POSCO HOLDINGS INC -SPON ADR (PKX) Stock Fundamental Analysis
NYSE:PKX - US6934831099 - ADR
51.16 USD
-0.03 (-0.06%)
51.16 USD
0 (0%)
Overall PKX gets a fundamental rating of 4 out of 10. We evaluated PKX against 155 industry peers in the Metals & Mining industry. PKX has an average financial health and profitability rating. PKX is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
PKX had positive earnings in the past year.
PKX had a positive operating cash flow in the past year.
PKX had positive earnings in each of the past 5 years.
PKX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PKX has a Return On Assets (0.47%) which is in line with its industry peers.
PKX has a Return On Equity of 0.88%. This is comparable to the rest of the industry: PKX outperforms 58.71% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.70%, PKX is in line with its industry, outperforming 53.55% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for PKX is significantly below the industry average of 13.00%.
| 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 (0.68%) which is comparable to the rest of the industry.
PKX's Profit Margin has declined in the last couple of years.
The Operating Margin of PKX (2.83%) is comparable to the rest of the industry.
PKX's Operating Margin has declined in the last couple of years.
PKX has a Gross Margin (7.47%) 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 | 2.83% | ||
| 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
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.
The number of shares outstanding for PKX has been reduced compared to 5 years ago.
Compared to 1 year ago, PKX has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.99 indicates that PKX is not a great score, but indicates 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 61.29% 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.
The Debt to Equity ratio of PKX (0.39) is worse than 69.03% 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.
The Current ratio of PKX (1.93) is comparable to the rest of the industry.
A Quick Ratio of 1.31 indicates that PKX should not have too much problems paying its short term obligations.
PKX's Quick ratio of 1.31 is in line compared to the rest of the industry. PKX outperforms 47.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.93 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
The earnings per share for PKX have decreased strongly by -63.46% in the last year.
PKX shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.87% yearly.
PKX shows a decrease in Revenue. In the last year, the revenue decreased by -4.14%.
The Revenue has been growing slightly by 2.46% on average over the past years.
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 38.43% on average over the next years. This is a very strong growth
Based on estimates for the next years, PKX will show a small growth in Revenue. The Revenue will grow by 1.33% on average per year.
EPS Next Y44.07%
EPS Next 2Y50.03%
EPS Next 3Y38.43%
EPS Next 5YN/A
Revenue Next Year-2.57%
Revenue Next 2Y0.37%
Revenue Next 3Y1.33%
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 49.67 indicates a quite expensive valuation of PKX.
Based on the Price/Earnings ratio, PKX is valued a bit cheaper than 63.23% 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 27.44.
PKX is valuated reasonably with a Price/Forward Earnings ratio of 11.02.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PKX indicates a somewhat cheap valuation: PKX is cheaper than 80.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of PKX to the average of the S&P500 Index (22.87), we can say PKX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.67 | ||
| Fwd PE | 11.02 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than PKX, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.25 |
4.3 Compensation for Growth
PKX's 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 38.43% in the coming years.
PEG (NY)1.13
PEG (5Y)N/A
EPS Next 2Y50.03%
EPS Next 3Y38.43%
5. Dividend
5.1 Amount
PKX has a Yearly Dividend Yield of 2.30%.
PKX's Dividend Yield is rather good when compared to the industry average which is at 2.74. PKX pays more dividend than 86.45% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, PKX has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
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 177.28% 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.
DP177.28%
EPS Next 2Y50.03%
EPS Next 3Y38.43%
51.16
-0.03 (-0.06%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners21.03%
Inst Owner Change-29.93%
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap15.48B
Analysts84
Price Target131.03 (156.12%)
Short Float %0.49%
Short Ratio9.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
Yearly Dividend2
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)-1.82%
PT rev (3m)-6.73%
EPS NQ rev (1m)0.58%
EPS NQ rev (3m)-21.14%
EPS NY rev (1m)-14.39%
EPS NY rev (3m)-14.39%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-3.9%
Revenue NY rev (1m)-1.14%
Revenue NY rev (3m)-1.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.67 | ||
| Fwd PE | 11.02 | ||
| P/S | 0.3 | ||
| P/FCF | N/A | ||
| P/OCF | 3.58 | ||
| P/B | 0.39 | ||
| P/tB | 0.42 | ||
| EV/EBITDA | 3.25 |
EPS(TTM)1.03
EY2.01%
EPS(NY)4.64
Fwd EY9.08%
FCF(TTM)-3.24
FCFYN/A
OCF(TTM)14.3
OCFY27.95%
SpS169.29
BVpS131.86
TBVpS120.49
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 Y44.07%
EPS Next 2Y50.03%
EPS Next 3Y38.43%
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-2.57%
Revenue Next 2Y0.37%
Revenue Next 3Y1.33%
Revenue Next 5YN/A
EBIT growth 1Y-28.97%
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-198.63%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-24.07%
OCF growth 3Y2.62%
OCF growth 5Y2.57%