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POSCO HOLDINGS INC -SPON ADR (PKX) Stock Fundamental Analysis

NYSE:PKX - New York Stock Exchange, Inc. - US6934831099 - ADR - Currency: USD

43.49  -1.35 (-3.01%)

Fundamental Rating

4

Taking everything into account, PKX scores 4 out of 10 in our fundamental rating. PKX was compared to 152 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.


Dividend Valuation Growth Profitability Health

4

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.
Each year in the past 5 years PKX had a positive operating cash flow.
PKX Yearly Net Income VS EBIT VS OCF VS FCFPKX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2T 4T 6T 8T

1.2 Ratios

PKX has a Return On Assets (1.06%) which is in line with its industry peers.
PKX's Return On Equity of 1.98% is fine compared to the rest of the industry. PKX outperforms 60.53% of its industry peers.
PKX has a Return On Invested Capital (1.83%) which is in line with its industry peers.
PKX had an Average Return On Invested Capital over the past 3 years of 3.07%. This is significantly below the industry average of 8.55%.
Industry RankSector 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%
PKX Yearly ROA, ROE, ROICPKX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

The Profit Margin of PKX (1.51%) is better than 62.50% of its industry peers.
PKX's Profit Margin has declined in the last couple of years.
PKX has a Operating Margin of 2.99%. This is comparable to the rest of the industry: PKX outperforms 51.32% of its industry peers.
PKX's Operating Margin has declined in the last couple of years.
PKX has a worse Gross Margin (7.45%) than 61.84% of its industry peers.
PKX's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
PKX Yearly Profit, Operating, Gross MarginsPKX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

4

2. Health

2.1 Basic Checks

PKX has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for PKX has been reduced compared to 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.
PKX Yearly Shares OutstandingPKX Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
PKX Yearly Total Debt VS Total AssetsPKX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20T 40T 60T 80T 100T

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 has a Altman-Z score (1.99) which is in line with its industry peers.
A Debt/Equity ratio of 0.39 indicates that PKX is not too dependend on debt financing.
PKX has a worse Debt to Equity ratio (0.39) than 68.42% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.39
Debt/FCF N/A
Altman-Z 1.99
ROIC/WACC0.24
WACC7.62%
PKX Yearly LT Debt VS Equity VS FCFPKX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10T 20T 30T 40T 50T

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 comparable to the rest of the industry.
PKX has a Quick Ratio of 1.31. This is a normal value and indicates that PKX is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of PKX (1.31) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.93
Quick Ratio 1.31
PKX Yearly Current Assets VS Current LiabilitesPKX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10T 20T 30T 40T

4

3. Growth

3.1 Past

The earnings per share for PKX have decreased strongly by -48.79% in the last year.
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.
PKX shows a decrease in Revenue. In the last year, the revenue decreased by -5.76%.
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

Based on estimates for the next years, PKX will show a very strong growth in Earnings Per Share. The EPS will grow by 36.45% on average per year.
Based on estimates for the next years, PKX will show a small growth in Revenue. The Revenue will grow by 3.82% on average per year.
EPS Next Y68.28%
EPS Next 2Y51.03%
EPS Next 3Y36.45%
EPS Next 5YN/A
Revenue Next Year0.95%
Revenue Next 2Y2.3%
Revenue Next 3Y3.82%
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 accelerating: in the next years the growth will be better than in the last years.
PKX Yearly Revenue VS EstimatesPKX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 20T 40T 60T 80T
PKX Yearly EPS VS EstimatesPKX Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5K 10K 15K 20K

5

4. Valuation

4.1 Price/Earnings Ratio

PKX is valuated rather expensively with a Price/Earnings ratio of 21.53.
Based on the Price/Earnings ratio, PKX is valued a bit cheaper than 69.08% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. PKX is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 12.78 indicates a correct valuation of PKX.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PKX indicates a somewhat cheap valuation: PKX is cheaper than 76.32% 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 (21.32), we can say PKX is valued slightly cheaper.
Industry RankSector Rank
PE 21.53
Fwd PE 12.78
PKX Price Earnings VS Forward Price EarningsPKX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

PKX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PKX is cheaper than 98.03% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 2.85
PKX Per share dataPKX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 50 100 150

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)0.32
PEG (5Y)N/A
EPS Next 2Y51.03%
EPS Next 3Y36.45%

6

5. Dividend

5.1 Amount

PKX has a Yearly Dividend Yield of 3.94%.
PKX's Dividend Yield is rather good when compared to the industry average which is at 2.99. PKX pays more dividend than 89.47% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, PKX pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.94%

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
PKX Yearly Dividends per sharePKX Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2K 4K 6K 8K 10K

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%
PKX Yearly Income VS Free CF VS DividendPKX Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2T 4T 6T
PKX Dividend Payout.PKX Dividend Payout, showing the Payout Ratio.PKX Dividend Payout.PayoutRetained Earnings

POSCO HOLDINGS INC -SPON ADR

NYSE:PKX (4/21/2025, 2:04:00 PM)

43.49

-1.35 (-3.01%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)02-03 2025-02-03/bmo
Earnings (Next)04-23 2025-04-23
Inst Owners22.13%
Inst Owner Change0.92%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap13.15B
Analysts77.78
Price Target120.1 (176.16%)
Short Float %0.28%
Short Ratio2.79
Dividend
Industry RankSector Rank
Dividend Yield 3.94%
Yearly Dividend1.97
Dividend Growth(5Y)0.13%
DP77.1%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)-9.88%
PT rev (3m)-39.4%
EPS NQ rev (1m)-9.5%
EPS NQ rev (3m)-39.07%
EPS NY rev (1m)-13.39%
EPS NY rev (3m)-37.79%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-3.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.64%
Valuation
Industry RankSector Rank
PE 21.53
Fwd PE 12.78
P/S 0.26
P/FCF N/A
P/OCF 2.71
P/B 0.34
P/tB 0.37
EV/EBITDA 2.85
EPS(TTM)2.02
EY4.64%
EPS(NY)3.4
Fwd EY7.83%
FCF(TTM)-2.98
FCFYN/A
OCF(TTM)16.07
OCFY36.95%
SpS169.65
BVpS129.29
TBVpS118.14
PEG (NY)0.32
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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
WACC7.62%
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 Year0.95%
Revenue Next 2Y2.3%
Revenue Next 3Y3.82%
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%