# Hyundai Electric & Energy Systems (267260.KO)

Canonical: https://gigainvestors.com/s/267260.KO

Analysis as of: 2026-10-16T07:35:26.042Z. Financial observations: FY2017–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 487,000.00 per share; close as of 2026-10-15.

Estimated value: low KRW 149,257.28 per share, central KRW 166,303.36 per share, high KRW 188,995.30 per share. Buy at or below the central value KRW 166,303.36 per share. Valuation as of 2026-10-16T07:35:26.042Z; scenarios are not confidence intervals.

Expected annual return: 5.1% at the stated quote. About 5.1% 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

- 2 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: 2

- Years with a net loss: 4

- Operating margin variation: 1.36×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.04×

- FY2018: -0.05×

- FY2019: -0.09×

- FY2020: 0.04×

- FY2021: 0.01×

- FY2022: 0.06×

- FY2023: 0.12×

- FY2024: 0.20×

- FY2025: 0.24×

- LTM to Jun 2026: 0.26×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 6.3%

- ROIC, second-lowest year: -5.8%

- Typical minus recent gross margin: -15.5 pp

- Typical gross margin (annual median): 16.0%

- Recent gross margin (lower of latest and 3-year median): 31.4%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.3%

- ROIC including acquisitions, ten-year median: -0.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 3.1%

- FY2018: -5.8%

- FY2019: -10.8%

- FY2020: 6.3%

- FY2021: 1.0%

- FY2022: 10.9%

- FY2023: 16.6%

- FY2024: 41.0%

- FY2025: 57.7%

### economics: pass

- Owner earnings / net income, 5-yr: 0.99×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: KRW 1.61T

- Net income, five-year total: KRW 1.62T

- Return on incremental invested capital: 78.1%

- Working capital / revenue, annual change: -1.7 pp

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

- FY2021: 0.60×

- FY2022: 1.04×

- FY2023: 0.98×

- FY2024: 0.98×

- FY2025: 0.98×

### management: pass

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

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: -5.8% vs 41.0%

- Per-share earnings: -7342.08 to 13935.00 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

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

- Market cap gain: KRW 26.70T

- Cumulative retained earnings: KRW 1.31T

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

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value change: KRW 21K

- Per-share value, starting three-year median: KRW -7K

- Per-share value, ending three-year median: KRW 14K

- Buybacks concentrated in cheaper years (correlation): -0.40

- Average buyback yield: 0.3%

- Buyback history: 4 years

- Debt-funded buybacks: Yes

- ROIC, first three-year median: -5.8%

- ROIC, last three-year median: 41.0%

Chart: Earnings per share; fiscal year observations.

- FY2017: KRW 602.54

- FY2018: KRW -8K

- FY2019: KRW -7K

- FY2020: KRW -1K

- FY2021: KRW -935.93

- FY2022: KRW 5K

- FY2023: KRW 7K

- FY2024: KRW 14K

- FY2025: KRW 20K

### accounting: pass

- Sloan accruals: -4.8%

- Receivables to sales index (DSRI): 0.75×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.31×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.03×

Chart: Sloan accruals; fiscal year observations.

- FY2017: 1.0%

- FY2018: -7.5%

- FY2019: -14.3%

- FY2020: -10.8%

- FY2021: -6.5%

- FY2022: 11.8%

- FY2023: 9.7%

- FY2024: -14.0%

- FY2025: -4.8%

## Holders

## Price story

Down 61% since Apr 2026 · sales +6.3%

Story as of 2026-10-16T10:00:04.849Z; price observation 2026-10-15.

Price needs cash profits to grow 16% a year for ten years

### Sales · FY2025–2026

sales +6.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: KRW 1.45T 

- FY2018: KRW 1.94T 

- FY2019: KRW 1.77T 

- FY2020: KRW 1.81T 

- FY2021: KRW 1.81T 

- FY2022: KRW 2.10T 

- FY2023: KRW 2.70T 

- FY2024: KRW 3.32T 

- FY2025: KRW 4.08T 

- FY2026: KRW 4.34T 

### Gross margin · FY2025

gross margin 34.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 13.5% 

- FY2018: 7.9% 

- FY2019: 8.7% 

- FY2020: 17.1% 

- FY2021: 13.0% 

- FY2022: 16.0% 

- FY2023: 22.6% 

- FY2024: 31.4% 

- FY2025: 34.1% 

## Owner memo

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

### How it makes money

Operates in electrical equipment & parts; annual sales are KRW 4.1 trillion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:26.042Z); FY2025: revenue 4079497658520; grossProfit 1392839119760; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 267260.KO: HD Hyundai Electric Co., Ltd. manufactures and sells electrical equipment in South Korea, North America, rest of Asia, the Middle East, Europe, and internationally. The company offers power and distribution transformers, gas insulated and MV/LV switchgears, high-voltage and low-voltage motors, generator, and MV/LV circuit breakers. It also provides marine solutions, such as marine switchgears, distribution transformers, and rotating machines; battery energy storage system; greentric products comprising SF6-Free GIS, natural ester/synthetic oil-immersed power transformer, engine mounted generators, permanent magnet shaft generators, IE4LV motors, and dry air eco switchgears under the GREENTRIC brand. In addition, the company operates industrial IoT-based application platform; and provides energy solution, and assets management solution. The company was formerly known as Hyundai Electric & Energy Systems Co., Ltd. and changed its name to HD Hyundai Electric Co., Ltd. in March 2023. HD Hyundai Electric Co., Ltd. was founded in 1977 and is headquartered in Seongnam-si, South Korea.

### Why customers stay

Margins ranged from 22.6% to 34.1% during 2023–25; it earns 6.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:26.042Z); FY2023: grossProfit / revenue = 22.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:26.042Z); FY2024: grossProfit / revenue = 31.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:26.042Z); FY2025: grossProfit / revenue = 34.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:26.042Z); 9-year return on capital observations [[2017,0.030888422709578145],[2018,-0.058023739742212595],[2019,-0.10849247608140435],[2020,0.06290485854607528],[2021,0.009587587704295679],[2022,0.10916486655674945],[2023,0.16647004803335536],[2024,0.41019954335232894],[2025,0.5774723569502609]]; median 0.06290485854607528. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 23.4% of cash earnings on expansion; earns 78.1% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:26.042Z); FY2022: growth capex 0; upkeep 33264790770; owner earnings 169357851966. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:26.042Z); FY2023: growth capex 36748793500; upkeep 52374000000; owner earnings 253717963254. Growth capex / owner earnings = 0.14484111817975756.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:26.042Z); FY2024: growth capex 71489500270; upkeep 65249000000; owner earnings 489960869298. Growth capex / owner earnings = 0.14590859137879283.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:26.042Z); FY2025: growth capex 168196790300; upkeep 73718000000; owner earnings 718104160092. Growth capex / owner earnings = 0.23422338937355752.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:26.042Z); Incremental return on capital 0.7811364860037479, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:26.042Z); Dividend observations: [[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,17995741160],[2024,75583348400],[2025,221346948200]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:26.042Z); FY2025: cash repurchases 71478250 KRW.

### Are managers owners

Insiders own 37.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 267260.KO SharesStats.PercentInsiders = 37.143 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 16% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:26.042Z); Ten-year compound average after fade. Initial solved rate 0.2179572612506271. Price 487000; 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)

- 2017-05: KRW 116,781.66 per share

- 2017-06: KRW 124,155.24 per share

- 2017-07: KRW 129,137.40 per share

- 2017-08: KRW 108,212.36 per share

- 2017-09: KRW 98,509.23 per share

- 2017-10: KRW 101,079.04 per share

- 2017-11: KRW 50,539.52 per share

- 2017-12: KRW 48,826.31 per share

- 2018-01: KRW 52,681.02 per share

- 2018-02: KRW 38,761.24 per share

- 2018-03: KRW 35,334.83 per share

- 2018-04: KRW 40,260.29 per share

- 2018-05: KRW 39,318.03 per share

- 2018-06: KRW 29,981.07 per share

- 2018-07: KRW 27,411.26 per share

- 2018-08: KRW 25,355.42 per share

- 2018-09: KRW 29,595.60 per share

- 2018-10: KRW 20,172.98 per share

- 2018-11: KRW 23,513.73 per share

- 2018-12: KRW 19,016.56 per share

- 2019-01: KRW 23,770.71 per share

- 2019-02: KRW 26,040.70 per share

- 2019-03: KRW 21,329.39 per share

- 2019-04: KRW 20,215.81 per share

- 2019-05: KRW 15,718.65 per share

- 2019-06: KRW 15,418.84 per share

- 2019-07: KRW 11,778.28 per share

- 2019-08: KRW 10,878.85 per share

- 2019-09: KRW 9,593.94 per share

- 2019-10: KRW 9,165.64 per share

- 2019-11: KRW 9,010.00 per share

- 2019-12: KRW 11,550.00 per share

- 2020-01: KRW 9,840.00 per share

- 2020-02: KRW 8,630.00 per share

- 2020-03: KRW 6,540.00 per share

- 2020-04: KRW 8,250.00 per share

- 2020-05: KRW 8,270.00 per share

- 2020-06: KRW 7,920.00 per share

- 2020-07: KRW 12,450.00 per share

- 2020-08: KRW 11,750.00 per share

- 2020-09: KRW 15,300.00 per share

- 2020-10: KRW 15,000.00 per share

- 2020-11: KRW 16,200.00 per share

- 2020-12: KRW 16,400.00 per share

- 2021-01: KRW 16,750.00 per share

- 2021-02: KRW 17,650.00 per share

- 2021-03: KRW 20,950.00 per share

- 2021-04: KRW 22,050.00 per share

- 2021-05: KRW 21,900.00 per share

- 2021-06: KRW 20,600.00 per share

- 2021-07: KRW 23,550.00 per share

- 2021-08: KRW 24,950.00 per share

- 2021-09: KRW 27,800.00 per share

- 2021-10: KRW 22,100.00 per share

- 2021-11: KRW 21,800.00 per share

- 2021-12: KRW 19,900.00 per share

- 2022-01: KRW 17,450.00 per share

- 2022-02: KRW 20,400.00 per share

- 2022-03: KRW 21,450.00 per share

- 2022-04: KRW 21,850.00 per share

- 2022-05: KRW 22,550.00 per share

- 2022-06: KRW 25,350.00 per share

- 2022-07: KRW 27,450.00 per share

- 2022-08: KRW 31,950.00 per share

- 2022-09: KRW 31,850.00 per share

- 2022-10: KRW 34,350.00 per share

- 2022-11: KRW 42,050.00 per share

- 2022-12: KRW 42,500.00 per share

- 2023-01: KRW 40,050.00 per share

- 2023-02: KRW 42,050.00 per share

- 2023-03: KRW 37,900.00 per share

- 2023-04: KRW 50,600.00 per share

- 2023-05: KRW 48,900.00 per share

- 2023-06: KRW 65,100.00 per share

- 2023-07: KRW 74,300.00 per share

- 2023-08: KRW 70,400.00 per share

- 2023-09: KRW 66,600.00 per share

- 2023-10: KRW 75,000.00 per share

- 2023-11: KRW 84,100.00 per share

- 2023-12: KRW 82,200.00 per share

- 2024-01: KRW 102,700.00 per share

- 2024-02: KRW 124,400.00 per share

- 2024-03: KRW 179,400.00 per share

- 2024-04: KRW 247,000.00 per share

- 2024-05: KRW 301,000.00 per share

- 2024-06: KRW 310,000.00 per share

- 2024-07: KRW 310,000.00 per share

- 2024-08: KRW 305,500.00 per share

- 2024-09: KRW 329,500.00 per share

- 2024-10: KRW 327,500.00 per share

- 2024-11: KRW 349,500.00 per share

- 2024-12: KRW 382,000.00 per share

- 2025-01: KRW 410,000.00 per share

- 2025-02: KRW 325,500.00 per share

- 2025-03: KRW 292,000.00 per share

- 2025-04: KRW 307,500.00 per share

- 2025-05: KRW 379,000.00 per share

- 2025-06: KRW 507,000.00 per share

- 2025-07: KRW 501,000.00 per share

- 2025-08: KRW 492,500.00 per share

- 2025-09: KRW 582,000.00 per share

- 2025-10: KRW 870,000.00 per share

- 2025-11: KRW 775,000.00 per share

- 2025-12: KRW 774,000.00 per share

- 2026-01: KRW 889,000.00 per share

- 2026-02: KRW 1,050,000.00 per share

- 2026-03: KRW 832,000.00 per share

- 2026-04: KRW 1,252,000.00 per share

- 2026-05: KRW 1,053,000.00 per share

- 2026-06: KRW 972,000.00 per share

- 2026-07: KRW 684,000.00 per share

- 2026-08: KRW 781,000.00 per share

- 2026-09: KRW 662,000.00 per share

- 2026-10: KRW 582,000.00 per share

## Annual estimated value (KRW per share)

- FY2024: low KRW 96,091.68 per share, central KRW 107,286.19 per share, high KRW 122,188.46 per share

- FY2025: low KRW 140,921.40 per share, central KRW 156,955.67 per share, high KRW 178,300.68 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.