Hyundai Motor Company (005380.KS) stock analysis

In our weekly check, Hyundai Motor Company is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 2, red flags: 10.

About Hyundai Motor Company

Hyundai Motor Company is a Consumer Cyclical company (Auto - Manufacturers) based in South Korea, listed on KSC as 005380.KS.

What our checks show for 005380.KS

Red flags

• Net debt is 9.5x a year of EBITDA (debt/equity 1.56). That limits room in a downturn and raises refinancing risk.
• Operating cash flow is negative while the company reports a profit: the profit does not arrive as cash.
• The net margin is only 4.4%: little room if costs rise.
• Free cash flow is negative (-5.6% of revenue): the business spends more cash than it brings in.
• The price swings a lot: 67.7% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 75% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 4 years.
• Beta 1.74: the stock usually moves more than the market, both up and down.
• Return on capital (ROCE) is only 3.2%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• The gross margin fell by 1.2 points, to 17.4%: costs are rising faster than prices.
• Analysts expect only about 3.7% a year of growth in revenue.

Strengths

• Operating profit covers interest 15.4 times over.
• Analysts expect earnings per share to grow about 19.2% a year over the next years.
• The dividend takes 33% of profit: there is a cushion.
• The price is 9.5 times earnings (P/E), reasonable for its growth.
• A large company: market value $45.15 billion.

Similar companies

000270.KS · 012330.KS · 9983.T · FALABELLA.SN · 003550.KS

Questions

What grade does Hyundai Motor Company (005380.KS) have?

In our weekly check, Hyundai Motor Company is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 2, red flags: 10. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 005380.KS stock?

This week's biggest flags for Hyundai Motor Company: High debt, Profits not backed by cash, Thin margins. In total 12 of 25 checks show a warning or a red flag.

What does Hyundai Motor Company do?

Hyundai Motor Company is a Consumer Cyclical company (Auto - Manufacturers) based in South Korea, listed on KSC as 005380.KS.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

Open the full analysis