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Hanil Forging Industrial Co (024740) Fair Value & Analysis

Consumer Cyclical · KR · Market cap 68.9B KRW

HF Hanil Forging Industrial Co 024740 · KQ
Price2,180 KRW
Fair Value966.09 KRW
Upside-55.7%
Quality45/100
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Weak Growth
Loss-making · -1.4% net margin
Low debt · generates free cash flow
Mixed vs. peers (4/9)
Narrow moat 37/100
Evidence: High Range 937.68 KRW – 1,228 KRW Share as image

Fair value as of: Jul 22, 2026

From 23 valuation models · updated 19 days ago

Fair value updated Jul 22, 2026, revised from 843.71 KRW to 966.09 KRW (+14.5%) since Jul 6, 2026. Share price +2.8% over the past month.

Below-average quality, and screening another 56% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (1,228 KRW). The favourable scenario is already priced in.
  • Solid but not exceptional quality (45/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

5,460 KRW 1,830 KRW Fair Value 966.09 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 1,830 KRW – 5,460 KRW · fair‑value band 937.68 KRW – 1,228 KRW · the 2,180 KRW price screens above the 966.09 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

Hanil Forging Industrial Co (024740) currently trades at 2,180 KRW, while our model-based Fair Value estimate is 966.09 KRW, implying the stock looks roughly 55.7% overvalued today. The Quality Score stands at 45/100 (below-average quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Hanil Forging Industrial Co generated revenue of 173B KRW at a net margin of -1.4%. Revenue grew 23.8% year over year. Net debt stands at 60.6B KRW. Fundamentals as of Jul 22, 2026

Our scenario range runs from 937.68 KRW (bear case) to 1,228 KRW (bull case); at 2,180 KRW, the current price sits above 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 55% below its 52-week high and 9% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 51% fair-value upside, at -56%, 024740 screens richer 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 860.55 KRW 937.89 KRW 1,072 KRW 80
Residual Income 3,191 KRW 2,983 KRW 2,191 KRW 76
ROIC Compounder 1,664 KRW 1,834 KRW 1,983 KRW 72
All 23 models by family
DCF Models
FCF DCF 851.15 KRW 930.70 KRW 1,080 KRW 38
Owner Earnings 1,585 KRW 1,947 KRW 2,627 KRW 31
5Y Revenue Exit 1,336 KRW 1,785 KRW 2,445 KRW 39
5Y EBITDA Exit 2,736 KRW 4,201 KRW 6,150 KRW 41
5Y P/E Exit 1,156 KRW 1,475 KRW 1,856 KRW 38
10Y Revenue Exit 1,116 KRW 1,441 KRW 1,806 KRW 36
10Y EBITDA Exit 1,996 KRW 2,950 KRW 4,015 KRW 37
10Y P/E Exit 1,035 KRW 1,247 KRW 1,455 KRW 35
Earnings-Based
Graham-Dodd 337.48 KRW 434.80 KRW 496.69 KRW 54
EPV 1,664 KRW 1,834 KRW 1,983 KRW 59
Dividend Discount
Gordon GGM 224.39 KRW 245.61 KRW 277.94 KRW 70
DDM Multi-Stage 224.39 KRW 284.32 KRW 366.45 KRW 61
Multiples
P/E Multiple 818.90 KRW 1,092 KRW 1,365 KRW 63
P/S Multiple 632.78 KRW 843.71 KRW 1,055 KRW 58
P/B Multiple 632.78 KRW 843.71 KRW 1,055 KRW 55
EV/EBIT 2,250 KRW 2,786 KRW 3,321 KRW 53
EV/EBITDA 4,456 KRW 5,727 KRW 6,998 KRW 54
EV/Revenue 1,727 KRW 2,191 KRW 2,655 KRW 43
Asset-Based
NCAV (Graham) 2,325 KRW 3,116 KRW 4,651 KRW 50
Growth DCF
Growth DCF 860.55 KRW 937.89 KRW 1,072 KRW 80
Economic Profit
Residual Income 3,191 KRW 2,983 KRW 2,191 KRW 76
ROIC Compounder 1,664 KRW 1,834 KRW 1,983 KRW 72
Growth Earnings
Growth-Adj P/E 577.26 KRW 824.65 KRW 1,072 KRW 68

Widest divergence: Asset-Based (3,116 KRW) versus Dividend Discount (245.61 KRW). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 173B KRW
Revenue growth (YoY) +23.8%
Net margin -1.4%
Return on equity 454%
Free cash flow 626M KRW FY2025
Operating margin 2.5%
More key figures
EPS growth (YoY) +777%
Net debt 60.6B KRW FY2025

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

Quality Score breakdown

Overall quality 45/100

Of which business quality 42 · Market factors (momentum, volatility) 25

Profitability 20
Margins and returns on capital today
Quality Growth 23
Are margins and returns improving?
Cashflow 38
Earnings quality: real cash, not paper profit
Fin. Strength 42
Balance sheet, leverage, solvency risk
Investment 81
Disciplined investing over empire-building
Low Volatility 36
Calm price path (market factor)
Momentum 20
Price trend over the last 3–12 months (market factor)
52W Momentum 20
Distance to the 52-week high (market factor)
Net Issuance 74
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

Hanil Forging Industrial Co., Ltd. produces and supplies automobile components in South Korea and internationally. The company provides axle shafts, spindles, ring gears, hammer forgings, and aluminum forgings for use in SUVs, trucks, buses, trailers, electric trains, ships, aircrafts, and passenger cars, as well as in industrial machinery.

Full company description

Hanil Forging Industrial Co., Ltd. produces and supplies automobile components in South Korea and internationally. The company provides axle shafts, spindles, ring gears, hammer forgings, and aluminum forgings for use in SUVs, trucks, buses, trailers, electric trains, ships, aircrafts, and passenger cars, as well as in industrial machinery. It also offers defense industrial products, which are used in antitanks, warships, aircrafts, and heavy weapons; radial forgings for use in ship building, plants, industrial machines, railroad vehicles, iron manufacturing facilities, wind power, nuclear power, etc.; bevel gears for passenger cars and commercial vehicles; and firewall parts for use in Korean mobile helicopters. The company was founded in 1966 and is headquartered in Changwon, South Korea.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hanil Forging Industrial Co reported revenue of 127B KRW in FY2025 versus 152B KRW in FY2021, a compound −4.5%/yr. Reported net income was 1.5B KRW in FY2025.

Growth Quality 38/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
127B KRW
Latest YoY
−9.2%
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.
−10.6%
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.
−1.7%
Avg. growth/yr (17Y) 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.
+2.4%
Revenue −4.5%/yr
FY21 152B KRW
FY22 177B KRW
FY23 178B KRW
FY24 139B KRW
FY25 127B KRW
Net income
FY21 −8.6B KRW
FY22 6.9B KRW
FY23 7.5B KRW
FY24 6.2B KRW
FY25 1.5B KRW

024740 screens 56% overvalued. Compare with ML →

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Cite: Fair Value Calculator (2026). "Hanil Forging Industrial Co Fair Value". https://www.fairvalue-calculator.com/stock/024740

Peer Group

Consumer Discretionary · 3552 stocks

How this stock ranks against its sector: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median. (Industry “Automobiles & Auto Parts” was too small, so the broader sector is used.)

Quality Score 45 · Below median
Fair Value upside −56% · Bottom 25%
Return on equity (TTM) 454% · Top 25%
Return on assets 1% · Below median
Net margin (TTM) -1% · Bottom 25%
Operating margin (TTM) 3% · Below median
Revenue growth 24% · Top 25%
Debt / equity 0.06× · Lower than median

Valuation Multiples vs Consumer Discretionary median · lower = cheaper

P/FCF 0.1× · 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 0 · sector 22
FUTURE 100 · sector 14
PAST 100 · sector 21
HEALTH 97 · sector 96
DIVIDEND 0 · sector 41

VALUE 0: the price sits above our fair-value range.

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 Automobiles & Auto Parts stocks, each showing price versus our Fair Value estimate (as of Jul 22, 2026).

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Guyoung Technology Co 053270 1,909 KRW 1,235 KRW -35%
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Frequently asked questions

Is Hanil Forging Industrial Co (024740) overvalued or undervalued?
As of Jul 22, 2026, our model estimates a fair value of 966.09 KRW versus a price of 2,180 KRW, about −56% (overvalued).
What is the fair value of 024740?
Our model-based fair value for Hanil Forging Industrial Co is 966.09 KRW (as of Jul 22, 2026), built from audited fundamentals. The current price is 2,180 KRW.
What is the quality score of 024740?
Hanil Forging Industrial Co has a Quality Score of 45/100. 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 Hanil Forging Industrial Co (024740)?
Hanil Forging Industrial Co reported trailing-twelve-month revenue of about 173B KRW (latest available figure, as of Jul 22, 2026).
What is the net profit margin of 024740?
The net profit margin of Hanil Forging Industrial Co is about -1.4%, meaning it is currently running at a net loss. 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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