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Hyundai Engineering & Construction (000720) Fair Value & Analysis

Industrials · KR · Market cap 11.1T KRW (≈ $7.8B) · ISIN KR7000720003

What is Hyundai Engineering & Construction really worth?

HE Hyundai Engineering & Construction 000720 · KO
Price119,700 KRW
Fair Value61,453 KRW
Upside−48.7%
Quality47/100

Below-average quality, and trading another 95% above our fair value of 61,453 KRW.

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Risks

!Expensive Growth (revenue 5y +12.9 %/yr)
!Thin margins · 1.4% net margin
!Low debt · negative free cash flow
!Trails peers (0/9)
!Narrow moat 31/100
!Evidence only low, so the estimate is less certain
!Weak on past: 23 out of 100
!Weak on dividend: 13 out of 100

For context

·0.67% dividend yield
Evidence: Low Range 52,777 KRW – 65,387 KRW

Fair value as of: Aug 13, 2026

From 15 valuation models · updated 22 days ago

Fair value updated Aug 13, 2026, revised from 63,993 KRW to 61,453 KRW (−4.0%) since Jul 17, 2026. Share price +25.2% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (65,387 KRW). The favourable scenario is already priced in.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid but not exceptional quality (47/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

188,700 KRW 23,551 KRW Fair Value 61,453 KRW Apr 2021 Sep 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 119,700 KRW price screens above the 61,453 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Hyundai Engineering & Construction (000720) currently trades at 119,700 KRW, while our model-based Fair Value estimate is 61,453 KRW, implying the stock looks roughly 94.8% overvalued today. The Quality Score stands at 47/100 (below-average quality), in the Industrials sector. Bull case: the DCF Models group reads highest at a median of 111,028 KRW per share, and 2 of the 15 models we run sit above the 119,700 KRW price. Bear case: the Earnings-Based group reads lowest at 25,802 KRW, and 13 of the 15 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, Hyundai Engineering & Construction 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 119,700 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 40% below its 52-week high and 122% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at −46% fair-value upside, at −49%, 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, family-balanced 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. Every input is real reported data, nothing guessed.

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
Owner Earnings 78,267 KRW 111,028 KRW 164,989 KRW 76
Residual Income 57,019 KRW 57,431 KRW 54,457 KRW 76
EPV 61,427 KRW 67,377 KRW 72,666 KRW 74
All 15 models by family
DCF Models
Owner Earnings 78,267 KRW 111,028 KRW 164,989 KRW 76
Earnings-Based
Graham-Dodd 22,786 KRW 78,308 KRW 105,126 KRW 64
Lynch FV 18,062 KRW 25,802 KRW 33,543 KRW 61
PEG = 1.0 18,062 KRW 25,802 KRW 33,543 KRW 57
EPV 61,427 KRW 67,377 KRW 72,666 KRW 74
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 66
EV/EBITDA 102,949 KRW 128,028 KRW 153,108 KRW 67
EV/Revenue 81,514 KRW 104,573 KRW 127,632 KRW 54
Asset-Based
NCAV (Graham) 37,110 KRW 49,727 KRW 74,219 KRW 54
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 67

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

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Key figures & financial health

P/S ratio 0.50 TTM
Dividend yield 0.7%
Net margin 1.2% FY2025
Return on equity 5.8% TTM
Return on assets (EBIT) 1.6% avg 5y
Operating margin 3.1% TTM
More key figures
Growth
Revenue (TTM) 29.9T KRW TTM
Revenue growth (YoY) −15.8% 3y avg +13.5%
EPS growth (YoY) +44.1%
Balance sheet & cash flow
Free cash flow −865B KRW FY2025
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) 46

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 51
Price trend over the last 3–12 months (market factor)
52W Momentum 73
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

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 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. revenue 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. revenue 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. revenue 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%
Value creation/yr (5Y, in KRW) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in KRW: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
−1.2% (−1.9 + 0.7)
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 95% overvalued. Compare with Quanta Services, Inc →

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

Peer Group

Engineering & Construction · 816 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 −49% · 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) 0.7% · Bottom 25%
Debt / equity 0.21× · Higher than median

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 16
FUTURE0 · sector 11
PAST23 · sector 26
HEALTH90 · sector 94
DIVIDEND13 · sector 39

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

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
Quanta Services, Inc PWR $620.06 $143.92 −77%
Vinci SA DG €114.35 €185.62 +62%
Comfort Systems USA, Inc FIX $1,615 $519.97 −68%
Larsen & Toubro Limited LT ₹4,072 ₹2,196 −46%
Ferrovial N.V FER €57.28 €19.17 −67%
HOCHTIEF Aktiengesellschaft HOT €426.40 €203.87 −52%
Samsung C&T Corporation 028260 373,000 KRW 261,411 KRW −30%
EMCOR Group EME $775.04 $549.47 −29%
MasTec, Inc MTZ $241.00 $100.00 −59%
Bouygues SA EN €46.65 €65.67 +41%

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Frequently asked questions

Is Hyundai Engineering & Construction (000720) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 61,453 KRW versus a price of 119,700 KRW, about −49% upside (overvalued).
What is the fair value of 000720?
Our model-based fair value for Hyundai Engineering & Construction is 61,453 KRW (as of Aug 13, 2026), built from audited fundamentals. The current price: 119,700 KRW.
What is the quality score of 000720?
Hyundai Engineering & Construction 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 (000720)?
Hyundai Engineering & Construction 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 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 pay a dividend?
Hyundai Engineering & Construction currently shows a dividend yield of about 0.67% relative to its recent price (as of Aug 13, 2026).
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