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Changhae Ethanol Co (004650) Fair Value & Analysis

Consumer Defensive · KR · Market cap 70.4B KRW

CE Changhae Ethanol Co 004650 · KQ
Price9,430 KRW
Fair Value19,350 KRW
Upside+105.2%
Quality63/100
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Weak Growth
Solidly profitable · 10.9% net margin
Low debt · generates free cash flow
6.51% dividend yield
Ranks above peers (9/10)
Moderate moat 51/100
Evidence: High Range 14,512 KRW – 24,531 KRW Share as image

Fair value as of: Jul 22, 2026

From 22 valuation models · updated 19 days ago

Share price +0.6% over the past month.

A solid business, screening 105% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (14,512 KRW). The market is more pessimistic than our downside scenario.
  • Solid quality (63/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

12,010 KRW 7,409 KRW Fair Value 19,350 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 7,409 KRW – 12,010 KRW · fair‑value band 14,512 KRW – 24,531 KRW · the 9,430 KRW price screens below the 19,350 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

Changhae Ethanol Co (004650) currently trades at 9,430 KRW, while our model-based Fair Value estimate is 19,350 KRW, implying the stock looks roughly 105.2% undervalued today. The Quality Score stands at 63/100 (solid quality), in the Consumer Defensive 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, Changhae Ethanol Co generated revenue of 121B KRW at a net margin of 10.9%. Revenue declined 5.7% year over year. It earns a return on equity of 9.3%. Net debt stands at 26.4B KRW. Fundamentals as of Jul 22, 2026

Our scenario range runs from 14,512 KRW (bear case) to 24,531 KRW (bull case); at 9,430 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 30% below its 52-week high and 7% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at 6% fair-value upside, at 105%, 004650 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 19,863 KRW 26,972 KRW 39,133 KRW 80
Residual Income 16,199 KRW 17,801 KRW 25,317 KRW 76
Rev-Margin DCF 15,159 KRW 21,675 KRW 29,743 KRW 74
All 22 models by family
DCF Models
FCF DCF 18,994 KRW 26,319 KRW 39,884 KRW 38
Owner Earnings 16,001 KRW 22,151 KRW 33,540 KRW 31
5Y Revenue Exit 15,159 KRW 21,238 KRW 30,058 KRW 39
5Y EBITDA Exit 13,960 KRW 19,162 KRW 26,058 KRW 41
5Y P/E Exit 17,183 KRW 24,742 KRW 33,792 KRW 38
10Y Revenue Exit 16,164 KRW 20,833 KRW 25,768 KRW 36
10Y EBITDA Exit 15,792 KRW 19,549 KRW 23,420 KRW 37
10Y P/E Exit 17,749 KRW 23,000 KRW 27,961 KRW 35
Earnings-Based
Graham-Dodd 11,890 KRW 14,532 KRW 16,349 KRW 54
EPV 17,212 KRW 20,024 KRW 22,485 KRW 59
Multiples
P/E Multiple 18,359 KRW 24,479 KRW 30,599 KRW 63
P/S Multiple 14,512 KRW 19,350 KRW 24,187 KRW 58
P/B Multiple 22,294 KRW 29,725 KRW 37,156 KRW 55
EV/EBIT 16,051 KRW 21,288 KRW 26,526 KRW 53
EV/EBITDA 12,573 KRW 16,651 KRW 20,729 KRW 54
EV/Revenue 13,885 KRW 19,689 KRW 25,494 KRW 43
Asset-Based
NCAV (Graham) 9,384 KRW 12,575 KRW 18,768 KRW 50
Growth DCF
Growth DCF 19,863 KRW 26,972 KRW 39,133 KRW 80
Rev-Margin DCF 15,159 KRW 21,675 KRW 29,743 KRW 74
Economic Profit
Residual Income 16,199 KRW 17,801 KRW 25,317 KRW 76
ROIC Compounder 17,212 KRW 20,205 KRW 23,610 KRW 72
Growth Earnings
Growth-Adj P/E 13,209 KRW 18,870 KRW 24,531 KRW 68

Widest divergence: Growth DCF (21,675 KRW) versus Asset-Based (12,575 KRW). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 121B KRW
Revenue growth (YoY) -5.7%
Net margin 10.9%
Return on equity 9.3%
Free cash flow 14.6B KRW FY2025
Operating margin 15.1%
More key figures
Dividend yield 6.5%
EPS growth (YoY) -2.0%
Net debt 26.4B KRW FY2025

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

Quality Score breakdown

Overall quality 63/100

Of which business quality 61 · Market factors (momentum, volatility) 45

Profitability 42
Margins and returns on capital today
Quality Growth 32
Are margins and returns improving?
Cashflow 62
Earnings quality: real cash, not paper profit
Fin. Strength 68
Balance sheet, leverage, solvency risk
Investment 91
Disciplined investing over empire-building
Low Volatility 84
Calm price path (market factor)
Momentum 33
Price trend over the last 3–12 months (market factor)
52W Momentum 20
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

Changhae Ethanol Co., Ltd. produces and sells spirits from sugar cane, tapioca, rice, and barley crops in South Korea. The company offers fermented ethyl alcohol and refined alcohol.

Full company description

Changhae Ethanol Co., Ltd. produces and sells spirits from sugar cane, tapioca, rice, and barley crops in South Korea. The company offers fermented ethyl alcohol and refined alcohol. It also provides DDGS, a raw material for manufacturing high quality feed; CO2, a carbon dioxide gas generated during fermentation process; and CDS, a raw material for liquid feed and fertilizer. In addition, the company provides raw material for bio-microbe control field and biochemical field. Further, it engages in the construction equipment rental business. Changhae Ethanol Co., Ltd. was founded in 1966 and is headquartered in Jeonju-si, South Korea.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Changhae Ethanol Co reported revenue of 122B KRW in FY2025 versus 97.0B KRW in FY2021, a compound +6.0%/yr. Reported net income was 13.3B KRW in FY2025, compounding +7.8%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
122B KRW
Latest YoY
−11.0%
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.
+3.8%
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.
+1.3%
Avg. growth/yr (11Y) 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.
−5.8%
Revenue +6.0%/yr
FY21 97.0B KRW
FY22 109B KRW
FY23 116B KRW
FY24 137B KRW
FY25 122B KRW
Net income +7.8%/yr
FY21 9.8B KRW
FY22 77.6M KRW
FY23 −3.8B KRW
FY24 12.5B KRW
FY25 13.3B KRW

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Cite: Fair Value Calculator (2026). "Changhae Ethanol Co Fair Value". https://www.fairvalue-calculator.com/stock/004650

Peer Group

Beverages - Wineries & Distilleries · 96 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 63 · Top 25%
Fair Value upside +105% · Top 25%
Return on equity (TTM) 9% · Above median
Return on assets 5% · Above median
Net margin (TTM) 11% · Above median
Operating margin (TTM) 15% · Above median
Revenue growth -6% · Below median
Dividend yield (TTM) 6.5% · Top 25%
Debt / equity 0.03× · Lower than median

Valuation Multiples vs Beverages - Wineries & Distilleries 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 100 · sector 17
FUTURE 0 · sector 0
PAST 37 · sector 17
HEALTH 99 · sector 95
DIVIDEND 100 · sector 61

Values & ESG

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

Alcohol

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

Similar stocks

10 more Beverages - Wineries & Distilleries stocks, each showing price versus our Fair Value estimate (as of Jul 22, 2026).

Stock Price Fair Value vs Fair Value
Kweichow Moutai Co 600519 ¥1,251 ¥1,238 -1%
Diageo plc DEON 1,487 MXN 1,239 MXN -17%
Wuliangye Yibin Co 000858 ¥73.69 ¥48.44 -34%
Shanxi Xinghuacun Fen Wine Factory Co 600809 ¥110.50 ¥185.80 +68%
Pernod Ricard SA RI €65.24 €76.68 +18%
Luzhou Laojiao Co 000568 ¥83.12 ¥149.17 +79%
Brown-Forman Corporation BFA $26.60 $28.15 +6%
United Spirits Limited UNITDSPR ₹1,376 ₹440.56 -68%
Thai Beverage Public Company Y92 0.4450 SGD 0.6900 SGD +55%
Jiangsu Yanghe Distillery Co 002304 ¥38.08 ¥27.82 -27%

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Frequently asked questions

Is Changhae Ethanol Co (004650) overvalued or undervalued?
As of Jul 22, 2026, our model estimates a fair value of 19,350 KRW versus a price of 9,430 KRW, about +105% (undervalued).
What is the fair value of 004650?
Our model-based fair value for Changhae Ethanol Co is 19,350 KRW (as of Jul 22, 2026), built from audited fundamentals. The current price is 9,430 KRW.
What is the quality score of 004650?
Changhae Ethanol Co has a Quality Score of 63/100. 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 Changhae Ethanol Co (004650)?
Changhae Ethanol Co reported trailing-twelve-month revenue of about 121B KRW (latest available figure, as of Jul 22, 2026).
What is the net profit margin of 004650?
The net profit margin of Changhae Ethanol Co is about 10.9%, meaning it keeps roughly 10.9% of revenue as net income. Based on the latest reported figures.
Does Changhae Ethanol Co pay a dividend?
Changhae Ethanol Co currently shows a dividend yield of about 6.58% relative to its recent price (as of Jul 22, 2026).

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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