MA60
The latest close is ₩16,040 and the market capitalization is ₩6.6 trillion. The price sits below its 20-day moving average (₩20,074) and below its 60-day moving average (₩25,686). 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 34.2, a neutral level. The one-month change is -22.7%, the three-month change is -7.5%, and the position relative to the 52-week high is -56.8%. Relative strength versus the KOSPI is 97 (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 98% of all stocks. Over the past three months it lagged the index by 42.7%. 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 -42.72% / 6M +159.57% / 12M +63.99%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 1.97x 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.
Profitability & financials
Return on equity (ROE) is -27.3%, below the sector average (7.0%). The operating margin is -10.1%. The debt ratio is 295.2%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $7.7B | $7.0B | $5.3B | -23.32% ↓ slower |
| Operating profit | $439.1M | $267.2M | -$540.4M | -302.28% ↓ slower |
| Net profit | $339.1M | $155.2M | -$604.6M | -489.70% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $5.8B | $6.9B | $7.7B | $7.0B | $5.3B |
| Operating profit | $489.3M | $503.7M | $439.1M | $267.2M | -$540.4M |
| Net profit | $321.2M | $334.0M | $339.1M | $155.2M | -$604.6M |
| Revenue CAGR | 4-yr avg -1.87% | ||||
Revenue fell 23.3% year over year (2023 ₩11.6 trillion → 2024 ₩10.5 trillion → 2025 ₩8.1 trillion), and the three-year trend is 'falling'. The rate of decline widened from the prior year. Operating profit fell 302.3% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is -1.9%. The two-year revenue CAGR is -16.8%. In the most recent quarter (Q1 2026), revenue was 6.0% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 23.3% year over year (3-year trend: falling).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-29UpdateSingle sale-and-supply contract signed — a new large order securing work.Over the medium term it reinforces the order backlog and is recognized as revenue and profit as construction progresses. Source
- 2026-05-15EarningsQ1 2026 quarterly report filed — revenue ₩1.95 trillion, operating profit ₩255.6 billion (+68.9%), net profit ₩195.8 billion (+237.9%), confirming the swing to profit.Strongly positive short term. A signal of passing the earnings trough that proves the 2025 loss was one-off. Source
- 2026-05-07UpdateDecision on a debt guarantee for a third party — a contingent liability tied to real-estate project financing and the like.Together with the 295% debt ratio, this shows the financial safety cushion is not thick, so whether the contingent liability materializes needs watching. Source
- 2026-06-02UpdateClarification (unconfirmed) on rumors or media reports — the company's position is that nothing is a confirmed fact.A short-term source of uncertainty. Any follow-up confirmation disclosure needs watching. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-02Disclosure
- 2026-05-29Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Single supply/sales contract
- 2026-05-22Single supply/sales contract
- 2026-05-18Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-15OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-14Amended filing
- 2026-05-07Disclosure
- 2026-04-30Single supply/sales contract (amended)
- 2026-04-29Amended filing
📖 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.