Korea Fuel-Tech mainly makes automotive fuel-system components. Its flagship products — carbon canisters, filler necks, and injection-molded plastic parts — see rising demand as emissions rules tighten, and the company is also building out newer areas such as deep-learning-based ADAS software. Profitability is solid at a 16.9% ROE, revenue and earnings have grown steadily for several years, and the company signaled a commitment to shareholder returns through a treasury-share trust contract in May and a cash-and-in-kind dividend in February (yielding roughly 4%). What stands out lately is that a rare discount — a P/E of 3.14x, P/B of 0.53x, and a forward P/E of 4.18x — comes into focus when tighter environmental regulation underpins demand for eco-friendly parts and earnings keep rising, though it could weaken if carmaker production slows or if currency swings and one-off costs unsettle quarterly net profit.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 6.8% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 7.6% higher than a year earlier.
- ROE is 16.9% (controlling-interest basis). It is above the sector average.
- Operating margin is 5.8%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder SIS S.R.L. 34.91% (individual)
Controlling bloc incl. related parties 39.53%
With the controlling bloc holding 40%, the ownership structure is stable.
🔎 In-depth analysis
- Korea Fuel-Tech mainly makes automotive fuel-system components.
- Its signature products are the carbon canister, which traps evaporative fumes leaking from the fuel tank using activated carbon and routes them back to the engine; the filler neck, which connects the fuel inlet to the tank; and injection-molded plastic parts used in the vehicle body.
- The carbon canister is an emissions-regulation beneficiary whose demand grows as exhaust rules tighten, so it is tied to carmakers' eco-friendly and compliance trends.
- On top of this, the company is broadening its lineup into newer areas such as deep-learning-based ADAS software that detects pedestrians even in poor weather and vehicle image monitors (VIM).
- It supplies global automakers through a base of production and delivery not only in Korea but overseas as well.
- The latest close is ₩5,270, with a market cap of ₩146.7 billion.
- The price sits below both the 20-day line (₩5,565) and the 60-day line (₩6,378).
- Trading beneath both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a gauge comparing upward and downward strength over the last 14 days on a 0–100 scale) is 40.2, a neutral level.
- The one-month change is -12.8%, the three-month change is -22.6%, and the price stands -43.0% from its 52-week high.
- Relative strength versus the KOSDAQ is 66 (on a 1–99 scale that weights recent returns against the index over the past year more heavily; higher means stronger than the market).
- That places it in roughly the top 33% of all stocks by strength.
- Over the past three months it has outpaced the index by 0.9%.
- Chart signals are best read alongside trading volume and the dates of disclosures.
- Recent annual revenue was ₩785.9 billion, with operating profit of ₩45.4 billion and net profit of ₩43.9 billion.
- The operating margin is 5.8%, ROE (how much a company earns in a year on its own equity) is 16.9% — above the peer average — and the net margin is 5.6%.
- The debt-to-equity ratio (borrowings relative to equity) is 98.3%, the current ratio is 165%, and interest coverage is 6.5x, so its capacity to service debt is fairly stable.
- The current P/E of 3.14x and P/B of 0.53x look low on the numbers alone, but this is less about the stock being cheap for lack of merit and more that the price of a company with rising earnings has been pushed down that far.
- In a stretch of growing earnings, the forward P/E based on this year's profit (3.93x) fits the real picture better than a P/E calculated on last year's results.
- Because this forward P/E is below the median of the peer comparison set, the diagnostic reads the valuation as undervalued.
- Revenue rose each year — ₩679.5 billion in 2023, ₩735.9 billion in 2024, and ₩785.9 billion in 2025 — while operating profit climbed over the same span (₩33.9B → ₩37.5B → ₩45.4B, +21% last year) and net profit accelerated (₩30.5B → ₩35.1B → ₩43.9B, +25% last year).
- Earnings growing faster than revenue is a sign that profitability is improving in tandem.
- Cumulative revenue for Q1 2026 was ₩210.6 billion, up +7.6% year over year, with operating profit also up +1.9% (net profit came in at -17.5% on a cumulative basis, blended with currency and one-off factors).
- This year's earnings outlook, pegged at around ₩43.8 billion in operating profit and a forward P/E near 4.18x, reflects steady top-line expansion supported by regulation-driven demand for eco-friendly parts such as carbon canisters, while operating-level profitability holds.
- With the top line and operating profit still trending up and no evidence that next year's outlook drops below this year, this is not the place to conclude that earnings have peaked.
- Recent disclosures have clustered around shareholder returns.
- On May 21, 2026, the company resolved to enter a treasury-share acquisition trust contract; on February 27, 2026, it decided on a cash-and-in-kind dividend; and on December 16, 2025, it set the record date (share-register closing) for that dividend.
- A run of buybacks and dividends suggests the company sees room to return the cash it earns to shareholders, consistent with a dividend yield reaching about 4%.
- That said, sustaining such returns requires earnings and cash flow to keep supporting them, so it is worth checking in later results disclosures whether that earnings strength holds.
- This is a stock with clear strengths.
- Profitability is solid at a 16.9% ROE, revenue and earnings have grown steadily for several years, and the balance sheet is stable on debt and liquidity.
- Add a dividend yield of about 4% and share buybacks, and there is a visible commitment to shareholder returns.
- Yet the price has fallen a long way to a P/E of 3.14x, P/B of 0.53x, and forward P/E of 4.18x, a rarely cheap zone relative to earnings and assets among peers.
- In other words, it looks less like the business and numbers are cheap because they are poor, and more like the price fell first to create the discount.
- It is strong when tighter environmental regulation underpins demand for eco-friendly parts and earnings keep rising, and it can weaken when carmaker production slows or currency swings and one-off costs unsettle quarterly net profit.
- Since the market cap is not large, it is worth keeping in mind that quarterly results and disclosures carry outsized influence on the metrics.
🔎 Valuation vs peers Undervalued
A comparison set of auto-parts names with adjacent market capitalization.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Daechang Forging | 5.37x | 0.48x | 8.92% |
| Motrex | 17.43x | 0.52x | 2.96% |
| KNW | — | 0.80x | -4.72% |
We looked first at a public-data comparison set of auto-parts names with nearby market capitalization. The current P/E (how many times a year's earnings the price represents) is 3.34x, and the P/B (how many times book value the price represents) is 0.56x. That said, smaller-cap names are heavily swayed by earnings volatility and financing disclosures, so we did not draw firm conclusions from metrics based solely on last year's finalized results. The outlook box is based on a DART seasonality approximation.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩875.2 billion | ₩43.8 billion | ₩34.8 billion |
| Next quarter | Q2 2026 | ₩222.5 billion | ₩12.2 billion | ₩10.3 billion |
Price history Close · MA20 · MA60
The latest close is ₩5,270 and the market capitalization is ₩146.7 billion. The price sits below its 20-day moving average (₩5,565) and below its 60-day moving average (₩6,378). 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 40.2, a neutral level. The one-month change is -12.8%, the three-month change is -22.6%, and the position relative to the 52-week high is -43.0%. Relative strength versus the KOSDAQ is 66 (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 67% of all stocks. Over the past three months it outpaced the index by 0.9%. 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 +0.89% / 6M -20.69% / 12M +5.10%
Key metrics vs sector median
Valuation
The P/E of 3.34x is below the sector median (7.76x). The P/B is 0.56x.
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 2.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 0.799x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 16.9%, above the sector average (7.0%). The operating margin is 5.8%. The debt ratio is 98.3%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $450.4M | $487.7M | $520.9M | +6.79% ↓ slower |
| Operating profit | $22.5M | $24.9M | $30.1M | +20.99% ↑ faster |
| Net profit | $20.2M | $23.3M | $29.1M | +25.04% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $308.6M | $371.8M | $450.4M | $487.7M | $520.9M |
| Operating profit | $6.3M | $12.9M | $22.5M | $24.9M | $30.1M |
| Net profit | $3.7M | $6.2M | $20.2M | $23.3M | $29.1M |
| Revenue CAGR | 4-yr avg 13.98% | ||||
Revenue rose 6.8% year over year (2023 ₩679.5 billion → 2024 ₩735.9 billion → 2025 ₩785.9 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 21.0% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 14.0%. The two-year revenue CAGR is 7.5%. In the most recent quarter (Q1 2026), revenue was 7.6% 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 3.8%, is on the high side.
- ROE of 16.9% points to solid profitability.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue rose 6.8% year over year, and the pace is slowing (3-year trend: rising).
Recent news & events searched · sourced
- 2026-05-21UpdateMaterial-event report (resolution to enter a treasury-share acquisition trust contract): confirming return conditionsA disclosure related to cash returns or changes in share count. Check whether earnings strength and cash flow support it. Source
- 2026-02-27UpdateCash and in-kind dividend decision: confirming return conditionsA disclosure related to cash returns or changes in share count. Check whether earnings strength and cash flow support it. Source
- 2025-12-16UpdateRecord-date (share-register closing) decision for cash and in-kind dividend: confirming return conditionsA disclosure related to cash returns or changes in share count. Check whether earnings strength and cash flow support it. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Closing price | ₩5,270 | ₩5,270 | Confirmed | link |
| Latest quarterly results | revenue ₩210.6 billion, operating profit ₩11.8 billion | revenue ₩210.6 billion, operating profit ₩11.8 billion | Confirmed | link |
| Annual results | revenue ₩785.9 billion, operating profit ₩45.4 billion | revenue ₩785.9 billion, operating profit ₩45.4 billion | Confirmed | link |
| Shareholder-return disclosure (original text) | : | : | Confirmed | link |
| Shareholder-return disclosure (original text) | ㆍ: | ㆍ: | Confirmed | link |
| Shareholder-return disclosure (original text) | ㆍ: | ㆍ: | Confirmed | link |
| Outlook-box basis | DART | DART | Confirmed | link |
Recent filings
- 2026-05-27Disclosure
- 2026-05-21TreasuryMaterial-fact report
- 2026-05-19OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-15PeriodicQuarterly report
- 2026-04-16Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-24OwnershipOwnership-change filing
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Audit report
- 2026-03-10Shareholders' meeting notice
- 2026-03-09OwnershipOwnership-change filing
- 2026-02-27Shareholders' 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.