Posco (PKX)
NYSE:PKX
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POSCO
(NYSE:PKX)
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Rating:51Neutral
Price Target:
$75.00
â–˛(18.28% Upside)
Action:Reiterated
Date:05/20/26
The score is held back mainly by compressed profitability and persistently negative free cash flow despite a manageable balance sheet. Technical signals are mixed (near-term weakness but still above longer-term averages), valuation is reasonable, and the latest call suggests possible 2026 improvement but with meaningful execution and commodity/macro risks.
Positive Factors
Manageable leverage
POSCO's balance sheet shows modest leverage for a cyclical steel group, giving the company financing flexibility to fund overseas JVs, lithium ramps and capex. Substantial equity buffers reduce insolvency risk in downturns and support strategic investment without immediate distress financing.
Negative Factors
Negative free cash flow
Persistent negative free cash flow constrains the firm's self-funding capacity for large projects and dividends, increasing reliance on external financing. Over multiple years this raises refinancing, interest‑rate and covenant risk and limits the tempo of strategic investments without raising leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Manageable leverage
POSCO's balance sheet shows modest leverage for a cyclical steel group, giving the company financing flexibility to fund overseas JVs, lithium ramps and capex. Substantial equity buffers reduce insolvency risk in downturns and support strategic investment without immediate distress financing.
Read all positive factors
POSCO (PKX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$21.77B
Dividend Yield3.22%
Average Volume (3M)232.77K
Price to Earnings (P/E)25672.4
Beta (1Y)1.07
Revenue Growth-5.70%
EPS Growth-6.30%
CountryUS
Employees429
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)3322.54
Shares Outstanding316,966,100
10 Day Avg. Volume276,807
30 Day Avg. Volume232,766
Financial Highlights & Ratios
PEG Ratio-1.67
Price to Book (P/B)1.78
Price to Sales (P/S)1.44
P/FCF Ratio-59.46
Enterprise Value/Market Cap2.68K
Enterprise Value/Revenue1.13
Enterprise Value/Gross Profit15.39
Enterprise Value/Ebitda12.43
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.1
Revenue Forecast (FY)$48.86B
POSCO Business Overview & Revenue Model
Company Description
POSCO Holdings Inc., together with its subsidiaries, manufactures and sells steel rolled products and plates in South Korea and internationally. It operates through four segments: Steel, Construction, Trading, and Others. The company offers hot an...
How the Company Makes Money
POSCO makes money primarily through (1) steel sales and (2) earnings from non-steel subsidiaries and investments under the holding-company structure. Steel sales are generated by producing steel at integrated and/or downstream facilities and selli...
POSCO Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 16, 2026
Earnings Call Sentiment Neutral
The call presents a mixed picture: financial results in 2025 were challenged (revenue down 5% YoY, OP down 16%) and were weighed down by sizable one‑time charges (POSCO E&C accident, PZSS divestment) and Q4 operational setbacks. Offsetting factors include improved POSCO mill margins (~5%), disciplined CapEx execution, significant portfolio restructuring cash generation (KRW 1.1 trillion in 2025), and multiple 2026 inflection points — notably Argentina lithium commercial ramp, Australian JV equity gains potential, overseas steel JV actions, and decarbonization projects. However, key near‑term risks remain (lithium margin pressure from rising spodumene, safety incidents, trade/tariff risks, and currency/cost pressure). Overall, the positives (clear strategic actions and potential commodity/upstream gains) balance the notable near‑term operational and one‑time negatives, leaving the tone cautiously neutral.Positive Updates
Revenue and EBITDA Scale
2025 consolidated revenue of KRW 69.1 trillion (down 5% YoY) with consolidated EBITDA of KRW 5.9 trillion, demonstrating substantial scale and ongoing cash-generating capacity despite a tougher market.
Negative Updates
Profit Decline and Weak Q4
2025 consolidated operating profit declined 16% YoY to KRW 1.8 trillion (down KRW 347 billion YoY). Fourth-quarter profits were especially weak, with POSCO Q4 OP around KRW 12.7 billion and POSCO's OP down KRW 337 billion from Q3.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue and EBITDA Scale
2025 consolidated revenue of KRW 69.1 trillion (down 5% YoY) with consolidated EBITDA of KRW 5.9 trillion, demonstrating substantial scale and ongoing cash-generating capacity despite a tougher market.
Read all positive updates
Company Guidance
Management framed 2026 as a potential inflection year while reiterating 2025 as the baseline: consolidated revenue fell 5% y/y to KRW 69.1 trillion, operating profit declined 16% to KRW 1.8 trillion (EBITDA KRW 5.9 trillion) with POSCO margin ~5.1%; Q4 weakness included POSCO E&C one‑off losses of KRW 190 billion and PZSS temporary costs of KRW 131.9 billion (PZSS registered ~KRW 200 billion red ink and will be divested), POSCO OP down KRW 337 billion q/q, sales volume -6% q/q to ~7.7 Mt and Pohang production cut ~4%. Guidance and targets for 2026 include Argentina Lithium Plant 1 ramp to >60% utilization by end‑March and full commercial operation by Jul–Aug, Phase 2 technical‑grade capacity reaching 25,000 tpa by Q4, group lithium sales planned at ~55,000–60,000 tpa (plans cited ~50,000–67,000 tpa capacity and a ~50/50 split between Pilbara and Argentina), spodumene prices >$2,000/t (spodumene ~$24,000/t vs. lithium hydroxide ~$19,500/t) with some brokers at ~$20k/Li, restructuring proceeds of KRW 1.1 trillion from 28 projects (KRW 1.8 trillion cumulative since 2024) and a target to complete 55 more projects by 2028 to raise KRW 1 trillion, CapEx fell to KRW 7 trillion in 2025 (from KRW 9 trillion) but 2026 CapEx will rise to fund upstream overseas and steel projects (steel-related spend cited at ~KRW 6–6.8 trillion), and group safety incidents rose to 9 with ongoing safety investment programs.POSCO Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
62
Positive
Cash Flow
36
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 51.56T | 68.99T | 72.69T | 77.13T | 84.75T | 76.33T |
| Gross Profit | 3.80T | 5.14T | 5.39T | 6.39T | 7.62T | 11.86T |
| EBITDA | 4.70T | 6.39T | 6.11T | 7.09T | 8.53T | 12.83T |
| Net Income | 388.86B | 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 | 8.06T | 15.59T | 14.80T | 17.91T | 18.74T | 18.16T |
| Total Debt | 31.21T | 28.53T | 25.58T | 25.90T | 22.83T | 21.53T |
| Total Liabilities | 44.30T | 42.89T | 42.00T | 41.89T | 40.15T | 37.58T |
| Stockholders Equity | 55.96T | 55.76T | 55.39T | 54.15T | 52.51T | 50.38T |
Cash Flow | ||||||
| Free Cash Flow | -2.17T | -1.67T | -1.50T | -1.06T | 766.31B | 2.75T |
| Operating Cash Flow | 3.53T | 4.57T | 6.66T | 6.17T | 6.19T | 6.26T |
| Investing Cash Flow | -5.14T | -6.69T | -4.49T | -7.39T | -4.22T | -5.58T |
| Financing Cash Flow | 1.81T | 2.40T | -2.30T | -178.59B | 1.32T | -768.67B |
POSCO Technical Analysis
Neutral
63.41
Price Trends
68.77
Positive
65.01
Positive
58.76
Positive
Market Momentum
1.58
Positive
47.02
Neutral
22.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PKX, the sentiment is Neutral. The current price of 63.41 is below the 20-day moving average (MA) of 80.39, below the 50-day MA of 68.77, and above the 200-day MA of 58.76, indicating a neutral trend. The MACD of 1.58 indicates Positive momentum. The RSI at 47.02 is Neutral, neither overbought nor oversold. The STOCH value of 22.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $18.73B | 14.73 | 11.18% | 1.63% | 8.49% | 9.68% | |
73 Outperform | $34.62B | 16.15 | 15.25% | 1.11% | 10.44% | 23.34% | |
69 Neutral | $9.22B | 9.25 | 4.74% | 7.02% | -11.93% | ― | |
67 Neutral | $52.84B | 13.28 | 11.16% | 1.34% | 12.27% | 79.72% | |
63 Neutral | $49.03B | 17.20 | 5.35% | 1.03% | -1.31% | 149.74% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
51 Neutral | $21.77B | 25,672.37 | 1.48% | 3.22% | -5.70% | -6.30% |
* Basic Materials Sector Average
PKX
POSCO
74.52
31.77
74.32%
MT
ArcelorMittal
66.08
36.02
119.80%
NUE
Nucor
232.00
125.13
117.09%
RS
Reliance Steel
367.00
79.69
27.73%
STLD
Steel Dynamics
240.03
116.38
94.13%
TX
Ternium SA
46.99
20.79
79.32%
POSCO Corporate Events
POSCO Sets May 27 Record Date for First-Quarter 2026 Dividend
May 12, 2026
POSCO Holdings Inc. notified investors that, pursuant to its Articles of Incorporation on quarterly dividends, it has set May 27, 2026, as the record date for determining shareholders eligible to receive the first-quarter 2026 dividend. The board&...
POSCO Holdings Declares KRW 2,000 First-Quarter Dividend for 2026
May 12, 2026
POSCO HOLDINGS INC., a leading South Korean steel and materials group with a significant global customer base in automotive, construction, and manufacturing, operates as a foreign private issuer in U.S. markets and files annual reports under Form ...
POSCO Posts Strong Q1 2026 Rebound and Seals JV with JSW for Indian Integrated Steel Mill
Apr 30, 2026
POSCO Holdings reported provisional consolidated results for the first quarter of 2026 on April 30, 2026, showing revenue of KRW 17.88 trillion, up 6.1% quarter-on-quarter and 2.5% year-on-year, and operating profit of KRW 0.71 trillion, a sharp r...
POSCO Holdings Sets 2026–2028 Earnings-Linked Shareholder Return Policy
Apr 30, 2026
On April 30, 2026, POSCO Holdings announced a new shareholder return policy for 2026–2028, shifting to an earnings-based, performance-linked framework. The company plans to target a shareholder return ratio of 35–40%, combining dividen...
POSCO Posts Higher Q1 2026 Revenue but Sharply Lower Operating Profit
Apr 30, 2026
POSCO, the main steelmaking subsidiary of POSCO HOLDINGS, reported provisional separate financial results for the first quarter of 2026, compiled under K-IFRS and subject to review. Revenue for Q1 2026 came in at KRW 8.94 trillion, up 7.7% from th...
POSCO Commits Over KRW 1.6 Trillion to JSW Joint Venture Steel Mill in India
Apr 20, 2026
On April 17, 2026, POSCO’s board approved an investment of approximately KRW 1.61 trillion (about USD 1.09 billion) in Saffron Resources Private Limited, an Indian mining company that will be restructured into a 50:50 joint venture with JSW....
POSCO Holdings Sets April 30 Call to Present Q1 2026 Provisional Earnings and Business Plan
Apr 15, 2026
POSCO Holdings Inc. has announced that it will disclose its provisional earnings for the first quarter of 2026 and present its business plan on April 30, 2026. The briefing will be conducted via conference call at 3:00 p.m. Korea Standard Time and...
POSCO HOLDINGS Files 2025 Business Report and Details Expanding Global Subsidiary Portfolio
Mar 31, 2026
POSCO HOLDINGS INC., the Korean industrial holding company that controls a broad portfolio of steel, energy, resource and technology subsidiaries, has formalized its transition from an operating steelmaker to a group-level management platform foll...
POSCO Confirms Cleveland-Cliffs MOU in U.S. Steel Expansion Strategy
Mar 31, 2026
On December 5, 2025, Korean media reported that businessman Kim Jae-chul was pursuing a 10 trillion won bid for shipping line HMM, calling it the crown jewel of his ambitions. POSCO HOLDINGS later clarified, via a March 31, 2026 filing, that this ...
POSCO Holdings Reaffirms 2024 Value-Up Plan and High-Dividend Policy at March 24 Meeting
Mar 25, 2026
POSCO Holdings Inc. on March 24, 2026, confirmed its previously announced 2024 Corporate Value-up Plan, targeting compound annual revenue growth of 6–8% and a return on invested capital of 6–9% through 2027, driven by expansion in stee...
POSCO Holdings Approves 2025 Results, Dividend and Governance Reforms at March Shareholders’ Meeting
Mar 24, 2026
POSCO Holdings reported its 2025 financial results at its 58th Ordinary General Meeting of Shareholders in March 2026, approving consolidated revenue of KRW 69.1 trillion, operating profit of KRW 1.83 trillion and profit of KRW 504.4 billion, alon...
POSCO Holdings Lowers Exchange Price on 2021 Euro-Denominated Bonds After Q4 2025 Dividend
Mar 24, 2026
On February 28, 2026, POSCO Holdings adjusted the exchange price of its foreign currency-denominated exchangeable bonds issued on September 1, 2021, cutting the reference price from KRW 425,631 to KRW 419,025 per share. This dividend-driven techni...
POSCO Files 2025 Audited Separate Financials With SEC, Books Impairment on Subsidiaries
Mar 20, 2026
POSCO Holdings Inc. on March 20, 2026 furnished with the U.S. Securities and Exchange Commission its audited separate financial statements for the years ended Dec. 31, 2025 and 2024, along with an independent auditor’s report and documentati...
POSCO Holdings Files 2025 Audited Consolidated Results With Clean Opinions
Mar 20, 2026
On March 20, 2026, POSCO HOLDINGS INC. filed a Form 6-K in the United States to furnish its audited consolidated financial statements for the years ended December 31, 2025 and 2024, together with an independent auditor’s report and an intern...
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.