POSCO HOLDINGS INC -SPON ADR (PKX) Stock Fundamental Analysis
NYSE:PKX - New York Stock Exchange, Inc. - US6934831099 - ADR - Currency: USD
PKX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 154 industry peers in the Metals & Mining industry. Both the profitability and the financial health of PKX get a neutral evaluation. Nothing too spectacular is happening here. PKX has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
PKX had positive earnings in the past year.
In the past year PKX had a positive cash flow from operations.
Each year in the past 5 years PKX has been profitable.
In the past 5 years PKX always reported a positive cash flow from operatings.
1.2 Ratios
PKX has a better Return On Assets (1.06%) than 60.39% of its industry peers.
The Return On Equity of PKX (1.98%) is better than 60.39% of its industry peers.
The Return On Invested Capital of PKX (1.83%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for PKX is significantly below the industry average of 11.16%.
| 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
With a decent Profit Margin value of 1.51%, PKX is doing good in the industry, outperforming 65.58% of the companies in the same industry.
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 52.60% of its industry peers.
In the last couple of years the Operating Margin of PKX has declined.
PKX has a worse Gross Margin (7.45%) than 60.39% 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
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
Compared to 5 years ago, PKX has less shares outstanding
The debt/assets ratio for PKX has been reduced compared to a year ago.
2.2 Solvency
PKX has an Altman-Z score of 1.98. 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.
Looking at the Altman-Z score, with a value of 1.98, PKX is in line with its industry, outperforming 46.75% of the companies in the same industry.
PKX has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.39, PKX is doing worse than 68.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.98 |
ROIC/WACC0.25
WACC7.29%
2.3 Liquidity
A Current Ratio of 1.93 indicates that PKX should not have too much problems paying its short term obligations.
PKX has a Current ratio of 1.93. This is comparable to the rest of the industry: PKX outperforms 41.56% of its industry peers.
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.
PKX has a Quick ratio (1.31) which 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 -47.42% in the last year.
The earnings per share for PKX have been decreasing by -12.87% on average. This is quite bad
PKX shows a decrease in Revenue. In the last year, the revenue decreased by -4.91%.
Measured over the past years, PKX shows a small growth in Revenue. The Revenue has been growing by 2.46% on average per year.
EPS 1Y (TTM)-47.42%
EPS 3Y-48.78%
EPS 5Y-12.87%
EPS Q2Q%-30.09%
Revenue 1Y (TTM)-4.91%
Revenue growth 3Y-1.62%
Revenue growth 5Y2.46%
Sales Q2Q%-3.41%
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 1.88% on average per year.
EPS Next Y68.28%
EPS Next 2Y51.03%
EPS Next 3Y36.45%
EPS Next 5YN/A
Revenue Next Year-0.96%
Revenue Next 2Y1.5%
Revenue Next 3Y1.88%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.98, the valuation of PKX can be described as rather expensive.
PKX's Price/Earnings ratio is a bit cheaper when compared to the industry. PKX is cheaper than 66.23% of the companies in the same industry.
PKX is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.33, which indicates a very decent valuation of PKX.
Based on the Price/Forward Earnings ratio, PKX is valued a bit cheaper than 74.68% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.15. PKX is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.98 | ||
| Fwd PE | 9.33 |
4.2 Price Multiples
PKX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PKX is cheaper than 97.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.82 |
4.3 Compensation for Growth
The 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)0.37
PEG (5Y)N/A
EPS Next 2Y51.03%
EPS Next 3Y36.45%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.93%, PKX has a reasonable but not impressive dividend return.
PKX's Dividend Yield is rather good when compared to the industry average which is at 2.97. PKX pays more dividend than 90.91% of the companies in the same industry.
PKX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
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
77.10% of the earnings are spent on dividend by PKX. This is not a sustainable payout ratio.
The dividend of PKX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP77.1%
EPS Next 2Y51.03%
EPS Next 3Y36.45%
NYSE:PKX (6/2/2025, 2:47:38 PM)
44.21
-1.49 (-3.26%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners22.13%
Inst Owner Change11.44%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap13.37B
Analysts80
Price Target142.67 (222.71%)
Short Float %0.59%
Short Ratio3.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.93% |
Yearly Dividend2.02
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)7.44%
PT rev (3m)-16.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.39%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)-1.15%
Revenue NY rev (1m)-1.2%
Revenue NY rev (3m)-2.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.98 | ||
| Fwd PE | 9.33 | ||
| P/S | 0.25 | ||
| P/FCF | N/A | ||
| P/OCF | 2.68 | ||
| P/B | 0.33 | ||
| P/tB | 0.36 | ||
| EV/EBITDA | 2.82 |
EPS(TTM)1.77
EY4%
EPS(NY)4.74
Fwd EY10.72%
FCF(TTM)-3.06
FCFYN/A
OCF(TTM)16.51
OCFY37.35%
SpS174.32
BVpS132.85
TBVpS121.4
PEG (NY)0.37
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 | 1.98 |
F-Score5
WACC7.29%
ROIC/WACC0.25
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)-47.42%
EPS 3Y-48.78%
EPS 5Y-12.87%
EPS Q2Q%-30.09%
EPS Next Y68.28%
EPS Next 2Y51.03%
EPS Next 3Y36.45%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.91%
Revenue growth 3Y-1.62%
Revenue growth 5Y2.46%
Sales Q2Q%-3.41%
Revenue Next Year-0.96%
Revenue Next 2Y1.5%
Revenue Next 3Y1.88%
Revenue Next 5YN/A
EBIT growth 1Y-38.45%
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-22.47%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y11.34%
OCF growth 3Y2.62%
OCF growth 5Y2.57%