DL E&C is a general construction company established in 2021 when it inherited the construction business in the DL Group spin-off; it is not a holding company but carries out construction directly to generate revenue and profit, with the 'e-Pyeonhansesang' and 'ACRO' housing and building business making up around half of revenue and driving profitability, followed by civil engineering and plant (refining, petrochemical and power EPC). New orders continued in May-June 2026, including the Seongnam Sinheung 1 and Daejeon Doma 13 redevelopments, Q1 operating profit of ₩157.4 billion and net profit of ₩160.1 billion confirmed an earnings improvement, and it is broadening its growth axes with SMR standardized design and LNG combined-cycle power. What stands out lately is that with earnings past their trough and recovering, normalizing housing cost ratios, and net cash with a P/B of 0.49x signaling undervaluation versus large peer builders as strengths, revenue itself is declining, so the earnings recovery leans heavily on cost-ratio improvement, the plant new-order plan has been sharply lowered, raising concern over a backlog gap from 2027 onward, and on-site safety risks such as serious accidents remain.
At-a-glance assessment financial health · growth · profitability · valuation
- Revenue fell 11.0% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 4.6% lower than a year earlier.
- ROE is 7.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 5.2%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder DL 23.15% (corporate)
Controlling bloc incl. related parties 31.57%
With the controlling bloc holding 32%, the ownership structure is stable.
🔎 In-depth analysis
- DL E&C is a general construction company established in 2021 when the DL Group split into a holding company (DL Holdings) and operating companies and it inherited the construction business.
- It is not a holding company governed by equity-method income but an actual builder that carries out construction directly to generate revenue and profit.
- It earns money along three broad axes.
- First, housing and building sells and builds under the apartment brand 'e-Pyeonhansesang' and the high-end 'ACRO,' accounting for around half of revenue, and it is this segment's cost ratio (cost as a share of construction billings) that drives the company's overall profitability.
- Second, civil engineering handles infrastructure such as roads, bridges and tunnels; third, plant designs, procures and builds (EPC) refining, petrochemical and power facilities.
- Recently it has been broadening its business scope into power plants such as small modular reactor (SMR) standardized-design partnerships and LNG combined-cycle power.
- The latest close is ₩61,900 and the market cap is ₩2.4 trillion.
- The price sits below the 20-day line (₩68,735) and below the 60-day line (₩80,565).
- Trading below both the short-term and mid-term moving averages, the trend is on the subdued side.
- The RSI (a supplementary gauge that weighs the strength of gains against losses over the last 14 days on a 0-100 scale) is 41.4, a neutral level.
- The one-month change is -12.1%, the three-month change is -18.1%, and the position versus the 52-week high is -39.6%.
- Relative strength against the KOSPI is 63 (1-99, a conversion of returns versus the index over the past year that weights recent performance more heavily; higher means stronger than the market).
- That places it in roughly the top 37% of all stocks by strength.
- Over the past three months it lagged the index by 47.6%.
- Chart readings are best interpreted alongside trading volume and disclosure dates.
- The P/E ratio (how many times one year's net profit the share price represents) is 6.47x and the P/B (how many times net asset value per share) is 0.46x, about half of book value.
- ROE (how much is earned in a year on equity) is 7.1%, the operating margin 5.2% and the net margin 5.0%.
- The debt ratio (debt against equity) of 184% looks high given the nature of construction, but the company is in a net-cash position with more cash than debt, so financial strength is sound.
- With a current ratio of 151% and interest coverage of 2.9x, the immediate repayment burden is not in a danger zone.
- The dividend yield is 1.3% (₩890 per share).
- The key point here, though, is that the P/E and P/B above are on 'last year's confirmed results' (trailing), from a period when earnings were at a trough.
- As shown below, earnings grew quickly into 2026, so the multiple on this year's recovered earnings should be viewed lower than this.
- In other words, the impression given by last year's metrics can understate the company's current condition.
- Revenue fell 11.0% year on year to ₩7.40 trillion in 2025, but earnings moved the other way.
- Net profit rose three years running - ₩187.9 billion in 2023, ₩229.2 billion in 2024, ₩370.2 billion in 2025 - accelerating (+61.5%), and operating profit also rebounded +42.8% in 2025.
- Earnings rising even as revenue falls is because low-margin housing sites that carried heavy cost burdens are being cleared out and the cost ratio is normalizing.
- This trend grew clearer in Q1 2026, with operating profit of ₩157.4 billion (+94.3% year on year) and net profit of ₩160.1 billion (+429%), and the operating margin jumping from 4.5% to 9.1%.
- The housing segment's gross margin also recovered to double digits.
- The reason earnings are growing this much this year is not a fleeting market blip but that past high-cost sites are dropping out and the profit structure itself has improved, and viewed on this recovered earnings the current share price trades at a far lower multiple than the impression given by last year's metrics.
- That said, the revenue top line is on a declining trend and the plant new-order plan has been lowered, raising concern over a backlog gap from 2027 onward, so checking the housing cost ratio and new-order flow each quarter is the point to watch.
- Recent disclosures center on orders and contracts.
- Through May-June 2026, single sale and supply contract disclosures for urban-redevelopment and infrastructure work followed one after another, including the Seongnam Sinheung 1 and Daejeon Doma 13 redevelopments, extending housing and civil orders.
- For a builder, such disclosures come at the stage before new orders are recognized as revenue, meaning a backlog is building that will support the top line over the coming quarters.
- In plant, new growth axes such as small modular reactor (SMR) standardized design and LNG combined-cycle power come to the fore.
- The Q1 quarterly report submitted on May 15 officially confirmed the earnings improvement of operating profit ₩157.4 billion and net profit ₩160.1 billion.
- Meanwhile, the May 26 disclosure of a serious accident is a safety and regulatory matter inherent to construction that can affect cost, schedule and reputation, so its follow-up progress should be watched together.
- Points to observe: that earnings are clearly recovering past their trough; that profitability has structurally improved as housing cost ratios normalize; and that net cash, a P/B of 0.49x and a low P/E read as undervaluation signals versus large peer builders.
- Viewed on this year's recovered earnings, the multiple is clearly lower than for Hyundai E&C, GS E&C, Samsung E&A and the like.
- Points to note: that revenue itself is declining, so the earnings recovery leans heavily on cost-ratio improvement; that the plant new-order plan has been sharply lowered, raising concern over a backlog gap from 2027 onward; and that on-site safety risks such as serious accidents remain.
- In sum, it is 'a phase where undervaluation appeal comes to the fore as long as the housing cost-ratio recovery continues and net-cash strength is maintained,' versus 'a phase where the pace of recovery slows if the housing cost ratio worsens again or a new-order gap feeds into a revenue decline.' On the current metrics alone, it sits in an undervalued range where the price is low relative to assets and earnings.
🔎 Valuation vs peers Undervalued
Large general construction companies combining housing, civil engineering and plant were selected on a business-composition basis. Hyundai E&C, GS E&C and Daewoo E&C are in the same business group, while Samsung E&A, with a high weighting of plant and EPC, is viewed together as a reference for DL E&C's plant segment. All figures are the site's own calculations at the current price.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hyundai Engineering & Construction | 29.51x | 1.33x | 4.51% |
| GS E&C | 26.77x | 0.52x | 1.95% |
| Samsung E&A | 13.81x | 1.80x | 13.03% |
| Daewoo E&C | — | 1.94x | -27.25% |
(a) Position versus the peer set: against Hyundai E&C (P/E 35.5x), GS E&C (27.6x) and Samsung E&A (16.4x), DL E&C's P/E of 6.98x and P/B of 0.49x are clearly lower, and its ROE of 7.1% is in the upper tier among pure builders. (b) Premium/discount: it is in a clear discount, with a P/B of 0.49x recognizing net asset value at less than half. Given net cash and the earnings recovery, this discount is hard to justify. (c) The limits of trailing and the forward basis: the current P/E is calculated on results from a period when earnings were at a trough, so reflecting 2026's recovered earnings the actual multiple falls below this. As the Q1 operating margin of 9.1% and the +429% improvement in net profit stem from a structural factor - housing cost-ratio normalization - the valuation should be viewed lower than the impression given by last year's metrics, and the undervaluation appeal holds as long as the earnings recovery continues.
Price history Close · MA20 · MA60
The latest close is ₩61,900 and the market capitalization is ₩2.4 trillion. The price sits below its 20-day moving average (₩68,735) and below its 60-day moving average (₩80,565). 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 41.4, a neutral level. The one-month change is -12.1%, the three-month change is -18.1%, and the position relative to the 52-week high is -39.6%. Relative strength versus the KOSPI is 63 (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 63% of all stocks. Over the past three months it lagged the index by 47.6%. 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 -47.64% / 6M -6.87% / 12M -48.43%
Key metrics vs sector median
Valuation
The P/E of 6.47x is below the sector median (8.02x). The P/B of 0.46x is in line with the sector median (0.50x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
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 10.4%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.225x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 7.1%, in line with the sector average (7.0%). The operating margin is 5.2%. The debt ratio is 184.4%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $5.3B | $5.5B | $4.9B | -11.01% ↓ slower |
| Operating profit | $219.2M | $179.6M | $256.5M | +42.82% ↑ faster |
| Net profit | $124.5M | $151.9M | $245.4M | +61.50% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $5.1B | $5.0B | $5.3B | $5.5B | $4.9B |
| Operating profit | $634.4M | $329.4M | $219.2M | $179.6M | $256.5M |
| Net profit | $382.4M | $273.8M | $124.5M | $151.9M | $245.4M |
| Revenue CAGR | 4-yr avg -0.76% | ||||
Revenue fell 11.0% year over year (2023 ₩8.0 trillion → 2024 ₩8.3 trillion → 2025 ₩7.4 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit rose 42.8% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is -0.8%. The two-year revenue CAGR is -3.8%. In the most recent quarter (Q1 2026), revenue was 4.6% lower 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.
Points to watch
- Revenue fell 11.0% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-06-05UpdateSingle sale and supply contract disclosure. New construction orders such as urban-redevelopment and infrastructure are disclosed at the stage before revenue recognition.Reinforces the order backlog, securing mid-term revenue visibility. Housing and civil-centered orders continue. The scale of impact varies with the contract size and margin. Source
- 2026-05-26UpdateDisclosure of a serious accident. A construction-site safety matter is disclosed.Can be negative for near-term cost, schedule delay and reputation, and if repeated it burdens orders and construction. Follow-up progress needs to be checked. Source
- 2026-05-29FilingDisclosure of a major management matter relevant to investment judgment. Key business and management matters are announced.Of the nature of transparent disclosure of key business and management information; depending on the details it serves as a reference for judging business direction. Source
- 2026-05-15EarningsQ1 2026 quarterly report submitted. Revenue ₩1.7 trillion, operating profit ₩157.4 billion (+94.3%), net profit ₩160.1 billion (+429%), operating margin 9.1%.Revenue edged down but earnings rose sharply, supporting a profitability recovery from housing cost-ratio normalization. A core basis for the earnings inflection. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-05Single supply/sales contract
- 2026-06-01Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-29Disclosure
- 2026-05-28Single supply/sales contract
- 2026-05-26Disclosure
- 2026-05-22Single supply/sales contract
- 2026-05-20Single supply/sales contract (amended)
- 2026-05-20Single supply/sales contract (amended)
- 2026-05-19Single supply/sales contract (amended)
- 2026-05-15PeriodicQuarterly report
- 2026-05-15PeriodicAnnual business report (amended)
📖 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.