# Hanwha Ocean (042660.KO)

Canonical: https://gigainvestors.com/s/042660.KO

Analysis as of: 2026-10-16T07:35:09.437Z. 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 62,400.00 per share; close as of 2026-10-15.

Estimated value: low KRW 15,162.79 per share, central KRW 16,726.09 per share, high KRW 18,807.17 per share. Buy at or below the central value KRW 16,726.09 per share. Valuation as of 2026-10-16T07:35:09.437Z; scenarios are not confidence intervals.

Expected annual return: 4.5% at the stated quote. About 4.5% 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

- 6 revenue declines in the last 10 years

- more than 5 revenue declines in ten years

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 6

- Years with a net loss: 4

- Operating margin variation: 3.53×

Chart: Operating margin; fiscal year observations.

- FY2016: -0.12×

- FY2017: 0.07×

- FY2018: 0.11×

- FY2019: 0.04×

- FY2020: 0.06×

- FY2021: -0.39×

- FY2022: -0.33×

- FY2023: -0.02×

- FY2024: 0.02×

- FY2025: 0.09×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 4.0%

- ROIC, second-lowest year: -47.7%

- Typical minus recent gross margin: -0.7 pp

- Typical gross margin (annual median): 5.6%

- Recent gross margin (lower of latest and 3-year median): 6.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.1%

- ROIC including acquisitions, ten-year median: 1.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: -16.4%

- FY2017: 7.0%

- FY2018: 13.5%

- FY2019: 5.4%

- FY2020: 8.4%

- FY2021: -47.7%

- FY2022: -54.3%

- FY2023: -2.5%

- FY2024: 2.6%

- FY2025: 10.9%

### economics: fail

- owner earnings cash conversion below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: KRW -1.56T

- Net income, five-year total: KRW -1.51T

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 3.1 pp

- Working capital / revenue, change between three-year averages: 11.0 pp

- Working capital / revenue, final three-year average: 40.1%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: KRW -1.69T

- FY2022: KRW -1.75T

- FY2023: KRW 157B

- FY2024: KRW 502B

- FY2025: KRW 1.22T

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 7.0% vs 2.6%

- Per-share earnings: -99999.59 to 1449.00 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 34.5%

- Ordinary dilution, 5-year annual growth: 27.8%

- Market cap gain: KRW 40.34T

- Cumulative retained earnings: KRW 1.64T

- Diluted shares, 10-year annual growth: 34.5%

- Diluted shares, 5-year annual growth: 27.8%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value change: KRW 101K

- Per-share value, starting three-year median: KRW -100K

- Per-share value, ending three-year median: KRW 1K

- Buyback history: 0 years

- Debt-funded buybacks: No

- Acquisition spending: KRW 396B

- Cumulative net income, 10 years: KRW -3.24T

- ROIC, first three-year median: 7.0%

- ROIC, last three-year median: 2.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: KRW -100K

- FY2017: KRW 6K

- FY2018: KRW 3K

- FY2019: KRW -433.67

- FY2020: KRW 807.66

- FY2021: KRW -18K

- FY2022: KRW -14K

- FY2023: KRW 659.00

- FY2024: KRW 1K

- FY2025: KRW 3K

### accounting: pass

- Sloan accruals: -0.3%

- Receivables to sales index (DSRI): 0.09×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 7.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.06×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.06×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -14.6%

- FY2017: 14.3%

- FY2018: -3.2%

- FY2019: -23.0%

- FY2020: 5.3%

- FY2021: -20.6%

- FY2022: -5.6%

- FY2023: 15.1%

- FY2024: 19.2%

- FY2025: -0.3%

## Holders

## Price story

Down 56% since Feb 2026 · sales +18.6%

Story as of 2026-10-16T10:00:03.839Z; price observation 2026-10-15.

Price needs cash profits to grow 20.2% a year for ten years

### Sales · FY2024–2025

sales +18.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: KRW 12.82T 

- FY2017: KRW 11.10T 

- FY2018: KRW 9.64T 

- FY2019: KRW 8.36T 

- FY2020: KRW 7.03T 

- FY2021: KRW 4.49T 

- FY2022: KRW 4.86T 

- FY2023: KRW 7.41T 

- FY2024: KRW 10.78T 

- FY2025: KRW 12.78T 

### Gross margin · FY2025

gross margin 14.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 13.9% 

- FY2018: 7.8% 

- FY2019: 5.6% 

- FY2020: 5.6% 

- FY2023: 1.3% 

- FY2024: 6.3% 

- FY2025: 14.4% 

## Owner memo

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

### How it makes money

Operates in aerospace & defense; annual sales are KRW 12.8 trillion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:09.437Z); FY2025: revenue 12783512278320; grossProfit 1840297996980; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 042660.KO: Hanwha Ocean Co., Ltd. operates as a shipbuilding and offshore contractor in South Korea and internationally. The company offers commercial vessels, including tankers, container carriers, bulk carriers, ore carriers, liquefied natural gas (LNG) and liquefied petroleum gas carriers, LNG floating storage regasification units, chemical carriers, and other vessels; and FLNG, fixed platforms, and drilling rigs; and FPSO/FPU/FSOs for offshore oil and gas exploration and production, as well as provision of engineering and construction, including commercial and residential building, infrastructure, environmental facilities, and power plants. It is also provides electronic detonators, blasting systems, industrial explosives products, mining services, petrochemicals, and inorganic compounds; display manufacturing and logistics equipment, autonomous guided vehicles; space launch vehicle engines, satellite services, gas turbine engines and components, and aircraft components; artillery systems, armored vehicles, air defense systems, unmanned ground systems, precision-guided munitions, and navigation systems; lithium-ion battery systems for submarines and ships; and ship engines and generators. In addition, the company provides system integration, application management, cloud management, artificial intelligence, cloud computing, video surveillance solutions; automation equipment; and industrial compressors. Further, it manufactures ethylene, propylene, butadiene, gasoline, diesel, jet fuel, LPG, and solvents. Additionally, the company provides life insurance, mortgage and personal loans, trust, fund, retirement pension, automobile insurance, general insurance, securities brokerage and underwriting, and asset management. It also involved in the real estate development, insurance agency, retail, fashion, food & beverage businesses. The company was founded in 1952 and is headquartered in Geoje-si, South Korea.

### Why customers stay

Margins ranged from 1.3% to 14.4% during 2023–25; it earns 4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:09.437Z); FY2023: grossProfit / revenue = 1.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:09.437Z); FY2024: grossProfit / revenue = 6.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:09.437Z); FY2025: grossProfit / revenue = 14.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:09.437Z); 10-year return on capital observations [[2016,-0.16413925934517423],[2017,0.0704646178667167],[2018,0.13476253095285678],[2019,0.053922064687037766],[2020,0.08370375893375533],[2021,-0.47672721737549806],[2022,-0.5426051760291019],[2023,-0.025399258268806766],[2024,0.025670820134752557],[2025,0.10881134012310692]]; median 0.03979644241089516. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 39.7% of cash earnings on expansion; paid no dividends in 9 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:09.437Z); FY2017: growth capex 0; upkeep 116424798720; owner earnings 657473232250. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:09.437Z); FY2018: growth capex 0; upkeep 152459677840; owner earnings 327816901810. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:09.437Z); FY2020: growth capex 0; upkeep 189860940640; owner earnings 10250100008. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:09.437Z); FY2023: growth capex 0; upkeep 134004613030; owner earnings 156960181490. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:09.437Z); FY2024: growth capex 199746089880; upkeep 179638000000; owner earnings 502372222118. Growth capex / owner earnings = 0.39760576139713893.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:09.437Z); FY2025: growth capex 483696253080; upkeep 232926000000; owner earnings 1219736189024. Growth capex / owner earnings = 0.39655808971859785.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:09.437Z); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 37.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 042660.KO SharesStats.PercentInsiders = 37.943 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 20.2% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:09.437Z); Ten-year compound average after fade. Initial solved rate 0.2809542224411875. Price 62400; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -166633.71681169234 → FY2025 3337.5759880022233. Closing-price date 2026-10-15.

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

- 2017-10: KRW 15,948.10 per share

- 2017-11: KRW 15,600.45 per share

- 2017-12: KRW 12,080.57 per share

- 2018-01: KRW 21,075.82 per share

- 2018-02: KRW 21,727.65 per share

- 2018-03: KRW 23,987.33 per share

- 2018-04: KRW 20,858.54 per share

- 2018-05: KRW 23,596.23 per share

- 2018-06: KRW 23,465.86 per share

- 2018-07: KRW 22,900.94 per share

- 2018-08: KRW 24,726.07 per share

- 2018-09: KRW 30,114.52 per share

- 2018-10: KRW 25,421.35 per share

- 2018-11: KRW 28,550.13 per share

- 2018-12: KRW 29,679.97 per share

- 2019-01: KRW 32,156.92 per share

- 2019-02: KRW 27,463.75 per share

- 2019-03: KRW 24,291.51 per share

- 2019-04: KRW 25,247.53 per share

- 2019-05: KRW 25,899.36 per share

- 2019-06: KRW 28,419.77 per share

- 2019-07: KRW 25,508.26 per share

- 2019-08: KRW 23,726.59 per share

- 2019-09: KRW 26,594.64 per share

- 2019-10: KRW 24,465.33 per share

- 2019-11: KRW 22,900.94 per share

- 2019-12: KRW 24,204.60 per share

- 2020-01: KRW 21,466.92 per share

- 2020-02: KRW 19,250.70 per share

- 2020-03: KRW 11,689.48 per share

- 2020-04: KRW 14,905.17 per share

- 2020-05: KRW 18,946.51 per share

- 2020-06: KRW 23,509.32 per share

- 2020-07: KRW 20,554.36 per share

- 2020-08: KRW 19,250.70 per share

- 2020-09: KRW 20,684.72 per share

- 2020-10: KRW 18,555.41 per share

- 2020-11: KRW 23,509.32 per share

- 2020-12: KRW 23,813.50 per share

- 2021-01: KRW 21,249.64 per share

- 2021-02: KRW 22,118.75 per share

- 2021-03: KRW 24,595.70 per share

- 2021-04: KRW 31,896.19 per share

- 2021-05: KRW 29,288.87 per share

- 2021-06: KRW 31,113.99 per share

- 2021-07: KRW 28,245.94 per share

- 2021-08: KRW 24,378.42 per share

- 2021-09: KRW 23,378.95 per share

- 2021-10: KRW 22,422.93 per share

- 2021-11: KRW 20,076.35 per share

- 2021-12: KRW 20,032.89 per share

- 2022-01: KRW 17,164.84 per share

- 2022-02: KRW 23,031.31 per share

- 2022-03: KRW 21,553.83 per share

- 2022-04: KRW 22,857.49 per share

- 2022-05: KRW 19,163.79 per share

- 2022-06: KRW 20,858.54 per share

- 2022-07: KRW 17,251.75 per share

- 2022-08: KRW 17,512.49 per share

- 2022-09: KRW 16,469.56 per share

- 2022-10: KRW 15,904.64 per share

- 2022-11: KRW 16,599.92 per share

- 2022-12: KRW 16,469.56 per share

- 2023-01: KRW 20,032.89 per share

- 2023-02: KRW 22,379.48 per share

- 2023-03: KRW 21,293.10 per share

- 2023-04: KRW 23,422.41 per share

- 2023-05: KRW 24,639.15 per share

- 2023-06: KRW 32,765.30 per share

- 2023-07: KRW 40,630.71 per share

- 2023-08: KRW 33,330.21 per share

- 2023-09: KRW 30,950.00 per share

- 2023-10: KRW 23,600.00 per share

- 2023-11: KRW 27,300.00 per share

- 2023-12: KRW 25,100.00 per share

- 2024-01: KRW 21,950.00 per share

- 2024-02: KRW 23,600.00 per share

- 2024-03: KRW 27,600.00 per share

- 2024-04: KRW 32,050.00 per share

- 2024-05: KRW 29,700.00 per share

- 2024-06: KRW 30,550.00 per share

- 2024-07: KRW 30,550.00 per share

- 2024-08: KRW 34,550.00 per share

- 2024-09: KRW 30,550.00 per share

- 2024-10: KRW 26,750.00 per share

- 2024-11: KRW 35,000.00 per share

- 2024-12: KRW 37,350.00 per share

- 2025-01: KRW 57,200.00 per share

- 2025-02: KRW 74,300.00 per share

- 2025-03: KRW 67,100.00 per share

- 2025-04: KRW 78,500.00 per share

- 2025-05: KRW 78,000.00 per share

- 2025-06: KRW 79,400.00 per share

- 2025-07: KRW 112,300.00 per share

- 2025-08: KRW 112,000.00 per share

- 2025-09: KRW 110,300.00 per share

- 2025-10: KRW 137,600.00 per share

- 2025-11: KRW 107,800.00 per share

- 2025-12: KRW 113,600.00 per share

- 2026-01: KRW 138,500.00 per share

- 2026-02: KRW 141,200.00 per share

- 2026-03: KRW 120,200.00 per share

- 2026-04: KRW 131,800.00 per share

- 2026-05: KRW 123,300.00 per share

- 2026-06: KRW 100,300.00 per share

- 2026-07: KRW 85,200.00 per share

- 2026-08: KRW 88,000.00 per share

- 2026-09: KRW 78,800.00 per share

- 2026-10: KRW 67,100.00 per share

## Annual estimated value (KRW per share)

- FY2020: low KRW 12,920.10 per share, central KRW 13,064.22 per share, high KRW 13,256.06 per share

- FY2021: low KRW 21,442.94 per share, central KRW 21,544.99 per share, high KRW 21,680.85 per share

- FY2024: low KRW 1,620.08 per share, central KRW 1,685.05 per share, high KRW 1,771.53 per share

- FY2025: low KRW 9,559.04 per share, central KRW 10,675.93 per share, high KRW 12,162.75 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.