Ask Warren

JONBUR Research · Initiation

SK eternix · 475150 · Construction

SK eternix: Share Price Well Above Its Own Earnings Base as Trailing Profit Falls and Cash Flow Turns Negative

Why this report

Start of coverage: one of the 300 largest companies, written once its financial statements were in.

SK eternix closed at ₩44,000 on 2026-10-12, a market cap of about ₩1.5T, after rising 87.2% over one year but falling 15.2% over one month. Trailing net income of ₩7.4B is far below 2025's ₩30.7B, and the DCF model estimate has a very wide range.

Written Oct 13, 2026 · Data as of Oct 12, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

XfWATGr/in@

Thesis

The data supports a picture of a growing business with solid operating margins but thin bottom-line profit. Trailing revenue reached ₩562.8B and operating income ₩51.9B (9.2% margin), yet net income was only ₩7.4B (1.3% margin), which pushes the trailing P/E to 199.3.

The data does not support a view that the price is anchored by current earnings. The stock sits at 5.5x book value against peers at 0.5x to 1.8x, and free cash flow is negative at ₩81.4B. Leverage is high, with liabilities at 363.3% of equity.

The model estimate offers some context but is highly assumption-dependent, with bear and bull cases far apart. Investor flow, foreign ownership, short balance and news data are not available, so we cannot say who is driving recent price moves.

Business overview

SK eternix is listed on KOSPI and classified in the Construction sector. It was founded on 2024-03-04 and listed on 2024-03-29, with 33,691,895 listed shares. The CEO is 김해중. The data gives no further description of its products or projects.

Revenue was ₩332.2B in 2024 and ₩385.6B in 2025, growth of 16.1%. The 52-week range is ₩17,210 to ₩87,700, so the current price is about half the high and well above the low.

Financial analysis

Figures come from filed financial statements (DART). Revenue rose from ₩332.2B in 2024 to ₩385.6B in 2025. Operating income rose from ₩37.6B to ₩53.0B, with operating margin moving from 11.3% to 13.7%. Net income rose from ₩22.4B to ₩30.7B, and ROE from 9.2% to 11.9%.

On a trailing basis to H1 2026, revenue is ₩562.8B, operating income ₩51.9B (9.2% margin), net income ₩7.4B (1.3% margin) and ROE 2.9%. Operating margin and ROE have both fallen from 2025, and net income has dropped sharply.

The balance sheet shows cash of ₩67.1B against borrowings of ₩425.4B, and liabilities to equity of 363.3%. Trailing free cash flow is negative ₩81.4B. Filings in recent weeks include loan extension decisions, a money lending decision and tangible asset transfer decisions, though the data gives no amounts.

Valuation

The current trailing P/E is 199.3, P/B 5.5 and P/S 2.6. Year-end 2025 multiples were P/E 22.7 and P/B 2.6, so both have risen substantially as trailing earnings fell. EV/EBITDA and dividend yield are not available. Enterprise value is about ₩1.84T.

Peers show P/E of 4.0 to 24.9 (where available) and P/B of 0.5 to 1.8: Hyundai E&C P/E 24.9, P/B 1.2; Daewoo E&C P/B 1.8; GS E&C P/E 19.7, P/B 0.5; DL E&C P/E 4.0, P/B 0.5; KEPCO Plant Service & Engineering P/E 14.8, P/B 1.4. SK eternix trades above all of them on both measures.

The valuation model (5-year DCF, rate 4.9%, based on TTM to H1 2026) gives a base estimate of ₩84,391 per share, with a bear case of ₩43,183 and a bull case of ₩177,486. This is a model estimate based on the assumptions shown, not a target or a reason to buy or sell. The current ₩44,000 price is close to the bear case and about 47.9% below the base estimate, but the spread between cases shows how sensitive the result is to assumptions.

Catalysts

  • A major sales or supply contract was filed on 2026-10-12, though the data gives no contract value or counterparty.
  • Decisions on transfer of tangible assets were filed on 2026-09-01, 2026-09-02, 2026-10-08 and 2026-10-12 (including an amendment), which could affect the asset base and funding.
  • Two loan extension decisions were filed on 2026-10-08, relevant to the large borrowing balance.
  • A 5%+ holding report was filed on 2026-10-02, and another on 2026-08-14, showing shareholder changes.
  • Full-year 2026 results will show whether trailing net income recovers from the H1 2026 level.

Risks

  • Trailing net margin of 1.3% and a P/E of 199.3 leave little earnings support for the current valuation.
  • Borrowings of ₩425.4B compared with cash of ₩67.1B and liabilities at 363.3% of equity make the company sensitive to financing conditions.
  • Free cash flow of negative ₩81.4B means operations did not fund spending over the trailing period.
  • The price has moved from ₩17,210 to ₩87,700 within 52 weeks and fell 15.2% in the last month, showing high volatility.
  • The model's bear-to-bull range of ₩43,183 to ₩177,486 shows low confidence in any single estimate, and flow, short-interest and news data are not available.

Closing view

The data shows a young company with growing revenue and healthy operating margins, but falling trailing profit, negative free cash flow and heavy borrowing. Its multiples are well above peers and its own year-end 2025 levels. The model's base estimate is above the current price while the bear case is nearly equal to it, so the outcome depends heavily on assumptions. Missing flow and news data limit what can be said about market sentiment. Readers should weigh the operating growth against the weak earnings conversion and leverage.

Model estimate of fair value

Bear
₩43,183
+12%
Base
₩84,391
+120%
Bull
₩177,486
+362%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 4.9%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 13, 2026InitiationStart of coverage (300 largest)SK eternix: Share Price Well Above Its Own Earnings Base as Trailing Profit Falls and Cash Flow Turns Negative

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information