POSCO HOLDINGS INC -SPON ADR (PKX) Stock Fundamental Analysis
USA - NYSE:PKX - US6934831099 - ADR
48.55 USD
-1.25 (-2.51%)
48.55 USD
0 (0%)
Taking everything into account, PKX scores 4 out of 10 in our fundamental rating. PKX was compared to 156 industry peers in the Metals & Mining industry. PKX scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. PKX has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PKX was profitable.
In the past year PKX had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 0.47%, PKX is in line with its industry, outperforming 59.62% of the companies in the same industry.
PKX has a Return On Equity (0.88%) which is in line with its industry peers.
PKX's Return On Invested Capital of 1.70% is in line compared to the rest of the industry. PKX outperforms 53.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PKX is significantly below the industry average of 12.87%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.47% | ||
| ROE | 0.88% | ||
| ROIC | 1.7% |
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 has a Profit Margin of 0.68%. This is comparable to the rest of the industry: PKX outperforms 59.62% of its industry peers.
In the last couple of years the Profit Margin of PKX has declined.
PKX has a Operating Margin (2.83%) 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 of 7.47%. This is in the lower half of the industry: PKX underperforms 60.26% of its industry peers.
PKX's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.83% | ||
| PM (TTM) | 0.68% | ||
| GM | 7.47% |
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
PKX has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
PKX has less shares outstanding than it did 1 year ago.
PKX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PKX has an improved debt to assets ratio.
2.2 Solvency
PKX has an Altman-Z score of 1.99. 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.
PKX's Altman-Z score of 1.99 is on the low side compared to the rest of the industry. PKX is outperformed by 67.31% of its industry peers.
PKX has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
PKX's Debt to Equity ratio of 0.39 is on the low side compared to the rest of the industry. PKX is outperformed by 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.99 |
ROIC/WACC0.61
WACC2.79%
2.3 Liquidity
PKX has a Current Ratio of 1.93. This is a normal value and indicates that PKX is financially healthy and should not expect problems in meeting its short term obligations.
PKX has a Current ratio (1.93) which is in line with 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 46.15% 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 -63.46%.
Measured over the past years, PKX shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.87% on average per year.
The Revenue has decreased by -4.14% in the past year.
PKX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.46% yearly.
EPS 1Y (TTM)-63.46%
EPS 3Y-48.78%
EPS 5Y-12.87%
EPS Q2Q%-65.67%
Revenue 1Y (TTM)-4.14%
Revenue growth 3Y-1.62%
Revenue growth 5Y2.46%
Sales Q2Q%-5.13%
3.2 Future
The Earnings Per Share is expected to grow by 38.45% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 1.25% on average over the next years.
EPS Next Y42.53%
EPS Next 2Y49.48%
EPS Next 3Y38.45%
EPS Next 5YN/A
Revenue Next Year-2.96%
Revenue Next 2Y0.26%
Revenue Next 3Y1.25%
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
With a Price/Earnings ratio of 48.07, PKX can be considered very expensive at the moment.
PKX's Price/Earnings ratio is a bit cheaper when compared to the industry. PKX is cheaper than 64.74% of the companies in the same industry.
PKX's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.79.
The Price/Forward Earnings ratio is 10.66, which indicates a very decent valuation of PKX.
Based on the Price/Forward Earnings ratio, PKX is valued cheaply inside the industry as 80.77% of the companies are valued more expensively.
PKX is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.21, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.07 | ||
| Fwd PE | 10.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PKX is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.19 |
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 38.45% in the coming years.
PEG (NY)1.13
PEG (5Y)N/A
EPS Next 2Y49.48%
EPS Next 3Y38.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.62%, PKX has a reasonable but not impressive dividend return.
PKX's Dividend Yield is rather good when compared to the industry average which is at 2.48. PKX pays more dividend than 93.59% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, PKX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
5.2 History
The dividend of PKX has a limited annual growth rate of 0.13%.
PKX has paid a dividend for at least 10 years, which is 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
177.28% of the earnings are spent on dividend by PKX. This is not a sustainable payout ratio.
PKX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP177.28%
EPS Next 2Y49.48%
EPS Next 3Y38.45%
48.55
-1.25 (-2.51%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners23.8%
Inst Owner Change-29.93%
Ins Owners0.01%
Ins Owner ChangeN/A
Market Cap14.69B
Analysts84
Price Target144.71 (198.06%)
Short Float %0.46%
Short Ratio9.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
Yearly Dividend1.98
Dividend Growth(5Y)0.13%
DP177.28%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-35.83%
Min EPS beat(2)-53.41%
Max EPS beat(2)-18.26%
EPS beat(4)0
Avg EPS beat(4)-82.02%
Min EPS beat(4)-241.94%
Max EPS beat(4)-14.46%
EPS beat(8)2
Avg EPS beat(8)-61.14%
EPS beat(12)2
Avg EPS beat(12)-64.89%
EPS beat(16)6
Avg EPS beat(16)-37.99%
Revenue beat(2)0
Avg Revenue beat(2)-2.81%
Min Revenue beat(2)-4.26%
Max Revenue beat(2)-1.36%
Revenue beat(4)0
Avg Revenue beat(4)-2.96%
Min Revenue beat(4)-4.26%
Max Revenue beat(4)-1.36%
Revenue beat(8)0
Avg Revenue beat(8)-4.32%
Revenue beat(12)0
Avg Revenue beat(12)-4.14%
Revenue beat(16)4
Avg Revenue beat(16)-1.37%
PT rev (1m)10.44%
PT rev (3m)5.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-21.14%
EPS NY rev (1m)-1.07%
EPS NY rev (3m)-15.3%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-3.78%
Revenue NY rev (1m)-0.41%
Revenue NY rev (3m)-2.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.07 | ||
| Fwd PE | 10.66 | ||
| P/S | 0.29 | ||
| P/FCF | N/A | ||
| P/OCF | 3.44 | ||
| P/B | 0.37 | ||
| P/tB | 0.41 | ||
| EV/EBITDA | 3.19 |
EPS(TTM)1.01
EY2.08%
EPS(NY)4.56
Fwd EY9.38%
FCF(TTM)-3.2
FCFYN/A
OCF(TTM)14.13
OCFY29.11%
SpS167.31
BVpS130.32
TBVpS119.09
PEG (NY)1.13
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.47% | ||
| ROE | 0.88% | ||
| ROCE | 2.5% | ||
| ROIC | 1.7% | ||
| ROICexc | 2.05% | ||
| ROICexgc | 2.2% | ||
| OM | 2.83% | ||
| PM (TTM) | 0.68% | ||
| GM | 7.47% | ||
| 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-Score4
Asset Turnover0.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.49 | ||
| Cap/Depr | 179.72% | ||
| Cap/Sales | 10.36% | ||
| Interest Coverage | 2.15 | ||
| Cash Conversion | 98.26% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 1.99 |
F-Score4
WACC2.79%
ROIC/WACC0.61
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)-63.46%
EPS 3Y-48.78%
EPS 5Y-12.87%
EPS Q2Q%-65.67%
EPS Next Y42.53%
EPS Next 2Y49.48%
EPS Next 3Y38.45%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.14%
Revenue growth 3Y-1.62%
Revenue growth 5Y2.46%
Sales Q2Q%-5.13%
Revenue Next Year-2.96%
Revenue Next 2Y0.26%
Revenue Next 3Y1.25%
Revenue Next 5YN/A
EBIT growth 1Y-28.97%
EBIT growth 3Y-38.27%
EBIT growth 5Y-10.89%
EBIT Next Year144.89%
EBIT Next 3Y45.25%
EBIT Next 5YN/A
FCF growth 1Y-198.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-24.07%
OCF growth 3Y2.62%
OCF growth 5Y2.57%