# Hanwha (000880.KO)

Canonical: https://gigainvestors.com/s/000880.KO

Analysis as of: 2026-10-16T07:37:19.077Z. Financial observations: FY2000–FY2025.

Listing currency: KRW. Reporting currency: KRW.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: KRW 101,400.00 per share; close as of 2026-10-15.

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.24×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.06×

- FY2017: 0.04×

- FY2018: 0.04×

- FY2019: 0.02×

- FY2020: 0.03×

- FY2021: 0.06×

- FY2022: 0.05×

- FY2023: 0.05×

- FY2024: 0.04×

- FY2025: 0.06×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 8.8%

- ROIC, second-lowest year: 7.6%

- Typical minus recent gross margin: -1.3 pp

- Typical gross margin (annual median): 11.1%

- Recent gross margin (lower of latest and 3-year median): 12.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.5%

- ROIC including acquisitions, ten-year median: 2.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 8.0%

- FY2017: 7.7%

- FY2018: 9.5%

- FY2019: 7.5%

- FY2020: 8.1%

- FY2021: 16.9%

- FY2022: 12.6%

- FY2023: 7.6%

- FY2024: 69.7%

- FY2025: >100%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.27×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: KRW 965B

- Net income, five-year total: KRW 3.60T

- Return on incremental invested capital: -46.9%

- Working capital / revenue, annual change: 0.7 pp

- Working capital / revenue, change between three-year averages: 5.1 pp

- Working capital / revenue, final three-year average: 22.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.87×

- FY2022: 0.76×

- FY2023: -0.50×

- FY2024: -1.07×

- FY2025: 0.81×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 8.0% vs 69.7%

- Per-share earnings: 6007.04 to 4186.15 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 5.2%

- Market cap gain: KRW 3.92T

- Cumulative retained earnings: KRW 5.48T

- Diluted shares, 5-year annual growth: 5.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -5.0%

- Per-share value change: KRW -2K

- Per-share value, starting three-year median: KRW 6K

- Per-share value, ending three-year median: KRW 4K

- Buybacks concentrated in cheaper years (correlation): -0.10

- Average buyback yield: 2.4%

- Buyback history: 5 years

- Debt-funded buybacks: No

- Acquisition spending: KRW 10.66T

- Cumulative net income, 10 years: KRW 5.27T

- ROIC, first three-year median: 8.0%

- ROIC, last three-year median: 69.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: KRW 5K

- FY2017: KRW 6K

- FY2018: KRW 7K

- FY2019: KRW 1K

- FY2020: KRW 3K

- FY2021: KRW 10K

- FY2022: KRW 13K

- FY2023: KRW 4K

- FY2024: KRW 8K

- FY2025: KRW 4K

### accounting: pass

- Sloan accruals: -2.7%

- Receivables to sales index (DSRI): 0.74×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 22.34×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.97×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.6%

- FY2017: -3.0%

- FY2018: -1.3%

- FY2019: -1.3%

- FY2020: -1.7%

- FY2021: -3.1%

- FY2022: -0.4%

- FY2023: -1.6%

- FY2024: -2.4%

- FY2025: -2.7%

## Holders

## Price story

Down 25% since Aug 2026 · sales +34.4%

Story as of 2026-10-16T10:00:08.947Z; price observation 2026-10-15.

### Sales · FY2024–2025

sales +34.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: KRW 22.10T 

- FY2017: KRW 34.50T 

- FY2018: KRW 48.74T 

- FY2019: KRW 50.41T 

- FY2020: KRW 50.93T 

- FY2021: KRW 52.84T 

- FY2022: KRW 50.89T 

- FY2023: KRW 53.13T 

- FY2024: KRW 55.65T 

- FY2025: KRW 74.79T 

### Gross margin · FY2025

gross margin 13.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 16.4% 

- FY2017: 10.8% 

- FY2018: 8.7% 

- FY2019: 7.4% 

- FY2020: 8.1% 

- FY2021: 10.8% 

- FY2022: 11.4% 

- FY2023: 12.0% 

- FY2024: 12.4% 

- FY2025: 13.4% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in conglomerates; annual sales are KRW 74.8 trillion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:19.077Z); FY2025: revenue 74785440000000; grossProfit 10038242000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000880.KO: Hanwha Corporation engages in the manufacture and sale of explosives and industrial machinery, trading, and general construction businesses. The company operates through Gunpowder Manufacturing; Wholesale and Retail; Chemical Manufacturing; Shipbuilding Industry; Construction Industry; Leisure & Service; Photovoltaic Business; Financial Institutions; and All Other segments. The company offers ammonia, nitric acid, ammonium nitrate, explosives, chemical products; firepower systems, defense robots, remote firing control, mobility systems, combat vehicles, anti-aircraft, and guided weapons; and radar, electro-optical equipment, tactical communication systems, combat command systems, fire control equipment, aircraft engines, video security surveillance equipment, chip mounters, screen printers, frib chip mounters, batteries, and displays. It is involved in sales and services for CCTV, DVR, network products; logistics, and new and renewable energy business; department store; resorts; catering; food & beverages distribution; low-density polyethylene, caustic soda, polyvinyl chloride, LNG, LPG, crude oil tankers, and container ships business; crude oil, gas production and drilling equipment, offshore wind turbines, submarines, surface vessels, automotive parts, industrial materials, electronic materials, solar materials, and construction materials business; architecture, civil engineering, plant, and industrial complexes construction; real estate development/sales; and trade in petrochemical products, non-ferrous products, machinery, agricultural, livestock, and fishery products, and mineral resources. It provides solar power solutions; information system; outsourcing; and insurance, asset management, loans, pension, securities brokerage, deposits, and underwriting services. The company was formerly known as Korea Explosives Corp. and changed its name to Hanwha Corporation in March 1993. Hanwha Corporation was founded in 1952 and is headquartered in Seoul, South Korea.

### Why customers stay

Margins ranged from 12% to 13.4% during 2023–25; it earns 8.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:19.077Z); FY2023: grossProfit / revenue = 12%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:19.077Z); FY2024: grossProfit / revenue = 12.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:19.077Z); FY2025: grossProfit / revenue = 13.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:19.077Z); 10-year return on capital observations [[2016,0.07982931475728487],[2017,0.07728263246482854],[2018,0.09512358773627734],[2019,0.0753647436555164],[2020,0.08057807347059126],[2021,0.16878811596627674],[2022,0.1262374074212945],[2023,0.07646095214891577],[2024,0.6966252484701995],[2025,5.654432080280082]]; median 0.0878508306034343. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 11% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:19.077Z); Gross margin observations: [[2021,0.10796598058799567],[2022,0.1139709288851744],[2023,0.12044340873091997]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back KRW 262.3 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:19.077Z); FY2016: growth capex 0; upkeep 1282080000000; owner earnings 154308000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:19.077Z); FY2017: growth capex 0; upkeep 994129000000; owner earnings 4144358000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:19.077Z); FY2018: growth capex 0; upkeep 1551197000000; owner earnings 1198004000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:19.077Z); FY2020: growth capex 0; upkeep 1251002000000; owner earnings 114877200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:19.077Z); FY2021: growth capex 0; upkeep 1226695000000; owner earnings 782632200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:19.077Z); FY2022: growth capex 0; upkeep 1832218000000; owner earnings 896683443629.8167. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:19.077Z); FY2025: growth capex 3739176000000; upkeep 2357719000000; owner earnings 301575838131.4521. Growth capex / owner earnings = 12.398791704162164.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:19.077Z); Dividend observations: [[2016,34803000000],[2017,57040000000],[2018,56276000000],[2019,62085000000],[2020,65569000000],[2021,65443000000],[2022,69877000000],[2023,73731000000],[2024,73731000000],[2025,72163000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:19.077Z); FY2025: cash repurchases 262317378980.50482 KRW.

### Are managers owners

Insiders own 59.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 000880.KO SharesStats.PercentInsiders = 59.421 percentage points; cache date 2026-10-16.

### What the price says

The price is 0.1 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:37:19.077Z); Closing price 101400 KRW; reporting-to-trading FX 1; FY2025 annual sales per share 840484.5748021589; price multiple 0.12064468883782725. FY2025 cash earnings/share 3389.2939599274696. Closing-price date 2026-10-15.

## Monthly share-price history (KRW per share)

- 2016-10: KRW 36,264.03 per share

- 2016-11: KRW 34,273.63 per share

- 2016-12: KRW 34,030.90 per share

- 2017-01: KRW 34,176.54 per share

- 2017-02: KRW 35,341.65 per share

- 2017-03: KRW 34,856.19 per share

- 2017-04: KRW 38,788.43 per share

- 2017-05: KRW 46,458.74 per share

- 2017-06: KRW 46,021.82 per share

- 2017-07: KRW 47,526.75 per share

- 2017-08: KRW 47,720.94 per share

- 2017-09: KRW 42,720.68 per share

- 2017-10: KRW 43,351.78 per share

- 2017-11: KRW 40,293.37 per share

- 2017-12: KRW 40,293.37 per share

- 2018-01: KRW 45,682.00 per share

- 2018-02: KRW 42,866.31 per share

- 2018-03: KRW 38,011.69 per share

- 2018-04: KRW 38,788.43 per share

- 2018-05: KRW 34,953.28 per share

- 2018-06: KRW 30,632.67 per share

- 2018-07: KRW 31,215.22 per share

- 2018-08: KRW 30,923.94 per share

- 2018-09: KRW 31,846.32 per share

- 2018-10: KRW 27,282.98 per share

- 2018-11: KRW 29,127.73 per share

- 2018-12: KRW 30,438.48 per share

- 2019-01: KRW 34,127.99 per share

- 2019-02: KRW 31,215.22 per share

- 2019-03: KRW 29,516.10 per share

- 2019-04: KRW 28,739.36 per share

- 2019-05: KRW 24,807.12 per share

- 2019-06: KRW 25,923.68 per share

- 2019-07: KRW 23,156.55 per share

- 2019-08: KRW 23,787.65 per share

- 2019-09: KRW 24,515.84 per share

- 2019-10: KRW 23,059.46 per share

- 2019-11: KRW 23,836.20 per share

- 2019-12: KRW 24,273.11 per share

- 2020-01: KRW 21,117.61 per share

- 2020-02: KRW 19,467.04 per share

- 2020-03: KRW 14,855.14 per share

- 2020-04: KRW 20,098.14 per share

- 2020-05: KRW 19,515.58 per share

- 2020-06: KRW 21,505.98 per share

- 2020-07: KRW 24,661.48 per share

- 2020-08: KRW 26,700.42 per share

- 2020-09: KRW 24,418.75 per share

- 2020-10: KRW 23,350.73 per share

- 2020-11: KRW 25,049.85 per share

- 2020-12: KRW 27,477.16 per share

- 2021-01: KRW 31,215.22 per share

- 2021-02: KRW 28,496.63 per share

- 2021-03: KRW 30,923.94 per share

- 2021-04: KRW 29,904.47 per share

- 2021-05: KRW 30,487.03 per share

- 2021-06: KRW 30,826.85 per share

- 2021-07: KRW 28,982.10 per share

- 2021-08: KRW 33,788.17 per share

- 2021-09: KRW 33,254.16 per share

- 2021-10: KRW 32,525.97 per share

- 2021-11: KRW 28,982.10 per share

- 2021-12: KRW 30,487.03 per share

- 2022-01: KRW 28,642.27 per share

- 2022-02: KRW 29,467.56 per share

- 2022-03: KRW 30,535.57 per share

- 2022-04: KRW 29,273.37 per share

- 2022-05: KRW 28,059.72 per share

- 2022-06: KRW 25,098.40 per share

- 2022-07: KRW 26,748.97 per share

- 2022-08: KRW 30,923.94 per share

- 2022-09: KRW 23,739.10 per share

- 2022-10: KRW 24,661.48 per share

- 2022-11: KRW 28,205.36 per share

- 2022-12: KRW 24,904.21 per share

- 2023-01: KRW 27,477.16 per share

- 2023-02: KRW 26,166.41 per share

- 2023-03: KRW 25,486.77 per share

- 2023-04: KRW 26,312.05 per share

- 2023-05: KRW 29,613.20 per share

- 2023-06: KRW 29,079.19 per share

- 2023-07: KRW 29,953.02 per share

- 2023-08: KRW 24,273.11 per share

- 2023-09: KRW 23,253.64 per share

- 2023-10: KRW 21,554.52 per share

- 2023-11: KRW 24,855.67 per share

- 2023-12: KRW 25,001.30 per share

- 2024-01: KRW 26,457.69 per share

- 2024-02: KRW 28,545.18 per share

- 2024-03: KRW 26,263.51 per share

- 2024-04: KRW 26,554.78 per share

- 2024-05: KRW 26,263.51 per share

- 2024-06: KRW 26,069.32 per share

- 2024-07: KRW 30,292.84 per share

- 2024-08: KRW 28,205.36 per share

- 2024-09: KRW 28,059.72 per share

- 2024-10: KRW 27,234.43 per share

- 2024-11: KRW 29,030.64 per share

- 2024-12: KRW 26,117.87 per share

- 2025-01: KRW 29,613.20 per share

- 2025-02: KRW 39,370.99 per share

- 2025-03: KRW 39,759.36 per share

- 2025-04: KRW 46,750.01 per share

- 2025-05: KRW 73,304.80 per share

- 2025-06: KRW 91,558.18 per share

- 2025-07: KRW 96,898.26 per share

- 2025-08: KRW 81,363.47 per share

- 2025-09: KRW 82,140.21 per share

- 2025-10: KRW 92,820.38 per share

- 2025-11: KRW 77,091.40 per share

- 2025-12: KRW 79,227.44 per share

- 2026-01: KRW 111,170.85 per share

- 2026-02: KRW 132,628.28 per share

- 2026-03: KRW 103,986.01 per share

- 2026-04: KRW 129,521.32 per share

- 2026-05: KRW 129,812.60 per share

- 2026-06: KRW 96,801.17 per share

- 2026-07: KRW 81,363.47 per share

- 2026-08: KRW 135,500.00 per share

- 2026-09: KRW 125,500.00 per share

- 2026-10: KRW 106,000.00 per share

## Annual estimated value (KRW per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.