KOSE:A241590

Stock Analysis Report

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Executive Summary

Hwaseung Enterprise Co., Ltd. manufactures and sells shoes for sporting goods. More Details


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.

Share Price & News

How has Hwaseung Enterprise's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: A241590 is not significantly more volatile than the rest of KR stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: A241590's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

5.8%

A241590

2.7%

KR Luxury

0.4%

KR Market


1 Year Return

9.4%

A241590

29.6%

KR Luxury

48.3%

KR Market

Return vs Industry: A241590 underperformed the KR Luxury industry which returned 29.6% over the past year.

Return vs Market: A241590 underperformed the KR Market which returned 48.3% over the past year.


Shareholder returns

A241590IndustryMarket
7 Day5.8%2.7%0.4%
30 Day32.4%7.1%-3.6%
90 Day20.7%20.6%9.1%
1 Year9.7%9.4%31.6%29.6%52.6%48.3%
3 Year36.4%35.1%19.2%14.1%30.6%21.5%
5 Yearn/a-22.4%-26.5%64.7%44.9%

Long-Term Price Volatility Vs. Market

How volatile is Hwaseung Enterprise's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hwaseung Enterprise undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: A241590 (₩16350) is trading below our estimate of fair value (₩33383.64)

Significantly Below Fair Value: A241590 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: A241590 is poor value based on its PE Ratio (23.3x) compared to the KR Luxury industry average (17.8x).

PE vs Market: A241590 is poor value based on its PE Ratio (23.3x) compared to the KR market (19.6x).


Price to Earnings Growth Ratio

PEG Ratio: A241590 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: A241590 is overvalued based on its PB Ratio (1.9x) compared to the KR Luxury industry average (0.9x).


Next Steps

Future Growth

How is Hwaseung Enterprise forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

49.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: A241590's forecast earnings growth (49.9% per year) is above the savings rate (3.7%).

Earnings vs Market: A241590's earnings (49.9% per year) are forecast to grow faster than the KR market (30.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: A241590's revenue (18.4% per year) is forecast to grow faster than the KR market (10.8% per year).

High Growth Revenue: A241590's revenue (18.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: A241590's Return on Equity is forecast to be low in 3 years time (16%).


Next Steps

Past Performance

How has Hwaseung Enterprise performed over the past 5 years?

17.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: A241590 has high quality earnings.

Growing Profit Margin: A241590's current net profit margins (3.6%) are lower than last year (4.4%).


Past Earnings Growth Analysis

Earnings Trend: A241590's earnings have grown by 17.3% per year over the past 5 years.

Accelerating Growth: A241590's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: A241590 had negative earnings growth (-9.8%) over the past year, making it difficult to compare to the Luxury industry average (-2.7%).


Return on Equity

High ROE: A241590's Return on Equity (8.2%) is considered low.


Next Steps

Financial Health

How is Hwaseung Enterprise's financial position?


Financial Position Analysis

Short Term Liabilities: A241590's short term assets (₩605.2B) exceed its short term liabilities (₩504.2B).

Long Term Liabilities: A241590's short term assets (₩605.2B) exceed its long term liabilities (₩98.8B).


Debt to Equity History and Analysis

Debt Level: A241590's debt to equity ratio (70.4%) is considered high.

Reducing Debt: Insufficient data to determine if A241590's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: A241590's debt is well covered by operating cash flow (33%).

Interest Coverage: A241590's interest payments on its debt are well covered by EBIT (5.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Hwaseung Enterprise current dividend yield, its reliability and sustainability?

0.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: A241590's dividend (0.28%) isn’t notable compared to the bottom 25% of dividend payers in the KR market (0.71%).

High Dividend: A241590's dividend (0.28%) is low compared to the top 25% of dividend payers in the KR market (2.37%).


Stability and Growth of Payments

Stable Dividend: A241590 is not paying a notable dividend for the KR market, therefore no need to check if payments are stable.

Growing Dividend: A241590 is not paying a notable dividend for the KR market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: A241590 is not paying a notable dividend for the KR market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of A241590's dividend in 3 years as they are not forecast to pay a notable one for the KR market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?


CEO

Kye-Young Lee (58 yo)

no data

Tenure

Mr. Kye-Young Lee has been Chief Executive Officer of Hwaseung Enterprise Co., Ltd. since November 2015. Mr. Lee has been Chief Executive Officer of Hwaseung Vina Co., Ltd. since February 2014. He serves a...


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hwaseung Enterprise Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hwaseung Enterprise Co., Ltd.
  • Ticker: A241590
  • Exchange: KOSE
  • Founded: 2015
  • Industry: Footwear
  • Sector: Consumer Durables
  • Market Cap: ₩989.918b
  • Shares outstanding: 60.55m
  • Website: https://www.hsenterprise.co.kr

Location

  • Hwaseung Enterprise Co., Ltd.
  • 301 Dongik Seongbong Building
  • 8th Floor
  • Seoul
  • South Korea

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
A241590KOSE (Korea Stock Exchange)YesShare CapitalKRKRWOct 2016

Biography

Hwaseung Enterprise Co., Ltd. manufactures and sells shoes for sporting goods. It also purchases and sells natural rubber, synthetic rubber, recycled rubber, and EVA; and pepper and chemical materials, as ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/06 08:44
End of Day Share Price2021/03/05 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.