We predict that Hyundai Motor Company will continue to perform weakly over the coming days or weeks since it has multiple warning signs of trouble and is in a very broad and downward trend. As a result, we have a pessimistic opinion of this stock.
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SUV changes to SAV
The fourth generation of Hyundai’s compact SUV, the Tucson, debuted earlier this year and featured an entirely new architecture. Hyundai’s Santa Cruz, dubbed a “sport adventure vehicle,” is based on the Tucson’s chassis and produced in Alabama on the same production line, despite being targeted at a completely different market.
By sharing mechanical architectures with Hyundai’s sister brand, Kia, the group’s financial results are further improved. Hyundai might develop a model under the Kia nameplate for a relatively low expenditure if Santa Cruz proves to be popular.
Tucson aims to draw in families. A younger, possibly single urban inhabitant who enjoys biking, hiking, or gardening on the weekends and needs a vehicle that can negotiate a beach or state park while also being simple to park on a busy street is the target market for Santa Cruz, in contrast.
Midsize pickup trucks like the Toyota Tacoma or Chevy Colorado are popular with younger customers. Unlike Tucson and other automobiles that rely on unibody construction, these vehicles are created with body-on-frame technology, making them more durable and able to pull and carry heavier loads.
Hyundai Trading Alerts & Suggestions for Improvement
With a debt to equity ratio (D/E) of 1.31, the company has amassed 109680 B in total debt, which is about average when compared to similar organizations. Due to its negative working capital and its inability to make payments on time as they become due, Hyundai Motor Reg has a current ratio of 0.81. Hyundai can benefit from debt until it becomes difficult to pay it off with free cash flow or new capital. Therefore, if Hyundai is unable to satisfy its contractual responsibilities to pay back debt, its shareholders risk losing everything. However, it happens more frequently when businesses like Hyundai Motor Reg offer extra shares for cheap, diluting current shareholders. In this situation, debt may be a good and significantly superior tool for Hyundai to use when investing in growth with high rates of return. Debt, along with cash and equity, should always be taken into account while analyzing Hyundai’s usage of debt.
Hyundai distributed a $0.3824 per share dividend to its current stockholders on August 16th, 2022.
Is Hyundai a reliable investment?
The average 12-month stock price projection for HYMTF stock is $58.31, according to 37 stock analysts.
which anticipates a rise of 87.19%. The lowest and greatest goals are $27.71 and $72.02, respectively. Analysts give the HYMTF stock an average rating.
Can I purchase Hyundai stock?
Since Hyundai stock is not traded on US stock exchanges, there is no direct route to purchase Hyundai shares in India.
By purchasing an ETF (Exchange Traded Fund) that invests in Korean stocks on the US stock exchanges, you can purchase Hyundai shares.
Hyundai India: Is it successful?
The company sold 960,639 units globally between October and December, a 15.7 percent decline from the same period last year. As the global chip shortage struck most markets worldwide, sales in markets outside of Korea decreased by 17.2 percent to 774,643 units. In Korea, sales fell by 8.9% to 185,996 units.
Hyundai’s operational profit increased 21.9 percent year over year to KRW 1.53 trillion in the fourth quarter, with an operating profit margin of 4.9 percent. The business reported a net profit of KRW 701.4 billion at this time (including non-controlling interest).
Despite a downturn in sales volume amid a challenging economic environment, strong sales of SUVs, Genesis premium cars, and electric vehicles helped increase revenue in the fourth quarter.
Operating profit for the business increased to KRW 6.68 trillion in 2021. 5.69 trillion KRW was the net profit (including non-controlling interest).
To improve open communication, Hyundai Motor today disclosed its financial guidance with the markets. The company projects consolidated revenue growth of 13–14% and a consolidated operating profit margin of 5.5–6.5% in 2022. This year, the business wants to sell more than 4.3 million vehicles overall.
Including KRW 5.0 trillion for capital expenditures, KRW 3.6 trillion for research and development, and KRW 600 billion for strategic investments, the corporation intends to increase its investment total of KRW 9.2 trillion.
Hyundai upped its year-end dividend for 2021 by KRW 1,000 to KRW 4,000 per common share, citing an improvement in profits.
Even though there will be a number of uncertainties in the global automotive markets this year, the company will continue to work to maintain its growth momentum. Since December, Hyundai has made progress with regard to the global chip scarcity. The impact, meanwhile, is anticipated to last through the first quarter and then gradually level out in the second.
With the introduction of the GV60, Electrified GV70, and IONIQ 6, Hyundai will bolster its EV lineup in response to rising consumer demand for eco-friendly cars, rising investment in eco-infrastructure, and stringent environmental legislation across the globe.
Despite the difficult business environment, the company will concentrate on strengthening its product mix with SUV and premium vehicles and securing profitability based on cost innovation to become a leader in the future mobility industry.
How do I buy shares in Hyundai in the USA?
How can I get Hyundai Motor stock? Any online brokerage account may be used to buy shares of HYMTF stock. WeBull, Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Robinhood, Fidelity, and Charles Schwab are well-known online brokerages providing access to the American stock market.
Is Hyundai the owner of Kia?
Some people consider Hyundai and Kia to be simply rebadged versions of the same cars. The two brands do have a close relationship, despite the fact that this is not the case. Hyundai acquired Kia in 1998 and now owns 51% of the business. The two corporations are now regarded as sisters because that share has decreased to around a third.
Hyundai and Kia frequently use one another’s vehicle platforms as a result of their tight cooperation. Do the cars from both brands have the same engines?
Is Hyundai superior to Honda?
Except for a few models, Honda cars dominate most auto categories. In comparison, the quality of every hybrid car from Hyundai is exceptional.
Honda is regarded as the best brand for both compact and medium-sized cars. In the compact SUV class, the used Honda CR-V performs better than the used Hyundai Tucson. However, drivers prefer the used Hyundai Kona to the used Honda HR-V, making Hyundai subcompact SUVs the victors in its category.
Overall, Hyundai vehicles are more fuel-efficient, and owing to Hyundai’s extensive warranties, you’ll spend less on repairs and maintenance.
Why is the stock of Hyundai so low?
The shares of Hyundai Motor Co., the largest automaker in South Korea, are likely to increase. When compared to its 52-week low of 162,000 won ($133.77) on March 15, the stock increased by 11.73%, rising 2.55% to 181,000 won ($149.46) on March 30.
In the ten trading days leading up to March 29, foreigners took the lead in the recovery, purchasing shares worth a net 31 billion won. On the other side, over the same time period, individuals and institutions sold a net amount of shares of 25.7 billion won and 3 billion won, respectively. Between March 2 and March 15, foreign investors sold shares of the automaker worth more than 300 billion won.
Since the second half of 2021, Hyundai Motor’s market share has decreased as a result of worries about inflation, chip shortages, interest rate increases, and the Russia-Ukraine conflict. On June 24, 2021, the stock price reached a 52-week high of 249,000 won. On March 15, it fell by 35% to 162,000 won.
The stock appears to have captured the mood of the market and is about to recover. With the decline in the price of oil and hopes for peace talks between Russia and Ukraine, the worries have subsided. Additionally, the short-term performance of the automobile is anticipated to benefit from the weakening of the Korean won.
Even if industry observers predict a little improvement in the shortfall in the second half of this year, the chip shortage problem is still not showing any signs of improvement. Some market observers predict that the low supply problem would last beyond 2022. However, observers believe that the chip shortage issue has already been reflected in the auto stocks and won’t worsen any more.
The stock price is rising as a result of favorable valuation and market expectations for Hyundai Motor’s success. In response to the supply chain issue, the carmaker has enhanced its pricing strategy by raising the prices of finished cars and raising sales of premium car models.
“The average selling price (ASP) increase at Hyundai Motor will help the company’s performance in the first half of 2022. Additionally, a further decrease from the current level of the stock price will be limited, “the analyst at Hyundai Motor Securities Co., Chang Moon-su, stated.
With 7.5 times of the 12-month forward price-to-earnings ratio, the valuation has improved. With low interest rates a year ago, the forward P/E ratio, which typically ranges between 8 and 10, reached 10 to 11 times.
The long-term growth of the Hyundai Motor stock will determine its potential. Investors haven’t been drawn to the automaker’s plan for its future mobility operations, according to market observers. Only 26% of the company is owned by foreign investors, which is a proportion comparable to the global financial crisis of 2009.
By developing more than 17 EV lineups by 2030, Hyundai Motor is hastening the transition to electric vehicles. Additionally, it intends to increase profitability by adopting “smart factories,” which are automated production facilities run by information technology and digital data. The operating profit goal for Hyundai Motor is 8% by 2025 and 10% by 2030. “The automaker needs to draw up more specific goals,” said Kim Dong-ha, an analyst at Hanwha Investment & Securities Co. The automaker’s mid- to long-term growth plan is desirable.
As a further potential growth engine, the automaker is creating robots. Hyundai Motor is the first manufacturer of finished vehicles to commercialize industrial wearable robots, including the CEX (chairless exoskeleton), which provides sedentary assembly workers with knee support, and the VEX (vest exoskeleton), a follow-up exoskeleton with support for the neck and shoulders. Last month, the parent company Hyundai Motor Group acquired temporary operating licences from the government for 193 of its self-driving taxis. Robots for EV charging and customer service are two more categories that are being developed.
What is more expensive, a Hyundai or a Kia?
Kia automobiles are typically less priced than their Hyundai counterparts. The comparable Hyundai Elantra starts at $19,850, while the Kia Forte starts at $17,890. Kia doesn’t cut corners on features or quality since the Forte is less priced. Like Hyundai, Kia provides one of the best warranties in the industry, which is ten years and 100,000 miles. Both companies offer quality that is unmatched in the industry and stand behind their products. In the J.D. Power U.S. Vehicle Dependability Study*, Kia placed third for 2021, ahead of brands like Toyota, Chevrolet, and even Mercedes-Benz. Even Hyundai’s luxury division, Genesis, ended behind Kia. Only Porsche and Lexus were ranked higher among mass market brands in terms of quality than Kia. At the top of that list, Kia is, in our opinion, in good company. It’s also important to note that J.D. Power named the Kia Optima, Sorento, and Sportage as the top models in each of their respective classes.
Hyundai and Kia are they the same?
Although Kia and the Hyundai Motor Group are separate companies, Kia Motors is a subsidiary of Hyundai. The distinction between Kia and Hyundai is that each brand has its own brand philosophies to build its vehicles in a distinctive manner. As you can see, they are similar but distinct.
Is Genesis owned by Hyundai?
The Hyundai Motor Group’s luxury vehicle manufacturing subsidiary is called Genesis, or Genesis Motors, LLC. Consequently, Genesis Motors is a subsidiary of the Hyundai Motor Group.
Why is Kia’s stock price rising?
There are several factors that contribute to the high price of Kia stock, including the fact that the company is only little older than 75 years old, having been started in 1944. As a result, it lacks the longevity of some of its more established Japanese rivals, like Toyota and Honda.
Although it has a significant presence in mature markets like Europe and North America, Kia is still largely focused on selling cars in emerging ones. These areas account for a lesser share of the company’s overall sales.
In a recent poll, just 33% of participants indicated they would think about purchasing a Kia when looking for a new automobile. This indicates that Kia doesn’t enjoy the same level of brand awareness as some of its more well-known competitors.