Hyundai Engineering & Construction Co Ltd

Hyundai Engineering & Construction maintains a conservative capital structure with a debt-to-equity ratio of 0.48 and a current ratio of 1.48, indicating adequate short-term liquidity coverage. The balance sheet shows total assets of 27.79 trillion KRW against total liabilities of 19.53 trillion KRW, with cash and equivalents standing at 4.81 trillion KRW. Long-term debt is recorded at 3.96 trillion KRW, which is well-covered by the company's equity base of 8.26 trillion KRW. The company generated positive free cash flow of 573.28 billion KRW despite negative operating cash flow of -748.26 billion KRW, driven by low capital expenditures of -116.67 billion KRW.

Profitability metrics indicate modest returns, with a return on equity of 5.16% and a return on assets of 1.53%. The company reported net income of 373.15 billion KRW on revenue of 31.06 trillion KRW, resulting in a net margin of approximately 1.2%. Operating income was 646.79 billion KRW, while gross profit stood at 1.98 trillion KRW, reflecting the typical low-margin nature of the construction and engineering sector. The valuation multiples include a P/E ratio of 30.05 and a P/B ratio of 1.55, suggesting the market prices in future growth or stability despite current modest returns.

Revenue concentration and segment details are not explicitly provided in the available data, but the company's activity is broadly defined within the Construction & Engineering industry. The geographic exposure and specific segment breakdowns are absent from the current snapshot, limiting detailed analysis of revenue mix. The company's primary activity remains focused on engineering and construction projects, as indicated by its industry classification.

Growth trajectory analysis is constrained by the absence of historical period data in the current snapshot. The latest normalized period shows revenue of 31.06 trillion KRW, but without prior year or quarterly comparisons, year-over-year growth rates cannot be calculated. The lack of historical revenue and net income trends prevents a detailed assessment of the company's growth momentum or cyclicality.

Risk assessment indicates low liquidity risk and low dilution risk, with no immediate filing-based flags detected. The company's shares outstanding are identical for basic and diluted counts at 111.36 million, confirming the absence of significant dilutive securities. The low risk profile is supported by the company's strong cash position and manageable debt levels.

Recent IR observations show strong analyst sentiment, with a mean recommendation of 1.76 (where 1 is strong buy) and a mean price target of 205,300 KRW. The median price target is 200,000 KRW, with a high target of 300,000 KRW and a low target of 121,000 KRW. Analyst coverage includes 8 strong buys, 15 buys, and 2 holds, indicating broad institutional confidence in the company's prospects.

Analysts project 117.5% upside to a mean price target of 205,300 KRW, signaling strong market confidence.

Free cash flow is forecast to surge 168.1% year-over-year to 573 billion KRW in FY2026.

Operating income is expected to rebound 163.0% to 647 billion KRW, recovering from prior year losses.

Revenue demonstrates robust growth with a 14.5% CAGR over the four-year period ending FY2026.

The company maintains low liquidity, dilution, and credit risk flags, suggesting a stable financial foundation.

Net margin of 1.4% falls below the cohort median of 5.3%, indicating weak profitability relative to peers.

Long-term debt is projected to increase to 3.96 trillion KRW in FY2026, up from 2.26 trillion in FY2022.

Cash conversion ratio of -1.76 is in the bottom quartile, far worse than the cohort median of 1.2.

Revenue KRW 6.28T, −15,8% YoY; Operating income −13,9% YoY.

• ▍Revenue KRW 6.28T, −15,8% YoY
• ▍Operating income −13,9% YoY
• ▍Net income +44,1% YoY
• ▍Free cash flow +12,4% YoY
• ▍Net margin 2.8%

Revenue KRW 8.06T, +11,2% YoY; Operating income +106,8% YoY.

• ▍Revenue KRW 8.06T, +11,2% YoY
• ▍Operating income +106,8% YoY
• ▍Net income +121,8% YoY
• ▍Free cash flow +115,5% YoY
• ▍Net margin 1.4%

Revenue KRW 7.83T, −5,2% YoY; Operating income −5,7% YoY.

• ▍Revenue KRW 7.83T, −5,2% YoY
• ▍Operating income −5,7% YoY
• ▍Net income −13,7% YoY
• ▍Free cash flow +95,7% YoY
• ▍Net margin 0.6%

Revenue KRW 7.72T, −10,4% YoY; Operating income −15,9% YoY.

• ▍Revenue KRW 7.72T, −10,4% YoY
• ▍Operating income −15,9% YoY
• ▍Net income −37,2% YoY
• ▍Free cash flow +69,4% YoY
• ▍Net margin 1.2%

Revenue KRW 7.46T; Operating income KRW 209.86B.

• ▍Revenue KRW 7.46T
• ▍Operating income KRW 209.86B
• ▍Net margin 1.6%

Revenue KRW 7.25T; Operating income -KRW 1.65T.

• ▍Revenue KRW 7.25T
• ▍Operating income -KRW 1.65T
• ▍Net margin -7.2%

Revenue KRW 8.26T; Operating income KRW 113.87B.

• ▍Revenue KRW 8.26T
• ▍Operating income KRW 113.87B
• ▍Net margin 0.6%

Revenue KRW 8.62T; Operating income KRW 257.99B.

• ▍Revenue KRW 8.62T
• ▍Operating income KRW 257.99B
• ▍Net margin 1.7%

Revenue KRW 31.06T, −4,9% YoY; Operating income +163,0% YoY.

• ▍Revenue KRW 31.06T, −4,9% YoY
• ▍Operating income +163,0% YoY
• ▍Net income +321,2% YoY
• ▍Free cash flow +168,1% YoY
• ▍Net margin 1.2%

Revenue KRW 32.67T, +10,2% YoY; Operating income −231,9% YoY.

• ▍Revenue KRW 32.67T, +10,2% YoY
• ▍Operating income −231,9% YoY
• ▍Net income −131,5% YoY
• ▍Free cash flow −261,3% YoY
• ▍Net margin -0.5%

Revenue KRW 29.65T, +39,6% YoY; Operating income +34,3% YoY.

• ▍Revenue KRW 29.65T, +39,6% YoY
• ▍Operating income +34,3% YoY
• ▍Net income +31,1% YoY
• ▍Free cash flow +40,0% YoY
• ▍Net margin 1.8%

Revenue KRW 21.24T, +17,6% YoY; Operating income −22,6% YoY.

• ▍Revenue KRW 21.24T, +17,6% YoY
• ▍Operating income −22,6% YoY
• ▍Net income +0,3% YoY
• ▍Free cash flow −21,2% YoY
• ▍Net margin 1.9%