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Hanwha Engine Co (082740) Fair Value & Analysis

Industrials · KR · Market cap 3.9T KRW

HE Hanwha Engine Co 082740 · KO
Price42,500 KRW
Fair Value29,996 KRW
Upside-29.4%
Quality64/100
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Healthy Growth
Solidly profitable · 14.8% net margin
Low debt · generates free cash flow
Ranks above peers (9/9)
Wide moat 65/100
Evidence: High Range 22,497 KRW – 37,495 KRW Share as image

Fair value as of: Jul 16, 2026

From 24 valuation models · updated 25 days ago

Share price −5.0% over the past month.

A solid business, but screening 29% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (37,495 KRW). The favourable scenario is already priced in.
  • Solid but not exceptional quality (64/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

89,500 KRW 6,200 KRW Fair Value 29,996 KRW Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range 6,200 KRW – 89,500 KRW · fair‑value band 22,497 KRW – 37,495 KRW · the 42,500 KRW price screens above the 29,996 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Hanwha Engine Co (082740) currently trades at 42,500 KRW, while our model-based Fair Value estimate is 29,996 KRW, implying the stock looks roughly 29.4% overvalued today. The Quality Score stands at 64/100 (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, Hanwha Engine Co generated revenue of 1.4T KRW at a net margin of 14.8%. Revenue grew 8.5% year over year. It earns a return on equity of 41.3%. Net debt stands at 108B KRW. Fundamentals as of Jul 16, 2026

Our scenario range runs from 22,497 KRW (bear case) to 37,495 KRW (bull case); at 42,500 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 72% 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 -29%, 082740 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 48,992 KRW 82,697 KRW 141,696 KRW 80
Rev-Margin DCF 27,111 KRW 39,267 KRW 54,548 KRW 74
ROIC Compounder 18,549 KRW 22,979 KRW 28,254 KRW 72
All 24 models by family
DCF Models
FCF DCF 48,794 KRW 83,752 KRW 144,800 KRW 38
Owner Earnings 27,147 KRW 45,509 KRW 77,573 KRW 31
5Y Revenue Exit 27,111 KRW 38,963 KRW 53,970 KRW 39
5Y EBITDA Exit 28,440 KRW 41,617 KRW 57,143 KRW 41
5Y P/E Exit 38,110 KRW 60,933 KRW 86,084 KRW 38
10Y Revenue Exit 33,446 KRW 46,886 KRW 65,354 KRW 36
10Y EBITDA Exit 34,824 KRW 48,841 KRW 67,991 KRW 37
10Y P/E Exit 41,298 KRW 63,066 KRW 92,037 KRW 35
Earnings-Based
Graham-Dodd 14,163 KRW 58,487 KRW 79,695 KRW 54
Lynch FV 14,740 KRW 21,056 KRW 27,373 KRW 50
PEG = 1.0 14,740 KRW 21,056 KRW 27,373 KRW 46
EPV 17,229 KRW 19,705 KRW 21,906 KRW 59
Multiples
P/E Multiple 32,803 KRW 43,737 KRW 54,672 KRW 63
P/S Multiple 24,652 KRW 32,869 KRW 41,086 KRW 58
P/B Multiple 22,497 KRW 29,996 KRW 37,495 KRW 55
EV/EBIT 23,075 KRW 29,701 KRW 36,327 KRW 53
EV/EBITDA 20,524 KRW 26,300 KRW 32,076 KRW 54
EV/Revenue 17,385 KRW 23,465 KRW 29,545 KRW 43
Asset-Based
NCAV (Graham) 3,333 KRW 4,466 KRW 6,666 KRW 50
Growth DCF
Growth DCF 48,992 KRW 82,697 KRW 141,696 KRW 80
Rev-Margin DCF 27,111 KRW 39,267 KRW 54,548 KRW 74
Economic Profit
Residual Income 15,373 KRW 21,522 KRW 181,013 KRW 61
ROIC Compounder 18,549 KRW 22,979 KRW 28,254 KRW 72
Growth Earnings
Growth-Adj P/E 25,335 KRW 36,193 KRW 47,051 KRW 68

Widest divergence: DCF Models (46,886 KRW) versus Asset-Based (4,466 KRW). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 1.4T KRW
Revenue growth (YoY) +8.5%
Net margin 14.8%
Return on equity 41.3%
Free cash flow 291B KRW FY2025
Operating margin 14.9%
More key figures
EPS growth (YoY) +172%
Net debt 108B KRW FY2023

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 64/100

Of which business quality 67 · Market factors (momentum, volatility) 34

Profitability 60
Margins and returns on capital today
Quality Growth 68
Are margins and returns improving?
Cashflow 88
Earnings quality: real cash, not paper profit
Fin. Strength 78
Balance sheet, leverage, solvency risk
Investment 32
Disciplined investing over empire-building
Low Volatility 6
Calm price path (market factor)
Momentum 37
Price trend over the last 3–12 months (market factor)
52W Momentum 60
Distance to the 52-week high (market factor)
Net Issuance 54
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

Hanwha Engine Co., Ltd. manufactures and sells diesel engines worldwide. The company provides low and medium speed marine diesel engines for ocean-going vessels; and diesel/gas engines for electric power generation.

Full company description

Hanwha Engine Co., Ltd. manufactures and sells diesel engines worldwide. The company provides low and medium speed marine diesel engines for ocean-going vessels; and diesel/gas engines for electric power generation. It also offers engine parts, including cylinder liners, piston crowns, exhaust valve spindles and housings, pump barrel plungers, piston rings, spindle guides, exhaust valve seats, puncture valves, and main bearings; and warranty, operation and maintenance, technical, installation and commissioning, and preventive services. Hanwha Engine Co., Ltd. was founded in 1983 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

Hanwha Engine Co reported revenue of 1.4T KRW in FY2025 versus 599B KRW in FY2021, a compound +23.0%/yr. Reported net income was 174B KRW in FY2025.

Growth Quality 92/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
1.4T KRW
Latest YoY
+14.0%
Avg. growth/yr (3Y)
+21.5%
Avg. growth/yr (5Y)
+10.6%
Avg. growth/yr (14Y)
−2.7%
Revenue +23.0%/yr
FY21 599B KRW
FY22 764B KRW
FY23 854B KRW
FY24 1.2T KRW
FY25 1.4T KRW
Net income
FY21 −39.7B KRW
FY22 −40.3B KRW
FY23 −426M KRW
FY24 79.2B KRW
FY25 174B KRW

082740 screens 29% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Hanwha Engine Co Fair Value". https://www.fairvalue-calculator.com/stock/082740

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 64 · Top 25%
Fair Value upside −29% · Above median
Return on equity (TTM) 41% · Top 25%
Return on assets 5% · Above median
Net margin (TTM) 15% · Top 25%
Operating margin (TTM) 15% · Top 25%
Revenue growth 9% · Above median
Debt / equity 0.02× · Lower 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 43 · sector 23
PAST 100 · sector 28
HEALTH 99 · sector 96
DIVIDEND 0 · sector 24

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

Insider activity: 40/100

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 16, 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 Hanwha Engine Co (082740) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of 29,996 KRW versus a price of 42,500 KRW, about −29% (overvalued).
What is the fair value of 082740?
Our model-based fair value for Hanwha Engine Co is 29,996 KRW (as of Jul 16, 2026), built from audited fundamentals. The current price is 42,500 KRW.
What is the quality score of 082740?
Hanwha Engine Co has a Quality Score of 64/100. 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 Hanwha Engine Co (082740)?
Hanwha Engine Co reported trailing-twelve-month revenue of about 1.4T KRW (latest available figure, as of Jul 16, 2026).
What is the net profit margin of 082740?
The net profit margin of Hanwha Engine Co is about 14.8%, meaning it keeps roughly 14.8% 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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