# Korea Shipbuilding & Offshore Engineering (009540.KO)

Canonical: https://gigainvestors.com/s/009540.KO

Analysis as of: 2026-10-16T07:35:14.951Z. Financial observations: FY2000–FY2026.

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 263,000.00 per share; close as of 2026-10-15.

Estimated value: low KRW 183,570.22 per share, central KRW 190,202.95 per share, high KRW 199,032.51 per share. Buy at or below the central value KRW 190,202.95 per share. Valuation as of 2026-10-16T07:35:14.951Z; scenarios are not confidence intervals.

Expected annual return: 5.9% at the stated quote. About 5.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; KR 10-year bond 4.2% + 4 points).

## Checklist

### understandable: fail

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

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 4

- Operating margin variation: 3.05×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.00×

- FY2018: -0.04×

- FY2019: 0.02×

- FY2020: 0.00×

- FY2021: -0.09×

- FY2022: -0.02×

- FY2023: 0.01×

- FY2024: 0.06×

- FY2025: 0.13×

- LTM to Jun 2026: 0.16×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 1.4%

- ROIC, second-lowest year: -3.7%

- Typical minus recent gross margin: -4.4 pp

- Typical gross margin (annual median): 5.8%

- Recent gross margin (lower of latest and 3-year median): 10.2%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.9%

- ROIC including acquisitions, ten-year median: 1.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 4.0%

- FY2017: 0.1%

- FY2018: -3.7%

- FY2019: 2.2%

- FY2020: 0.5%

- FY2021: -11.4%

- FY2022: -2.9%

- FY2023: 2.4%

- FY2024: 15.8%

- FY2025: 49.9%

### economics: pass

- Owner earnings / net income, 5-yr: 0.93×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: KRW 2.24T

- Net income, five-year total: KRW 2.42T

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -2.5 pp

- Working capital / revenue, change between three-year averages: -17.8 pp

- Working capital / revenue, final three-year average: 5.5%

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

- FY2021: 0.99×

- FY2022: 1.10×

- FY2023: 0.91×

- FY2024: 0.93×

- FY2025: 0.97×

### management: pass

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

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 0.1% vs 15.8%

- Per-share earnings: 10807.21 to 16578.00 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 0.0%

- Market cap gain: KRW 23.82T

- Cumulative retained earnings: KRW 5.03T

- Diluted shares, 5-year annual growth: 0.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 6.3%

- Per-share value change: KRW 6K

- Per-share value, starting three-year median: KRW 11K

- Per-share value, ending three-year median: KRW 17K

- Buybacks concentrated in cheaper years (correlation): 0.10

- Average buyback yield: 0.0%

- Buyback history: 5 years

- Debt-funded buybacks: No

- Acquisition spending: KRW 551B

- Cumulative net income, 10 years: KRW 4.26T

- ROIC, first three-year median: 0.1%

- ROIC, last three-year median: 15.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: KRW 11K

- FY2017: KRW 42K

- FY2018: KRW -7K

- FY2019: KRW 2K

- FY2020: KRW -12K

- FY2021: KRW -13K

- FY2022: KRW -3K

- FY2023: KRW 3K

- FY2024: KRW 17K

- FY2025: KRW 31K

### accounting: pass

- Sloan accruals: -5.7%

- Receivables to sales index (DSRI): 0.98×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.04×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.04×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.3%

- FY2017: 6.1%

- FY2018: -2.5%

- FY2019: 6.5%

- FY2020: -2.9%

- FY2021: -6.5%

- FY2022: -2.3%

- FY2023: -5.8%

- FY2024: -8.5%

- FY2025: -5.7%

## Holders

## Price story

Down 45% since Oct 2025 · sales +9.6%

Story as of 2026-10-16T10:00:04.205Z; price observation 2026-10-15.

Price needs cash profits to grow 11.6% a year for ten years

### Sales · FY2025–2026

sales +9.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: KRW 15.47T 

- FY2018: KRW 13.12T 

- FY2019: KRW 15.18T 

- FY2020: KRW 14.90T 

- FY2021: KRW 15.49T 

- FY2022: KRW 17.30T 

- FY2023: KRW 21.30T 

- FY2024: KRW 25.54T 

- FY2025: KRW 29.93T 

- FY2026: KRW 32.80T 

### Gross margin · FY2025

gross margin 17.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 10.0% 

- FY2017: 6.7% 

- FY2018: 2.7% 

- FY2019: 6.5% 

- FY2020: 5.0% 

- FY2022: 2.1% 

- FY2023: 4.9% 

- FY2024: 10.2% 

- FY2025: 17.8% 

## Owner memo

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

### How it makes money

Operates in aerospace & defense; annual sales are KRW 29.9 trillion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:14.951Z); FY2025: revenue 29933215227000; grossProfit 5328421048000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 009540.KO: HD Korea Shipbuilding & Offshore Engineering Co., Ltd. engages in shipbuilding and offshore engineering business in South Korea. The company offers ship types, including tankers, container ships, petrochemical carriers, LNG carriers, LNG-FSRUs, LPG carriers, LEG carriers, car carriers, Ro-Pax, Ro-Ro, LNG bunkering carriers, and LCO2 ships; and offshore plant business includes the manufacturing and installation of offshore structures, floating crude oil production facilities, power generation facilities, and other individual equipment units. It also specializes in building various types of special-purpose ships, such as destroyers, frigates, corvettes, logistics support ships, amphibious, minelaying, marine intelligence, surface, rescue, and training ships, support vessels, high-speed boats, and patrol/rescue ships; and engine and machinery division, the company provides heavy and medium engines, propellers, marine axle meters, selective catalytic reduction systems, and methanation catalytic systems. In addition, it develops and supplies photovoltaic modules and systems, solid oxide fuel cells for onshore power generation and marine applications, and solid oxide electrolyzers; gas and green system offerings include Methanol LFSS, Ammonia LFSS, LPG CHS, Re-Liquefaction Unit, Re-Gasifier, and Hi-ALS; and shipbuilding also provides green ship propulsion solutions, including four-stroke marine engines, as well as electric power systems such as batteries and fuel cells to drive propulsion motors without the use of traditional power generation engines. Further, it provides other offerings including equipment such as propellers, shafts, SCR systems, ballast water treatment systems, engine power plants, industrial boilers, solar modules and systems, ITER, industrial cranes, and comprehensive marine system solutions. The company was formerly known as Korea Shipbuilding & Offshore Engineering Co., Ltd. The company was founded in 1972 and is based in Seongnam-si, South Korea.

### Why customers stay

Margins ranged from 4.9% to 17.8% during 2023–25; it earns 1.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:14.951Z); FY2023: grossProfit / revenue = 4.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:14.951Z); FY2024: grossProfit / revenue = 10.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:14.951Z); FY2025: grossProfit / revenue = 17.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:14.951Z); 10-year return on capital observations [[2016,0.04005859144735068],[2017,0.0009336899119949077],[2018,-0.03672146131383116],[2019,0.022484542730066576],[2020,0.004690121425144966],[2021,-0.11375563761788969],[2022,-0.02874875289881794],[2023,0.024088589491667086],[2024,0.15822903959722842],[2025,0.49868530340015294]]; median 0.013587332077605771. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 20% of cash earnings on expansion; paid dividends in 8 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:14.951Z); FY2016: growth capex 0; upkeep 1192926377000; owner earnings 227519452000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:14.951Z); FY2017: growth capex 0; upkeep 373340834000; owner earnings 2666651361000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:14.951Z); FY2019: growth capex 1545927000; upkeep 403192000000; owner earnings 159144939800. Growth capex / owner earnings = 0.009713956359170398.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:14.951Z); FY2023: growth capex 410095759000; upkeep 471944000000; owner earnings 202066657200. Growth capex / owner earnings = 2.0295073154701546.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:14.951Z); FY2024: growth capex 423268670000; upkeep 525773000000; owner earnings 1094423038997.8544. Growth capex / owner earnings = 0.3867505113813945.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:14.951Z); FY2025: growth capex 420106947000; upkeep 583594000000; owner earnings 2101204293150.6187. Growth capex / owner earnings = 0.19993626910502693.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:14.951Z); Dividend observations: [[2016,0],[2017,0],[2018,9251999000],[2019,9251999000],[2020,9251999000],[2021,3770766000],[2022,2825146000],[2023,3120000000],[2024,1039285000],[2025,715259341000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:14.951Z); FY2025: cash repurchases 379095166.6666666 KRW.

### Are managers owners

Insiders own 36.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 009540.KO SharesStats.PercentInsiders = 36.678 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 11.6% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:14.951Z); Ten-year compound average after fade. Initial solved rate 0.15350062215040527. Price 263000; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

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

- 2016-10: KRW 98,397.25 per share

- 2016-11: KRW 96,030.31 per share

- 2016-12: KRW 98,397.25 per share

- 2017-01: KRW 89,605.74 per share

- 2017-02: KRW 111,246.37 per share

- 2017-03: KRW 111,584.51 per share

- 2017-05: KRW 164,909.48 per share

- 2017-06: KRW 168,245.80 per share

- 2017-07: KRW 166,339.34 per share

- 2017-08: KRW 141,555.25 per share

- 2017-09: KRW 138,218.93 per share

- 2017-10: KRW 149,181.12 per share

- 2017-11: KRW 141,078.63 per share

- 2017-12: KRW 95,800.02 per share

- 2018-01: KRW 139,000.00 per share

- 2018-02: KRW 131,000.00 per share

- 2018-03: KRW 132,000.00 per share

- 2018-04: KRW 119,500.00 per share

- 2018-05: KRW 114,500.00 per share

- 2018-06: KRW 102,000.00 per share

- 2018-07: KRW 106,500.00 per share

- 2018-08: KRW 118,000.00 per share

- 2018-09: KRW 134,500.00 per share

- 2018-10: KRW 124,500.00 per share

- 2018-11: KRW 132,000.00 per share

- 2018-12: KRW 128,500.00 per share

- 2019-01: KRW 138,500.00 per share

- 2019-02: KRW 131,500.00 per share

- 2019-03: KRW 119,000.00 per share

- 2019-04: KRW 124,500.00 per share

- 2019-05: KRW 117,500.00 per share

- 2019-06: KRW 118,500.00 per share

- 2019-07: KRW 108,500.00 per share

- 2019-08: KRW 110,000.00 per share

- 2019-09: KRW 124,000.00 per share

- 2019-10: KRW 122,000.00 per share

- 2019-11: KRW 120,000.00 per share

- 2019-12: KRW 126,500.00 per share

- 2020-01: KRW 114,000.00 per share

- 2020-02: KRW 104,000.00 per share

- 2020-03: KRW 78,600.00 per share

- 2020-04: KRW 82,700.00 per share

- 2020-05: KRW 90,800.00 per share

- 2020-06: KRW 87,400.00 per share

- 2020-07: KRW 89,200.00 per share

- 2020-08: KRW 86,200.00 per share

- 2020-09: KRW 82,700.00 per share

- 2020-10: KRW 78,400.00 per share

- 2020-11: KRW 103,000.00 per share

- 2020-12: KRW 108,500.00 per share

- 2021-01: KRW 94,000.00 per share

- 2021-02: KRW 112,000.00 per share

- 2021-03: KRW 133,500.00 per share

- 2021-04: KRW 153,500.00 per share

- 2021-05: KRW 142,500.00 per share

- 2021-06: KRW 134,000.00 per share

- 2021-07: KRW 130,500.00 per share

- 2021-08: KRW 118,500.00 per share

- 2021-09: KRW 102,000.00 per share

- 2021-10: KRW 103,000.00 per share

- 2021-11: KRW 87,500.00 per share

- 2021-12: KRW 94,600.00 per share

- 2022-01: KRW 79,700.00 per share

- 2022-02: KRW 88,200.00 per share

- 2022-03: KRW 88,900.00 per share

- 2022-04: KRW 91,800.00 per share

- 2022-05: KRW 91,400.00 per share

- 2022-06: KRW 93,900.00 per share

- 2022-07: KRW 84,700.00 per share

- 2022-08: KRW 97,200.00 per share

- 2022-09: KRW 72,900.00 per share

- 2022-10: KRW 72,700.00 per share

- 2022-11: KRW 78,300.00 per share

- 2022-12: KRW 70,700.00 per share

- 2023-01: KRW 79,600.00 per share

- 2023-02: KRW 81,300.00 per share

- 2023-03: KRW 77,500.00 per share

- 2023-04: KRW 84,800.00 per share

- 2023-05: KRW 96,200.00 per share

- 2023-06: KRW 116,500.00 per share

- 2023-07: KRW 123,300.00 per share

- 2023-08: KRW 123,700.00 per share

- 2023-09: KRW 111,000.00 per share

- 2023-10: KRW 90,300.00 per share

- 2023-11: KRW 111,700.00 per share

- 2023-12: KRW 120,900.00 per share

- 2024-01: KRW 113,500.00 per share

- 2024-02: KRW 111,900.00 per share

- 2024-03: KRW 118,400.00 per share

- 2024-04: KRW 131,500.00 per share

- 2024-05: KRW 130,400.00 per share

- 2024-06: KRW 158,800.00 per share

- 2024-07: KRW 207,000.00 per share

- 2024-08: KRW 191,400.00 per share

- 2024-09: KRW 187,700.00 per share

- 2024-10: KRW 183,400.00 per share

- 2024-11: KRW 204,500.00 per share

- 2024-12: KRW 228,000.00 per share

- 2025-01: KRW 232,000.00 per share

- 2025-02: KRW 214,000.00 per share

- 2025-03: KRW 201,000.00 per share

- 2025-04: KRW 272,000.00 per share

- 2025-05: KRW 316,500.00 per share

- 2025-06: KRW 366,000.00 per share

- 2025-07: KRW 359,000.00 per share

- 2025-08: KRW 406,500.00 per share

- 2025-09: KRW 411,000.00 per share

- 2025-10: KRW 474,000.00 per share

- 2025-11: KRW 410,000.00 per share

- 2025-12: KRW 407,000.00 per share

- 2026-01: KRW 413,500.00 per share

- 2026-02: KRW 450,000.00 per share

- 2026-03: KRW 344,000.00 per share

- 2026-04: KRW 461,500.00 per share

- 2026-05: KRW 423,000.00 per share

- 2026-06: KRW 350,000.00 per share

- 2026-07: KRW 384,500.00 per share

- 2026-08: KRW 348,500.00 per share

- 2026-09: KRW 323,500.00 per share

- 2026-10: KRW 278,000.00 per share

## Annual estimated value (KRW per share)

- FY2019: low KRW 62,182.61 per share, central KRW 64,084.37 per share, high KRW 66,616.02 per share

- FY2020: low KRW 73,599.20 per share, central KRW 75,466.02 per share, high KRW 77,951.16 per share

- FY2025: low KRW 123,250.35 per share, central KRW 129,303.18 per share, high KRW 137,360.77 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

Prior published observations retained from 2026-10-15T06:41:02.140Z where newer inputs omit a numeric field or fiscal period.

## 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.