DY Power is a components maker that produces hydraulic cylinders for excavators and construction and industrial machinery, supplying construction-equipment manufacturers at home and abroad; its results track demand and conditions in downstream construction machinery such as excavators. A stretch of shareholder-return disclosures followed — treasury-share disposals in December 2025 and January 2026, and a cash and in-kind dividend in February 2026 — while 2025 earnings returned to double-digit growth and first-quarter revenue and operating profit both rose. The notable point recently is that a trailing P/E of 4.75x, a P/B of 0.38x and a forward P/E of 4.30x sit below peers, and combined with an ROE of 8.0%, a current ratio of 372% and a dividend yield in the 4% range, the cheap valuation and recovering earnings point the same way; still, if downstream construction-machinery conditions turn down again and revenue growth stalls, the pace of the recovery could slow.

At-a-glance assessment financial health · growth · profitability · valuation

Financial healthStable
  • Debt ratio, current ratio and interest burden all look healthy.
GrowthDeclining
  • Revenue fell 0.5% year over year (3-year trend: falling).
  • Most recent quarter (Q1 2026) revenue was 9.9% higher than a year earlier.
ProfitabilityHealthy
  • ROE is 8.0% (total-net basis). It is above the sector average.
  • Operating margin is 8.0%.
ValuationUndervalued
  • The forward P/E sits below the sector median.

Ownership & governance As of 2025-12-31

Largest shareholder DY 38.44% (corporate)

Controlling bloc incl. related parties 38.47%

With the controlling bloc holding 38%, the ownership structure is stable.

🔎 In-depth analysis

🏢Business
  • DY Power is a components maker that produces and sells hydraulic cylinders — the core parts that use hydraulic force to push and pull the arm and boom — for excavators and construction and industrial machinery.
  • The main revenue stream is hydraulic cylinders supplied to construction-equipment makers at home and abroad, so results move with demand for downstream construction machinery such as excavators and with the broader condition of that market.
  • Because its market cap is not large, the picture becomes clearer when you watch not only the business itself but also how shareholder-return disclosures such as dividends and treasury-share actions affect the share count and earnings.
📈Price & chart
  • The recent close is ₩10,960 and the market cap is ₩121.0 billion.
  • The price sits below the 20-day line (₩11,470) and the 60-day line (₩13,338).
  • Trading below both the short- and medium-term moving averages, the trend is on the soft side.
  • The RSI (an auxiliary gauge that weighs upward versus downward strength over the last 14 days on a 0–100 scale) is 36.7, a neutral level.
  • The one-month change is -9.8%, the three-month change is -21.6%, and the position versus the 52-week high is -32.8%.
  • 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).
  • That places it in roughly the top 85% by strength among all stocks.
  • Over the past three months it lagged the index by 41.1%.
  • Chart reading is best done alongside trading volume and disclosure dates.
📊Key metrics
  • For the most recent full year (2025), revenue was ₩382.8 billion, operating profit ₩30.4 billion and net profit ₩25.1 billion.
  • With an operating margin of 8.0% and an ROE (how much is earned on equity in a year) of 8.0%, profitability is solid and above the peer average, and with a debt ratio (debt relative to equity) of 120.3%, a current ratio of 372% and an interest-coverage ratio of 21x, there is ample room to repay debt and cover interest.
  • The P/E (how many times a year's earnings the share price is) is 4.81x and the P/B (how many times book value the share price is) is 0.39x.
  • These numbers are not high and burdensome but rather low, meaning the share price is set cheaply against the profit it earns and the assets it holds.
  • On top of that, this year's forward P/E of 4.30x is even lower than last year's basis, a pattern in which the same price looks cheaper as earnings grow.
  • Compared with peers CS Bearing (P/E 9.1x) and Woorim PTS (P/E 40x), it is far lower, a clear undervaluation signal.
🚀Growth
  • Revenue eased once, from ₩430.0 billion in 2023 to ₩382.8 billion in 2025, but over the same period earnings turned direction again.
  • 2025 operating profit of ₩30.4 billion rose 19.2% year on year and net profit grew 14.7%, entering a recovery phase.
  • This recovery became clearer this year: first-quarter 2026 revenue of ₩102.9 billion (+9.9% year on year), operating profit of ₩11.8 billion (+19.4%) and net profit of ₩9.8 billion (+10.8%) rose together.
  • The full-year outlook this year is revenue of ₩395.5 billion, operating profit of ₩34.7 billion and net profit of ₩28.1 billion, a picture in which the double-digit profit growth already confirmed in the first quarter continues through the year.
  • In other words, the reason earnings grow this year is that quarterly results are actually improving as downstream construction-machinery demand recovers and margins improve, and it is natural to see this as a recovery leg rising off last year's bottom.
📰Recent news & filings
  • Recent disclosures relate mainly to shareholder returns.
  • A December 30, 2025 decision to dispose of treasury shares was followed by a January 7, 2026 report on the disposal result, and on February 9, 2026 a cash and in-kind dividend was decided.
  • Treasury-share disposals and dividends both concern the flow of cash and stock returned to shareholders, so watching whether such returns are steadily backed by actual earnings strength and cash flow helps gauge how the company uses the money it earns.
🧭Bottom line
  • DY Power is a stock whose strengths are relatively clear.
  • With a trailing P/E of 4.75x, a P/B of 0.38x and a forward P/E of 4.30x this year — markedly below its peer set — it reads as undervalued, and this is joined by solid profitability (ROE of 8.0% and an operating margin of 8.0%), a stable balance sheet (debt ratio of 120% and current ratio of 372%) and a dividend yield in the 4% range.
  • Above all, 2025 earnings returned to double-digit growth and first-quarter 2026 revenue and operating profit both rose, so the cheap valuation and recovering results point the same way.
  • The setup works strongly when downstream construction-machinery demand keeps recovering and quarterly profit growth is sustained; conversely, if downstream conditions such as excavators turn down again and revenue growth stalls, the pace of recovery could slow.
  • On price, it has been pushed down sharply and sits near a bottoming zone, a stretch where the cheap valuation has room to come to the fore as the earnings recovery is confirmed.

🔎 Valuation vs peers Undervalued

Peers with adjacent market caps within machinery and equipment.

PeerP/EP/BROE
Toptec0.28x-3.84%
Woolim PTS39.76x1.15x2.89%
CS Bearing9.03x1.00x11.12%

The primary reference was a public-data peer set with nearby market caps within machinery and equipment. The current P/E (how many times a year's earnings the share price is) is 4.81x and the P/B (how many times book value the share price is) is 0.39x. That said, because smaller-cap names are heavily affected by earnings swings and financing disclosures, no firm conclusion was drawn from last year's confirmed-results metrics alone. The basis for the outlook box is a DART seasonality approximation.

Earnings outlook company-stated · verified

TypePeriodRevenueOperating profitNet profit
This year2026₩395.5 billion₩34.7 billion₩28.1 billion
Next quarterQ2 2026₩109.9 billion₩10.8 billion₩7.3 billion
₩10,960 -0.99%
Market cap $80.2M

Price history Close · MA20 · MA60

Close MA20MA60

The latest close is ₩10,960 and the market capitalization is ₩121.0 billion. The price sits below its 20-day moving average (₩11,470) and below its 60-day moving average (₩13,338). 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 36.7, a neutral level. The one-month change is -9.8%, the three-month change is -21.6%, and the position relative to the 52-week high is -32.8%. 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 15% of all stocks. Over the past three months it lagged the index by 41.1%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.

Relative performance stock vs index · start = 100

16Relative strength vs KOSPI1–99 · last 12 months’ return vs the index, recency-weighted · higher = stronger than the marketTop 85% strength

Excess return vs index · 3M -41.12% / 6M -51.17% / 12M -64.11%

StockKOSPI

Key metrics vs sector median

Valuation

P/E (trailing)4.81x
Forward P/E4.30x
P/B0.39x
Forward P/B0.38x
P/S0.32x
EPS₩2,277
BPS (book value/share)₩28,306
Dividend yield4.56%
DPS₩500

The P/E of 4.81x is below the sector median (14.44x). The P/B of 0.39x is below the sector median (1.44x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.

Enterprise value (EV)

Net debt-$41.6M
EV (enterprise value)$41.2M
EV/EBIT2.04x
EV/EBITDA1.44x
EV/Sales0.16x
FCF (free cash flow)$9.9M
FCF yield11.97%

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

ROE8.04%
Operating margin7.95%
Net margin6.57%
Debt ratio120.26%
Payout ratio22.00%

Return on equity (ROE) is 8.0%, above the sector average (5.0%). The operating margin is 8.0%. The debt ratio is 120.3%, so the financial structure is moderate.

Growth FY2025 · annual report (consolidated)

Item202320242025YoY
Revenue$285.0M$254.9M$253.7M-0.48% ↑ faster
Operating profit$24.1M$16.9M$20.2M+19.20% ↑ faster
Net profit$18.2M$14.5M$16.7M+14.67% ↑ faster
5-year20212022202320242025
Revenue$289.7M$277.7M$285.0M$254.9M$253.7M
Operating profit$27.9M$17.9M$24.1M$16.9M$20.2M
Net profit$20.6M$11.8M$18.2M$14.5M$16.7M
Revenue CAGR4-yr avg -3.27%

Revenue fell 0.5% year over year (2023 ₩430.0 billion → 2024 ₩384.6 billion → 2025 ₩382.8 billion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Operating profit rose 19.2% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is -3.3%. The two-year revenue CAGR is -5.7%. In the most recent quarter (Q1 2026), revenue was 9.9% higher than the same period a year earlier.

Latest quarterly results Q1 2026 · vs year-ago

Revenue$68.2M
Revenue YoY+9.89%
Operating profit$7.8M
Op. profit YoY+19.39%
Net profit$6.5M
Net profit YoY+10.84%

Technical indicators

RSI (14)36.7
MA20₩11,470
MA60₩13,338
1-month-9.79%
3-month-21.60%
vs 52-wk high-32.76%

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 4.6%, is on the high side.
  • The balance sheet is stable in terms of debt and liquidity.

Points to watch

  • Revenue fell 0.5% year over year (3-year trend: falling).

Recent news & events searched · sourced

Figure cross-check computed ↔ external

MetricComputedExternalStatusSource
Closing price₩10,960₩10,960Confirmedlink
Latest quarterly resultsrevenue ₩102.9 billion, operating profit ₩11.8 billionrevenue ₩102.9 billion, operating profit ₩11.8 billionConfirmedlink
Annual resultsrevenue ₩382.8 billion, operating profit ₩30.4 billionrevenue ₩382.8 billion, operating profit ₩30.4 billionConfirmedlink
Shareholder-return disclosure source text::Confirmedlink
Shareholder-return disclosure source text::Confirmedlink
Shareholder-return disclosure source textㆍ:ㆍ:Confirmedlink
Outlook box basisDARTDARTConfirmedlink

Recent filings

📖 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.