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Posco (PKX)
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POSCO (PKX) AI Stock Analysis

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PKX

POSCO

(NYSE:PKX)

Rating:64Neutral
Price Target:
$57.00
▲(12.34% Upside)
POSCO's overall stock score reflects a stable financial foundation with strong equity and manageable debt. However, operational challenges, declining revenue, and high valuation metrics weigh on the score. Technical analysis indicates mixed signals, with potential for short-term weakness but longer-term support.
Positive Factors
Strategic Alliances
The strategic alliance with JSW Group enhances POSCO's market position in India, a key growth market, and supports diversification into energy materials and renewable energy, which are crucial for long-term growth.
Revenue and Operating Profit Recovery
The recovery in revenue and operating profit indicates resilience and effective management strategies, positioning POSCO for sustained financial health and competitive advantage in the steel industry.
Cash Generation
Strong cash generation through asset divestitures enhances liquidity, providing financial flexibility for strategic investments and reducing reliance on external financing.
Negative Factors
Declining Revenue Trend
A declining revenue trend poses a challenge to sustaining growth and profitability, necessitating strategic initiatives to reverse the trend and capture new market opportunities.
Challenges in Energy Materials
Continued deficits in the energy materials segment highlight operational challenges and the need for improved efficiency and market strategy to capitalize on the growing demand for sustainable energy solutions.
Underperformance in Southeast Asia
Persistent underperformance in Southeast Asia affects overall profitability and suggests a need for strategic reassessment or restructuring to enhance regional operations and competitiveness.

POSCO (PKX) vs. SPDR S&P 500 ETF (SPY)

POSCO Business Overview & Revenue Model

Company DescriptionPOSCO (PKX) is a South Korean multinational corporation primarily engaged in the steel manufacturing sector. Founded in 1968, it has grown to become one of the world's largest steel producers, operating in various segments including steel production, processing, and distribution. POSCO also invests in other sectors such as construction, engineering, and energy, and is recognized for its commitment to innovation and sustainable practices in the steel industry, offering a range of products including hot-rolled, cold-rolled, and coated steel products.
How the Company Makes MoneyPOSCO generates revenue primarily through the sale of steel products, which constitute the majority of its earnings. The company produces a wide array of steel grades used in construction, automotive, shipbuilding, and various industrial applications. Its revenue model is supported by a diversified portfolio that includes flat and long steel products, as well as specialized steel products for specific industries. In addition to steel manufacturing, POSCO earns money through its investments in steel processing and distribution, engineering services, and joint ventures in overseas markets. Key partnerships with major automobile and construction firms also contribute significantly to its revenue, as these sectors are major consumers of steel. Furthermore, POSCO's focus on research and development allows it to innovate and introduce new products, thereby enhancing its competitive edge and market share.

POSCO Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q1-2025)
|
% Change Since: |
Next Earnings Date:Oct 27, 2025
Earnings Call Sentiment Neutral
POSCO Holdings' Q1 2025 earnings call highlights a recovery in revenue and operating profit, strategic partnerships, and successful asset divestiture, but also reveals ongoing challenges in energy materials, the Chinese market, and trade barriers. The overall sentiment is slightly optimistic due to positive developments, but tempered by significant challenges.
Q1-2025 Updates
Positive Updates
Revenue and Operating Profit Rebound
POSCO Holdings' Q1 2025 consolidated revenue reached KRW17.4 trillion, with an operating profit of KRW570 billion, recovering from KRW95 billion in the previous quarter.
Energy Materials Turnaround
POSCO Future M reported increased sales volume in cathode materials, resulting in operating profit improvement and a turnaround in Q1.
Strategic MOU with Hyundai Motor Group
POSCO signed an MOU with Hyundai Motor Group to jointly invest in a US steelmaking plant and develop next-generation battery materials.
Asset Divestiture and Cash Generation
In Q1 2025, POSCO divested six assets, raising KRW286.6 billion, totaling KRW949.1 billion in cash generated since last year through restructuring efforts.
Progress in Overseas Steel Business
Overseas steel business showed improvements, with strong performance in engine operations and reduced losses at the Zhangjiagang plant in China.
Negative Updates
Ongoing Energy Materials Deficit
Despite a reduction in losses, the energy materials segment reported an operating deficit of KRW100 billion due to ramp-up of new plants and investment losses.
Challenges in the Chinese Market
Continued underperformance in Southeast Asia and restructuring challenges in China, particularly with the PZSS office, which has reported deficits for 12 consecutive terms.
Impact of Trade Barriers
Intensified trade barriers and tariffs are affecting POSCO's sales volume and plans, particularly in the automotive and overseas steel segments.
Lithium Price Uncertainty
Delayed recovery in lithium prices and market sluggishness have led to postponed completion of new facilities and uncertainty in future pricing.
Company Guidance
During POSCO Holdings' earnings call for the first quarter of 2025, several financial metrics were highlighted. The company reported consolidated revenue of KRW17.4 trillion and an operating profit of KRW570 billion. EBITDA reached KRW1.6 trillion, with consolidated CapEx for the quarter amounting to KRW1.5 trillion. Operating profit margins improved across business segments, with the industrial segment's margin increasing from 2.3% to 3% quarter-over-quarter. Specifically, POSCO's operating profit margin recovered to 3.9%. Despite a 5.5% decline in crude steel output due to maintenance, efforts to stabilize raw materials costs and enhance cost-saving measures resulted in an improved operating margin. The company also reported divesting six assets in Q1, generating KRW286.6 billion, and announced a CapEx plan of KRW8.8 trillion for the year, with allocations to steel, energy materials, and infrastructure. The call also detailed strategic initiatives, including a memorandum of understanding with Hyundai Motor Group to invest in a U.S. steelmaking plant and develop next-generation battery materials, in compliance with USMCA rules. The call concluded with guidance on ongoing restructuring efforts and the potential for positive market developments.

POSCO Financial Statement Overview

Summary
POSCO's financial performance shows strong equity and manageable debt levels, providing financial stability. However, declining revenue and profit margins indicate operational challenges. Cash flow constraints highlight the need for strategic improvements to enhance liquidity and profitability.
Income Statement
75
Positive
POSCO's income statement shows mixed results with a declining revenue trend from 2022 to 2024, decreasing from 84.75 trillion KRW to 72.69 trillion KRW, indicating a negative revenue growth rate. The gross profit margin decreased from 9.02% in 2022 to 7.41% in 2024, and the net profit margin declined from 3.72% in 2022 to 1.51% in 2024, reflecting pressure on profitability. EBIT and EBITDA margins have also decreased, highlighting operational challenges. Despite these declines, the company maintains positive net income and gross profit.
Balance Sheet
80
Positive
The balance sheet of POSCO is strong with a stable equity ratio and a manageable debt-to-equity ratio of 0.49 in 2024. The company has a robust stockholders' equity of 55.39 trillion KRW, providing a solid buffer against liabilities. While total debt has increased slightly over the years, it remains within reasonable limits. The return on equity has decreased from 6.01% in 2022 to 1.98% in 2024, indicating reduced profitability from equity.
Cash Flow
65
Positive
POSCO's cash flow statement reflects challenges with free cash flow consistently negative in 2023 and 2024. The operating cash flow to net income ratio improved slightly to 6.09 in 2024, indicating efficient cash generation relative to net income. However, the free cash flow to net income ratio remains negative, suggesting capital expenditure outpaces cash generation. The free cash flow growth rate is negative, highlighting the need for improving cash flow management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue72.07T72.69T77.06T84.75T76.33T57.79T
Gross Profit22.16T5.39T6.32T7.65T11.88T4.72T
EBITDA4.20T6.11T7.26T8.53T12.79T6.18T
Net Income856.61B1.09T1.70T3.16T6.61T1.58T
Balance Sheet
Total Assets10.00T>10.00T>10.00T>98.41T91.47T79.09T
Cash, Cash Equivalents and Short-Term Investments15.50T14.80T17.91T18.74T18.16T16.46T
Total Debt0.0026.90T25.90T25.13T22.52T20.50T
Total Liabilities40.45T41.95T41.89T40.15T36.67T31.41T
Stockholders Equity55.58T55.39T54.15T52.51T50.43T44.33T
Cash Flow
Free Cash Flow-377.53B-1.01T-1.06T766.31B2.75T5.19T
Operating Cash Flow7.05T6.66T6.17T6.19T6.26T8.69T
Investing Cash Flow-5.00T-4.49T-7.39T-4.22T-5.58T-6.26T
Financing Cash Flow-2.35T-2.30T-178.59B1.32T-768.67B-1.09T

POSCO Technical Analysis

Technical Analysis Sentiment
Negative
Last Price50.74
Price Trends
50DMA
54.87
Negative
100DMA
50.74
Positive
200DMA
48.70
Positive
Market Momentum
MACD
-1.01
Positive
RSI
38.14
Neutral
STOCH
45.58
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 50.74 is below the 20-day moving average (MA) of 52.70, below the 50-day MA of 54.87, and above the 200-day MA of 48.70, indicating a neutral trend. The MACD of -1.01 indicates Positive momentum. The RSI at 38.14 is Neutral, neither overbought nor oversold. The STOCH value of 45.58 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$32.44B25.526.28%1.55%-5.78%-60.07%
75
Outperform
$15.29B21.239.93%1.62%-3.91%-30.31%
74
Outperform
$19.23B19.0611.57%1.46%-5.51%-45.07%
70
Neutral
$6.80B11.624.89%7.80%-16.83%
64
Neutral
$15.50B41.410.92%2.41%-7.63%-63.14%
63
Neutral
$28.51B10.564.72%1.38%-4.51%
61
Neutral
$10.43B7.39-0.05%2.88%2.86%-36.73%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PKX
POSCO
50.74
-18.88
-27.12%
MT
ArcelorMittal
35.03
12.53
55.69%
NUE
Nucor
141.57
1.03
0.73%
RS
Reliance Steel
290.94
16.06
5.84%
STLD
Steel Dynamics
131.58
22.28
20.38%
TX
Ternium SA
34.79
3.59
11.51%

POSCO Corporate Events

POSCO Evaluates Potential Acquisition of HMM
Sep 5, 2025

On September 5, 2025, POSCO Holdings responded to media reports regarding its potential acquisition of HMM, a move that could align with the company’s strategic goals. Currently, POSCO is conducting a preliminary assessment to evaluate the strategic synergies of such an acquisition, but no decision has been made yet. The company plans to provide further disclosures by October 2, 2025.

POSCO Hosts Investor Relations Event in Hong Kong
Sep 3, 2025

POSCO Holdings Inc. organized an investor relations event from September 8 to 10, 2025, in Hong Kong, targeting major foreign institutional investors. The purpose of the event was to enhance understanding of the company through one-on-one meetings, covering key business highlights from the second quarter of 2025, and included participation in the CITIC CLSA 32nd Investor’s Forum and the BofA 2025 Asia Pacific Conference.

POSCO Holdings Releases 2025 Interim Report Highlighting Strategic Focus
Aug 29, 2025

POSCO Holdings Inc. has released its interim report for the first half of 2025, detailing its business operations and financial performance. The report, submitted to the Korean Financial Services Commission and Korea Exchange, highlights the company’s continued focus on managing subsidiaries and expanding its business scope. The report also reflects on the company’s strategic positioning and its implications for stakeholders, emphasizing POSCO Holdings’ commitment to innovation and market leadership.

POSCO Holdings Releases 2024 Corporate Governance Report
Aug 28, 2025

On August 28, 2025, POSCO Holdings Inc. released its Corporate Governance Report for the year 2024, highlighting its compliance with key governance indicators. The report, generated on May 30, 2025, outlines the company’s commitment to transparency and shareholder engagement, including the use of e-voting and a dedicated dividend information service. The report also details the company’s internal control policies and CEO succession planning, emphasizing the separation of the roles of Chair of the Board and CEO to enhance governance.

POSCO Confirms Investment Talks in Hyundai’s US Steel Mills
Aug 21, 2025

On August 21, 2025, POSCO Holdings Inc. addressed rumors regarding its investment in Hyundai Motor’s US steel mills, initially reported on April 22, 2025. The company confirmed discussions about participating in the construction of an electric arc furnace steel mill in Louisiana, USA, aimed at boosting synergy in the electric vehicle supply chain. However, details on the shareholding ratio and investment scale are still under negotiation, with a commitment to provide further disclosures within six months.

POSCO Announces Interim Dividend Payment for 2025
Aug 19, 2025

On August 19, 2025, POSCO’s Board of Directors approved an interim cash dividend payment of KRW 2,016 per share, with a total dividend of KRW 194,504,940,000. The record date for this dividend was June 30, 2025, and the payment is scheduled for September 9, 2025. As POSCO is a wholly owned subsidiary of POSCO HOLDINGS, the entire dividend will be paid to the parent company, reflecting a strategic financial move to consolidate earnings within the group.

POSCO Announces Record Date for Q2 2025 Dividend
Aug 12, 2025

POSCO Holdings Inc. announced the record date for its second-quarter dividend for the year 2025 as August 27, 2025. This announcement is significant for shareholders as it finalizes the list of those eligible to receive the quarterly dividend, reflecting the company’s commitment to shareholder returns.

POSCO Announces Q2 2025 Cash Dividend
Aug 12, 2025

On August 12, 2025, POSCO Holdings Inc. announced a resolution to pay a cash dividend for the second quarter of the fiscal year 2025. The dividend per share is set at KRW 2,500, with a dividend yield of 0.8%. The record date for the dividend is August 27, 2025, and the provisional payment date is September 12, 2025. This decision reflects POSCO’s commitment to providing value to its shareholders and maintaining a stable financial strategy.

POSCO Adjusts Bond Conversion Prices Following Dividend
Aug 12, 2025

On August 28, 2025, POSCO Holdings Inc. adjusted the conversion and exchange prices of its foreign currency-denominated exchangeable bonds, originally issued on September 1, 2021. This adjustment, following a cash dividend, resulted in a reduction of the pre-adjustment price from 433,278 KRW to a post-adjustment price of 425,631 KRW, and increased the number of shares available for conversion from 85,083 to 86,611. The adjustment is part of the company’s strategy to align bond conditions with market changes, potentially impacting stakeholders by altering the value and convertibility of securities.

POSCO Completes Liquidation of Nickel Subsidiary
Aug 5, 2025

On August 5, 2025, POSCO Holdings Inc. completed the liquidation of its subsidiary, POSCO CNGR Nickel Solution Co., Ltd., which was involved in the production and sales of high purity nickel. This decision, resolved on July 22, 2025, reduced the total number of subsidiaries from 19 to 18 and marked the exclusion of the subsidiary from the holding company. The liquidation reflects POSCO’s strategic move to streamline its operations and could impact its market positioning by focusing resources on more profitable ventures.

POSCO Holdings Reports Q2 2025 Earnings with Focus on Innovation and Cost Management
Jul 31, 2025

POSCO Holdings Inc. reported its provisional earnings for the second quarter of 2025, showing a slight increase in revenue compared to the first quarter but a decrease compared to the same period last year. The company’s operating profit improved from the previous quarter, but profit before income tax and net profit saw significant declines. POSCO is actively managing its portfolio, completing several projects to generate cash flow and focusing on cost-cutting measures and technological advancements. Despite challenges in global steel demand and trade protectionism, POSCO’s overseas operations showed moderate improvement in operating profit. The company’s efforts in structural cost innovation and high-value product development are aimed at maintaining competitiveness and exploring new markets.

POSCO Holdings Reports Q2 2025 Earnings with Profit Growth
Jul 31, 2025

POSCO Holdings Inc. reported its provisional earnings for the second quarter of 2025, showing a slight decline in revenue compared to both the previous quarter and the same period last year. Despite the revenue drop, the company experienced a significant increase in operating profit, rising by 45.7% from the first quarter of 2025 and 21.4% from the second quarter of 2024. This improvement in profitability could strengthen POSCO’s position in the steel industry, potentially benefiting stakeholders through enhanced operational efficiency.

POSCO Releases 2024 Sustainability Report Highlighting ESG Commitments
Jul 11, 2025

On July 11, 2025, POSCO Holdings filed its 2024 Sustainability Report, verified by KPMG Samjong Accounting Corp, showcasing its commitment to sustainable management and ESG strategies. The report, prepared in accordance with GRI, SASB, and TCFD standards, highlights the company’s strategies, performance, and management guidelines, emphasizing its dedication to sustainable practices and risk management.

POSCO Announces Q2 2025 Provisional Earnings
Jul 10, 2025

POSCO Holdings Inc. announced its provisional earnings for the second quarter of 2025, with a conference call scheduled for July 31, 2025, to discuss these results. The event will include a Q&A session and will be attended by analysts, institutional investors, and the press, indicating the company’s commitment to transparency and stakeholder engagement.

POSCO Updates Dividend Record Date Policy
Jun 20, 2025

On June 19, 2025, POSCO Holdings Inc. announced a significant change in its dividend distribution policy following an amendment to its Articles of Incorporation. The company will now determine the record date for quarterly dividends through a resolution by the Board of Directors, rather than at the end of March, June, and September each year. This change aims to provide investors with more clarity on dividend amounts before the record date, potentially impacting investment decisions. The record date for the second quarter dividends of FY2025 will be decided in August 2025, and shareholders must be listed on the registry as of this new date to be eligible for dividends.

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.Date of analysis: Sep 16, 2025