FMP
Jul 24, 2025
Hyundai Motor Company, trading under the symbol HYMTF on the OTC exchange, is a major player in the global automotive industry. Known for its wide range of vehicles, Hyundai competes with other automotive giants like Toyota and Ford. On July 24, 2025, Hyundai reported earnings per share of $3.91, which fell short of the estimated $5. However, the company exceeded revenue expectations, generating approximately $34.99 billion compared to the estimated $33.76 billion.
Despite the revenue success, Hyundai faced a 16% decrease in its second-quarter operating profit compared to the previous year. This decline is largely due to the impact of U.S. tariffs on vehicles and parts, as highlighted by Reuters. These tariffs have started to weigh on the company's financial performance, affecting its profitability.
Hyundai's financial metrics reveal a mixed picture. The company has a price-to-earnings (P/E) ratio of approximately 1.33, indicating a relatively low valuation compared to its earnings. This suggests that the market may be undervaluing Hyundai's earnings potential. However, the enterprise value to operating cash flow ratio is notably negative at -69.53, which may indicate challenges in generating cash flow relative to its enterprise value.
The company's price-to-sales ratio stands at about 0.27, suggesting that the market values its sales modestly. Additionally, the enterprise value to sales ratio is around 1.06, reflecting the company's total valuation in relation to its sales. Hyundai's earnings yield is approximately 0.75, offering insight into the company's earnings performance relative to its share price.
Hyundai's debt-to-equity ratio is about 1.44, indicating a higher level of debt compared to equity. This could pose risks if the company faces financial difficulties. Furthermore, the current ratio is approximately 0.79, suggesting potential liquidity challenges in covering short-term liabilities with current assets. These financial metrics highlight the complexities Hyundai faces in navigating its financial landscape.
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