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HD Korea Shipbuilding & Offshore Engineering Co (009540) Fair Value & Analysis

Industrials · KR · Market cap 25.0T KRW

HK HD Korea Shipbuilding & Offshore Engineering Co 009540 · KO
Price400,000 KRW
Fair Value643,950 KRW
Upside+61.0%
Quality60/100
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Healthy Growth
Thin margins · 8.0% net margin
Low debt · generates free cash flow
2.57% dividend yield
Ranks above peers (11/11)
Moderate moat 61/100
Evidence: Medium Range 482,962 KRW – 804,937 KRW Share as image

Fair value as of: Jul 17, 2026

From 24 valuation models · updated 21 days ago

Share price +11.0% over the past month.

A solid business, screening 61% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (482,962 KRW). The market is more pessimistic than our downside scenario.
  • Solid quality (60/100) 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)

479,000 KRW 65,807 KRW Fair Value 643,950 KRW Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 17, 2026.

How to read this chart

60‑month range 65,807 KRW – 479,000 KRW · fair‑value band 482,962 KRW – 804,937 KRW · the 400,000 KRW price screens below the 643,950 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 17, 2026.

Full chart & analysis →

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Analysis

HD Korea Shipbuilding & Offshore Engineering Co (009540) currently trades at 400,000 KRW, while our model-based Fair Value estimate is 643,950 KRW, implying the stock looks roughly 61.0% undervalued today. We read business quality at 60/100 (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: medium), always confirm before acting.

Over the trailing twelve months, HD Korea Shipbuilding & Offshore Engineering Co generated revenue of 31.3T KRW at a net margin of 8.0%. Revenue grew 20.2% year over year. It earns a return on equity of 21.8%. Net debt stands at 897B KRW. Fundamentals as of Jul 17, 2026

Our scenario range runs from 482,962 KRW (bear case) to 804,937 KRW (bull case); at 400,000 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 18% below its 52-week high and 34% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -55% fair-value upside, at 61%, 009540 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 BearBaseBull Evidence
Highest evidence
Growth DCF 634,450 KRW 945,482 KRW 1,415,328 KRW 80
Residual Income 210,044 KRW 275,510 KRW 877,291 KRW 76
Rev-Margin DCF 555,793 KRW 860,926 KRW 1,213,165 KRW 74
All 24 models by family
DCF Models
FCF DCF 622,572 KRW 972,007 KRW 1,533,782 KRW 38
Owner Earnings 338,795 KRW 517,512 KRW 804,830 KRW 31
5Y Revenue Exit 555,793 KRW 859,933 KRW 1,247,086 KRW 39
5Y EBITDA Exit 603,631 KRW 949,690 KRW 1,352,073 KRW 41
5Y P/E Exit 509,056 KRW 772,241 KRW 1,046,546 KRW 38
10Y Revenue Exit 557,849 KRW 845,922 KRW 1,231,605 KRW 36
10Y EBITDA Exit 605,157 KRW 909,783 KRW 1,313,828 KRW 37
10Y P/E Exit 543,417 KRW 783,531 KRW 1,074,547 KRW 35
Earnings-Based
Graham-Dodd 208,517 KRW 657,224 KRW 875,177 KRW 54
Lynch FV 144,030 KRW 205,757 KRW 267,484 KRW 50
PEG = 1.0 144,030 KRW 205,757 KRW 267,484 KRW 46
EPV 538,868 KRW 626,600 KRW 704,584 KRW 59
Multiples
P/E Multiple 459,964 KRW 613,285 KRW 766,607 KRW 63
P/S Multiple 390,969 KRW 521,293 KRW 651,616 KRW 58
P/B Multiple 390,969 KRW 521,293 KRW 651,616 KRW 55
EV/EBIT 787,442 KRW 1,036,016 KRW 1,284,590 KRW 53
EV/EBITDA 660,761 KRW 867,109 KRW 1,073,456 KRW 54
EV/Revenue 544,391 KRW 759,822 KRW 975,254 KRW 43
Asset-Based
NCAV (Graham) 93,942 KRW 125,882 KRW 187,883 KRW 50
Growth DCF
Growth DCF 634,450 KRW 945,482 KRW 1,415,328 KRW 80
Rev-Margin DCF 555,793 KRW 860,926 KRW 1,213,165 KRW 74
Economic Profit
Residual Income 210,044 KRW 275,510 KRW 877,291 KRW 76
ROIC Compounder 571,180 KRW 706,297 KRW 857,484 KRW 72
Growth Earnings
Growth-Adj P/E 384,047 KRW 548,639 KRW 713,231 KRW 68

Widest divergence: Growth DCF (860,926 KRW) versus Asset-Based (125,882 KRW). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 31.3T KRW
Revenue growth (YoY) +20.2%
Net margin 8.0%
Return on equity 21.8%
Free cash flow 3.4T KRW FY2025
Operating margin 16.7%
More key figures
Dividend yield 2.4%
EPS growth (YoY) +70.4%
Net debt 897B KRW FY2023

Figures from reported company fundamentals · as of Jul 17, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 60/100

Of which business quality 67 · Market factors (momentum, volatility) 38

Profitability 44
Margins and returns on capital today
Quality Growth 85
Are margins and returns improving?
Cashflow 70
Earnings quality: real cash, not paper profit
Fin. Strength 68
Balance sheet, leverage, solvency risk
Investment 63
Disciplined investing over empire-building
Low Volatility 29
Calm price path (market factor)
Momentum 35
Price trend over the last 3–12 months (market factor)
52W Momentum 54
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

HD Korea Shipbuilding & Offshore Engineering Co., Ltd. engages in shipbuilding and offshore engineering business in South Korea.

Full company description

HD Korea Shipbuilding & Offshore Engineering Co., Ltd. engages in shipbuilding and offshore engineering business in South Korea. The company offers ship types, including tankers, container ships, petrochemical carriers, LNG carriers, LNG-FSRUs, LPG carriers, LEG carriers, car carriers, Ro-Pax, Ro-Ro, LNG bunkering carriers, and LCO2 ships; and offshore plant business includes the manufacturing and installation of offshore structures, floating crude oil production facilities, power generation facilities, and other individual equipment units. It also specializes in building various types of special-purpose ships, such as destroyers, frigates, corvettes, logistics support ships, amphibious, minelaying, marine intelligence, surface, rescue, and training ships, support vessels, high-speed boats, and patrol/rescue ships; and engine and machinery division, the company provides heavy and medium engines, propellers, marine axle meters, selective catalytic reduction systems, and methanation catalytic systems. In addition, it develops and supplies photovoltaic modules and systems, solid oxide fuel cells for onshore power generation and marine applications, and solid oxide electrolyzers; gas and green system offerings include Methanol LFSS, Ammonia LFSS, LPG CHS, Re-Liquefaction Unit, Re-Gasifier, and Hi-ALS; and shipbuilding also provides green ship propulsion solutions, including four-stroke marine engines, as well as electric power systems such as batteries and fuel cells to drive propulsion motors without the use of traditional power generation engines. Further, it provides other offerings including equipment such as propellers, shafts, SCR systems, ballast water treatment systems, engine power plants, industrial boilers, solar modules and systems, ITER, industrial cranes, and comprehensive marine system solutions. The company was formerly known as Korea Shipbuilding & Offshore Engineering Co., Ltd. The company was founded in 1972 and is based in Seongnam-si, South Korea.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

HD Korea Shipbuilding & Offshore Engineering Co reported revenue of 29.9T KRW in FY2025 versus 15.5T KRW in FY2021, a compound +17.9%/yr. Reported net income was 2.2T KRW in FY2025.

Growth Quality 95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
29.9T KRW
Latest YoY
+17.2%
Avg. growth/yr (3Y)
+20.0%
Avg. growth/yr (5Y)
+15.0%
Avg. growth/yr (25Y)
+5.0%
Revenue +17.9%/yr
FY21 15.5T KRW
FY22 17.3T KRW
FY23 21.3T KRW
FY24 25.5T KRW
FY25 29.9T KRW
Net income
FY21 −929B KRW
FY22 −217B KRW
FY23 222B KRW
FY24 1.2T KRW
FY25 2.2T KRW

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Cite: Fair Value Calculator (2026). "HD Korea Shipbuilding & Offshore Engineering Co Fair Value". https://www.fairvalue-calculator.com/stock/009540

Peer Group

Aerospace & Defense · 227 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 60 · Above median
Fair Value upside +61% · Top 25%
Return on equity (TTM) 22% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 8% · Above median
Operating margin (TTM) 17% · Above median
Revenue growth 20% · Above median
Dividend yield (TTM) 2.6% · Top 25%
Debt / equity 0.06× · Lower than median

Valuation Multiples vs Aerospace & Defense median · lower = cheaper

P/FCF 0.0× · Cheaper than 75% of peers
PEG 0.21× · 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 0
FUTURE 100 · sector 47
PAST 87 · sector 39
HEALTH 97 · sector 93
DIVIDEND 51 · sector 15

Values & ESG

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

Weapons Defense

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

Similar stocks

10 more Aerospace & Defense stocks, each showing price versus our Fair Value estimate (as of Jul 17, 2026).

Stock Price Fair Value vs Fair Value
General Electric Company GE $381.22 $116.71 -69%
RTX Corporation RTX $195.93 $88.37 -55%
Airbus SE 1AIR €206.30 €92.85 -55%
The Boeing Company BA $217.11 $48.20 -78%
China CSSC Holdings 600150 ¥34.31 ¥21.90 -36%
HD Hyundai Heavy Industries Co 329180 466,000 KRW 272,966 KRW -41%
Hanwha Aerospace Co 012450 967,000 KRW 573,468 KRW -41%
ASELSAN Elektronik Sanayi ve Ticaret Anonim Sirketi ASELS 337.50 TRY 130.70 TRY -61%
Saab AB SAABB kr 520.40 kr 212.84 -59%
Kongsberg Gruppen ASA KOG kr 277.50 kr 106.93 -61%

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Frequently asked questions

Is HD Korea Shipbuilding & Offshore Engineering Co (009540) overvalued or undervalued?
As of Jul 17, 2026, our model estimates a fair value of 643,950 KRW versus a price of 400,000 KRW, about +61% (undervalued).
What is the fair value of 009540?
Our model-based fair value for HD Korea Shipbuilding & Offshore Engineering Co is 643,950 KRW (as of Jul 17, 2026), built from audited fundamentals. The current price is 400,000 KRW.
What is the quality score of 009540?
HD Korea Shipbuilding & Offshore Engineering Co has a Quality Score of 60/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of HD Korea Shipbuilding & Offshore Engineering Co (009540)?
HD Korea Shipbuilding & Offshore Engineering Co reported trailing-twelve-month revenue of about 31.3T KRW (latest available figure, as of Jul 17, 2026).
What is the net profit margin of 009540?
The net profit margin of HD Korea Shipbuilding & Offshore Engineering Co is about 8.0%, meaning it keeps roughly 8.0% of revenue as net income. Based on the latest reported figures.
Does HD Korea Shipbuilding & Offshore Engineering Co pay a dividend?
HD Korea Shipbuilding & Offshore Engineering Co currently shows a dividend yield of about 2.40% relative to its recent price (as of Jul 17, 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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