POSCO Holdings Inc.
POSCO Holdings Inc. Fundamental Analysis
POSCO Holdings Inc. (PKX) shows weak financial fundamentals with a PE ratio of 49.45, profit margin of 0.95%, and ROE of 1.19%. The company generates $64597.2B in annual revenue with weak year-over-year growth of -4.67%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -6768.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PKX's fundamental strength across five key dimensions:
Efficiency Score
WeakPKX struggles to generate sufficient returns from assets.
Valuation Score
ModeratePKX shows balanced valuation metrics.
Growth Score
WeakPKX faces weak or negative growth trends.
Financial Health Score
ExcellentPKX maintains a strong and stable balance sheet.
Profitability Score
WeakPKX struggles to sustain strong margins.
Key Financial Metrics
Is PKX Expensive or Cheap?
P/E Ratio
PKX trades at 49.45 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PKX's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values POSCO Holdings Inc. at 0.58 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.99 times EBITDA. This is generally considered low.
How Well Does PKX Make Money?
Net Profit Margin
For every $100 in sales, POSCO Holdings Inc. keeps $0.95 as profit after all expenses.
Operating Margin
Core operations generate 2.92 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.19 in profit for every $100 of shareholder equity.
ROA
POSCO Holdings Inc. generates $0.63 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
POSCO Holdings Inc. generates limited operating cash flow of $4.27T, signaling weaker underlying cash strength.
Free Cash Flow
POSCO Holdings Inc. generates weak or negative free cash flow of $-1.37T, restricting financial flexibility.
FCF Per Share
Each share generates $-4526.70 in free cash annually.
FCF Yield
PKX converts -4.82% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
49.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.002
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.58
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.44
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.51
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.90
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.006
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How PKX Stacks Against Its Sector Peers
| Metric | PKX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 49.45 | 27.18 | Worse (Expensive) |
| ROE | 1.19% | 860.00% | Weak |
| Net Margin | 0.95% | -121084.00% (disorted) | Weak |
| Debt/Equity | 0.51 | 0.41 | Weak (High Leverage) |
| Current Ratio | 1.90 | 4.81 | Neutral |
| ROA | 0.63% | -7173.00% (disorted) | Weak |
PKX outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews POSCO Holdings Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
20.67%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-35.16%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
18.16%
Industry Style: Cyclical, Commodity, Value
High Growth