POSCO (PKX) AI Stock Analysis

• Market Cap: $16.02B
• Dividend Yield: 2.53%
• Average Volume (3M): 141.48K
• Price to Earnings (P/E): 50.2
• Beta (1Y): 0.89
• Revenue Growth: -8.97%
• EPS Growth: -67.03%
• Country: US
• Employees: 429
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 0.91
• Shares Outstanding: 323,731,800
• 10 Day Avg. Volume: 137,533
• 30 Day Avg. Volume: 141,481
• PEG Ratio: -0.59
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.31
• P/FCF Ratio: -22.63
• Enterprise Value/Market Cap: 2.10
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: <0.01
• Enterprise Value/Ebitda: <0.01
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): 2.4
• Revenue Forecast (FY): $48.53B

• Rating: 60 Neutral
• Price Target: $53.00 ▼(-3.57% Downside)

POSCO's overall stock score reflects financial challenges with declining revenue and profitability, coupled with technical indicators showing mixed signals. The high P/E ratio suggests potential overvaluation, while the dividend yield offers limited compensation. The absence of earnings call and corporate events data means these factors were not considered.

Positive Factors

Financial Stability

POSCO's strong equity and manageable debt levels indicate robust financial health, providing a solid foundation for long-term operations and strategic investments.

Strategic Expansion

The potential acquisition of HMM could enhance POSCO's strategic capabilities and market reach, aligning with its long-term growth objectives and diversification strategy.

Innovation and Cost Management

POSCO's focus on innovation and cost management strengthens its competitive position, enabling it to navigate industry challenges and maintain profitability over time.

Negative Factors

Declining Revenue

The declining revenue trend poses a challenge to POSCO's growth, potentially impacting its ability to invest in new opportunities and sustain market leadership.

Profit Margin Pressure

Decreasing profit margins indicate operational challenges, which may hinder POSCO's ability to generate sufficient returns and invest in future growth initiatives.

Cash Flow Constraints

Negative free cash flow suggests that capital expenditures exceed cash generation, potentially limiting POSCO's financial flexibility and ability to fund strategic projects.

POSCO Business Overview & Revenue Model

Company Description

POSCO (formerly known as Pohang Iron and Steel Company) is a South Korean multinational steel-making company headquartered in Pohang, South Korea. Established in 1968, POSCO is one of the largest steel producers in the world, operating in various sectors including steel manufacturing, construction, and engineering. The company’s core products include hot-rolled and cold-rolled steel plates, steel sheets, and other steel products used in automotive, shipbuilding, and construction industries. Besides steel production, POSCO has diversified into various sectors such as energy, materials, and infrastructure.

How the Company Makes Money

POSCO generates revenue primarily through the production and sale of steel and steel products, which account for the majority of its earnings. The company operates multiple steel mills and produces a wide range of steel products that cater to various industries, including automotive, construction, and shipbuilding. Key revenue streams include the sale of hot-rolled and cold-rolled steel, stainless steel, and other value-added products. POSCO also engages in overseas production and joint ventures, which help to expand its market presence and reduce costs. Additionally, the company has invested in research and development to innovate and improve its manufacturing processes, leading to higher efficiency and profitability. Strategic partnerships with major automotive and industrial firms further enhance its revenue by securing long-term supply contracts.

POSCO Financial Statement Overview

Summary

POSCO's financial statements reflect challenges with declining revenue and profitability. Despite a stable balance sheet with moderate leverage, cash flow management issues are evident due to negative free cash flow.

Income Statement

POSCO's income statement shows a decline in revenue and profitability. The TTM (Trailing-Twelve-Months) data indicates a negative revenue growth rate of -1.32%, reflecting challenges in the steel industry. Gross profit margin and net profit margin have decreased compared to previous years, indicating pressure on profitability. However, the company maintains a reasonable EBIT margin of 7.94% and EBITDA margin of 12.35%, suggesting operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.53, indicating moderate leverage. The equity ratio is healthy, and the return on equity (ROE) is 0.94%, showing a decline but still positive. Overall, the company maintains a solid equity base, but the declining ROE suggests reduced profitability on equity.

Cash Flow

Cash flow analysis reveals challenges with free cash flow, which is negative in the TTM period. The free cash flow growth rate is positive at 190.33%, but this is due to a low base effect. The operating cash flow to net income ratio is 0.27, indicating adequate cash generation relative to net income, but the negative free cash flow to net income ratio highlights cash flow management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	70.06T	72.69T	77.13T	84.75T	76.33T	57.79T
Gross Profit	5.20T	5.39T	6.39T	7.62T	11.86T	4.71T
EBITDA	6.08T	6.11T	7.09T	8.53T	12.83T	5.97T
Net Income	454.78B	1.09T	1.70T	3.14T	6.62T	1.60T
Balance Sheet
Total Assets	10.00T>	10.00T>	10.00T>	98.41T	91.47T	79.09T
Cash, Cash Equivalents and Short-Term Investments	15.84T	14.80T	17.91T	18.74T	18.16T	16.36T
Total Debt	27.59T	26.90T	25.90T	22.83T	21.53T	20.17T
Total Liabilities	10.00T>	41.95T	41.89T	40.15T	36.67T	31.41T
Stockholders Equity	55.62T	55.39T	54.15T	52.51T	50.43T	44.33T
Cash Flow
Free Cash Flow	-555.67B	-1.01T	-1.06T	766.31B	2.75T	5.19T
Operating Cash Flow	4.68T	6.66T	6.17T	6.19T	6.26T	8.69T
Investing Cash Flow	-6.32T	-4.49T	-7.39T	-4.22T	-5.58T	-6.26T
Financing Cash Flow	856.69B	-2.30T	-178.59B	1.32T	-768.67B	-1.09T

POSCO Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PKX, the sentiment is Positive. The current price of 54.96 is above the 20-day moving average (MA) of 53.38, above the 50-day MA of 52.25, and above the 200-day MA of 50.64, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 49.06 is Neutral, neither overbought nor oversold. The STOCH value of 36.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PKX.

POSCO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STLD	78 Outperform	$24.13B	21.92	12.47%	1.19%	-1.49%	-31.82%
NUE	74 Outperform	$36.49B	22.41	7.98%	1.38%	1.66%	-31.25%
TX	73 Outperform	$7.54B	13.14	4.80%	7.03%	-16.69%	585.38%
RS	73 Outperform	$14.94B	20.90	9.94%	1.68%	-0.88%	-25.15%
MT	71 Outperform	$30.80B	11.38	4.72%	1.11%	-4.51%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
PKX	60 Neutral	$16.02B	50.20	0.78%	2.53%	-8.97%	-67.03%

POSCO Corporate Events

POSCO Addresses HMM Acquisition Rumors and US Expansion Plans

On December 8, 2025, POSCO Holdings Inc. addressed rumors reported by Maeil Business Newspaper regarding Kim Jae-Chul’s ambition to acquire HMM for 10 trillion won. The company clarified that it has signed a memorandum of understanding with Cleveland Cliffs as part of its strategy to expand in the US market, though details on equity ownership and investment size are still under discussion. POSCO plans to provide further updates by January 2, 2026.

POSCO Reports Q3 2025 Results Amid Global Steel Production Decline

POSCO Holdings Inc. released its third-quarter report for 2025, highlighting a decline in global crude steel production due to economic uncertainties and reduced demand in key sectors like China’s housing market. Despite these challenges, POSCO is working to strengthen its market position through strategic partnerships and expanding its global processing centers to meet the needs of various industries. The report also notes a renaming of the ‘Energy Materials’ segment to ‘Rechargeable Battery Materials’ in June 2025, reflecting a strategic focus shift.

POSCO Announces Q3 2025 Cash Dividend

On November 11, 2025, POSCO Holdings Inc. announced a resolution to pay a cash dividend for the third quarter of the fiscal year 2025. The dividend per share is set at 2,500 KRW, with a dividend yield of 0.8%. The record date for the dividend is November 26, 2025, and the provisional payment date is December 11, 2025. This decision reflects POSCO’s commitment to returning value to its shareholders and may influence investor sentiment positively.

POSCO Holdings to Acquire 30% Stake in Australian Lithium Venture

On November 11, 2025, POSCO Holdings Inc. announced its decision to acquire a 30% stake in a new intermediate holding company to be formed by Mineral Resources Ltd. in Australia, aimed at operating in the lithium business. This strategic investment, valued at approximately 1.1 trillion KRW, is intended to strengthen POSCO’s position in the lithium market, thereby boosting its cost-competitiveness and expanding its footprint in the mining sector.

POSCO Reports Serious Industrial Accident at Pohang Plant

On November 5, 2025, a serious industrial accident occurred at POSCO’s Stainless Steel Annealing and Pickling Plant in Pohang Works, resulting in one fatality and three injuries due to inhalation of acidic fumes from a pipe leak. The incident was promptly reported to the Ministry of Employment and Labor, and a site inspection was conducted by the police and the ministry. POSCO has committed to implementing measures to prevent future occurrences, highlighting its dedication to safety and operational integrity.

POSCO Holdings Reports Q3 2025 Earnings and Advances Safety Initiatives

POSCO Holdings Inc. reported its provisional earnings for the third quarter of 2025, showing a slight decrease in revenue by 1.7% compared to the previous quarter and a 5.8% decline from the same period last year. Despite these challenges, the company achieved a 4.9% increase in operating profit over the previous quarter, highlighting a recovery trend in profitability. The company’s efforts in portfolio management have resulted in significant cash generation, with 63 projects completed and a cash inflow of KRW 1.4 trillion. POSCO is also advancing its Safe Workplace Initiative, aiming to enhance safety standards across its operations, which is crucial for maintaining its industry positioning and stakeholder trust.

POSCO Reports Q3 2025 Earnings with Increased Profitability Amid Revenue Decline

In its provisional earnings report for the third quarter of 2025, POSCO Holdings Inc. reported a decline in revenue by 1.7% compared to the previous quarter and a 7.2% decrease from the same period last year. Despite the drop in revenue, the company achieved a significant increase in operating profit, which rose by 13.7% from the previous quarter and 31.8% year-over-year. This improvement in profitability suggests a strategic focus on cost management and operational efficiency, which may positively impact the company’s market positioning and stakeholder confidence.

POSCO to Announce Q3 2025 Earnings on October 27

POSCO Holdings Inc. has announced a conference call scheduled for October 27, 2025, to discuss its provisional earnings for the third quarter of 2025. This event will include a Q&A session and is aimed at analysts, institutional investors, and the press, potentially impacting stakeholder perceptions and market positioning.

POSCO Updates Dividend Record Date Policy Following Shareholder Meeting

On September 17, 2025, POSCO Holdings Inc. announced an amendment to its Articles of Incorporation, changing the record date for quarterly dividends from fixed dates at the end of March, June, and September to a date determined by the Board of Directors. This change, approved at the Annual General Meeting of Shareholders in March 2025, aims to offer more flexibility and transparency for investors by allowing them to know dividend amounts before the record date. The decision impacts shareholders as they must now be listed on the registry as of the newly determined record date to receive dividends, with the next record date decision scheduled for November 2025.

POSCO Expands with New Subsidiary Focused on Safety Solutions

On September 17, 2025, POSCO Holdings Inc. announced the inclusion of its newly established subsidiary, POSCO Safety Solution, into its holding structure. This strategic move involves POSCO acquiring 100% of the subsidiary’s shares, amounting to 926,000 shares, through a cash contribution. The incorporation of POSCO Safety Solution, which specializes in occupational safety and health advisory services, is expected to strengthen POSCO’s market position in the safety solutions industry and expand its portfolio of services. The decision, approved by the board on the same date, reflects POSCO’s ongoing efforts to enhance its service offerings and commitment to workplace safety.