POSCO HOLDINGS INC -SPON ADR (PKX)

US6934831099 - ADR

78.42  -1.74 (-2.17%)

After market: 78.42 0 (0%)

Fundamental Rating

4

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 has an average financial health and profitability rating. PKX has a decent growth rate and is not valued too expensively.



4

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.
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

The Return On Assets of PKX (1.68%) is better than 60.90% of its industry peers.
The Return On Equity of PKX (3.13%) is better than 62.18% of its industry peers.
PKX has a Return On Invested Capital (3.34%) which is comparable to the rest of the industry.
PKX had an Average Return On Invested Capital over the past 3 years of 5.91%. This is below the industry average of 9.21%.
Industry RankSector Rank
ROA 1.68%
ROE 3.13%
ROIC 3.34%
ROA(3y)4.03%
ROA(5y)3.29%
ROE(3y)7.41%
ROE(5y)5.99%
ROIC(3y)5.91%
ROIC(5y)5.01%

1.3 Margins

PKX has a Profit Margin of 2.20%. This is in the better half of the industry: PKX outperforms 61.54% of its industry peers.
PKX's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 4.58%, PKX is in line with its industry, outperforming 55.13% of the companies in the same industry.
In the last couple of years the Operating Margin of PKX has declined.
With a Gross Margin value of 8.32%, PKX is not doing good in the industry: 60.90% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of PKX has declined.
Industry RankSector Rank
OM 4.58%
PM (TTM) 2.2%
GM 8.32%
OM growth 3Y3.26%
OM growth 5Y-11.7%
PM growth 3Y-7.26%
PM growth 5Y-3.08%
GM growth 3Y0.62%
GM growth 5Y-7.48%

4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PKX is destroying value.
Compared to 1 year ago, PKX has about the same amount of shares outstanding.
PKX has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PKX has a worse debt to assets ratio.

2.2 Solvency

PKX has an Altman-Z score of 2.33. 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.
The Altman-Z score of PKX (2.33) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.38 indicates that PKX is not too dependend on debt financing.
PKX has a Debt to Equity ratio of 0.38. This is in the lower half of the industry: PKX underperforms 70.51% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.38
Debt/FCF N/A
Altman-Z 2.33
ROIC/WACC0.49
WACC6.8%

2.3 Liquidity

A Current Ratio of 2.11 indicates that PKX has no problem at all paying its short term obligations.
With a Current ratio value of 2.11, PKX perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
PKX has a Quick Ratio of 1.48. 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 Quick ratio (1.48) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.11
Quick Ratio 1.48

4

3. Growth

3.1 Past

The earnings per share for PKX have decreased strongly by -42.80% in the last year.
Measured over the past 5 years, PKX shows a small growth in Earnings Per Share. The EPS has been growing by 1.37% on average per year.
Looking at the last year, PKX shows a decrease in Revenue. The Revenue has decreased by -8.99% in the last year.
The Revenue has been growing slightly by 3.49% on average over the past years.
EPS 1Y (TTM)-42.8%
EPS 3Y3.51%
EPS 5Y1.37%
EPS growth Q2Q68.35%
Revenue 1Y (TTM)-8.99%
Revenue growth 3Y10.1%
Revenue growth 5Y3.49%
Revenue growth Q2Q-3.03%

3.2 Future

PKX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.84% yearly.
Based on estimates for the next years, PKX will show a small growth in Revenue. The Revenue will grow by 4.37% on average per year.
EPS Next Y38.99%
EPS Next 2Y30.35%
EPS Next 3Y29.84%
EPS Next 5YN/A
Revenue Next Year2.8%
Revenue Next 2Y3.73%
Revenue Next 3Y4.37%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 18.90 indicates a rather expensive valuation of PKX.
PKX's Price/Earnings ratio is a bit cheaper when compared to the industry. PKX is cheaper than 75.00% of the companies in the same industry.
PKX's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.48.
PKX is valuated correctly with a Price/Forward Earnings ratio of 13.60.
Based on the Price/Forward Earnings ratio, PKX is valued a bit cheaper than 73.08% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.79, PKX is valued a bit cheaper.
Industry RankSector Rank
PE 18.9
Fwd PE 13.6

4.2 Price Multiples

95.51% of the companies in the same industry are more expensive than PKX, based on the Enterprise Value to EBITDA ratio.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 3.38

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 29.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.48
PEG (5Y)13.81
EPS Next 2Y30.35%
EPS Next 3Y29.84%

5

5. Dividend

5.1 Amount

PKX has a Yearly Dividend Yield of 2.34%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.00, PKX pays a better dividend. On top of this PKX pays more dividend than 82.05% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, PKX has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.34%

5.2 History

The dividend of PKX has a limited annual growth rate of 5.13%.
PKX has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)5.13%
Div Incr Years0
Div Non Decr Years0

5.3 Sustainability

PKX pays out 48.02% of its income as dividend. This is a bit on the high side, but may be sustainable.
PKX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP48.02%
EPS Next 2Y30.35%
EPS Next 3Y29.84%

POSCO HOLDINGS INC -SPON ADR

NYSE:PKX (3/28/2024, 8:04:00 PM)

After market: 78.42 0 (0%)

78.42

-1.74 (-2.17%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap23.80B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.34%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 18.9
Fwd PE 13.6
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.48
PEG (5Y)13.81
Profitability
Industry RankSector Rank
ROA 1.68%
ROE 3.13%
ROCE
ROIC
ROICexc
ROICexgc
OM 4.58%
PM (TTM) 2.2%
GM 8.32%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.76
Health
Industry RankSector Rank
Debt/Equity 0.38
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.11
Quick Ratio 1.48
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-42.8%
EPS 3Y3.51%
EPS 5Y
EPS growth Q2Q
EPS Next Y38.99%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.99%
Revenue growth 3Y10.1%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y