K Car's core business is direct-operation used-car retailing: it buys used cars outright, services and prepares them, then resells them through its own directly operated branches and the online 'Buy My Car' channel. Revenue is large at about ₩2.4 trillion a year, but the operating margin is thin at around 3%, making this a high-volume, low-margin distribution business whose results depend far more on unit sales and inventory turnover than on per-car margin. The biggest recent event is about governance rather than earnings: a change-of-control agreement is under way in which the largest shareholder, Hahn & Company Auto Service Holdings, transfers its roughly 72.2% stake to KG Steel (about 52.50%) and Cactus Private Equity (about 19.69%). In May the company declared a Q1 dividend of ₩300 per share (a dividend yield on price of 2.1%). What stands out lately is a two-sided picture: strengths include being the No. 1 in direct-operation used-car distribution, an ROE of 22.7%, and a P/E that stays low even on this year's forecast earnings (8.4x); on the other hand, the business and dividend direction under the new controlling shareholder are still open, and with a payout ratio of 114% — distributing more than it earns — the sustainability of the dividend needs to be watched alongside.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 238.7%).
- Revenue rose 6.0% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 5.4% lower than a year earlier.
- ROE is 22.7% (total-net basis). It is above the sector average.
- Operating margin is 3.1%.
- P/B is high versus peers, a stretch on an asset basis.
Ownership & governance As of 2025-12-31
Largest shareholder Hahn & Company Auto Service Holdings 72.19% (corporate)
Controlling bloc incl. related parties 72.39%
With the controlling bloc holding 72%, control is very secure but the free float is thin.
🔎 In-depth analysis
- K Car's core business is 'direct-operation used-car distribution': it buys used cars outright, services and prepares them, then resells them to consumers through its own channels (directly operated branches and the online 'Buy My Car').
- Most of its revenue comes from retail sales of the vehicles it holds this way, supplemented by 'Sell My Car' (buying vehicles from individuals), contactless home service, and certification and warranty services.
- Because the model is to buy a car cheaply and sell it a little higher, revenue is large at about ₩2.4 trillion a year while the operating margin is thin at around 3% — a textbook high-volume, low-margin distribution business.
- Results are therefore driven more by 'how many cars it turns over (unit sales and inventory turnover)' than by 'per-car margin.'
- The latest closing price is ₩7,870 and the market capitalization is ₩384.2 billion.
- The price sits below the 20-day line (₩8,618) and below the 60-day line (₩9,486).
- Trading below both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (an auxiliary gauge that weighs upward versus downward strength over the past 14 days on a 0-100 scale) is 31.6, a neutral level.
- The one-month change is -7.0%, the three-month change is -20.3%, and the price sits -53.9% below its 52-week high.
- Relative strength versus the KOSPI is 3 (on a 1-99 scale, calculated from returns against the index over the past year with more weight on recent performance; higher means stronger than the market).
- Among all stocks it ranks in roughly the top 98% by strength.
- Over the past three months it lagged the index by 38.0%.
- Chart readings are best viewed together with trading volume and disclosure dates.
- On confirmed FY2025 results, the P/E ratio (how many times one year's earnings the price represents) is 7.55x, the P/B (how many times net asset value the price represents) is 1.72x, ROE (how much is earned in a year on equity) is 22.7%, the operating margin is 3.1%, and the debt ratio (debt to equity) is 238.7%.
- The debt ratio looks high because, given the nature of a distribution business that must constantly buy and turn over vehicle inventory, working capital and borrowings are large; it helps to note alongside that the interest coverage ratio of 7.07x means operating profit comfortably covers interest.
- The forward P/E, based on this year's expected earnings, is 8.4x — kept at nearly the same level as the trailing figure.
- This means the multiple does not swing sharply even if profit is depressed for a year, and this forward P/E is below the sector median, so the price is on the not-expensive side relative to earnings.
- In other words, rather than reading the headline P/E and P/B straight as a burden, it is right to focus on whether the undervaluation signal holds up on a forecast-earnings basis too.
- Looking at the multi-year trend, revenue rose steadily to ₩2.4 trillion in 2025 (+6.0% year over year, a two-year CAGR of 9.1%), while operating profit reached ₩76.0 billion (+11.6%) and net profit ₩50.9 billion (+15.7%), both up for a third straight year.
- The pace of increase has moderated from earlier years, but the direction of both revenue and profit is still upward.
- In the most recent quarter, Q1 2026, results were pressured once — revenue of ₩572.1 billion (-5.4%), operating profit of ₩14.2 billion (-33.8%) and net profit of ₩10.2 billion (-29.1%) — reflecting the way used-car prices and sales turnover fluctuate on a quarterly basis in the distribution business.
- Even so, the forward P/E on this year's expected earnings holding at 8.4x, nearly the same spot as last year, means the annual earnings power after accounting for quarterly swings is still thick enough to support an ROE of 22.7%.
- There are two key drivers.
- First, the operating efficiency of holding purchasing, preparation and sales in one hand and turning them over as the No.
- 1 direct operator; second, the market share from lifting unit sales through the online 'Buy My Car' channel.
- When turnover revives, profit responds quickly even on a thin margin.
- The biggest recent event is governance rather than earnings.
- On March 31, 2026 the largest shareholder, Hahn & Company Auto Service Holdings, signed an agreement to sell 35,245,670 common shares (about 72.2%) it held, and under an amended agreement on April 21 the buyers were split into KG Steel (25,632,810 shares, about 52.50%) and Cactus Private Equity (9,612,860 shares, about 19.69%) (a share-purchase agreement accompanied by a change of control).
- The volume surge and drop on April 1 were the direct effect of this news.
- On the shareholder-return side, the company continued its quarterly dividend, declaring ₩300 per share for Q1 (a dividend yield on price of 2.1%, total ₩14.65 billion) on May 14, and on the same day released Q1 results and an IR (conference call).
- The roughly 14% dividend yield shown on the site is on an annual cumulative basis of four ₩300 quarterly payments; it helps to keep in mind that the headline yield is elevated in part because the share price has fallen sharply.
- The strengths are clear: the position as Korea's No.
- 1 direct-operation used-car distributor, high profitability with an ROE of 22.7%, dividends collected each quarter, and a P/E that stays low versus peers not only on last year's basis but also on this year's forecast earnings (8.4x).
- Because the forward multiple does not swing sharply even if profit is depressed for a year, the surface cheapness can be read not as a mere optical illusion but as closer to an undervalued zone.
- There are two variables to watch.
- First, a change of control is under way in which the largest shareholder's 72% stake passes to a new controlling shareholder, so the new regime's business and dividend policy is still open.
- Second, with a payout ratio of 114% — distributing more than it earns — the sustainability of the current dividend level needs to be watched alongside the earnings trajectory.
- In sum, this is a stock in which the strengths of being undervalued, highly profitable and high-yielding become clearer once sales turnover revives and the new controlling shareholder clarifies its dividend and growth direction, and in which those attractions take time to be recognized if the earnings slowdown drags on or the governance transition is delayed.
🔎 Valuation vs peers Inconclusive
Because K Car is not an OEM (automaker) but a distribution/mobility business that buys and sells vehicles, Lotte Rental — which earns operating income by deploying assets — is taken as the closest peer in business character, while OEMs (Hyundai Motor, Kia, KG Mobility) are used only as secondary anchors to gauge its position across the auto sector. The figures are on-site calculations based on the current price.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Lotte Rental | 9.18x | 0.75x | 8.15% |
| KG Mobility | 11.99x | 0.38x | 3.14% |
| Hyundai Motor | 9.66x | 0.79x | 8.18% |
| Kia | 7.48x | 0.92x | 12.36% |
Looking at its position versus peers, the trailing P/E is as low as Kia's, but the P/B is the highest. However, (a) the trailing P/E of 8.2x is hard to take at face value now that Q1 2026 operating profit fell -33.8%, signaling an earnings inflection; (b) the forward P/E on a seasonality approximation rises to about 11.4x, so much of the trailing impression of undervaluation is diluted; and (c) above all, a change-of-control sale of the 72% stake is under way, so the appropriate multiple itself cannot be fixed until the new controlling shareholder's dividend and growth policy is set. It is therefore left Inconclusive, pronounced neither undervalued nor overvalued.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩564.0 billion | approx. ₩14.2 billion | approx. ₩10.3 billion |
Price history Close · MA20 · MA60
The latest close is ₩7,870 and the market capitalization is ₩384.2 billion. The price sits below its 20-day moving average (₩8,618) and below its 60-day moving average (₩9,486). 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 31.6, a neutral level. The one-month change is -7.0%, the three-month change is -20.3%, and the position relative to the 52-week high is -53.9%. Relative strength versus the KOSPI is 3 (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 2% of all stocks. Over the past three months it lagged the index by 38.0%. 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 -37.99% / 6M -68.53% / 12M -78.22%
Key metrics vs whole-market median
Valuation
The P/E of 7.55x is below the whole-market median (13.81x). The P/B of 1.72x is above the whole-market median (1.15x).
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 0.716x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 22.7%, above the whole-market average (5.0%). The operating margin is 3.1%. The debt ratio is 238.7%, so the financial structure is somewhat high.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.4B | $1.5B | $1.6B | +5.97% ↓ slower |
| Operating profit | $39.1M | $45.1M | $50.4M | +11.55% ↓ slower |
| Net profit | $18.8M | $29.1M | $33.7M | +15.74% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.3B | $1.4B | $1.4B | $1.5B | $1.6B |
| Operating profit | $47.1M | $33.2M | $39.1M | $45.1M | $50.4M |
| Net profit | $31.0M | $20.1M | $18.8M | $29.1M | $33.7M |
| Revenue CAGR | 4-yr avg 6.41% | ||||
Revenue rose 6.0% year over year (2023 ₩2.0 trillion → 2024 ₩2.3 trillion → 2025 ₩2.4 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 11.6% year over year. The pace of that profit growth is gradually easing. Over the 5 years on record, revenue compound annual growth (CAGR) is 6.4%. The two-year revenue CAGR is 9.1%. In the most recent quarter (Q1 2026), revenue was 5.4% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 15.2%, is on the high side.
- ROE of 22.7% points to solid profitability.
Points to watch
- Revenue rose 6.0% year over year, and the pace is slowing (3-year trend: rising).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-04-21FilingShare-purchase agreement with a change of control in which the largest shareholder, Hahn & Company Auto Service Holdings, sells its 35,245,670 shares (about 72.2%) to KG Steel (about 52.50%) and Cactus Private Equity (about 19.69%) (signed March 31, amended April 21)Short term: the direct cause of the volume surge and drop on April 1. Medium term: the business, dividend and financial direction of the new controlling-shareholder regime is the key variable for the price going forward. Source
- 2026-05-14EarningsFair disclosure of preliminary Q1 2026 results — revenue of ₩572.1 billion (-5.4% year over year), operating profit of ₩14.2 billion (-33.8%), net profit of ₩10.2 billion (-29.1%)Short term: confirmation of a joint decline in top line and profit lifts the forward multiple relative to trailing. Medium term: whether this marks an earnings inflection is the starting point for a re-valuation. Source
- 2026-05-14DividendDeclaration of a Q1 cash quarterly dividend — ₩300 per common share (a dividend yield on price of 2.1%, total ₩14.65 billion), record date 2026-03-31, payment expected 2026-05-28Short term: confirms the quarterly-dividend policy is maintained. Medium term: with a payout ratio of 114%, returns are excessive relative to earnings, so sustainability needs checking if profit slows. Source
- 2026-04-24IRNotice of an IR event — a Q1 2026 results conference call (May 14, 10:00 a.m.), with IR materials posted on the company's own web pageShort term: an official company results and Q&A channel. Medium term: a primary official information source on business direction during the control-transition period. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Largest shareholder's stake being sold | 35,245,670 / 48,820,848 = approx. 72.2% | KG 25,632,810(approx. 52.50%) + PE 9,612,860(approx. 19.69%) = 35,245,670 | Confirmed | link |
| Q1 2026 operating profit | ₩14.2 billion(base quarter) | 14,208(=₩14.2 billion) | Confirmed | link |
| Dividend per share (quarterly) | ₩1,200(base dps) | 1 ₩300 | Confirmed | link |
| Estimated 2026 annual results (approximate) | revenue approx. ₩2.25 trillion / operating profit approx. ₩55.7 billion / net profit approx. ₩36.4 billion | — | Unverified | link |
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-15PeriodicQuarterly report
- 2026-05-14Disclosure
- 2026-05-14DividendCash/stock dividend decision
- 2026-05-14DividendCash/stock dividend decision
- 2026-05-14EarningsFair-disclosure notice
- 2026-04-28OwnershipOwnership-change filing
- 2026-04-28OwnershipOwnership-change filing
- 2026-04-28OwnershipOwnership-change filing
- 2026-04-24Disclosure
- 2026-04-21Amended filing
- 2026-04-17EarningsEarnings disclosure
📖 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.