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HD-Hyundai Marine Engine Co (071970) Fair Value & Analysis

Industrials · KR · Market cap 2.3T KRW

HH HD-Hyundai Marine Engine Co 071970 · KO
Price55,200 KRW
Fair Value35,880 KRW
Upside-35.0%
Quality69/100
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Healthy Growth
Highly profitable · 39.6% net margin
Low debt · generates free cash flow
Ranks above peers (8/9)
Wide moat 81/100
Evidence: High Range 26,516 KRW – 45,245 KRW Share as image

Fair value as of: Jul 24, 2026

From 25 valuation models · updated 17 days ago

Share price −1.3% over the past month.

A solid business, but screening 35% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (45,245 KRW). The favourable scenario is already priced in.
  • Solid but not exceptional quality (69/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

115,500 KRW 3,345 KRW Fair Value 35,880 KRW Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 24, 2026.

How to read this chart

60‑month range 3,345 KRW – 115,500 KRW · fair‑value band 26,516 KRW – 45,245 KRW · the 55,200 KRW price screens above the 35,880 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 24, 2026.

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Analysis

HD-Hyundai Marine Engine Co (071970) currently trades at 55,200 KRW, while our model-based Fair Value estimate is 35,880 KRW, implying the stock looks roughly 35.0% overvalued today. The Quality Score stands at 69/100 (solid quality), in the Industrials 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, HD-Hyundai Marine Engine Co generated revenue of 453B KRW at a net margin of 39.6%. Revenue grew 60.8% year over year. It earns a return on equity of 43.4%. Net debt stands at 53.5B KRW. Fundamentals as of Jul 24, 2026

Our scenario range runs from 26,516 KRW (bear case) to 45,245 KRW (bull case); at 55,200 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 53% 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 -48% fair-value upside, at -35%, 071970 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 58,027 KRW 84,166 KRW 122,168 KRW 80
Residual Income 41,183 KRW 67,962 KRW 1,021,906 KRW 76
Rev-Margin DCF 28,851 KRW 38,956 KRW 50,333 KRW 74
All 25 models by family
DCF Models
FCF DCF 56,307 KRW 84,526 KRW 127,505 KRW 38
Owner Earnings 52,365 KRW 78,598 KRW 118,554 KRW 31
5Y Revenue Exit 28,851 KRW 38,052 KRW 48,859 KRW 39
5Y EBITDA Exit 32,622 KRW 44,840 KRW 58,177 KRW 41
5Y P/E Exit 63,759 KRW 100,889 KRW 138,336 KRW 38
10Y Revenue Exit 37,716 KRW 48,047 KRW 60,103 KRW 36
10Y EBITDA Exit 40,594 KRW 52,771 KRW 67,127 KRW 37
10Y P/E Exit 60,591 KRW 91,777 KRW 127,553 KRW 35
Earnings-Based
Graham-Dodd 33,097 KRW 83,473 KRW 108,427 KRW 54
PEG = 1.0 15,400 KRW 22,000 KRW 28,600 KRW 46
EPV 20,100 KRW 23,600 KRW 26,711 KRW 59
Dividend Discount
Gordon GGM 790.45 KRW 1,567 KRW 2,785 KRW 70
DDM Multi-Stage 790.45 KRW 1,223 KRW 1,714 KRW 61
Multiples
P/E Multiple 76,658 KRW 102,211 KRW 127,763 KRW 63
P/S Multiple 17,794 KRW 23,725 KRW 29,656 KRW 58
P/B Multiple 48,644 KRW 64,859 KRW 81,073 KRW 55
EV/EBIT 28,363 KRW 37,728 KRW 47,092 KRW 53
EV/EBITDA 22,835 KRW 30,357 KRW 37,879 KRW 54
EV/Revenue 15,217 KRW 21,622 KRW 28,028 KRW 43
Asset-Based
NCAV (Graham) 7,207 KRW 9,657 KRW 14,413 KRW 50
Growth DCF
Growth DCF 58,027 KRW 84,166 KRW 122,168 KRW 80
Rev-Margin DCF 28,851 KRW 38,956 KRW 50,333 KRW 74
Economic Profit
Residual Income 41,183 KRW 67,962 KRW 1,021,906 KRW 76
ROIC Compounder 20,956 KRW 26,327 KRW 32,657 KRW 72
Growth Earnings
Growth-Adj P/E 59,231 KRW 84,615 KRW 110,000 KRW 68

Widest divergence: Growth Earnings (84,615 KRW) versus Dividend Discount (1,223 KRW). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 453B KRW
Revenue growth (YoY) +60.8%
Net margin 39.6%
Return on equity 43.4%
Free cash flow 167B KRW FY2025
Operating margin 24.4%
More key figures
EPS growth (YoY) +103%
Net debt 53.5B KRW FY2023

Figures from reported company fundamentals · as of Jul 24, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 69/100

Of which business quality 70 · Market factors (momentum, volatility) 19

Profitability 71
Margins and returns on capital today
Quality Growth 75
Are margins and returns improving?
Cashflow 84
Earnings quality: real cash, not paper profit
Fin. Strength 84
Balance sheet, leverage, solvency risk
Investment 31
Disciplined investing over empire-building
Low Volatility 17
Calm price path (market factor)
Momentum 17
Price trend over the last 3–12 months (market factor)
52W Momentum 25
Distance to the 52-week high (market factor)
Net Issuance 50
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-Hyundai Marine Engine Co., Ltd. manufactures and sells marine engines, industrial facilities, and plants in South Korea and internationally. The company produces high-quality large-sized low-speed diesel engines for ships and power plants.

Full company description

HD-Hyundai Marine Engine Co., Ltd. manufactures and sells marine engines, industrial facilities, and plants in South Korea and internationally. The company produces high-quality large-sized low-speed diesel engines for ships and power plants. It also provides technical support and engine spare parts, such as exh.valve, fuel valve, fuel pump, piston, stuffing box, bearings, pipes, and cylinder cover, as well as turbocharger parts. It also engages in the development, manufacture, and sale of wind equipment, as well as provides shipbuilding equipment. The company was formerly known as STX Heavy Industries Co., Ltd. and changed its name to HD-Hyundai Marine Engine Co., Ltd. in July 2024. HD-Hyundai Marine Engine Co., Ltd. was founded in 1976 and is headquartered in Changwon-si, South Korea.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

HD-Hyundai Marine Engine Co reported revenue of 402B KRW in FY2025 versus 164B KRW in FY2021, a compound +25.2%/yr. Reported net income was 165B KRW in FY2025.

Growth Quality 91/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
402B KRW
Latest YoY
+27.4%
Avg. growth/yr (3Y)
+30.9%
Avg. growth/yr (5Y)
+10.2%
Avg. growth/yr (14Y)
−7.1%
Revenue +25.2%/yr
FY21 164B KRW
FY22 179B KRW
FY23 244B KRW
FY24 316B KRW
FY25 402B KRW
Net income
FY21 −7.8B KRW
FY22 14.1B KRW
FY23 31.6B KRW
FY24 75.8B KRW
FY25 165B KRW

071970 screens 35% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "HD-Hyundai Marine Engine Co Fair Value". https://www.fairvalue-calculator.com/stock/071970

Peer Group

Specialty Industrial Machinery · 809 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 69 · Top 25%
Fair Value upside −35% · Above median
Return on equity (TTM) 43% · Top 25%
Return on assets 9% · Top 25%
Net margin (TTM) 40% · Top 25%
Operating margin (TTM) 24% · Top 25%
Revenue growth 61% · Top 25%
Debt / equity 0.17× · Higher than median

Valuation Multiples vs Specialty Industrial Machinery 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 0 · sector 0
FUTURE 100 · sector 23
PAST 100 · sector 28
HEALTH 91 · sector 96
DIVIDEND 0 · sector 24

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 Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Jul 24, 2026).

Stock Price Fair Value vs Fair Value
GE Vernova Inc 1GEV €887.60 €186.93 -79%
1SIE 1SIE €273.20 €91.93 -66%
SMNS SMNS C$31.76 C$22.68 -29%
Eaton Corporation ETN $407.28 $171.92 -58%
Atlas Copco AB ATCOA kr 195.15 kr 112.59 -42%
Sandvik AB SAND kr 384.10 kr 193.01 -50%
Doosan Enerbility Co 034020 76,400 KRW 7,938 KRW -90%
Vestas Wind Systems A/S VWS kr 178.10 kr 124.54 -30%
Zhejiang Sanhua Intelligent Controls Co 002050 ¥43.20 ¥22.68 -48%
NARI Technology Co 600406 ¥22.19 ¥18.71 -16%

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Frequently asked questions

Is HD-Hyundai Marine Engine Co (071970) overvalued or undervalued?
As of Jul 24, 2026, our model estimates a fair value of 35,880 KRW versus a price of 55,200 KRW, about −35% (overvalued).
What is the fair value of 071970?
Our model-based fair value for HD-Hyundai Marine Engine Co is 35,880 KRW (as of Jul 24, 2026), built from audited fundamentals. The current price is 55,200 KRW.
What is the quality score of 071970?
HD-Hyundai Marine Engine Co has a Quality Score of 69/100. 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 HD-Hyundai Marine Engine Co (071970)?
HD-Hyundai Marine Engine Co reported trailing-twelve-month revenue of about 453B KRW (latest available figure, as of Jul 24, 2026).
What is the net profit margin of 071970?
The net profit margin of HD-Hyundai Marine Engine Co is about 39.6%, meaning it keeps roughly 39.6% 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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