Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
/
Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
Hwacheon Machine Tool Co., Ltd. is a prominent player in the manufacturing and engineering sector, specializing in the production of high-quality machine tools. With a foundation dating back to 1952, the company has established itself as a leader in the industry through continuous innovation and commitment to precision engineering. Hwacheon's product lineup includes CNC lathes, vertical and horizontal machining centers, and multi-tasking machines designed to meet the diverse needs of its clientele. These advanced tools are essential across various sectors, including automotive, aerospace, and heavy machinery industries, where precision and durability are critical. Hwacheon Machine Tool Co., Ltd. contributes significantly to the global economy by providing the essential machinery that fuels industrial production and technological advancement. Headquartered in South Korea, the company maintains a robust presence in international markets, supported by a network of subsidiaries and distributors, ensuring that their renowned engineering excellence is accessible worldwide.
₩34,700.00
₩2,200.00 (-5.96%)
Live · 05:27 PM
Operating margin is thin at 1.90%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue declined 0.2% YoY. The question is whether this is cyclical or a structural shift.
Even for strong businesses, today's 5x P/E means the stock needs to keep delivering. There's no margin of safety if growth disappoints.
5.2x earnings, 13.4x FCF. The multiple is below average. Either the market is pricing in deterioration you should investigate, or there's genuine value here.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
₩230.60B
▼ -0.2% YoY
Net Income (TTM)
₩14.56B
▲ +31.5% YoY
Op. Margin
2.58%
▲ +2.2pp YoY
ROIC
0.95%
▲ +1.1pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
₩5.71B
▲ +23.0% YoY
Op. Cash Flow (TTM)
₩11.86B
▼ -23.5% YoY
Net Debt
-₩53.20B
Net Cash Position
Cash & Equiv.
₩73.18B
3Y CAGR: -3.1%
3Y CAGR: -15.7%
Continue Research
At a P/E of 5.2 and a price-to-free-cash-flow of 13.4, Hwacheon Machine Tool Co. (000850.XKRX) trades below a two-stage DCF intrinsic value of about KRW 69,180.43 per share, so at KRW 34,700.00 the stock looks undervalued (99.4% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Hwacheon Machine Tool Co. scores 43/100 on Intrinsiqq's quality scorecard (a mixed business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. It currently yields about 3.0%; see dividend safety for coverage and history. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about KRW 69,180.43 per share for 000850.XKRX, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around KRW 51,885.32. At today's KRW 34,700.00, that puts the stock about 99.4% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Hwacheon Machine Tool Co. scores 43 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a mixed business on these measures. Recent fundamentals include a 2.6% operating margin and a 1.0% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Yes, Hwacheon Machine Tool Co. pays a regular dividend of about KRW 1,049.79 per share per year (typically in quarterly installments), a yield of roughly 3.0% at the current price. That is a payout ratio of about 15.9% of earnings, so the dividend is amply covered by earnings. Hwacheon Machine Tool Co. has grown the dividend at roughly 8.8% a year over the past few years. A low headline yield is not the same as a weak dividend: what matters is how well earnings and free cash flow cover the payout and whether it is growing, not the percentage alone. For 000850.XKRX's full payout history, growth streak and dividend-safety score, see the dividends tab.
That depends on valuation and quality together, not either alone. 000850.XKRX currently trades below its estimated intrinsic value and scores 43/100 on quality (mixed). It also yields about 3.0%. A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.