POSCO HOLDINGS INC -SPON ADR (PKX) Stock Fundamental Analysis
NYSE:PKX - New York Stock Exchange, Inc. - US6934831099 - ADR - Currency: USD
Taking everything into account, PKX scores 4 out of 10 in our fundamental rating. PKX was compared to 153 industry peers in the Metals & Mining industry. PKX has an average financial health and profitability rating. PKX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year PKX was profitable.
PKX had a positive operating cash flow in the past year.
PKX had positive earnings in each of the past 5 years.
Each year in the past 5 years PKX had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PKX (1.06%) is comparable to the rest of the industry.
PKX has a Return On Equity (1.98%) which is comparable to the rest of the industry.
PKX has a Return On Invested Capital of 1.83%. This is comparable to the rest of the industry: PKX outperforms 51.63% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PKX is significantly below the industry average of 8.56%.
| 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 has a better Profit Margin (1.51%) than 64.05% 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 of 7.45%. This is in the lower half of the industry: PKX underperforms 60.78% of its industry peers.
In the last couple of years the Gross Margin of PKX has declined.
| 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 below the Cost of Capital (WACC), so PKX is destroying value.
Compared to 1 year ago, PKX has less shares outstanding
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.
The Altman-Z score of PKX (1.99) is comparable to the rest of the industry.
PKX has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
PKX has a Debt to Equity ratio of 0.39. This is in the lower half of the industry: PKX underperforms 67.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.99 |
ROIC/WACC0.24
WACC7.68%
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 of 1.93. This is comparable to the rest of the industry: PKX outperforms 43.14% of its industry peers.
A Quick Ratio of 1.31 indicates that PKX should not have too much problems paying its short term obligations.
PKX has a Quick ratio of 1.31. This is comparable to the rest of the industry: PKX outperforms 45.75% of its industry peers.
| 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 -48.79%.
The earnings per share for PKX have been decreasing by -12.87% on average. This is quite bad
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)-48.79%
EPS 3Y-48.78%
EPS 5Y-12.87%
EPS Q2Q%-124.68%
Revenue 1Y (TTM)-5.76%
Revenue growth 3Y-1.62%
Revenue growth 5Y2.46%
Sales Q2Q%-4.59%
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.
Based on estimates for the next years, PKX will show a small growth in Revenue. The Revenue will grow by 2.33% on average per year.
EPS Next Y68.28%
EPS Next 2Y51.03%
EPS Next 3Y36.45%
EPS Next 5YN/A
Revenue Next Year0.24%
Revenue Next 2Y1.91%
Revenue Next 3Y2.33%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.62, the valuation of PKX can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of PKX indicates a somewhat cheap valuation: PKX is cheaper than 69.93% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 24.21. PKX is around the same levels.
With a Price/Forward Earnings ratio of 13.45, PKX is valued correctly.
69.93% of the companies in the same industry are more expensive than PKX, based on the Price/Forward Earnings ratio.
PKX's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.62 | ||
| Fwd PE | 13.45 |
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 97.39% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.92 |
4.3 Compensation for Growth
PKX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PKX's earnings are expected to grow with 36.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y51.03%
EPS Next 3Y36.45%
5. Dividend
5.1 Amount
PKX has a Yearly Dividend Yield of 3.84%. Purely for dividend investing, there may be better candidates out there.
PKX's Dividend Yield is rather good when compared to the industry average which is at 2.93. PKX pays more dividend than 90.20% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, PKX pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
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.
PKX has decreased its dividend 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.
PKX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP77.1%
EPS Next 2Y51.03%
EPS Next 3Y36.45%
46.37
-0.06 (-0.13%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners22.13%
Inst Owner Change-0.67%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap14.03B
Analysts80
Price Target132.79 (186.37%)
Short Float %0.55%
Short Ratio3.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
Yearly Dividend1.99
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)-0.35%
PT rev (3m)-22.27%
EPS NQ rev (1m)-6.64%
EPS NQ rev (3m)-25.49%
EPS NY rev (1m)-7.15%
EPS NY rev (3m)-29.59%
Revenue NQ rev (1m)-1.64%
Revenue NQ rev (3m)-1.2%
Revenue NY rev (1m)-0.7%
Revenue NY rev (3m)-3.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.62 | ||
| Fwd PE | 13.45 | ||
| P/S | 0.27 | ||
| P/FCF | N/A | ||
| P/OCF | 2.85 | ||
| P/B | 0.35 | ||
| P/tB | 0.39 | ||
| EV/EBITDA | 2.92 |
EPS(TTM)2.05
EY4.42%
EPS(NY)3.45
Fwd EY7.43%
FCF(TTM)-3.02
FCFYN/A
OCF(TTM)16.27
OCFY35.1%
SpS171.8
BVpS130.93
TBVpS119.64
PEG (NY)0.33
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 | 1.99 |
F-Score5
WACC7.68%
ROIC/WACC0.24
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)-48.79%
EPS 3Y-48.78%
EPS 5Y-12.87%
EPS Q2Q%-124.68%
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%-4.59%
Revenue Next Year0.24%
Revenue Next 2Y1.91%
Revenue Next 3Y2.33%
Revenue Next 5YN/A
EBIT growth 1Y-38.45%
EBIT growth 3Y-38.27%
EBIT growth 5Y-10.89%
EBIT Next Year153.75%
EBIT Next 3Y43.73%
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%