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 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.
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.
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 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
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 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
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.99 |
ROIC/WACC0.24
WACC7.62%
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 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 -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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.53 | ||
| Fwd PE | 12.78 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.85 |
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%
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 Rank | Sector 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
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%
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)
Earnings (Next)
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 Rank | Sector 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 Rank | Sector 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 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
WACC7.62%
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%