Risk factor
Low price volatility
Profitability factor
Very strong margins and returns
About
Founded in Seoul, South Korea, in 1989, Coway Co., Ltd. stands as a prominent provider of home wellness innovations and environmental solutions. The company's operations extend globally, encompassing South Korea, the United States, Malaysia, China, Thailand, Indonesia, and Vietnam. Coway's primary focus involves manufacturing a comprehensive range of domestic health and comfort appliances, such as sophisticated air purifiers, water filtration systems, bidets, juicers, and water softeners. It also leverages Internet of Things (IoT) technology to deliver products and services aimed at fundamentally improving daily life. Beyond its appliance line, Coway offers various consumer services, including mattress rentals, professional air conditioner disinfection and cleaning, and automated matching services. The company has also diversified its portfolio into the health and beauty sectors, featuring anti-aging cosmetics under the Re:NK brand, fermented oriental herbal cosmetics through Allvit, and functional healthy food items via Healthygru:. Furthermore, Coway actively engages in environmental management, providing services for water and sewage treatment, wastewater reuse, and industrial water purification. Many of its popular products, like water purifiers and bidets, are conveniently offered on a rental basis.
Company Valuation
Based on key historical and expected multiples, the stock is fairly valued relative to its peers. In particular, the stock is underpriced on P/E, of fair value on EV/EBIT
Target Price
The average target price of 021240.KS is 119310 and suggests 30% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to