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POSCO
(NYSE:PKX)
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Rating:59Neutral
Price Target:
$58.00
â–Ľ(-2.39% Downside)
Action:Reiterated
Date:09/06/26
PKX scores as average overall, led down by weak free cash flow and compressed profitability/returns despite a solid balance sheet. Technicals are a meaningful positive with strong momentum indicators, while valuation is only moderate for a cyclical business. Earnings call commentary adds cautious support via operational progress and guidance, but near-term lithium and macro/trade risks temper the outlook.
Positive Factors
Balance Sheet Resilience
A large equity base and moderate leverage provide POSCO with resilience through steel-cycle volatility. This financial cushion can support continued investment, absorb weaker operating periods, and preserve strategic flexibility even though returns on capital are currently subdued.
Negative Factors
Persistent Negative Free Cash Flow
Repeated negative free cash flow indicates that capital spending or working-capital demands are absorbing operating cash. This limits flexibility for shareholder returns and faster deleveraging, while making the company more dependent on stronger steel-cycle conditions to fund its investment program.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Resilience
A large equity base and moderate leverage provide POSCO with resilience through steel-cycle volatility. This financial cushion can support continued investment, absorb weaker operating periods, and preserve strategic flexibility even though returns on capital are currently subdued.
Read all positive factors
POSCO (PKX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.36B
Dividend Yield2.73%
Average Volume (3M)189.44K
Price to Earnings (P/E)17.3
Beta (1Y)1.10
Revenue Growth-3.30%
EPS Growth164.60%
CountryUS
Employees429
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)5107.77
Shares Outstanding316,966,100
10 Day Avg. Volume181,679
30 Day Avg. Volume189,435
Financial Highlights & Ratios
PEG Ratio-501.22
Price to Book (P/B)0.42
Price to Sales (P/S)0.34
P/FCF Ratio-13.89
Enterprise Value/Market Cap2.20
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.52
Revenue Forecast (FY)$53.12B
POSCO Business Overview & Revenue Model
Company Description
POSCO Holdings Inc., a South Korean-based enterprise, operates globally in the production and sale of steel rolled products and plates through its extensive network of subsidiaries. The company’s multifaceted business is structured across four pri...
How the Company Makes Money
POSCO primarily makes money by producing and selling steel and steel-related products, with revenue largely driven by shipment volumes and realized selling prices across product categories (e.g., flat steel and long steel) and end-market demand. T...
POSCO Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 26, 2026
Earnings Call Sentiment Positive
The call conveyed a cautiously positive tone: the company reported solid quarter‑over‑quarter revenue and operating profit growth, multiple operational milestones (EAF, rare gas plant), a notable lithium turnaround in Argentina, RBM returning to surplus, and cash generation from restructuring and divestments. However, material near‑term risks remain — input cost inflation, FX and energy volatility, trade measures, safety concerns, EAF ramp and lithium market spreads — and management flagged a likely temporary Q3 slowdown in lithium production. Overall, achievements and directional progress across several growth pillars (steel decarbonization, lithium, rare gases, restructuring) outweigh the headwinds, while management acknowledges and has mitigation plans for the key challenges.Positive Updates
Consolidated revenue and profit growth
Consolidated Q2 revenue of KRW 19.3 trillion (QoQ +KRW 1.4 trillion) and operating profit of KRW 819 billion (QoQ +16%). Quarterly EBITDA reached KRW 1.9 trillion. CapEx was KRW 2.0 trillion in Q2 (H1 total KRW 3.7 trillion).
Negative Updates
Rising input costs and macro risks
Key raw material costs rose approximately 6% QoQ. Additional cost pressures from higher oil prices, foreign exchange volatility (weak Korean won), logistics and maintenance costs were noted, driven in part by the Middle East conflict and energy supply risks.
Read all updates
Q2-2026 Updates
Positive
Negative
Consolidated revenue and profit growth
Consolidated Q2 revenue of KRW 19.3 trillion (QoQ +KRW 1.4 trillion) and operating profit of KRW 819 billion (QoQ +16%). Quarterly EBITDA reached KRW 1.9 trillion. CapEx was KRW 2.0 trillion in Q2 (H1 total KRW 3.7 trillion).
Read all positive updates
Company Guidance
The company guided for continued quarter‑over‑quarter improvement but flagged a near‑term Q3 slowdown in rechargeable battery materials due to Argentina’s winter and LP dryer replacement, with full Plant 1/Plant 2 ramp and certified product sales expected in Q4 (uncertified products sell at ~10% discount). Key Q2 metrics: consolidated revenue KRW 19.3 trillion, operating profit KRW 819–820 billion, EBITDA KRW 1.9 trillion, CapEx KRW 2.0 trillion in Q2 (KRW 3.7 trillion H1); POSCO separate OP ~KRW 270–274 billion (2.9% margin), carbon steel ASP up to KRW 962,000/ton from KRW 920,000/ton, and raw material costs ~+6% q/q. Other notable figures factored into guidance: Q3 crude steel production target ~9 million tonnes (max), RBM swung to OP KRW 41 billion, POSCO Argentina sales +160% q/q and revenue +290% q/q with OP KRW 11 billion, P‑PLS revenue KRW 102 billion (OP loss ~KRW 1 billion), EAF 2.5 Mt completion included in H2 plans, H1 restructuring cash KRW 475.4 billion (plan to realize KRW 3.5 trillion by ’28), and a proposed KRW 3.5 trillion equity monetization with ~10% (~KRW 350 billion) earmarked for shareholder returns.POSCO Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
64
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 71.13T | 68.99T | 72.69T | 77.13T | 84.75T | 76.33T |
| Gross Profit | 5.59T | 5.14T | 5.39T | 6.39T | 7.62T | 11.86T |
| EBITDA | 7.19T | 6.39T | 6.11T | 7.09T | 8.53T | 12.83T |
| Net Income | 1.38T | 690.69B | 1.09T | 1.70T | 3.14T | 6.62T |
Balance Sheet | ||||||
| Total Assets | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 98.41T | 92.30T |
| Cash, Cash Equivalents and Short-Term Investments | 14.30T | 15.59T | 14.80T | 17.91T | 18.74T | 18.16T |
| Total Debt | 31.83T | 28.53T | 25.58T | 25.90T | 22.83T | 21.53T |
| Total Liabilities | 45.55T | 42.89T | 42.00T | 41.89T | 40.15T | 37.58T |
| Stockholders Equity | 57.43T | 55.76T | 55.39T | 54.15T | 52.51T | 50.38T |
Cash Flow | ||||||
| Free Cash Flow | -2.33T | -1.67T | -1.50T | -1.06T | 766.31B | 2.75T |
| Operating Cash Flow | 2.87T | 4.57T | 6.66T | 6.17T | 6.19T | 6.26T |
| Investing Cash Flow | -4.11T | -6.69T | -4.49T | -7.39T | -4.22T | -5.58T |
| Financing Cash Flow | 297.60B | 2.40T | -2.30T | -178.59B | 1.32T | -768.67B |
POSCO Technical Analysis
Negative
59.42
Price Trends
58.48
Negative
58.17
Negative
61.39
Negative
Market Momentum
-0.66
Positive
43.81
Neutral
23.53
Neutral
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 59.42 is above the 20-day moving average (MA) of 57.37, above the 50-day MA of 58.48, and below the 200-day MA of 61.39, indicating a bearish trend. The MACD of -0.66 indicates Positive momentum. The RSI at 43.81 is Neutral, neither overbought nor oversold. The STOCH value of 23.53 is Neutral, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $57.58B | 20.49 | 13.53% | 0.87% | 17.19% | 126.38% | |
66 Neutral | $11.58B | 16.17 | 5.77% | 3.76% | -0.65% | 18.90% | |
64 Neutral | $47.05B | 26.37 | 3.31% | 1.16% | 3.25% | -27.63% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
61 Neutral | $9.48B | 19.53 | 4.17% | 2.91% | 8.98% | -21.39% | |
59 Neutral | $16.36B | 17.34 | 2.39% | 2.73% | -3.30% | 164.60% | |
56 Neutral | $7.34B | -7.53 | -15.23% | 6.42% | 4.14% | 52.63% |
* Basic Materials Sector Average
PKX
POSCO
56.72
7.30
14.77%
MT
ArcelorMittal
62.49
24.61
64.97%
CLF
Cleveland-Cliffs
12.58
-1.37
-9.82%
GGB
Gerdau SA
5.17
2.02
63.87%
NUE
Nucor
257.11
121.93
90.20%
TX
Ternium SA
58.55
24.11
70.02%
POSCO Corporate Events
POSCO Reaffirms Undetermined Status of HMM Deal, Highlights Cleveland-Cliffs MOU
Sep 30, 2026
POSCO Holdings has re-disclosed on September 29, 2027, an earlier December 5, 2025 announcement responding to Korean media reports about a high-profile acquisition battle for shipping company HMM. The company clarified that a Maeil Business Newspa...
POSCO HOLDINGS Files English Interim Report for First Half of 2026
Aug 31, 2026
POSCO HOLDINGS INC., the South Korean parent of the POSCO industrial group, operates as a diversified holding company overseeing steel, energy, resource development, technology, and hydrogen-related businesses via nearly 200 consolidated subsidiar...
POSCO Board Approves KRW 66.3 Billion Interim Dividend to POSCO Holdings
Aug 18, 2026
On August 18, 2026, POSCO’s board approved an interim cash dividend of KRW 687 per share, with a record date of June 30, 2026 and a provisional payment date of September 10, 2026. The total dividend amounts to KRW 66.28 billion and, because ...
POSCO HOLDINGS Files 2025 Governance Report Translation With U.S. SEC
Aug 14, 2026
POSCO HOLDINGS INC. submitted its Corporate Governance Report for the 2025 fiscal year to the Korea Exchange in late May 2026, and on August 14, 2026 furnished an English translation of that report to the U.S. Securities and Exchange Commission vi...
POSCO Sets August 24, 2026 Record Date for Q2 Dividend Eligibility
Aug 7, 2026
On August 7, 2026, POSCO Holdings Inc. announced that it has set August 24, 2026, as the record date for determining shareholders eligible to receive its second-quarter 2026 dividend. The move formally launches the process of confirming the shareh...
POSCO Holdings Sets KRW 2,000 Second-Quarter Dividend for 2026
Aug 7, 2026
On August 7, 2026, POSCO HOLDINGS INC.’s board of directors approved a second-quarter 2026 cash dividend of KRW 2,000 per share, implying a dividend yield of 0.6% based on the prior week’s average closing share price. The record date f...
POSCO Adjusts Exchange Price on 2021 Euro-Denominated Bonds After Q2 2026 Dividend
Aug 7, 2026
On August 7, 2026, POSCO HOLDINGS INC. reported an adjustment to the exchange price of its foreign currency-denominated exchangeable bonds issued on September 1, 2021, following a cash dividend for the second quarter of 2026. The exchange price wi...
POSCO Holdings to Sell KRW 2 Trillion Stake in POSCO INTERNATIONAL While Retaining 50% Ownership
Aug 7, 2026
On August 7, 2026, POSCO Holdings’ board approved the transfer of 36,434,963 shares of its affiliate POSCO INTERNATIONAL Corporation, valued at about KRW 2.02 trillion, equivalent to 3.24% of POSCO Holdings’ consolidated equity. Follow...
POSCO Holdings to Trim POSCO DX Stake, Raise KRW 482 Billion for Strategic Investments
Aug 7, 2026
On August 7, 2026, POSCO Holdings’ board approved the disposal of 23,385,917 shares in its IT services and engineering affiliate POSCO DX Company Ltd., for a planned proceeds amount of KRW 481.7 billion. The transaction, scheduled for Septem...
POSCO HOLDINGS Launches 2026 Value‑Up Plan With High Dividends and KRW 29 Trillion Investment Push
Jul 30, 2026
On July 30, 2026, POSCO HOLDINGS unveiled its 2026 Corporate Value‑up Plan, setting out a strategic pivot to a Triple‑Core portfolio in steel, lithium‑centered battery materials and energy to respond to geopolitical risks, supply...
POSCO Holdings Posts Strong Q2 2026 Earnings and Advances Safety Strategy
Jul 30, 2026
POSCO Holdings reported provisional consolidated results for the second quarter of 2026 on July 30, showing broad-based earnings recovery across its steel, rechargeable battery materials and infrastructure segments. Group revenue rose to KRW 19.26...
POSCO Posts Q2 2026 Revenue Growth but Sharp Profit Declines
Jul 30, 2026
POSCO’s subsidiary POSCO reported provisional separate-basis earnings for the second quarter of 2026, showing revenue of KRW 9.42 trillion, up 5.4% from Q1 2026 and 5.2% year-on-year, with year-to-date revenue rising 2.4% to KRW 18.35 trilli...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.