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Namkwang Engineering & Construction Co (001260) Fair Value & Analysis

Industrials · KR · Market cap 74.3B KRW

NE Namkwang Engineering & Construction Co 001260 · KO
Price8,370 KRW
Fair Value11,315 KRW
Upside+35.2%
Quality57/100
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Healthy Growth
Thin margins · 1.9% net margin
Low debt · generates free cash flow
Mixed vs. peers (4/9)
Narrow moat 30/100
Evidence: High Range 8,486 KRW – 14,144 KRW Share as image

Fair value as of: Jul 22, 2026

From 22 valuation models · updated 22 days ago

Share price −6.8% over the past month.

A solid business, screening 35% undervalued on our models.

What matters now

  • Solid quality (57/100) at a price below fair value, the discount is the argument here, not the business quality.
  • Our model range runs from 8,486 KRW (bear) to 14,144 KRW (bull), base 11,315 KRW. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 57/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

18,750 KRW 5,850 KRW Fair Value 11,315 KRW Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 22, 2026.

How to read this chart

60‑month range 5,850 KRW – 18,750 KRW · fair‑value band 8,486 KRW – 14,144 KRW · the 8,370 KRW price screens below the 11,315 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 22, 2026.

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Analysis

Namkwang Engineering & Construction Co (001260) currently trades at 8,370 KRW, while our model-based Fair Value estimate is 11,315 KRW, implying the stock looks roughly 35.2% undervalued today. The Quality Score stands at 57/100 (solid quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Namkwang Engineering & Construction Co generated revenue of 358B KRW at a net margin of 1.9%. Revenue grew 0.8% year over year. It earns a return on equity of 5.3%. Fundamentals as of Jul 22, 2026

Our scenario range runs from 8,486 KRW (bear case) to 14,144 KRW (bull case); at 8,370 KRW, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 29% below its 52-week high and 24% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -45% fair-value upside, at 35%, 001260 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF 43,662 KRW 56,582 KRW 76,994 KRW 80
Rev-Margin DCF 26,197 KRW 32,224 KRW 39,599 KRW 74
ROIC Compounder 15,908 KRW 17,772 KRW 19,693 KRW 72
All 22 models by family
DCF Models
FCF DCF 42,353 KRW 55,762 KRW 78,356 KRW 38
Owner Earnings 13,382 KRW 15,873 KRW 20,071 KRW 31
5Y Revenue Exit 26,197 KRW 31,521 KRW 38,599 KRW 39
5Y EBITDA Exit 27,065 KRW 33,015 KRW 40,269 KRW 41
5Y P/E Exit 24,637 KRW 28,836 KRW 33,482 KRW 38
10Y Revenue Exit 31,777 KRW 37,432 KRW 43,570 KRW 36
10Y EBITDA Exit 32,606 KRW 38,425 KRW 44,707 KRW 37
10Y P/E Exit 31,108 KRW 35,648 KRW 40,085 KRW 35
Earnings-Based
Graham-Dodd 3,664 KRW 6,817 KRW 8,459 KRW 54
EPV 15,714 KRW 17,205 KRW 18,509 KRW 59
Multiples
P/E Multiple 8,486 KRW 11,315 KRW 14,144 KRW 63
P/S Multiple 6,870 KRW 9,160 KRW 11,450 KRW 58
P/B Multiple 6,870 KRW 9,160 KRW 11,450 KRW 55
EV/EBIT 21,619 KRW 26,568 KRW 31,518 KRW 53
EV/EBITDA 19,722 KRW 24,038 KRW 28,355 KRW 54
EV/Revenue 17,368 KRW 21,910 KRW 26,452 KRW 43
Asset-Based
NCAV (Graham) 6,361 KRW 8,524 KRW 12,722 KRW 50
Growth DCF
Growth DCF 43,662 KRW 56,582 KRW 76,994 KRW 80
Rev-Margin DCF 26,197 KRW 32,224 KRW 39,599 KRW 74
Economic Profit
Residual Income 9,544 KRW 9,497 KRW 8,678 KRW 61
ROIC Compounder 15,908 KRW 17,772 KRW 19,693 KRW 72
Growth Earnings
Growth-Adj P/E 6,042 KRW 8,631 KRW 11,220 KRW 68

Widest divergence: DCF Models (33,015 KRW) versus Earnings-Based (6,817 KRW). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 358B KRW
Revenue growth (YoY) +0.8%
Net margin 1.9%
Return on equity 5.3%
Free cash flow 34.1B KRW FY2025
Operating margin 2.7%
More key figures
EPS growth (YoY) +63.6%

Figures from reported company fundamentals · as of Jul 22, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 57/100

Of which business quality 57 · Market factors (momentum, volatility) 37

Profitability 30
Margins and returns on capital today
Quality Growth 40
Are margins and returns improving?
Cashflow 73
Earnings quality: real cash, not paper profit
Fin. Strength 51
Balance sheet, leverage, solvency risk
Investment 81
Disciplined investing over empire-building
Low Volatility 47
Calm price path (market factor)
Momentum 38
Price trend over the last 3–12 months (market factor)
52W Momentum 24
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Namkwang Engineering & Construction Co., Ltd. provides various construction services in Korea and internationally. The company constructs apartments, commercial/business facilities, public/leisure facilities, factories/plants, and culture/history/other projects; and roads, bridges/tunnels, subways/railroads, water/sewerage works, and harbors/dams/ ports.

Full company description

Namkwang Engineering & Construction Co., Ltd. provides various construction services in Korea and internationally. The company constructs apartments, commercial/business facilities, public/leisure facilities, factories/plants, and culture/history/other projects; and roads, bridges/tunnels, subways/railroads, water/sewerage works, and harbors/dams/ ports. Namkwang Engineering & Construction Co., Ltd. was founded in 1947 and is headquartered in Yongin-si, South Korea.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Namkwang Engineering & Construction Co reported revenue of 357B KRW in FY2025 versus 357B KRW in FY2021, a compound +0.0%/yr. Reported net income was 5.3B KRW in FY2025, compounding −29.7%/yr from FY2021.

Growth Quality 90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
357B KRW
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+12.2%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+16.4%
Avg. growth/yr (15Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−2.9%
Revenue +0.0%/yr
FY21 357B KRW
FY22 450B KRW
FY23 548B KRW
FY24 504B KRW
FY25 357B KRW
Net income −29.7%/yr
FY21 21.7B KRW
FY22 19.3B KRW
FY23 6.0B KRW
FY24 6.2B KRW
FY25 5.3B KRW

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Cite: Fair Value Calculator (2026). "Namkwang Engineering & Construction Co Fair Value". https://www.fairvalue-calculator.com/stock/001260.KO

Peer Group

Engineering & Construction · 840 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 57 · Above median
Fair Value upside +35% · Above median
Return on equity (TTM) 5% · Below median
Return on assets 1% · Below median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 3% · Below median
Revenue growth 1% · Below median
Debt / equity 0.07× · Lower than median

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/FCF 0.0× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 80 · sector 13
FUTURE 4 · sector 17
PAST 21 · sector 26
HEALTH 96 · sector 94
DIVIDEND 0 · sector 33

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Jul 22, 2026).

Stock Price Fair Value vs Fair Value
Larsen & Toubro Limited LT ₹3,815 ₹1,994 -48%
Samsung C&T Corporation 028260 346,000 KRW 268,779 KRW -22%
Hyundai Engineering & Construction Co 000720 99,000 KRW 63,993 KRW -35%
United Integrated Services Co 2404 1,250 TWD 925.62 TWD -26%
Samsung E&A Co 028050 42,550 KRW 44,840 KRW +5%
Rail Vikas Nigam Limited RVNL ₹232.67 ₹61.46 -74%
Daewoo Engineering & Construction Co 047040 16,240 KRW 6,507 KRW -60%
NBCC (India) Limited NBCC ₹96.32 ₹48.22 -50%
Cemindia Projects Limited CEMPRO ₹1,330 ₹730.69 -45%
KEPCO Engineering & Construction Company 052690 92,700 KRW 20,172 KRW -78%

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Frequently asked questions

Is Namkwang Engineering & Construction Co (001260) overvalued or undervalued?
As of Jul 22, 2026, our model estimates a fair value of 11,315 KRW versus a price of 8,370 KRW, about +35% (undervalued).
What is the fair value of 001260?
Our model-based fair value for Namkwang Engineering & Construction Co is 11,315 KRW (as of Jul 22, 2026), built from audited fundamentals. The current price is 8,370 KRW.
What is the quality score of 001260?
Namkwang Engineering & Construction Co has a Quality Score of 57/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Namkwang Engineering & Construction Co (001260)?
Namkwang Engineering & Construction Co reported trailing-twelve-month revenue of about 358B KRW (latest available figure, as of Jul 22, 2026).
What is the net profit margin of 001260?
The net profit margin of Namkwang Engineering & Construction Co is about 1.9%, meaning it keeps roughly 1.9% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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