# Hyundai Construction Equipment (267270.KO)

Canonical: https://gigainvestors.com/s/267270.KO

Analysis as of: 2026-10-16T07:38:53.154Z. Financial observations: FY2017–FY2025.

Listing currency: KRW. Reporting currency: KRW.

## Verdict

Not a wonderful business

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

Share price: KRW 92,700.00 per share; close as of 2026-10-15.

Estimated value: low KRW 62,737.74 per share, central KRW 69,302.09 per share, high KRW 78,040.63 per share. Buy at or below the central value KRW 69,302.09 per share. Valuation as of 2026-10-16T07:38:53.154Z; scenarios are not confidence intervals.

Expected annual return: 7.8% at the stated quote. About 7.8% 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: pass

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

- Financial history: 9 years

- Years with declining revenue: 3

- Years with a net loss: 1

- Operating margin variation: 0.17×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.05×

- FY2018: 0.06×

- FY2019: 0.06×

- FY2020: 0.04×

- FY2021: 0.05×

- FY2022: 0.05×

- FY2023: 0.07×

- FY2024: 0.06×

- FY2025: 0.05×

### moat: fail

- ROIC median below threshold

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

- ROIC, median of available years: 5.8%

- ROIC, second-lowest year: 5.5%

- Typical minus recent gross margin: -0.4 pp

- Typical gross margin (annual median): 18.5%

- Recent gross margin (lower of latest and 3-year median): 18.9%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.3%

- ROIC including acquisitions, ten-year median: 3.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 4.4%

- FY2018: 10.8%

- FY2019: 7.7%

- FY2020: 5.5%

- FY2021: 5.7%

- FY2022: 5.8%

- FY2023: 9.0%

- FY2024: 6.7%

- FY2025: 5.7%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.74×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: KRW 419B

- Net income, five-year total: KRW 564B

- Return on incremental invested capital: 10.5%

- Working capital / revenue, annual change: -1.9 pp

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

- FY2021: 0.99×

- FY2022: 0.98×

- FY2023: 0.96×

- FY2024: -0.24×

- FY2025: 0.87×

### 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: 7.7% vs 6.7%

- Per-share earnings: 2372.07 to 5698.00 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: -1.8%

- Market cap gain: KRW -1.60T

- Cumulative retained earnings: KRW 648B

- Diluted shares, 5-year annual growth: -1.8%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 15.7%

- Per-share value change: KRW 3K

- Per-share value, starting three-year median: KRW 2K

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

- Buybacks concentrated in cheaper years (correlation): -0.14

- Average buyback yield: 1.7%

- Buyback history: 7 years

- Debt-funded buybacks: Yes

- ROIC, first three-year median: 7.7%

- ROIC, last three-year median: 6.7%

Chart: Earnings per share; fiscal year observations.

- FY2017: KRW 2K

- FY2018: KRW 5K

- FY2019: KRW 169.35

- FY2020: KRW -506.38

- FY2021: KRW 6K

- FY2022: KRW 6K

- FY2023: KRW 8K

- FY2024: KRW 6K

- FY2025: KRW 6K

### accounting: pass

- Sloan accruals: -1.9%

- Receivables to sales index (DSRI): 1.18×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.67×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.05×

Chart: Sloan accruals; fiscal year observations.

- FY2017: 1.6%

- FY2018: 4.8%

- FY2019: -4.8%

- FY2020: -8.5%

- FY2021: 8.7%

- FY2022: -4.2%

- FY2023: -5.4%

- FY2024: -4.8%

- FY2025: -1.9%

## Holders

## Price story

Down 50% since Apr 2026 · sales +9.8%

Story as of 2026-10-16T10:00:10.320Z; price observation 2026-10-15.

Price needs cash profits to grow 5.4% a year for ten years

### Sales · FY2024–2025

sales +9.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: KRW 1.89T 

- FY2018: KRW 3.23T 

- FY2019: KRW 2.85T 

- FY2020: KRW 2.62T 

- FY2021: KRW 3.28T 

- FY2022: KRW 3.52T 

- FY2023: KRW 3.82T 

- FY2024: KRW 3.44T 

- FY2025: KRW 3.78T 

### Gross margin · FY2025

gross margin 19.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 18.5% 

- FY2018: 16.8% 

- FY2019: 19.1% 

- FY2020: 17.7% 

- FY2021: 16.2% 

- FY2022: 17.1% 

- FY2023: 18.9% 

- FY2024: 18.9% 

- FY2025: 19.3% 

## Owner memo

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

### How it makes money

Operates in farm & heavy construction machinery; annual sales are KRW 3.8 trillion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:53.154Z); FY2025: revenue 3776524012000; grossProfit 730756179000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 267270.KO: HD Construction Equipment Co., Ltd. engages in the manufacturing and distribution of construction equipment. The company offers excavators, wheel loaders, backhoe loaders, skid steer loaders, compact track loaders, special equipment, articulated dump tracks, wide-body dump tracks, dozers, and motor graders, as well as parts and accessories. It operates under the HYUNDAI and DEVELON brand names. The company was formerly known as HD Hyundai Construction Equipment Co., Ltd. and changed its name to HD Construction Equipment Co., Ltd. in January 2026. HD Construction Equipment Co., Ltd. was founded in 1985 and is based in Seoul, South Korea.

### Why customers stay

Margins ranged from 18.9% to 19.3% during 2023–25; it earns 5.8% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:53.154Z); FY2023: grossProfit / revenue = 18.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:53.154Z); FY2024: grossProfit / revenue = 18.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:53.154Z); FY2025: grossProfit / revenue = 19.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:53.154Z); 9-year return on capital observations [[2017,0.044456449359921886],[2018,0.10786557077748253],[2019,0.07722583840862383],[2020,0.05473080553049178],[2021,0.056977588535111624],[2022,0.05785237380335838],[2023,0.0901365784854092],[2024,0.06679742329625799],[2025,0.05740189969610127]]; median 0.05785237380335838. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 94.5% of cash earnings on expansion; earns 10.5% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:53.154Z); FY2017: growth capex 0; upkeep 34924080602; owner earnings 50113628398. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:53.154Z); FY2021: growth capex 0; upkeep 64500441000; owner earnings 112540283000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:53.154Z); FY2022: growth capex 0; upkeep 60350397000; owner earnings 109715258000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:53.154Z); FY2023: growth capex 62109589000; upkeep 67137000000; owner earnings 134275956600. Growth capex / owner earnings = 0.46255182664623073.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:53.154Z); FY2025: growth capex 81350240081.26443; upkeep 73175672918.73557; owner earnings 86120474281.26443. Growth capex / owner earnings = 0.9446097546511333.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:53.154Z); Incremental return on capital 0.10517405707707561, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:53.154Z); Dividend observations: [[2017,2413454000],[2018,2413454000],[2019,18018882000],[2020,16651169000],[2021,43685387000],[2022,22866956000],[2023,32749011000],[2024,12741726000],[2025,8814902000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:53.154Z); FY2025: cash repurchases 20775112000 KRW.

### Are managers owners

Insiders own 37.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 267270.KO SharesStats.PercentInsiders = 37.54 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 5.4% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:38:53.154Z); Ten-year compound average after fade. Initial solved rate 0.06431661095196006. Price 92700; 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 279,314.06 per share

- 2017-06: KRW 318,159.06 per share

- 2017-07: KRW 338,968.88 per share

- 2017-08: KRW 310,297.57 per share

- 2017-09: KRW 372,500.00 per share

- 2017-10: KRW 374,000.00 per share

- 2017-11: KRW 185,000.00 per share

- 2017-12: KRW 169,000.00 per share

- 2018-01: KRW 203,500.00 per share

- 2018-02: KRW 170,000.00 per share

- 2018-03: KRW 177,500.00 per share

- 2018-04: KRW 190,000.00 per share

- 2018-05: KRW 167,000.00 per share

- 2018-06: KRW 141,000.00 per share

- 2018-07: KRW 133,000.00 per share

- 2018-08: KRW 118,000.00 per share

- 2018-09: KRW 122,500.00 per share

- 2018-10: KRW 74,400.00 per share

- 2018-11: KRW 48,150.00 per share

- 2018-12: KRW 42,700.00 per share

- 2019-01: KRW 55,100.00 per share

- 2019-02: KRW 53,800.00 per share

- 2019-03: KRW 47,650.00 per share

- 2019-04: KRW 49,000.00 per share

- 2019-05: KRW 40,700.00 per share

- 2019-06: KRW 40,550.00 per share

- 2019-07: KRW 31,200.00 per share

- 2019-08: KRW 29,600.00 per share

- 2019-09: KRW 31,600.00 per share

- 2019-10: KRW 27,900.00 per share

- 2019-11: KRW 27,850.00 per share

- 2019-12: KRW 29,900.00 per share

- 2020-01: KRW 26,700.00 per share

- 2020-02: KRW 20,500.00 per share

- 2020-03: KRW 15,000.00 per share

- 2020-04: KRW 18,450.00 per share

- 2020-05: KRW 19,400.00 per share

- 2020-06: KRW 21,900.00 per share

- 2020-07: KRW 22,750.00 per share

- 2020-08: KRW 21,850.00 per share

- 2020-09: KRW 26,500.00 per share

- 2020-10: KRW 24,800.00 per share

- 2020-11: KRW 33,900.00 per share

- 2020-12: KRW 32,750.00 per share

- 2021-01: KRW 33,900.00 per share

- 2021-02: KRW 37,450.00 per share

- 2021-03: KRW 53,800.00 per share

- 2021-04: KRW 55,700.00 per share

- 2021-05: KRW 57,800.00 per share

- 2021-06: KRW 55,300.00 per share

- 2021-07: KRW 56,500.00 per share

- 2021-08: KRW 49,300.00 per share

- 2021-09: KRW 41,000.00 per share

- 2021-10: KRW 40,250.00 per share

- 2021-11: KRW 36,050.00 per share

- 2021-12: KRW 40,550.00 per share

- 2022-01: KRW 38,600.00 per share

- 2022-02: KRW 33,500.00 per share

- 2022-03: KRW 37,000.00 per share

- 2022-04: KRW 37,300.00 per share

- 2022-05: KRW 40,600.00 per share

- 2022-06: KRW 44,950.00 per share

- 2022-07: KRW 37,900.00 per share

- 2022-08: KRW 40,700.00 per share

- 2022-09: KRW 32,000.00 per share

- 2022-10: KRW 43,000.00 per share

- 2022-11: KRW 59,900.00 per share

- 2022-12: KRW 62,200.00 per share

- 2023-01: KRW 58,900.00 per share

- 2023-02: KRW 54,900.00 per share

- 2023-03: KRW 52,100.00 per share

- 2023-04: KRW 67,900.00 per share

- 2023-05: KRW 59,800.00 per share

- 2023-06: KRW 85,800.00 per share

- 2023-07: KRW 81,700.00 per share

- 2023-08: KRW 71,200.00 per share

- 2023-09: KRW 73,000.00 per share

- 2023-10: KRW 44,500.00 per share

- 2023-11: KRW 48,650.00 per share

- 2023-12: KRW 51,700.00 per share

- 2024-01: KRW 51,000.00 per share

- 2024-02: KRW 53,800.00 per share

- 2024-03: KRW 57,900.00 per share

- 2024-04: KRW 55,000.00 per share

- 2024-05: KRW 57,000.00 per share

- 2024-06: KRW 55,000.00 per share

- 2024-07: KRW 59,500.00 per share

- 2024-08: KRW 52,900.00 per share

- 2024-09: KRW 52,500.00 per share

- 2024-10: KRW 51,500.00 per share

- 2024-11: KRW 61,700.00 per share

- 2024-12: KRW 58,300.00 per share

- 2025-01: KRW 66,500.00 per share

- 2025-02: KRW 75,000.00 per share

- 2025-03: KRW 65,700.00 per share

- 2025-04: KRW 67,700.00 per share

- 2025-05: KRW 70,500.00 per share

- 2025-06: KRW 76,000.00 per share

- 2025-07: KRW 92,600.00 per share

- 2025-08: KRW 87,400.00 per share

- 2025-09: KRW 92,900.00 per share

- 2025-10: KRW 100,000.00 per share

- 2025-11: KRW 93,800.00 per share

- 2025-12: KRW 98,400.00 per share

- 2026-01: KRW 108,200.00 per share

- 2026-02: KRW 140,700.00 per share

- 2026-03: KRW 125,100.00 per share

- 2026-04: KRW 183,900.00 per share

- 2026-05: KRW 151,500.00 per share

- 2026-06: KRW 124,800.00 per share

- 2026-07: KRW 124,900.00 per share

- 2026-08: KRW 133,300.00 per share

- 2026-09: KRW 123,500.00 per share

- 2026-10: KRW 101,200.00 per share

## Annual estimated value (KRW per share)

- FY2023: low KRW 90,360.93 per share, central KRW 100,243.51 per share, high KRW 113,399.30 per share

- FY2024: low KRW 78,850.81 per share, central KRW 87,900.50 per share, high KRW 99,947.55 per share

- FY2025: low KRW 90,337.60 per share, central KRW 100,521.32 per share, high KRW 114,078.02 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.