DL E&C Co., Ltd. (375500) AI Stock Analysis

DL E&C Co., Ltd.

(Korea Exchange:375500)

Select Model

Rating:59Neutral

Price Target:KRW 56,639.00▲(4.89% Upside)

Action:initiatedcoverage

Date:11/02/26

The overall score is constrained by a significant conflict between strong fundamentals and weak market sentiment. The company's financial foundation is solid, marked by a pristine balance sheet and robust cash generation, and the stock appears deeply undervalued with a P/E of 4.91. However, these strengths are overshadowed by a deteriorating income statement and overwhelmingly bearish technicals, with the stock in a clear downtrend and showing no signs of momentum reversal. The low score reflects the high risk of catching a falling knife despite attractive valuation and financial stability.

Positive Factors

Profitability reboundThe rebound in net and gross margins indicates stronger recent project execution and/or a more favorable mix. If maintained, improved profitability can support internally funded investment, strengthen resilience across the project cycle, and lift sustainable returns over the next several quarters.

Negative Factors

Contracting revenueDeclining revenue indicates that recent profitability improvement is not yet supported by broad top-line expansion. Continued contraction could reduce operating scale, limit the company’s ability to spread fixed costs, and make future earnings more dependent on project timing and mix.

DL E&C Co., Ltd. (375500) vs. SPDR S&P 500 ETF (SPY)

Market Cap: KRW 2.11T
Dividend Yield: 1.65%
Average Volume (3M): 326.81K
Price to Earnings (P/E): 4.9
Beta (1Y): 0.55
Revenue Growth: -17.37%
EPS Growth: 60.92%
Country: KR
Employees: 4,742
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

DL E&C Co., Ltd. Business Overview & Revenue Model

Company Description

DL E&C Co., Ltd. is a global construction firm specializing in comprehensive engineering, procurement, and construction (EPC) solutions. The company executes diverse projects across several key areas: industrial plant works, including refinery, gas,...

DL E&C Co., Ltd. Financial Statement Overview

Summary

Financial performance is mixed. The balance sheet is strong with low leverage (debt-to-equity 0.19) and the cash flow score is excellent (FCF growth 27.6%, high conversion). However, the income statement is weak, showing declining revenue and compressed margins. The overall financial health is supported by stability and liquidity, but earnings quality is under pressure.

Income Statement

35Negative

Balance Sheet

72Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.13T	7.40T	8.32T	7.99T	7.50T	7.63T
Gross Profit	1.03T	900.17B	845.77B	782.11B	931.33B	1.39T
EBITDA	383.60B	223.08B	500.63B	416.20B	569.39B	1.04T
Net Income	621.51B	370.19B	229.22B	187.86B	413.17B	577.04B
Balance Sheet
Total Assets	10.25T	9.67T	9.71T	9.34T	8.97T	8.70T
Cash, Cash Equivalents and Short-Term Investments	2.13T	2.05T	2.07T	2.24T	2.28T	2.27T
Total Debt	1.04T	1.08T	1.15T	1.27T	1.23T	1.16T
Total Liabilities	4.75T	4.43T	4.87T	4.58T	4.28T	4.20T
Stockholders Equity	5.50T	5.24T	4.85T	4.77T	4.35T	4.17T
Cash Flow
Free Cash Flow	400.51B	209.08B	176.00B	214.77B	128.20B	561.30B
Operating Cash Flow	422.85B	232.14B	187.87B	231.33B	151.96B	580.43B
Investing Cash Flow	21.48B	-51.76B	-167.14B	201.34B	-385.73B	-337.95B
Financing Cash Flow	-227.93B	-222.17B	-191.54B	-189.01B	-64.77B	113.62B

DL E&C Co., Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price54000.00

Price Trends

50DMA68040.00Negative

100DMA66782.00Negative

200DMA67875.56Negative

Market Momentum

MACD-3803.71Negative

RSI37.92Neutral

STOCH71.46Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KR:375500, the sentiment is Negative. The current price of 54000.00 is below the 20-day moving average (MA) of 55615.00, below the 50-day MA of 68040.00, and below the 200-day MA of 67875.56, indicating a bearish trend. The MACD of -3803.71 indicates Negative momentum. The RSI at 37.92 is Neutral, neither overbought nor oversold. The STOCH value of 71.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KR:375500.

DL E&C Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

KR:375500 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KR:028050	72Outperform	KRW 12.94T	18.24	―	1.15%	19.14%	34.66%
KR:028260	63Neutral	KRW 44.19T	16.75	―	0.98%	13.53%	30.78%
KR:375500	59Neutral	KRW 2.18T	4.89	―	1.65%	-17.37%	60.92%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
KR:000720	49Neutral	KRW 9.35T	14.99	―	0.95%	-9.34%	―
KR:006360	46Neutral	KRW 2.56T	20.00	―	1.60%	-15.14%	545.10%
KR:047040	29Underperform	KRW 4.63T	-10.93	―	―	-15.98%	-1448.63%

* General Sector Average

Performance Comparison

KR:375500 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
KR:375500	DL E&C Co., Ltd.	54000.00	13850.50	34.50%
KR:000720	Hyundai Engineering & Construction Co., Ltd	83800.00	20241.25	31.85%
KR:006360	GS Engineering & Construction Corporation	31250.00	12695.62	68.42%
KR:028050	SAMSUNG E&A CO. LTD.	68800.00	43351.52	170.35%
KR:028260	SAMSUNG C&T CORP	285000.00	66883.78	30.66%
KR:047040	Daewoo Engineering & Construction Co., Ltd	11560.00	8075.00	231.71%

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.

Date of analysis: Oct 28, 2026

DL E&C Co., Ltd. AI Stock Analysis