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Hanwha Systems Co (272210) Fair Value & Analysis

Industrials · KR · Market cap 11.4T KRW

HS Hanwha Systems Co 272210 · KO
Price70,100 KRW
Fair Value36,089 KRW
Upside-48.5%
Quality29/100
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Expensive Growth
Thin margins · 4.2% net margin
Low debt · negative free cash flow
0.76% dividend yield
Mixed vs. peers (4/10)
Narrow moat 32/100
Evidence: High Range 27,067 KRW – 45,112 KRW Share as image

Fair value as of: Jul 20, 2026

From 17 valuation models · updated 18 days ago

Fair value updated Jul 20, 2026, revised from 22,022 KRW to 36,089 KRW (+63.9%) since Jul 7, 2026. Share price −0.4% over the past month.

Below-average quality, and screening another 49% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (45,112 KRW). The favourable scenario is already priced in.
  • Weak quality (29/100) and above fair value at the same time, the margin of safety is missing on both counts.
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Price vs Fair Value (5 years)

162,104 KRW 9,669 KRW Fair Value 36,089 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 9,669 KRW – 162,104 KRW · fair‑value band 27,067 KRW – 45,112 KRW · the 70,100 KRW price screens above the 36,089 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

Hanwha Systems Co (272210) currently trades at 70,100 KRW, while our model-based Fair Value estimate is 36,089 KRW, implying the stock looks roughly 48.5% overvalued today. We read business quality at 29/100 (below-average 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 Systems Co generated revenue of 3.8T KRW at a net margin of 4.2%. Revenue grew 17.0% year over year. It earns a return on equity of 2.2%. Net debt stands at 1.1T KRW. Fundamentals as of Jul 20, 2026

Our scenario range runs from 27,067 KRW (bear case) to 45,112 KRW (bull case); at 70,100 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 59% below its 52-week high and 69% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -55% fair-value upside, at -49%, 272210 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
Residual Income 20,183 KRW 20,515 KRW 20,004 KRW 76
ROIC Compounder 1,144 KRW 2,051 KRW 2,858 KRW 72
Gordon GGM 3,367 KRW 7,350 KRW 12,367 KRW 70
All 17 models by family
DCF Models
Owner Earnings 4,398 KRW 14,085 KRW 33,966 KRW 31
Earnings-Based
Graham-Dodd 8,809 KRW 53,882 KRW 75,169 KRW 54
Lynch FV 15,433 KRW 22,048 KRW 28,662 KRW 50
PEG = 1.0 15,433 KRW 22,048 KRW 28,662 KRW 46
EPV 1,144 KRW 2,051 KRW 2,858 KRW 59
Dividend Discount
Gordon GGM 3,367 KRW 7,350 KRW 12,367 KRW 70
DDM Multi-Stage 3,367 KRW 6,021 KRW 7,660 KRW 61
Multiples
P/E Multiple 19,431 KRW 25,908 KRW 32,385 KRW 63
P/S Multiple 16,516 KRW 22,022 KRW 27,527 KRW 58
P/B Multiple 16,516 KRW 22,022 KRW 27,527 KRW 55
EV/EBIT 4,657 KRW 7,543 KRW 10,428 KRW 53
EV/EBITDA 11,664 KRW 16,885 KRW 22,105 KRW 54
EV/Revenue 1,836 KRW 4,337 KRW 6,837 KRW 43
Asset-Based
NCAV (Graham) 12,966 KRW 17,375 KRW 25,933 KRW 50
Economic Profit
Residual Income 20,183 KRW 20,515 KRW 20,004 KRW 76
ROIC Compounder 1,144 KRW 2,051 KRW 2,858 KRW 72
Growth Earnings
Growth-Adj P/E 21,762 KRW 31,088 KRW 40,415 KRW 68

Widest divergence: Growth Earnings (31,088 KRW) versus Economic Profit (2,051 KRW). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 3.8T KRW
Revenue growth (YoY) +17.0%
Net margin 4.2%
Return on equity 2.2%
Free cash flow −242B KRW FY2025
Operating margin 4.3%
More key figures
Dividend yield 0.5%
EPS growth (YoY) -96.7%
Net debt 1.1T KRW FY2025

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

Quality Score breakdown

Overall quality 29/100

Of which business quality 32 · Market factors (momentum, volatility) 27

Profitability 24
Margins and returns on capital today
Quality Growth 22
Are margins and returns improving?
Cashflow 5
Earnings quality: real cash, not paper profit
Fin. Strength 46
Balance sheet, leverage, solvency risk
Investment 21
Disciplined investing over empire-building
Low Volatility 15
Calm price path (market factor)
Momentum 26
Price trend over the last 3–12 months (market factor)
52W Momentum 42
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

Hanwha Systems Co., Ltd. manufacture and sell various military equipments in South Korea and internationally. The company offers electro-optics, infra-red, and synthetic aperture radar (SAR) payloads to be mounted on mid-to-large sized satellites, as well as the system and payload development solutions for micro-satellites; avionics solutions for fixed …

Full company description

Hanwha Systems Co., Ltd. manufacture and sell various military equipments in South Korea and internationally. The company offers electro-optics, infra-red, and synthetic aperture radar (SAR) payloads to be mounted on mid-to-large sized satellites, as well as the system and payload development solutions for micro-satellites; avionics solutions for fixed wing, rotary wing, and unmanned aircrafts; and terminals for military satellite communication networks, including network controllers. It also provides radars, electro-optics, and space object surveillance systems; tactical communication, command and control, and cyber battlefield management systems; naval combat, unmanned maritime, SONAR, naval vessel weapon, and engineering control systems; integrated vetronics systems, warrior platforms, dronebot combat systems, and mobilized integrated surveillance systems; and integrated product support solutions. In addition, the company offers system integration and IT solutions for manufacturing and construction, finance, and leisure industries; application, IT infrastructure, cloud, and systems management services; smart building, insurance, manufacturing execution system, and enterprise resource planning (ERP) solutions; H-Chain, a blockchain platform; and artificial intelligence, cloud, and smart factory solutions. Further, it provides Urban Air Mobility, a 3-dimentional urban air transportation system that connects ground and air transports; and electronically steerable antennas for space internet services. The company was formerly known as Hanwa Thales Co., Ltd. and changed its name to Hanwha Systems Co., Ltd. in October 2016. Hanwha Systems Co., Ltd. was founded in 1977 and is headquartered in Seoul, South Korea.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hanwha Systems Co reported revenue of 3.7T KRW in FY2025 versus 2.1T KRW in FY2021, a compound +15.1%/yr. Reported net income was 242B KRW in FY2025, compounding +25.3%/yr from FY2021.

Growth Quality 58/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
3.7T KRW
Latest YoY
+30.7%
Avg. growth/yr (3Y)
+18.8%
Avg. growth/yr (5Y)
+17.4%
Avg. growth/yr (9Y)
+17.5%
Revenue +15.1%/yr
FY21 2.1T KRW
FY22 2.2T KRW
FY23 2.5T KRW
FY24 2.8T KRW
FY25 3.7T KRW
Net income +25.3%/yr
FY21 98.3B KRW
FY22 −76.6B KRW
FY23 349B KRW
FY24 454B KRW
FY25 242B KRW

272210 screens 49% overvalued. Compare with General Electric Company →

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Cite: Fair Value Calculator (2026). "Hanwha Systems Co Fair Value". https://www.fairvalue-calculator.com/stock/272210

Peer Group

Aerospace & Defense · 227 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 29 · Bottom 25%
Fair Value upside −49% · Above median
Return on equity (TTM) 2% · Below median
Return on assets 1% · Bottom 25%
Net margin (TTM) 4% · Below median
Operating margin (TTM) 4% · Bottom 25%
Revenue growth 17% · Above median
Dividend yield (TTM) 0.8% · Above median
Debt / equity 0.22× · Higher than median

Valuation Multiples vs Aerospace & Defense median · lower = cheaper

EV/EBITDA 2.5× · 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 85 · sector 47
PAST 9 · sector 39
HEALTH 89 · sector 93
DIVIDEND 15 · sector 15

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.

Weapons Defense

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Aerospace & Defense stocks, each showing price versus our Fair Value estimate (as of Jul 20, 2026).

Stock Price Fair Value vs Fair Value
General Electric Company GE $381.22 $116.71 -69%
RTX Corporation RTX $195.93 $88.37 -55%
Airbus SE 1AIR €206.30 €92.85 -55%
The Boeing Company BA $217.11 $48.20 -78%
China CSSC Holdings 600150 ¥34.31 ¥21.90 -36%
HD Hyundai Heavy Industries Co 329180 466,000 KRW 272,966 KRW -41%
Hanwha Aerospace Co 012450 967,000 KRW 573,468 KRW -41%
ASELSAN Elektronik Sanayi ve Ticaret Anonim Sirketi ASELS 337.50 TRY 130.70 TRY -61%
Saab AB SAABB kr 520.40 kr 212.84 -59%
Kongsberg Gruppen ASA KOG kr 277.50 kr 106.93 -61%

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Frequently asked questions

Is Hanwha Systems Co (272210) overvalued or undervalued?
As of Jul 20, 2026, our model estimates a fair value of 36,089 KRW versus a price of 70,100 KRW, about −49% (overvalued).
What is the fair value of 272210?
Our model-based fair value for Hanwha Systems Co is 36,089 KRW (as of Jul 20, 2026), built from audited fundamentals. The current price is 70,100 KRW.
What is the quality score of 272210?
Hanwha Systems Co has a Quality Score of 29/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Hanwha Systems Co (272210)?
Hanwha Systems Co reported trailing-twelve-month revenue of about 3.8T KRW (latest available figure, as of Jul 20, 2026).
What is the net profit margin of 272210?
The net profit margin of Hanwha Systems Co is about 4.2%, meaning it keeps roughly 4.2% of revenue as net income. Based on the latest reported figures.
Does Hanwha Systems Co pay a dividend?
Hanwha Systems Co currently shows a dividend yield of about 0.53% 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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