POSCO HOLDINGS INC -SPON ADR (PKX)
US6934831099 - ADR
Taking everything into account, PKX scores 4 out of 10 in our fundamental rating. PKX was compared to 154 industry peers in the Metals & Mining industry. PKX has only an average score on both its financial health and profitability. PKX has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year PKX was profitable.
PKX had a positive operating cash flow in the past year.
Each year in the past 5 years PKX has been profitable.
PKX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PKX (1.28%) is comparable to the rest of the industry.
PKX has a Return On Equity of 2.44%. This is comparable to the rest of the industry: PKX outperforms 58.50% of its industry peers.
PKX has a Return On Invested Capital (2.56%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for PKX is below the industry average of 8.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.28% | ||
| ROE | 2.44% | ||
| ROIC | 2.56% |
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
The Profit Margin of PKX (1.82%) is better than 63.27% of its industry peers.
In the last couple of years the Profit Margin of PKX has declined.
PKX has a Operating Margin (3.82%) which is in line with its industry peers.
PKX's Operating Margin has declined in the last couple of years.
PKX has a Gross Margin of 7.86%. This is in the lower half of the industry: PKX underperforms 61.90% of its industry peers.
In the last couple of years the Gross Margin of PKX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.82% | ||
| PM (TTM) | 1.82% | ||
| GM | 7.86% |
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PKX is destroying value.
PKX has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for PKX has been reduced compared to 5 years ago.
PKX has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.03 indicates that PKX is not a great score, but indicates only limited risk for bankruptcy at the moment.
PKX's Altman-Z score of 2.03 is in line compared to the rest of the industry. PKX outperforms 41.50% of its industry peers.
PKX has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
PKX has a worse Debt to Equity ratio (0.42) than 72.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.03 |
ROIC/WACC0.32
WACC8.1%
2.3 Liquidity
PKX has a Current Ratio of 2.03. This indicates that PKX is financially healthy and has no problem in meeting its short term obligations.
PKX has a Current ratio (2.03) which is in line with its industry peers.
A Quick Ratio of 1.45 indicates that PKX should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.45, PKX is in line with its industry, outperforming 49.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
The earnings per share for PKX have decreased strongly by -10.05% 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 -5.36% in the last year.
Measured over the past years, PKX shows a small growth in Revenue. The Revenue has been growing by 3.49% on average per year.
EPS 1Y (TTM)-10.05%
EPS 3Y3.5%
EPS 5Y1.37%
EPS Q2Q%-11.5%
Revenue 1Y (TTM)-5.36%
Revenue growth 3Y10.1%
Revenue growth 5Y3.49%
Sales Q2Q%-3.37%
3.2 Future
PKX is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.59% yearly.
Based on estimates for the next years, PKX will show a small growth in Revenue. The Revenue will grow by 0.12% on average per year.
EPS Next Y8.1%
EPS Next 2Y15.94%
EPS Next 3Y13.59%
EPS Next 5YN/A
Revenue Next Year-6.55%
Revenue Next 2Y-1.69%
Revenue Next 3Y0.12%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 17.02, which indicates a rather expensive current valuation of PKX.
Based on the Price/Earnings ratio, PKX is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of PKX to the average of the S&P500 Index (27.28), we can say PKX is valued slightly cheaper.
The Price/Forward Earnings ratio is 8.40, which indicates a very decent valuation of PKX.
Based on the Price/Forward Earnings ratio, PKX is valued cheaply inside the industry as 81.63% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.53, PKX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.02 | ||
| Fwd PE | 8.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PKX is valued cheaper than 98.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PKX does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as PKX's earnings are expected to grow with 13.59% in the coming years.
PEG (NY)2.1
PEG (5Y)12.44
EPS Next 2Y15.94%
EPS Next 3Y13.59%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.83%, PKX has a reasonable but not impressive dividend return.
In the last 3 months the price of PKX has falen by -29.28%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.26, PKX pays a better dividend. On top of this PKX pays more dividend than 87.76% of the companies listed in the same industry.
PKX's Dividend Yield is rather good when compared to the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
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.
The dividend of PKX decreased recently.
Dividend Growth(5Y)5.13%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
PKX pays out 62.93% of its income as dividend. This is not a sustainable payout ratio.
The dividend of PKX is growing, but earnings are growing more, so the dividend growth is sustainable.
DP62.93%
EPS Next 2Y15.94%
EPS Next 3Y13.59%
POSCO HOLDINGS INC -SPON ADR
NYSE:PKX (1/14/2025, 8:04:00 PM)
After market: 44.6 0 (0%)44.6
+0.18 (+0.41%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners20.89%
Inst Owner Change0%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap13.51B
Analysts79.29
Price Target198.18 (344.35%)
Short Float %0.43%
Short Ratio3.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.83% |
Dividend Growth(5Y)5.13%
DP62.93%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.77%
Min EPS beat(2)2.06%
Max EPS beat(2)7.47%
EPS beat(4)2
Avg EPS beat(4)-40.25%
Min EPS beat(4)-134.85%
Max EPS beat(4)7.47%
EPS beat(8)2
Avg EPS beat(8)-56.33%
EPS beat(12)6
Avg EPS beat(12)-23.31%
EPS beat(16)10
Avg EPS beat(16)-3.78%
Revenue beat(2)0
Avg Revenue beat(2)-5.14%
Min Revenue beat(2)-6.87%
Max Revenue beat(2)-3.42%
Revenue beat(4)0
Avg Revenue beat(4)-5.68%
Min Revenue beat(4)-6.87%
Max Revenue beat(4)-3.42%
Revenue beat(8)0
Avg Revenue beat(8)-4.73%
Revenue beat(12)4
Avg Revenue beat(12)-0.84%
Revenue beat(16)6
Avg Revenue beat(16)-0.31%
PT rev (1m)-0.58%
PT rev (3m)28.84%
EPS NQ rev (1m)-1.11%
EPS NQ rev (3m)-3.6%
EPS NY rev (1m)0.34%
EPS NY rev (3m)-3.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)-1.42%
Revenue NY rev (3m)-2.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.02 | ||
| Fwd PE | 8.4 | ||
| P/S | 0.27 | ||
| P/FCF | N/A | ||
| P/OCF | 2.74 | ||
| P/B | 0.36 | ||
| P/tB | 0.39 | ||
| EV/EBITDA | 2.01 |
EPS(TTM)2.62
EY5.87%
EPS(NY)5.31
Fwd EY11.9%
FCF(TTM)-1.91
FCFYN/A
OCF(TTM)16.26
OCFY36.45%
SpS167.73
BVpS125.36
TBVpS114.75
PEG (NY)2.1
PEG (5Y)12.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.28% | ||
| ROE | 2.44% | ||
| ROCE | 3.46% | ||
| ROIC | 2.56% | ||
| ROICexc | 3.26% | ||
| ROICexgc | 3.49% | ||
| OM | 3.82% | ||
| PM (TTM) | 1.82% | ||
| GM | 7.86% | ||
| FCFM | N/A |
ROA(3y)4.03%
ROA(5y)3.29%
ROE(3y)7.41%
ROE(5y)5.99%
ROIC(3y)5.91%
ROIC(5y)5.01%
ROICexc(3y)7.7%
ROICexc(5y)6.47%
ROICexgc(3y)8.31%
ROICexgc(5y)7.01%
ROCE(3y)8.01%
ROCE(5y)6.81%
ROICexcg growth 3Y3.7%
ROICexcg growth 5Y-11.97%
ROICexc growth 3Y4.3%
ROICexc growth 5Y-11.57%
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%
F-Score6
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.46 | ||
| Cap/Depr | 206.99% | ||
| Cap/Sales | 10.83% | ||
| Interest Coverage | 2.39 | ||
| Cash Conversion | 107.06% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.03 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 2.03 |
F-Score6
WACC8.1%
ROIC/WACC0.32
Cap/Depr(3y)144.27%
Cap/Depr(5y)122.17%
Cap/Sales(3y)6.79%
Cap/Sales(5y)6.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-10.05%
EPS 3Y3.5%
EPS 5Y1.37%
EPS Q2Q%-11.5%
EPS Next Y8.1%
EPS Next 2Y15.94%
EPS Next 3Y13.59%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.36%
Revenue growth 3Y10.1%
Revenue growth 5Y3.49%
Sales Q2Q%-3.37%
Revenue Next Year-6.55%
Revenue Next 2Y-1.69%
Revenue Next 3Y0.12%
Revenue Next 5YN/A
EBIT growth 1Y12.29%
EBIT growth 3Y13.69%
EBIT growth 5Y-8.62%
EBIT Next Year62.65%
EBIT Next 3Y26.72%
EBIT Next 5YN/A
FCF growth 1Y-353.55%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y58.61%
OCF growth 3Y-10.38%
OCF growth 5Y1.03%