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Hwacheon Machine Tool Co., Ltd
(000850)
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Rating:61Neutral
Price Target:
₩36,187.00
Action:N/A
Date:10/28/26
The score is driven by strong valuation (low P/E with a meaningful dividend) and a resilient balance sheet with improving TTM profitability. These positives are tempered by a clear near-term risk: weakened cash conversion with negative free cash flow, alongside weak technical momentum (below major moving averages with negative MACD).
Positive Factors
Improving revenue and margins
Recent revenue growth and improved net margin indicate a healthier operating profile than in 2024–2025. If this improvement persists, stronger profitability can support reinvestment, resilience through the manufacturing cycle, and better earnings capacity over the next several quarters.
Negative Factors
Negative recent free cash flow
The latest TTM earnings are not translating into cash, creating a meaningful quality-of-earnings concern. Negative free cash flow can constrain internally funded investment, reduce financial flexibility, and make reported profitability less dependable until cash conversion recovers.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving revenue and margins
Recent revenue growth and improved net margin indicate a healthier operating profile than in 2024–2025. If this improvement persists, stronger profitability can support reinvestment, resilience through the manufacturing cycle, and better earnings capacity over the next several quarters.
Read all positive factors
Hwacheon Machine Tool Co., Ltd (000850) vs. SPDR S&P 500 ETF (SPY)
Market Cap
₩75.46B
Dividend Yield3.79%
Average Volume (3M)4.52K
Price to Earnings (P/E)3.7
Beta (1Y)0.08
Revenue Growth11.17%
EPS Growth198.24%
CountryKR
Employees304
SectorGeneral
Sector StrengthN/A
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)9307.13
Shares Outstanding2,200,000
10 Day Avg. Volume4,420
30 Day Avg. Volume4,518
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)0.24
Price to Sales (P/S)0.36
P/FCF Ratio5.36
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)3,937
Revenue Forecast (FY)₩222.20B
Hwacheon Machine Tool Co., Ltd Business Overview & Revenue Model
Company Description
Hwacheon Machine Tool Co. Ltd is a South Korean company specializing in the development, manufacture, and sale of industrial machine tools. Its diverse product portfolio primarily serves the domestic market and includes computer numerical control ...
Hwacheon Machine Tool Co., Ltd Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
78
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 246.97B | 221.76B | 222.20B | 225.72B | 244.09B | 203.97B |
| Gross Profit | 45.68B | 40.65B | 34.42B | 36.58B | 42.33B | 31.72B |
| EBITDA | 18.91B | 9.71B | 4.69B | 18.16B | 48.79B | 12.06B |
| Net Income | 20.47B | 11.38B | 8.65B | 10.56B | 37.49B | 9.31B |
Balance Sheet | ||||||
| Total Assets | 450.36B | 420.41B | 428.81B | 463.89B | 474.03B | 425.44B |
| Cash, Cash Equivalents and Short-Term Investments | 64.23B | 73.18B | 82.86B | 90.75B | 103.93B | 70.03B |
| Total Debt | 32.01B | 19.98B | 30.52B | 50.83B | 45.43B | 37.36B |
| Total Liabilities | 100.99B | 80.95B | 91.54B | 118.34B | 128.77B | 117.09B |
| Stockholders Equity | 349.37B | 339.46B | 337.27B | 345.55B | 345.27B | 308.35B |
Cash Flow | ||||||
| Free Cash Flow | -543.40M | 14.92B | 12.12B | 2.66B | 24.92B | -6.09B |
| Operating Cash Flow | 1.70B | 15.82B | 12.90B | 5.27B | 30.99B | 7.42B |
| Investing Cash Flow | 1.03B | 965.60M | 8.95B | -15.81B | -36.66B | -18.58B |
| Financing Cash Flow | 3.19B | -13.46B | -23.97B | -747.89M | 4.72B | 14.13B |
Hwacheon Machine Tool Co., Ltd Technical Analysis
Negative
―
Price Trends
36335.00
Negative
35035.50
Negative
36390.50
Negative
Market Momentum
-609.17
Positive
39.47
Neutral
42.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KR:000850, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 35575.00, equal to the 50-day MA of 36335.00, and equal to the 200-day MA of 36390.50, indicating a bearish trend. The MACD of -609.17 indicates Positive momentum. The RSI at 39.47 is Neutral, neither overbought nor oversold. The STOCH value of 42.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KR:000850.
Hwacheon Machine Tool Co., Ltd Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | ₩75.46B | 3.69 | ― | 3.79% | 11.17% | 198.24% | |
56 Neutral | ₩69.52B | 12.70 | ― | 0.63% | -12.80% | 58.11% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
45 Neutral | ₩147.29B | -9.76 | ― | 0.69% | -3.31% | 53.68% | |
45 Neutral | ₩35.18B | 14.03 | ― | 2.84% | -5.33% | 51.12% | |
43 Neutral | ₩64.05B | -253.85 | ― | 1.01% | -18.23% | 91.72% | |
42 Neutral | ₩103.32B | -25.17 | ― | ― | -33.06% | -216.74% |
* General Sector Average
KR:000850
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.