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Hwashin Precision Engineering Co (126640) Fair Value & Analysis

Consumer Cyclical · KR · Market cap 151B KRW

HP Hwashin Precision Engineering Co 126640 · KQ
Price3,895 KRW
Fair Value3,551 KRW
Upside-8.8%
Quality69/100
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Healthy Growth
Thin margins · 1.9% net margin
Low debt · generates free cash flow
3.88% dividend yield
Ranks above peers (7/10)
Moderate moat 45/100
Evidence: High Range 2,638 KRW – 4,464 KRW Share as image

Fair value as of: Jul 20, 2026

From 24 valuation models · updated 20 days ago

Fair value updated Jul 20, 2026, revised from 5,883 KRW to 3,551 KRW (−39.6%) since Jul 7, 2026. Share price +8.2% over the past month.

A solid business, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • Our model range runs from 2,638 KRW (bear) to 4,464 KRW (bull), base 3,551 KRW. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 69/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

7,060 KRW 1,007 KRW Fair Value 3,551 KRW Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 20, 2026.

How to read this chart

60‑month range 1,007 KRW – 7,060 KRW · fair‑value band 2,638 KRW – 4,464 KRW · the 3,895 KRW price screens above the 3,551 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 20, 2026.

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Analysis

Hwashin Precision Engineering Co (126640) currently trades at 3,895 KRW, while our model-based Fair Value estimate is 3,551 KRW, implying the stock looks roughly 8.8% fairly valued today. The Quality Score stands at 69/100 (solid 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, Hwashin Precision Engineering Co generated revenue of 289B KRW at a net margin of 1.9%. Revenue grew 31.6% year over year. Net debt stands at 5.8B KRW. Fundamentals as of Jul 20, 2026

Our scenario range runs from 2,638 KRW (bear case) to 4,464 KRW (bull case); at 3,895 KRW, the current price sits within 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 32% below its 52-week high and 229% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 9% fair-value upside, at -9%, 126640 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 BearBaseBull Evidence
Highest evidence
Growth DCF 6,486 KRW 9,092 KRW 12,867 KRW 80
Residual Income 2,870 KRW 3,118 KRW 4,019 KRW 76
Rev-Margin DCF 4,994 KRW 6,960 KRW 9,267 KRW 74
All 24 models by family
DCF Models
FCF DCF 6,412 KRW 9,386 KRW 13,993 KRW 38
Owner Earnings 2,680 KRW 3,475 KRW 4,706 KRW 31
5Y Revenue Exit 4,994 KRW 6,927 KRW 9,365 KRW 39
5Y EBITDA Exit 5,981 KRW 8,793 KRW 12,075 KRW 41
5Y P/E Exit 5,917 KRW 8,673 KRW 11,575 KRW 38
10Y Revenue Exit 5,362 KRW 7,260 KRW 9,777 KRW 36
10Y EBITDA Exit 6,088 KRW 8,564 KRW 11,867 KRW 37
10Y P/E Exit 6,047 KRW 8,480 KRW 11,482 KRW 35
Earnings-Based
Graham-Dodd 2,001 KRW 6,570 KRW 8,784 KRW 54
Lynch FV 1,477 KRW 2,109 KRW 2,742 KRW 50
PEG = 1.0 1,477 KRW 2,109 KRW 2,742 KRW 46
EPV 4,126 KRW 4,594 KRW 5,003 KRW 59
Multiples
P/E Multiple 4,854 KRW 6,472 KRW 8,091 KRW 63
P/S Multiple 3,751 KRW 5,001 KRW 6,252 KRW 58
P/B Multiple 3,751 KRW 5,001 KRW 6,252 KRW 55
EV/EBIT 5,856 KRW 7,368 KRW 8,881 KRW 53
EV/EBITDA 6,282 KRW 7,936 KRW 9,591 KRW 54
EV/Revenue 4,377 KRW 5,688 KRW 6,999 KRW 43
Asset-Based
NCAV (Graham) 1,690 KRW 2,265 KRW 3,381 KRW 50
Growth DCF
Growth DCF 6,486 KRW 9,092 KRW 12,867 KRW 80
Rev-Margin DCF 4,994 KRW 6,960 KRW 9,267 KRW 74
Economic Profit
Residual Income 2,870 KRW 3,118 KRW 4,019 KRW 76
ROIC Compounder 4,298 KRW 5,142 KRW 6,187 KRW 72
Growth Earnings
Growth-Adj P/E 4,069 KRW 5,813 KRW 7,557 KRW 68

Widest divergence: DCF Models (8,480 KRW) versus Earnings-Based (2,109 KRW). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 289B KRW
Revenue growth (YoY) +31.6%
Net margin 1.9%
Return on equity 310%
Free cash flow 15.5B KRW FY2025
Operating margin 2.5%
More key figures
Dividend yield 3.9%
EPS growth (YoY) +171%
Net debt 5.8B KRW FY2021

Figures from reported company fundamentals · as of Jul 20, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 69/100

Of which business quality 68 · Market factors (momentum, volatility) 70

Profitability 45
Margins and returns on capital today
Quality Growth 74
Are margins and returns improving?
Cashflow 49
Earnings quality: real cash, not paper profit
Fin. Strength 92
Balance sheet, leverage, solvency risk
Investment 77
Disciplined investing over empire-building
Low Volatility 24
Calm price path (market factor)
Momentum 100
Price trend over the last 3–12 months (market factor)
52W Momentum 70
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

Hwashin Precision Engineering Co., Ltd. manufactures and supplies automobile components in South Korea. The company offers chassis components, such as front cross member, front lower arm, rear coupled torsion beam axle, rear cross member, rear lower ram, rear trailing arm, rear assist arm, front upper arm, rear axle housing assembly, pedal, and fuel tank.

Full company description

Hwashin Precision Engineering Co., Ltd. manufactures and supplies automobile components in South Korea. The company offers chassis components, such as front cross member, front lower arm, rear coupled torsion beam axle, rear cross member, rear lower ram, rear trailing arm, rear assist arm, front upper arm, rear axle housing assembly, pedal, and fuel tank. It also provides body related products, including reinf side outer, fender apron and member, center and rear floor, cowl complete and cross bar, bumper rail, and sun roof reinf. The company was formerly known as Hwashin Clutch Corporation and changed its name to Hwashin Precision Engineering Co., Ltd. in December 1995. The company was founded in 1991 and is based in Yeongcheon, South Korea. Hwashin Precision Engineering Co., Ltd. is a subsidiary of Hwashin Group.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hwashin Precision Engineering Co reported revenue of 379B KRW in FY2025 versus 255B KRW in FY2021, a compound +10.4%/yr. Reported net income was 10.3B KRW in FY2025, compounding +22.7%/yr from FY2021.

Growth Quality 78/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
379B KRW
Latest YoY
+17.7%
Avg. growth/yr (3Y)
+6.0%
Avg. growth/yr (5Y)
+8.9%
Avg. growth/yr (11Y)
+3.9%
Revenue +10.4%/yr
FY21 255B KRW
FY22 318B KRW
FY23 360B KRW
FY24 322B KRW
FY25 379B KRW
Net income +22.7%/yr
FY21 4.5B KRW
FY22 7.1B KRW
FY23 9.0B KRW
FY24 2.6B KRW
FY25 10.3B KRW

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Cite: Fair Value Calculator (2026). "Hwashin Precision Engineering Co Fair Value". https://www.fairvalue-calculator.com/stock/126640

Peer Group

Consumer Discretionary · 3559 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 69 · Top 25%
Fair Value upside −9% · Below median
Return on equity (TTM) 310% · Top 25%
Return on assets 3% · Above median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 2% · Below median
Revenue growth 32% · Top 25%
Dividend yield (TTM) 3.9% · Above median

Valuation Multiples vs Consumer Discretionary 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 22 · sector 23
FUTURE 100 · sector 14
PAST 100 · sector 21
HEALTH 100 · sector 96
DIVIDEND 78 · sector 41

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.

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Frequently asked questions

Is Hwashin Precision Engineering Co (126640) overvalued or undervalued?
As of Jul 20, 2026, our model estimates a fair value of 3,551 KRW versus a price of 3,895 KRW, about −9% (fairly valued).
What is the fair value of 126640?
Our model-based fair value for Hwashin Precision Engineering Co is 3,551 KRW (as of Jul 20, 2026), built from audited fundamentals. The current price is 3,895 KRW.
What is the quality score of 126640?
Hwashin Precision Engineering 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 Hwashin Precision Engineering Co (126640)?
Hwashin Precision Engineering Co reported trailing-twelve-month revenue of about 289B KRW (latest available figure, as of Jul 20, 2026).
What is the net profit margin of 126640?
The net profit margin of Hwashin Precision Engineering Co is about 1.9%, meaning it keeps roughly 1.9% of revenue as net income. Based on the latest reported figures.
Does Hwashin Precision Engineering Co pay a dividend?
Hwashin Precision Engineering Co currently shows a dividend yield of about 3.88% relative to its recent price (as of Jul 20, 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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