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Castec Korea Co Ltd (071850) Fair Value & Analysis

Consumer Cyclical · KR · Market cap 34.7B KRW

CK Castec Korea Co Ltd 071850 · KQ
Price1,337 KRW
Fair Value3,927 KRW
Upside+193.7%
Quality40/100
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Mixed Growth
Loss-making · -11.2% net margin
Low debt · generates free cash flow
Trails peers (3/11)
Narrow moat 2/100
Evidence: Medium Range 1,825 KRW – 3,927 KRW Share as image

Fair value as of: Aug 13, 2026

From 12 valuation models · updated 6 days ago

Share price −6.3% over the past month.

Below-average quality, screening 194% undervalued on our models.

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What matters now

  • The large discount to fair value meets weak quality (40/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (1,825 KRW). The market is more pessimistic than our downside scenario.
  • A fairly wide model range (1,825 KRW to 3,927 KRW) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

4,629 KRW 1,129 KRW Fair Value 3,927 KRW Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range 1,129 KRW – 4,629 KRW · fair‑value band 1,825 KRW – 3,927 KRW · the 1,337 KRW price screens below the 3,927 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Castec Korea Co Ltd (071850) currently trades at 1,337 KRW, while our model-based Fair Value estimate is 3,927 KRW, implying the stock looks roughly 193.7% undervalued today. The Quality Score stands at 40/100 (below-average quality), in the Consumer Cyclical 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, Castec Korea Co Ltd generated revenue of 155B KRW at a net margin of -11.2%. Revenue declined 1.4% year over year. It earns a return on equity of -25.5%. Net debt stands at 74.7B KRW. Fundamentals as of Aug 13, 2026

Our scenario range runs from 1,825 KRW (bear case) to 3,927 KRW (bull case); at 1,337 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, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -52% fair-value upside, at 194%, 071850 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 5,354 KRW 7,350 KRW 10,764 KRW 80
Rev-Margin DCF 4,655 KRW 6,938 KRW 9,742 KRW 74
Gordon GGM 101.41 KRW 110.99 KRW 125.61 KRW 70
All 12 models by family
DCF Models
FCF DCF 5,111 KRW 7,167 KRW 10,975 KRW 38
5Y Revenue Exit 4,655 KRW 6,815 KRW 9,955 KRW 39
5Y EBITDA Exit 2,886 KRW 3,753 KRW 4,903 KRW 41
10Y Revenue Exit 4,664 KRW 6,292 KRW 8,033 KRW 36
10Y EBITDA Exit 3,719 KRW 4,398 KRW 5,067 KRW 37
Dividend Discount
Gordon GGM 101.41 KRW 110.99 KRW 125.61 KRW 70
DDM Multi-Stage 101.41 KRW 127.23 KRW 163.43 KRW 61
Multiples
EV/EBITDA 1,766 KRW 2,396 KRW 3,027 KRW 54
EV/Revenue 4,778 KRW 6,880 KRW 8,981 KRW 43
Asset-Based
NCAV (Graham) 1,141 KRW 1,530 KRW 2,283 KRW 50
Growth DCF
Growth DCF 5,354 KRW 7,350 KRW 10,764 KRW 80
Rev-Margin DCF 4,655 KRW 6,938 KRW 9,742 KRW 74

Widest divergence: Growth DCF (6,938 KRW) versus Dividend Discount (110.99 KRW). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 155B KRW
Revenue growth (YoY) -1.4%
Net margin -11.2%
Return on equity -25.5%
Free cash flow 13.1B KRW FY2025
Operating margin -3.1%
More key figures
Net debt 74.7B KRW FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 40/100

Of which business quality 41 · Market factors (momentum, volatility) 39

Profitability 14
Margins and returns on capital today
Quality Growth 44
Are margins and returns improving?
Cashflow 58
Earnings quality: real cash, not paper profit
Fin. Strength 19
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 89
Calm price path (market factor)
Momentum 26
Price trend over the last 3–12 months (market factor)
52W Momentum 5
Distance to the 52-week high (market factor)
Net Issuance 40
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

Castec Korea Co.,Ltd engages in the manufacture and sale of automobile components in South Korea. The company offers turbocharger parts, including center and turbine housing products; and other automobile products, such as calipers, carriers, shaft balances, diff carriers, HUBs, knuckles, rotors, and tensioners.

Full company description

Castec Korea Co.,Ltd engages in the manufacture and sale of automobile components in South Korea. The company offers turbocharger parts, including center and turbine housing products; and other automobile products, such as calipers, carriers, shaft balances, diff carriers, HUBs, knuckles, rotors, and tensioners. It also provides hydraulic parts, such as spindle, hub, cover, carriers, cylinder blocks, and rear flanges; and undercarriage system parts; and compressor parts, including crankshafts, cylinder blocks, cylinders, flange tops, mainframes, scrolls, shafts, thrust holders, and wheel cylinders. The company was founded in 1958 and is headquartered in Busan, South Korea.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Castec Korea Co Ltd reported revenue of 155B KRW in FY2025 versus 141B KRW in FY2021, a compound +2.4%/yr. Reported net income was −21.3B KRW in FY2025.

Growth Quality 34/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
155B KRW
Latest YoY
−2.0%
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.
−5.1%
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.
+2.4%
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.
−2.4%
Revenue +2.4%/yr
FY21 141B KRW
FY22 182B KRW
FY23 173B KRW
FY24 159B KRW
FY25 155B KRW
Net income
FY21 −15.3B KRW
FY22 −6.2B KRW
FY23 −16.1B KRW
FY24 −9.4B KRW
FY25 −21.3B KRW

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Cite: Fair Value Calculator (2026). "Castec Korea Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/071850

Peer Group

Auto Parts · 645 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 40 · Bottom 25%
Fair Value upside +194% · Top 25%
Return on assets -2% · Bottom 25%
Net margin (TTM) -11% · Bottom 25%
Operating margin (TTM) -3% · Bottom 25%
Revenue growth -1% · Below median
Dividend yield (TTM) 0.8% · Below median
Debt / equity 0.19× · Higher than median

Valuation Multiples vs Auto Parts median · lower = cheaper

P/FCF 0.0× · Cheaper than 75% of peers
EV/EBITDA 0.6× · 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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 18
FUTURE0 · sector 23
PAST0 · sector 27
HEALTH91 · sector 95
DIVIDEND15 · sector 31

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 Auto Parts stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Hyundai Mobis Co 012330 511,000 KRW 643,909 KRW +26%
Magna International Inc MGAN 1,122 MXN 1,142 MXN +2%
Samvardhana Motherson International Limited MOTHERSON ₹169.50 ₹80.63 -52%
Bosch Limited BOSCHLTD ₹48,700 ₹11,534 -76%
Bharat Forge Limited BHARATFORG ₹2,082 ₹393.20 -81%
Uno Minda Limited UNOMINDA ₹1,232 ₹426.57 -65%
Schaeffler India Limited SCHAEFFLER ₹4,126 ₹1,412 -66%
Hankook Tire & Technology Co 161390 71,500 KRW 196,479 KRW +175%
Balkrishna Industries Limited BALKRISIND ₹2,376 ₹1,237 -48%
Endurance Technologies Limited ENDURANCE ₹2,987 ₹1,384 -54%

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Frequently asked questions

Is Castec Korea Co Ltd (071850) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 3,927 KRW versus a price of 1,337 KRW, about +194% (undervalued).
What is the fair value of 071850?
Our model-based fair value for Castec Korea Co Ltd is 3,927 KRW (as of Aug 13, 2026), built from audited fundamentals. The current price: 1,337 KRW.
What is the quality score of 071850?
Castec Korea Co Ltd has a Quality Score of 40/100. 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 Castec Korea Co Ltd (071850)?
Castec Korea Co Ltd reported trailing-twelve-month revenue of about 155B KRW (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 071850?
The net profit margin of Castec Korea Co Ltd is about -11.2%, 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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