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Hwashin Precision Engineering Co. Ltd (126640) Fair Value & Analysis

Consumer Cyclical · KR · Market cap 151B KRW (≈ $106M) · ISIN KR7126640002

What is Hwashin Precision Engineering Co. Ltd really worth?

HP Hwashin Precision Engineering Co. Ltd 126640 · KQ
Price4,870 KRW
Fair Value5,883 KRW
Upside+20.8%
Quality69/100

A solid business, trading 17% below our fair value of 5,883 KRW.

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Strengths

Healthy Growth (revenue 5y +8.9 %/yr)
Low debt · generates free cash flow
Ranks above peers (8/10)

Risks

!Thin margins · 1.9% net margin
!Moderate moat 45/100
!Evidence only medium, so the estimate is less certain

For context

·3.88% dividend yield
Evidence: Medium Range 4,371 KRW – 7,396 KRW

Fair value as of: Aug 13, 2026

From 24 valuation models · updated 22 days ago

Share price +9.4% over the past month.

What runs behind every stock

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

What matters now

  • Solid quality (69/100) at a price below fair value, the discount is the argument here, not the business quality.
  • The price sits in the lower half of our model range, the side with the larger margin of safety.
  • Read the verdict with care: some models are missing inputs, so the estimate scatters more than usual.

Price vs Fair Value (5 years)

7,060 KRW 1,007 KRW Fair Value 5,883 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 1,007 KRW – 7,060 KRW · fair‑value band 4,371 KRW – 7,396 KRW · the 4,870 KRW price screens below the 5,883 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.

Full chart & analysis →

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Analysis

Hwashin Precision Engineering Co. Ltd (126640) currently trades at 4,870 KRW, while our model-based Fair Value estimate is 5,883 KRW, implying the stock looks roughly 17.2% undervalued today. The Quality Score stands at 69/100 (solid quality), in the Consumer Cyclical sector. Bull case: the DCF Models group reads highest at a median of 8,480 KRW per share, and 18 of the 24 models we run sit above the 4,870 KRW price. Bear case: the Earnings-Based group reads lowest at 2,109 KRW, and 6 of the 24 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Hwashin Precision Engineering Co. Ltd 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 Aug 13, 2026

Our scenario range runs from 4,371 KRW (bear case) to 7,396 KRW (bull case); at 4,870 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 15% below its 52-week high and 311% above its 52-week low. For context, the median of 10 Consumer Cyclical peers we cover trades at 38% fair-value upside, at 21%, 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, 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
FCF DCF 6,412 KRW 9,386 KRW 13,993 KRW 80
Growth DCF 6,486 KRW 9,092 KRW 12,867 KRW 79
Owner Earnings 2,680 KRW 3,475 KRW 4,706 KRW 77
All 24 models by family
DCF Models
FCF DCF 6,412 KRW 9,386 KRW 13,993 KRW 80
Owner Earnings 2,680 KRW 3,475 KRW 4,706 KRW 77
5Y Revenue Exit 4,994 KRW 6,927 KRW 9,365 KRW 73
5Y EBITDA Exit 5,981 KRW 8,793 KRW 12,075 KRW 75
5Y P/E Exit 5,917 KRW 8,673 KRW 11,575 KRW 71
10Y Revenue Exit 5,362 KRW 7,260 KRW 9,777 KRW 67
10Y EBITDA Exit 6,088 KRW 8,564 KRW 11,867 KRW 69
10Y P/E Exit 6,047 KRW 8,480 KRW 11,482 KRW 64
Earnings-Based
Graham-Dodd 2,001 KRW 6,570 KRW 8,784 KRW 64
Lynch FV 1,477 KRW 2,109 KRW 2,742 KRW 61
PEG = 1.0 1,477 KRW 2,109 KRW 2,742 KRW 57
EPV 4,126 KRW 4,594 KRW 5,003 KRW 74
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 66
EV/EBITDA 6,282 KRW 7,936 KRW 9,591 KRW 67
EV/Revenue 4,377 KRW 5,688 KRW 6,999 KRW 54
Asset-Based
NCAV (Graham) 1,690 KRW 2,265 KRW 3,381 KRW 54
Growth DCF
Growth DCF 6,486 KRW 9,092 KRW 12,867 KRW 79
Rev-Margin DCF 4,994 KRW 6,960 KRW 9,267 KRW 73
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 67

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

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Key figures & financial health

P/S ratio 0.52 TTM
Dividend yield 3.9%
Net margin 2.7% FY2025
Return on equity 310% TTM
Return on assets (EBIT) 4.1% avg 5y
Operating margin 2.5% TTM
More key figures
Growth
Revenue (TTM) 289B KRW TTM
Revenue growth (YoY) +31.6% 3y avg +6.0%
EPS growth (YoY) +171%
Balance sheet & cash flow
Free cash flow 15.5B KRW FY2025
Net debt 5.8B KRW FY2021 · ≈ 0.4 yrs of FCF

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

Quality Score breakdown

Overall quality 69/100

Of which business quality 68 · Market factors (momentum, volatility) 72

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 78
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.

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

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. Ltd 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. 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.
+6.0%
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.
+8.9%
Avg. revenue growth/yr (11Y) 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.
+3.9%
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.
+21.7% (17.8 + 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. Ltd Fair Value". https://www.fairvalue-calculator.com/stock/126640

Peer Group

Consumer Discretionary · 3805 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 +21% · Above 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

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
VALUE61 · sector 20
FUTURE100 · sector 14
PAST100 · sector 22
HEALTH100 · sector 96
DIVIDEND78 · sector 45

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

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Frequently asked questions

Is Hwashin Precision Engineering Co. Ltd (126640) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 5,883 KRW versus a price of 4,870 KRW, about +21% upside (undervalued).
What is the fair value of 126640?
Our model-based fair value for Hwashin Precision Engineering Co. Ltd is 5,883 KRW (as of Aug 13, 2026), built from audited fundamentals. The current price: 4,870 KRW.
What is the quality score of 126640?
Hwashin Precision Engineering Co. Ltd 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. Ltd (126640)?
Hwashin Precision Engineering Co. Ltd reported trailing-twelve-month revenue of about 289B KRW (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 126640?
The net profit margin of Hwashin Precision Engineering Co. Ltd 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. Ltd pay a dividend?
Hwashin Precision Engineering Co. Ltd currently shows a dividend yield of about 3.88% relative to its recent price (as of Aug 13, 2026).
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