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POSCO (PKX)
NYSE:PKX
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POSCO
(NYSE:PKX)
70Neutral
POSCO (PKX) vs. S&P 500 (SPY)
Market Cap
$12.73B
Dividend Yield3.64%
Average Volume (3M)310.04K
Price to Earnings (P/E)21.6
Beta (1Y)0.85
Revenue Growth-9.79%
EPS Growth-45.76%
CountryUS
Employees429
SectorBasic Materials
Sector Strength60
IndustrySteel
Share Statistics
EPS (TTM)0.65
Shares Outstanding323,731,800
10 Day Avg. Volume197,942
30 Day Avg. Volume310,036
Financial Highlights & Ratios
PEG Ratio-1.43
Price to Book (P/B)0.38
Price to Sales (P/S)0.00
P/FCF Ratio-18.03
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$36.00Price Target Upside-19.55% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
POSCO Business Overview & Revenue Model
Company DescriptionPOSCO (PKX) is a South Korean multinational company primarily engaged in the manufacturing and distribution of steel products. It operates through various sectors, including steel production, engineering, construction, and energy. POSCO is recognized as one of the largest steel producers in the world, offering a range of steel products such as hot-rolled and cold-rolled sheets, plates, wire rods, and stainless steel, which serve industries like automotive, shipbuilding, and construction.
How the Company Makes MoneyPOSCO generates revenue primarily through the production and sale of steel products. Its major revenue streams include the sale of hot-rolled and cold-rolled sheets, plates, wire rods, and stainless steel. These products cater to various industries such as automotive, shipbuilding, and construction. The company benefits from its extensive production capacity and technological advancements, which enable it to offer high-quality products at competitive prices. POSCO also engages in strategic partnerships and joint ventures to enhance its market reach and operational efficiency, contributing to its earnings. Additionally, the company's involvement in engineering, construction, and energy sectors provides diversified income streams.
POSCO Financial Statement Overview
Summary
POSCO's financial health is supported by strong equity and manageable debt levels, but declining revenue and profit margins indicate operational challenges. Cash flow constraints highlight the need for improvements. Overall, the company remains financially stable, but needs to address operational inefficiencies.Income Statement
POSCO's income statement shows mixed results with a declining revenue trend from 2022 to 2024, decreasing from 84.75 trillion KRW to 72.69 trillion KRW, indicating a negative revenue growth rate. The gross profit margin decreased from 9.02% in 2022 to 7.41% in 2024, and the net profit margin declined from 3.72% in 2022 to 1.51% in 2024, reflecting pressure on profitability. EBIT and EBITDA margins have also decreased, highlighting operational challenges. Despite these declines, the company maintains positive net income and gross profit.75
Positive
Balance Sheet
The balance sheet of POSCO is strong with a stable equity ratio and a manageable debt-to-equity ratio of 0.49 in 2024. The company has a robust stockholders' equity of 55.39 trillion KRW, providing a solid buffer against liabilities. While total debt has increased slightly over the years, it remains within reasonable limits. The return on equity has decreased from 6.01% in 2022 to 1.98% in 2024, indicating reduced profitability from equity.80
Positive
Cash Flow
POSCO's cash flow statement reflects challenges with free cash flow consistently negative in 2023 and 2024. The operating cash flow to net income ratio improved slightly to 6.09 in 2024, indicating efficient cash generation relative to net income. However, the free cash flow to net income ratio remains negative, suggesting capital expenditure outpaces cash generation. The free cash flow growth rate is negative, highlighting the need for improving cash flow management.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 72.69T | 77.06T | 84.75T | 76.33T | 57.79T | Gross Profit |
| 5.39T | 6.32T | 7.65T | 11.88T | 4.72T | EBIT |
| 2.50T | 3.60T | 4.85T | 9.24T | 4.97T | EBITDA |
| 6.11T | 7.26T | 8.53T | 12.79T | 6.18T | Net Income Common Stockholders |
| 1.09T | 1.70T | 3.16T | 6.61T | 1.58T |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 14.80T | 17.91T | 18.74T | 18.16T | 16.46T | Total Assets |
| 10.00T> | 10.00T> | 98.41T | 91.47T | 79.09T | Total Debt |
| 26.90T | 25.90T | 25.13T | 22.52T | 20.50T | Net Debt |
| 20.14T | 19.23T | 17.08T | 17.74T | 15.74T | Total Liabilities |
| 41.95T | 41.89T | 40.15T | 36.67T | 31.41T | Stockholders Equity |
| 55.39T | 54.15T | 52.51T | 50.43T | 44.33T |
| Cash Flow | Free Cash Flow | |||
| -1.01T | -1.06T | 766.31B | 2.75T | 5.19T | Operating Cash Flow |
| 6.66T | 6.17T | 6.19T | 6.26T | 8.69T | Investing Cash Flow |
| -4.49T | -7.39T | -4.22T | -5.58T | -6.26T | Financing Cash Flow |
| -2.30T | -178.59B | 1.32T | -768.67B | -1.09T |
POSCO Technical Analysis
Negative
44.75
Price Trends
47.46
Negative
46.14
Negative
53.10
Negative
Market Momentum
-0.40
Positive
43.24
Neutral
17.16
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PKX, the sentiment is Negative. The current price of 44.75 is below the 20-day moving average (MA) of 45.79, below the 50-day MA of 47.46, and below the 200-day MA of 53.10, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 43.24 is Neutral, neither overbought nor oversold. The STOCH value of 17.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PKX.
POSCO Risk Analysis
POSCO disclosed 29 risk factors in its most recent earnings report. POSCO reported the most risks in the “Macro & Political” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
POSCO Peers Comparison
Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $16.01B | 21.80 | 10.27% | 1.48% | -5.60% | -35.05% | |
74 Outperform | $26.73B | 20.68 | 6.54% | 1.88% | -10.88% | -66.97% | |
73 Outperform | $20.20B | 17.82 | 13.08% | 1.38% | -7.42% | -48.08% | |
70 Neutral | $12.73B | 21.64 | 1.58% | 3.64% | -9.79% | -45.76% | |
67 Neutral | $25.44B | 18.07 | 2.60% | 1.38% | -8.56% | 68.36% | |
61 Neutral | $9.42B | 136.97 | 0.86% | 0.49% | -14.79% | -88.78% | |
50 Neutral | $1.98B | -1.08 | -21.29% | 3.61% | 1.96% | -30.59% |
* Basic Materials Sector Average
Performance Comparison
PKX
POSCO
44.75
-27.48
-38.05%
MT
ArcelorMittal
31.14
5.36
20.79%
NUE
Nucor
115.82
-53.50
-31.60%
RS
Reliance Steel
303.94
7.94
2.68%
STLD
Steel Dynamics
135.38
3.09
2.34%
X
United States Steel
41.62
5.64
15.68%
POSCO Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: -3.39%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
POSCO Holdings demonstrated resilience with a strong recovery in revenue and operating profit, strategic alliances, and improvements in profit margins. However, challenges remain in the energy materials segment, underperforming subsidiaries in Southeast Asia, and continued losses in China.Q1-2025 Updates
Positive Updates
Revenue and Operating Profit Recovery
POSCO Holdings reported a consolidated revenue of KRW17.4 trillion and operating profit of KRW570 billion for Q1 2025. Operating profit rebounded from KRW95 billion in the previous quarter to KRW568 billion, reaching the same level as the previous year.
Strategic Alliances and Expansion Plans
POSCO signed a comprehensive MOU with JSW Group in India for collaboration in steel, energy materials, and renewable energy. Additionally, POSCO plans to strengthen collaboration with Hyundai Motor Group to invest in a steelmaking plant in the US and develop next-generation battery materials.
Improvement in Operating Profit Margins
POSCO's operating profit margin improved to 3.9% in Q1 2025. Overseas steel business also showed improvement, with reduced losses at China's Zhangjiagang plant.
POSCO Future M's Turnaround
POSCO Future M achieved a turnaround to profit in the energy materials segment, contributing to reduced overall operating losses by half quarter-on-quarter.
Asset Divestitures and Cash Generation
POSCO divested six assets in Q1 2025, raising KRW286.6 billion. Since last year, cumulative cash generated reached KRW949.1 billion with 51 projects completed.
Negative Updates
Challenges in Energy Materials
Despite a reduction in losses, the energy materials segment still experienced an operating deficit of about KRW100 billion due to ramp-up of newly built plants and investment losses.
Underperformance in Southeast Asia
Subsidiaries in Southeast Asia continue to underperform, affecting the overall performance of POSCO's overseas steel operations.
Delay in Argentina Plant
The completion of Argentina Plant 4 has been postponed to the first quarter of 2026 due to delayed recovery in lithium prices and continued market sluggishness.
Continued Losses in China
The PZSS office in China has experienced continued deficits, with 12 consecutive terms of red ink, raising questions about performance improvement or potential liquidation.
Company Guidance
During POSCO Holdings' first quarter earnings call for 2025, the company reported consolidated revenue of KRW17.4 trillion and an operating profit of KRW570 billion, marking an improvement from the previous quarter despite global economic uncertainties. The EBITDA reached KRW1.6 trillion, with a consolidated CapEx of KRW1.5 trillion for the quarter. The industrial segment saw an operating profit margin increase from 2.3% to 3% quarter-on-quarter, while POSCO's operating profit margin recovered to 3.9%. The company also highlighted strategic initiatives, including a comprehensive MOU with Hyundai Motor Group to build a steelmaking plant in the US and develop next-generation battery materials. POSCO's investment plans include an annual CapEx of KRW8.8 trillion, earmarked for core business areas such as steel, energy materials, and infrastructure. The call also addressed restructuring efforts, which generated KRW286.6 billion in Q1, contributing to a cumulative KRW949.1 billion cash generation since last year. Additionally, the company discussed plans for upstream expansion in key markets like India and North America, aligning with the USMCA's "melted and poured" origin rule.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.