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Hyundai Engineering & Construction Co (000720) Fair Value & Analysis

Industrials · KR · Market cap 11.1T KRW

HE Hyundai Engineering & Construction Co 000720 · KO
Price115,800 KRW
Fair Value61,453 KRW
Upside-46.9%
Quality47/100
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Expensive Growth
Thin margins · 1.4% net margin
Low debt · negative free cash flow
0.81% dividend yield
Trails peers (0/9)
Narrow moat 31/100
Evidence: Medium Range 52,777 KRW – 65,387 KRW Share as image

Fair value as of: Aug 13, 2026

From 15 valuation models · updated today

Fair value updated Aug 13, 2026, revised from 63,993 KRW to 61,453 KRW (−4.0%) since Jul 17, 2026. Share price +14.2% over the past month.

Below-average quality, and screening another 47% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (65,387 KRW). The favourable scenario is already priced in.
  • Solid but not exceptional quality (47/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

188,700 KRW 23,551 KRW Fair Value 61,453 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 23,551 KRW – 188,700 KRW · fair‑value band 52,777 KRW – 65,387 KRW · the 115,800 KRW price screens above the 61,453 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

Hyundai Engineering & Construction Co (000720) currently trades at 115,800 KRW, while our model-based Fair Value estimate is 61,453 KRW, implying the stock looks roughly 46.9% overvalued today. The Quality Score stands at 47/100 (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: medium).

Over the trailing twelve months, Hyundai Engineering & Construction Co generated revenue of 29.9T KRW at a net margin of 1.4%. Revenue declined 15.8% year over year. It earns a return on equity of 5.8%. Net debt stands at 3.0B KRW. Fundamentals as of Aug 13, 2026

Our scenario range runs from 52,777 KRW (bear case) to 65,387 KRW (bull case); at 115,800 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 42% below its 52-week high and 115% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -34% fair-value upside, at -47%, 000720 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 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
Residual Income 57,019 KRW 57,431 KRW 54,457 KRW 76
ROIC Compounder 61,427 KRW 67,377 KRW 72,666 KRW 72
Growth-Adj P/E 45,210 KRW 64,585 KRW 83,961 KRW 68
All 15 models by family
DCF Models
Owner Earnings 78,267 KRW 111,028 KRW 164,989 KRW 31
Earnings-Based
Graham-Dodd 22,786 KRW 78,308 KRW 105,126 KRW 54
Lynch FV 18,062 KRW 25,802 KRW 33,543 KRW 50
PEG = 1.0 18,062 KRW 25,802 KRW 33,543 KRW 46
EPV 61,427 KRW 67,377 KRW 72,666 KRW 59
Multiples
P/E Multiple 52,777 KRW 70,370 KRW 87,962 KRW 63
P/S Multiple 42,725 KRW 56,966 KRW 71,208 KRW 58
P/B Multiple 42,725 KRW 56,966 KRW 71,208 KRW 55
EV/EBIT 103,095 KRW 128,223 KRW 153,351 KRW 53
EV/EBITDA 102,949 KRW 128,028 KRW 153,108 KRW 54
EV/Revenue 81,514 KRW 104,573 KRW 127,632 KRW 43
Asset-Based
NCAV (Graham) 37,110 KRW 49,727 KRW 74,219 KRW 50
Economic Profit
Residual Income 57,019 KRW 57,431 KRW 54,457 KRW 76
ROIC Compounder 61,427 KRW 67,377 KRW 72,666 KRW 72
Growth Earnings
Growth-Adj P/E 45,210 KRW 64,585 KRW 83,961 KRW 68

Widest divergence: DCF Models (111,028 KRW) versus Earnings-Based (25,802 KRW). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) 29.9T KRW
Revenue growth (YoY) -15.8%
Net margin 1.4%
Return on equity 5.8%
Free cash flow −865B KRW FY2025
Operating margin 3.1%
More key figures
Dividend yield 0.6%
EPS growth (YoY) +44.1%
Net debt 3.0B KRW FY2019

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

Quality Score breakdown

Overall quality 47/100

Of which business quality 45 · Market factors (momentum, volatility) 48

Profitability 33
Margins and returns on capital today
Quality Growth 45
Are margins and returns improving?
Cashflow 7
Earnings quality: real cash, not paper profit
Fin. Strength 54
Balance sheet, leverage, solvency risk
Investment 79
Disciplined investing over empire-building
Low Volatility 16
Calm price path (market factor)
Momentum 55
Price trend over the last 3–12 months (market factor)
52W Momentum 72
Distance to the 52-week high (market factor)
Net Issuance 75
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

Hyundai Engineering & Construction Co.,Ltd. engages in the civil engineering and construction business in Middle Asia, Asia, Africa, and internationally. It operates through Building/Housing, Civil Engineering, Plant/Power, and Others segments.

Full company description

Hyundai Engineering & Construction Co.,Ltd. engages in the civil engineering and construction business in Middle Asia, Asia, Africa, and internationally. It operates through Building/Housing, Civil Engineering, Plant/Power, and Others segments. The company constructs roads and bridges, tunnels and railways, and maritime and port, apartment, luxury homes, and large complex as well as develops industrial facilities, mixed-use development and hotel, hospitals and offices, and special buildings. It is also involved in energy infrastructure construction, including large nuclear power plants, oil and gas, oil refining and petrochemicals, industrial plants, transmission lines and substations, renewable energy, and nuclear decommissioning. In addition, the company engages in steel structure manufacturing and installation; agricultural management and livestock industry; management of resort condominium; real estate development and supply; equipment maintenance; electricity production; construction of commercial building; business facility management service; and renting heavy equipment. The company was founded in 1947 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

Hyundai Engineering & Construction Co reported revenue of 31.1T KRW in FY2025 versus 18.1T KRW in FY2021, a compound +14.5%/yr. Reported net income was 373B KRW in FY2025, compounding −2.2%/yr from FY2021.

Growth Quality 50/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
31.1T KRW
Latest YoY
−4.9%
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.
+13.5%
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.
+12.9%
Avg. growth/yr (25Y) 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.
+6.5%
Revenue +14.5%/yr
FY21 18.1T KRW
FY22 21.2T KRW
FY23 29.7T KRW
FY24 32.7T KRW
FY25 31.1T KRW
Net income −2.2%/yr
FY21 408B KRW
FY22 409B KRW
FY23 536B KRW
FY24 −169B KRW
FY25 373B KRW

000720 screens 47% overvalued. Compare with Larsen & Toubro Limited →

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Cite: Fair Value Calculator (2026). "Hyundai Engineering & Construction Co Fair Value". https://www.fairvalue-calculator.com/stock/000720

Peer Group

Engineering & Construction · 839 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 47 · Below median
Fair Value upside −46% · Below median
Return on equity (TTM) 6% · Below median
Return on assets 1% · Below median
Net margin (TTM) 1% · Below median
Operating margin (TTM) 3% · Below median
Revenue growth -16% · Bottom 25%
Dividend yield (TTM) 0.8% · Below median
Debt / equity 0.21× · Higher than median

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 14
FUTURE 0 · sector 14
PAST 23 · sector 26
HEALTH 90 · sector 94
DIVIDEND 16 · sector 33

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 Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Larsen & Toubro Limited LT ₹4,020 ₹1,994 -50%
Samsung C&T Corporation 028260 357,500 KRW 261,411 KRW -27%
Samsung E&A Co 028050 49,300 KRW 43,624 KRW -12%
Rail Vikas Nigam Limited RVNL ₹230.00 ₹48.92 -79%
Daewoo Engineering & Construction Co 047040 18,400 KRW 6,507 KRW -65%
KEPCO Engineering & Construction Company 052690 99,800 KRW 19,346 KRW -81%
GS Engineering & Construction Corporation 006360 35,200 KRW 23,135 KRW -34%
DL E&C Co 375500 73,500 KRW 148,433 KRW +102%
KEPCO Plant Service & Engineering Co 051600 45,400 KRW 43,924 KRW -3%
HJ Shipbuilding & Construction Co 097230 17,910 KRW 9,051 KRW -49%

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Frequently asked questions

Is Hyundai Engineering & Construction Co (000720) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 61,453 KRW versus a price of 115,800 KRW, about −47% (overvalued).
What is the fair value of 000720?
Our model-based fair value for Hyundai Engineering & Construction Co is 61,453 KRW (as of Aug 13, 2026), built from audited fundamentals. The current price is 115,800 KRW.
What is the quality score of 000720?
Hyundai Engineering & Construction Co has a Quality Score of 47/100. 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 Hyundai Engineering & Construction Co (000720)?
Hyundai Engineering & Construction Co reported trailing-twelve-month revenue of about 29.9T KRW (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 000720?
The net profit margin of Hyundai Engineering & Construction Co is about 1.4%, meaning it keeps roughly 1.4% of revenue as net income. Based on the latest reported figures.
Does Hyundai Engineering & Construction Co pay a dividend?
Hyundai Engineering & Construction Co currently shows a dividend yield of about 0.61% relative to its recent price (as of Aug 13, 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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