POSCO HOLDINGS INC -SPON ADR (PKX) Stock Fundamental Analysis
NYSE:PKX - New York Stock Exchange, Inc. - US6934831099 - ADR - Currency: USD
We assign a fundamental rating of 4 out of 10 to PKX. PKX was compared to 156 industry peers in the Metals & Mining industry. PKX has an average financial health and profitability rating. PKX has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year PKX was profitable.
PKX had a positive operating cash flow in the past year.
In the past 5 years PKX has always been profitable.
In the past 5 years PKX always reported a positive cash flow from operatings.
1.2 Ratios
PKX has a Return On Assets of 1.06%. This is comparable to the rest of the industry: PKX outperforms 58.97% of its industry peers.
PKX has a Return On Equity (1.98%) which is comparable to the rest of the industry.
PKX has a Return On Invested Capital (1.83%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for PKX is significantly below the industry average of 12.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.06% | ||
| ROE | 1.98% | ||
| ROIC | 1.83% |
ROA(3y)1.98%
ROA(5y)3.04%
ROE(3y)3.7%
ROE(5y)5.56%
ROIC(3y)3.07%
ROIC(5y)4.14%
1.3 Margins
PKX's Profit Margin of 1.51% is fine compared to the rest of the industry. PKX outperforms 63.46% of its industry peers.
PKX's Profit Margin has declined in the last couple of years.
PKX has a Operating Margin (2.99%) which is in line with its industry peers.
PKX's Operating Margin has declined in the last couple of years.
PKX has a Gross Margin (7.45%) which is in line with its industry peers.
PKX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.99% | ||
| PM (TTM) | 1.51% | ||
| GM | 7.45% |
OM growth 3Y-37.25%
OM growth 5Y-13.03%
PM growth 3Y-44.18%
PM growth 5Y-11.92%
GM growth 3Y-21.79%
GM growth 5Y-5.17%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PKX is still creating some value.
The number of shares outstanding for PKX has been reduced compared to 1 year ago.
Compared to 5 years ago, PKX has less shares outstanding
The debt/assets ratio for PKX has been reduced compared to a year ago.
2.2 Solvency
PKX has an Altman-Z score of 2.04. This is not the best score and indicates that PKX is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of PKX (2.04) is worse than 60.26% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that PKX is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.39, PKX is not doing good in the industry: 68.59% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.04 |
ROIC/WACC0.66
WACC2.79%
2.3 Liquidity
A Current Ratio of 1.93 indicates that PKX should not have too much problems paying its short term obligations.
PKX has a Current ratio of 1.93. This is in the lower half of the industry: PKX underperforms 60.90% of its industry peers.
A Quick Ratio of 1.31 indicates that PKX should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.31, PKX perfoms like the industry average, outperforming 44.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
PKX shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -73.89%.
PKX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.87% yearly.
The Revenue has decreased by -5.76% in the past year.
The Revenue has been growing slightly by 2.46% on average over the past years.
EPS 1Y (TTM)-73.89%
EPS 3Y-48.78%
EPS 5Y-12.87%
EPS Q2Q%-92.08%
Revenue 1Y (TTM)-5.76%
Revenue growth 3Y-1.62%
Revenue growth 5Y2.46%
Sales Q2Q%-5.13%
3.2 Future
PKX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.45% yearly.
PKX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.91% yearly.
EPS Next Y68.28%
EPS Next 2Y51.03%
EPS Next 3Y36.45%
EPS Next 5YN/A
Revenue Next Year-1.44%
Revenue Next 2Y1.1%
Revenue Next 3Y1.91%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 74.26 indicates a quite expensive valuation of PKX.
PKX's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of PKX to the average of the S&P500 Index (26.93), we can say PKX is valued expensively.
PKX is valuated reasonably with a Price/Forward Earnings ratio of 11.59.
Based on the Price/Forward Earnings ratio, PKX is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of PKX to the average of the S&P500 Index (35.31), we can say PKX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.26 | ||
| Fwd PE | 11.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PKX indicates a rather cheap valuation: PKX is cheaper than 97.44% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.55 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as PKX's earnings are expected to grow with 36.45% in the coming years.
PEG (NY)1.09
PEG (5Y)N/A
EPS Next 2Y51.03%
EPS Next 3Y36.45%
5. Dividend
5.1 Amount
PKX has a Yearly Dividend Yield of 2.23%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.84, PKX pays a better dividend. On top of this PKX pays more dividend than 85.90% of the companies listed in the same industry.
PKX's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
5.2 History
The dividend of PKX has a limited annual growth rate of 0.13%.
PKX has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of PKX decreased recently.
Dividend Growth(5Y)0.13%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
PKX pays out 77.10% of its income as dividend. This is not a sustainable payout ratio.
The dividend of PKX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP77.1%
EPS Next 2Y51.03%
EPS Next 3Y36.45%
54.95
-1.44 (-2.55%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners21.03%
Inst Owner Change-2.3%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap16.62B
Analysts81.43
Price Target133.45 (142.86%)
Short Float %0.51%
Short Ratio7.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
Yearly Dividend2
Dividend Growth(5Y)0.13%
DP77.1%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-128.21%
Min EPS beat(2)-241.94%
Max EPS beat(2)-14.46%
EPS beat(4)2
Avg EPS beat(4)-61.72%
Min EPS beat(4)-241.94%
Max EPS beat(4)7.47%
EPS beat(8)2
Avg EPS beat(8)-53.83%
EPS beat(12)4
Avg EPS beat(12)-52.06%
EPS beat(16)8
Avg EPS beat(16)-28.48%
Revenue beat(2)0
Avg Revenue beat(2)-3.11%
Min Revenue beat(2)-3.12%
Max Revenue beat(2)-3.1%
Revenue beat(4)0
Avg Revenue beat(4)-4.13%
Min Revenue beat(4)-6.87%
Max Revenue beat(4)-3.1%
Revenue beat(8)0
Avg Revenue beat(8)-4.66%
Revenue beat(12)2
Avg Revenue beat(12)-2.48%
Revenue beat(16)6
Avg Revenue beat(16)-0.57%
PT rev (1m)-2.65%
PT rev (3m)-6.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)-0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 74.26 | ||
| Fwd PE | 11.59 | ||
| P/S | 0.32 | ||
| P/FCF | N/A | ||
| P/OCF | 3.33 | ||
| P/B | 0.41 | ||
| P/tB | 0.45 | ||
| EV/EBITDA | 3.55 |
EPS(TTM)0.74
EY1.35%
EPS(NY)4.74
Fwd EY8.63%
FCF(TTM)-3.06
FCFYN/A
OCF(TTM)16.51
OCFY30.05%
SpS174.34
BVpS132.86
TBVpS121.41
PEG (NY)1.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.06% | ||
| ROE | 1.98% | ||
| ROCE | 2.7% | ||
| ROIC | 1.83% | ||
| ROICexc | 2.21% | ||
| ROICexgc | 2.37% | ||
| OM | 2.99% | ||
| PM (TTM) | 1.51% | ||
| GM | 7.45% | ||
| FCFM | N/A |
ROA(3y)1.98%
ROA(5y)3.04%
ROE(3y)3.7%
ROE(5y)5.56%
ROIC(3y)3.07%
ROIC(5y)4.14%
ROICexc(3y)3.9%
ROICexc(5y)5.37%
ROICexgc(3y)4.2%
ROICexgc(5y)5.81%
ROCE(3y)4.54%
ROCE(5y)6.12%
ROICexcg growth 3Y-42.78%
ROICexcg growth 5Y-15.62%
ROICexc growth 3Y-42.66%
ROICexc growth 5Y-15.23%
OM growth 3Y-37.25%
OM growth 5Y-13.03%
PM growth 3Y-44.18%
PM growth 5Y-11.92%
GM growth 3Y-21.79%
GM growth 5Y-5.17%
F-Score5
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.47 | ||
| Cap/Depr | 204.86% | ||
| Cap/Sales | 11.23% | ||
| Interest Coverage | 2.11 | ||
| Cash Conversion | 111.81% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 2.04 |
F-Score5
WACC2.79%
ROIC/WACC0.66
Cap/Depr(3y)179.86%
Cap/Depr(5y)146.85%
Cap/Sales(3y)9%
Cap/Sales(5y)7.53%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-73.89%
EPS 3Y-48.78%
EPS 5Y-12.87%
EPS Q2Q%-92.08%
EPS Next Y68.28%
EPS Next 2Y51.03%
EPS Next 3Y36.45%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.76%
Revenue growth 3Y-1.62%
Revenue growth 5Y2.46%
Sales Q2Q%-5.13%
Revenue Next Year-1.44%
Revenue Next 2Y1.1%
Revenue Next 3Y1.91%
Revenue Next 5YN/A
EBIT growth 1Y-38.45%
EBIT growth 3Y-38.27%
EBIT growth 5Y-10.89%
EBIT Next Year151.04%
EBIT Next 3Y44.91%
EBIT Next 5YN/A
FCF growth 1Y-22.47%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y11.34%
OCF growth 3Y2.62%
OCF growth 5Y2.57%