Hyundai AutoEver runs the IT operations of the Hyundai Motor Group, earning money from enterprise IT that builds and operates the group's computing systems (Q1 revenue of ₩737.8 billion, about 79% of the total) and from vehicle software covering navigation, connected cars, and SDV (Q1 revenue of ₩197.9 billion), with much of its revenue coming repeatedly from captive customers Hyundai Motor and Kia. In January 2026 it set 2026 revenue guidance of ₩4.512 trillion and declared a ₩1,900 per-share dividend; Q1 revenue was a record while operating profit fell, and at the end of June it raised the value of a next-generation ERP supply contract with Hyundai Motor from ₩105.4 billion to ₩114.7 billion. The strengths are captive recurring revenue, structural growth pillars in next-generation ERP and SDV, and a solid balance sheet with a 93.7% debt ratio. The caution is that even on this year's expected earnings the valuation is in the 70x range, a price that has to be justified by growth actually continuing.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 14.5% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 12.3% higher than a year earlier.
- ROE is 9.9% (controlling-interest basis). It is below the sector average.
- Operating margin is 6.0%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Hyundai Motor 31.59% (individual)
Controlling bloc incl. related parties 75.29%
With the controlling bloc holding 75%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Hyundai AutoEver runs the IT operations of the Hyundai Motor Group.
- It makes money on two broad pillars.
- The first is 'enterprise IT,' comprising SI (system integration) that newly builds group affiliates' computing systems and ITO (IT outsourcing) that operates and maintains already-installed systems on their behalf for a monthly fee.
- In Q1 this year, this segment's revenue was ₩737.8 billion, about 79% of the total and up 15.1% year on year.
- The second is 'vehicle software,' supplying software related to navigation, connected cars, and SDV (software-defined vehicles, whose functions are defined by software) that go into cars (Q1 revenue of ₩197.9 billion, up 2.9%).
- A major feature of this company is that much of its revenue comes repeatedly from its solid fixed customers (captive), Hyundai Motor and Kia.
- The latest close is ₩433,000 and the market cap is ₩11.9 trillion.
- The price sits below its 20-day line (₩569,375) and its 60-day line (₩584,633).
- Trading below both its short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a gauge that weighs 14 days of gains against losses on a 0-100 scale) is 29.1, near oversold territory.
- The stock is down 36.6% over one month and up 17.0% over three months, and stands 53.8% below its 52-week high.
- Relative strength versus the KOSPI is 75 (1-99, a return-versus-index measure over the past year weighted toward recent performance; higher means stronger than the market), placing it in roughly the top 25% of all stocks by strength.
- Over the past three months it lagged the index by 16.1%.
- Chart reading is best done alongside trading volume and the dates of disclosures.
- The valuation is high in absolute terms.
- The P/E (how many times one year of net profit the price reflects) is 79.7x on last year's finalized earnings, and the P/B (how many times net assets) is 6.43x.
- That is on the high side even among group-dedicated IT firms.
- This multiple, however, is a value on 'last year's profit,' and with revenue growing further this year, on the forward (this-year expected) basis discussed later the multiple comes down somewhat.
- On profitability, the ROE (how much it earns on equity in a year) is a reasonable 9.9%, and the operating margin of 6.0% and net margin of 4.3% are around the IT-services industry average.
- The balance sheet is sturdy: the debt ratio (debt against equity) is a low 93.7%, and interest coverage (capacity to cover interest with operating profit) of 21x means almost no interest burden.
- The dividend is ₩1,900 per share (0.36% yield, 28.6% payout ratio).
- The long-term growth trajectory is steady.
- Revenue grew from ₩2.07 trillion in 2021 to ₩4.25 trillion in 2025, about 19.7% average annual growth over five years, and net profit rose from ₩69.8 billion to ₩182.5 billion over the same span.
- In 2025 it kept up double-digit growth with revenue up 14.5% and operating profit up 13.8%.
- In Q1 this year, however, revenue came in strong at ₩935.7 billion (a record Q1, up 12.3%) while operating profit fell 20.7% year on year to ₩21.2 billion.
- This was the combined result of a deferral effect, as some customer contracts slipped to Q2 or later and pushed the timing of revenue and profit recognition back, and a temporary dip in navigation-option take rates due to tariff effects.
- In other words, the business did not turn down so much as recognition timing was pushed back.
- The company has officially guided 2026 revenue at ₩4.512 trillion (up 6.1% year on year); given that last year it also delivered results (₩4.2521 trillion) 8.9% above its initial guidance (₩3.906 trillion), a history of conservative guidance, the actual landing has room to be above this.
- On that basis, this year's net profit looks to be roughly ₩200 billion, in which case the forward P/E comes down to the low-70x range, below last year's 79.7x.
- Deferred revenue being recognized in the second half, plus demand from the group's ERP modernization and SDV software, are the grounds for expecting this year's profit to rise above last year's.
- The disclosure flow matches the growth narrative.
- In January 2026 the company directly set this year's revenue guidance of ₩4.512 trillion via a fair disclosure (operating-profit guidance left out amid external uncertainty).
- Around the same time it decided on a ₩1,900 per-share cash dividend.
- In April it disclosed Q1 preliminary results, where revenue was a record but operating profit fell, surfacing profit-deferral and cost issues.
- At the end of June it filed a correction to its 'next-generation ERP head-office and Americas roll-in' supply contract with Hyundai Motor, raising the contract value from ₩105.4 billion to ₩114.7 billion and extending the term to the end of July.
- This highlights that the group's computing-modernization project is expanding.
- The points to watch are clear.
- The strengths are (1) captive demand with a recurring-revenue base in Hyundai Motor and Kia, (2) structural growth pillars in next-generation ERP and SDV software, and (3) a sturdy balance sheet with a 93.7% debt ratio and 21x interest coverage.
- The caution is that the absolute level of valuation is high.
- Even on this year's expected earnings the multiple comes down from last year but is still in the 70x range, a price that has to be justified by growth actually continuing.
- If, as in Q1, contract timing slips or margins wobble on external variables such as tariffs and navigation take rates, the high multiple returns as volatility.
- In short, the setup is strong if group demand and SDV growth materialize as planned and deferred revenue is recognized in the second half, while the high valuation becomes a burden if growth slows or margin pressure persists.
🔎 Valuation vs peers Overvalued
A comparison centered on group-dedicated (captive) IT-services and SI firms, gauging position between a mature large-cap (Samsung SDS) and a growth-stage group SI (POSCO DX) as the two ends.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Samsung SDS | 19.18x | 1.47x | 7.66% |
| POSCO DX | 56.13x | 5.13x | 9.14% |
Samsung SDS (P/E 19.4, P/B 1.5, revenue up 0.7%) is mature and low-growth, while POSCO DX (P/E 63.2, P/B 5.8) is a group-SI growth stock. Hyundai AutoEver, at a P/E of 79.7x and P/B of 7.9x, is higher than both, sitting at the very top even among growth-stage group SIs. The high multiple on last year's finalized earnings is the result of profit-inflection and growth expectations layered on, and on this year's expected earnings it comes down somewhat to the low-70x range. Even so, the absolute level is still high, so even granting the premium factors of 14.5% revenue growth and SDV growth, it is a valuation that has to be justified by growth actually continuing. It is hard to view as undervalued.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | ₩4.51 trillion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩433,000 and the market capitalization is ₩11.9 trillion. The price sits below its 20-day moving average (₩569,375) and below its 60-day moving average (₩584,633). 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 29.1, near oversold territory. The one-month change is -36.6%, the three-month change is +17.0%, and the position relative to the 52-week high is -53.8%. Relative strength versus the KOSPI is 75 (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 75% of all stocks. Over the past three months it lagged the index by 16.1%. 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 -16.08% / 6M -13.87% / 12M +9.30%
Key metrics vs sector median
Valuation
The P/E of 65.07x is above the sector median (19.18x). The P/B of 6.43x is above the sector median (1.93x).
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 9.9%, in line with the sector average (10.0%). The operating margin is 6.0%. The debt ratio is 93.7%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $2.0B | $2.5B | $2.8B | +14.50% ↓ slower |
| Operating profit | $120.2M | $148.7M | $169.2M | +13.75% ↓ slower |
| Net profit | $91.3M | $113.2M | $120.9M | +6.85% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.4B | $1.8B | $2.0B | $2.5B | $2.8B |
| Operating profit | $63.7M | $94.4M | $120.2M | $148.7M | $169.2M |
| Net profit | $46.3M | $75.5M | $91.3M | $113.2M | $120.9M |
| Revenue CAGR | 4-yr avg 19.71% | ||||
Revenue rose 14.5% year over year (2023 ₩3.1 trillion → 2024 ₩3.7 trillion → 2025 ₩4.3 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 13.8% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 19.7%. The two-year revenue CAGR is 17.8%. In the most recent quarter (Q1 2026), revenue was 12.3% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- Revenue grew 14.5% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-01-30FilingOfficially set 2026 consolidated revenue guidance at ₩4.512 trillion (up 6.1% year on year). Operating-profit outlook left out amid external uncertainty.Confirms the company's official revenue bar. Given a history of exceeding last year's guidance by 8.9%, it can be read as conservative guidance. Source
- 2026-01-29DividendDecided on a ₩1,900 per-share cash dividend (payout ratio about 28.6%, dividend yield 0.36%).Maintains a stable dividend policy aligned with profit growth. The dividend yield itself is on the low side. Source
- 2026-04-30EarningsQ1 preliminary results: revenue of ₩935.7 billion (a record, up 12.3%), operating profit of ₩21.2 billion (down 20.7%). Revenue rose but profit fell.Confirms weak short-term profit. Its temporary nature from contract-timing deferral and tariff effects makes a second-half recovery the key question. Source
- 2026-06-30UpdateCorrection to the 'next-generation ERP head-office and Americas roll-in' supply contract with Hyundai Motor — contract value raised from ₩105.4 billion to ₩114.7 billion, term extended to 2026-07-31 (3.74% of recent revenue).Supports the durability of enterprise-IT demand as the group's computing-modernization project expands. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-18Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-04-30Disclosure
- 2026-04-30EarningsFair-disclosure notice
- 2026-04-20Disclosure
- 2026-04-20EarningsEarnings disclosure
- 2026-03-31OwnershipOwnership-change filing
- 2026-03-27OwnershipLargest-shareholder ownership change report
- 2026-03-26Disclosure
- 2026-03-26Shareholders' 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.