WEBULL

Subdued Growth No Barrier To hyungji Elite Co., Ltd. (KRX:093240) With Shares Advancing 28%

Simply Wall St · 12/30/2025 21:46

hyungji Elite Co., Ltd. (KRX:093240) shares have had a really impressive month, gaining 28% after a shaky period beforehand. Unfortunately, the gains of the last month did little to right the losses of the last year with the stock still down 17% over that time.

After such a large jump in price, hyungji Elite's price-to-earnings (or "P/E") ratio of 17.2x might make it look like a sell right now compared to the market in Korea, where around half of the companies have P/E ratios below 13x and even P/E's below 7x are quite common. Although, it's not wise to just take the P/E at face value as there may be an explanation why it's as high as it is.

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For instance, hyungji Elite's receding earnings in recent times would have to be some food for thought. It might be that many expect the company to still outplay most other companies over the coming period, which has kept the P/E from collapsing. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.

View our latest analysis for hyungji Elite

pe-multiple-vs-industry
KOSE:A093240 Price to Earnings Ratio vs Industry December 30th 2025
We don't have analyst forecasts, but you can see how recent trends are setting up the company for the future by checking out our free report on hyungji Elite's earnings, revenue and cash flow.

Is There Enough Growth For hyungji Elite?

hyungji Elite's P/E ratio would be typical for a company that's expected to deliver solid growth, and importantly, perform better than the market.

If we review the last year of earnings, dishearteningly the company's profits fell to the tune of 49%. This means it has also seen a slide in earnings over the longer-term as EPS is down 64% in total over the last three years. So unfortunately, we have to acknowledge that the company has not done a great job of growing earnings over that time.

Comparing that to the market, which is predicted to deliver 37% growth in the next 12 months, the company's downward momentum based on recent medium-term earnings results is a sobering picture.

In light of this, it's alarming that hyungji Elite's P/E sits above the majority of other companies. It seems most investors are ignoring the recent poor growth rate and are hoping for a turnaround in the company's business prospects. There's a very good chance existing shareholders are setting themselves up for future disappointment if the P/E falls to levels more in line with the recent negative growth rates.

The Key Takeaway

hyungji Elite's P/E is getting right up there since its shares have risen strongly. While the price-to-earnings ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of earnings expectations.

Our examination of hyungji Elite revealed its shrinking earnings over the medium-term aren't impacting its high P/E anywhere near as much as we would have predicted, given the market is set to grow. When we see earnings heading backwards and underperforming the market forecasts, we suspect the share price is at risk of declining, sending the high P/E lower. If recent medium-term earnings trends continue, it will place shareholders' investments at significant risk and potential investors in danger of paying an excessive premium.

Before you settle on your opinion, we've discovered 4 warning signs for hyungji Elite (1 makes us a bit uncomfortable!) that you should be aware of.

If you're unsure about the strength of hyungji Elite's business, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed.