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POSCO
(NYSE:PKX)
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Rating:49Neutral
Price Target:
$53.00
â–˛(1.26% Upside)
Action:Reiterated
Date:08/03/26
The score is held back primarily by compressed profitability and persistently negative free cash flow, despite a manageable leverage profile. Technicals also remain weak with the stock below key moving averages and negative MACD. Partially offsetting these are a moderate dividend yield and a cautiously constructive earnings call that points to incremental improvement and segment turnarounds, albeit with meaningful near-term operational and macro risks.
Positive Factors
Large, multi-year Triple‑Core investment plan
POSCO's committed KRW29.1tr three‑year program to build a Triple‑Core portfolio (steel, lithium, energy) is a durable strategic shift. Long‑dated capex and refocusing reduce single‑market cyclicality, scale lithium and energy capabilities and support technology/product upgrades that can sustainably diversify revenue and margin mix.
Negative Factors
Persistent negative free cash flow
TTM free cash flow deficits (~KRW -2.17t) despite positive operating cash flow signify weak cash conversion and recurring working‑capital or capex pressure. Persistent negative FCF constrains organic funding for the large multi‑year investment plan and increases reliance on asset sales, external financing or equity monetization.
Read all positive and negative factors
Positive Factors
Negative Factors
Large, multi-year Triple‑Core investment plan
POSCO's committed KRW29.1tr three‑year program to build a Triple‑Core portfolio (steel, lithium, energy) is a durable strategic shift. Long‑dated capex and refocusing reduce single‑market cyclicality, scale lithium and energy capabilities and support technology/product upgrades that can sustainably diversify revenue and margin mix.
Read all positive factors
POSCO (PKX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.17B
Dividend Yield3.05%
Average Volume (3M)414.33K
Price to Earnings (P/E)18.0
Beta (1Y)1.15
Revenue Growth-3.30%
EPS Growth157.76%
CountryUS
Employees429
SectorBasic Materials
Sector Strength58
IndustrySteel
Share Statistics
EPS (TTM)3372.87
Shares Outstanding316,966,100
10 Day Avg. Volume323,366
30 Day Avg. Volume414,334
Financial Highlights & Ratios
PEG Ratio-501.18
Price to Book (P/B)0.42
Price to Sales (P/S)0.34
P/FCF Ratio-13.89
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.29
Revenue Forecast (FY)$50.63B
POSCO Business Overview & Revenue Model
Company Description
POSCO Holdings Inc., a South Korean-based enterprise, operates globally in the production and sale of steel rolled products and plates through its extensive network of subsidiaries. The company’s multifaceted business is structured across four pri...
How the Company Makes Money
POSCO makes money primarily by producing and selling steel products through its steel operations. Revenue is generated from shipments of steel (e.g., flat products such as hot-rolled, cold-rolled, and coated steel, and long products such as wire r...
POSCO Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 26, 2026
Earnings Call Sentiment Positive
The call conveyed a cautiously positive tone: the company reported solid quarter‑over‑quarter revenue and operating profit growth, multiple operational milestones (EAF, rare gas plant), a notable lithium turnaround in Argentina, RBM returning to surplus, and cash generation from restructuring and divestments. However, material near‑term risks remain — input cost inflation, FX and energy volatility, trade measures, safety concerns, EAF ramp and lithium market spreads — and management flagged a likely temporary Q3 slowdown in lithium production. Overall, achievements and directional progress across several growth pillars (steel decarbonization, lithium, rare gases, restructuring) outweigh the headwinds, while management acknowledges and has mitigation plans for the key challenges.Positive Updates
Consolidated revenue and profit growth
Consolidated Q2 revenue of KRW 19.3 trillion (QoQ +KRW 1.4 trillion) and operating profit of KRW 819 billion (QoQ +16%). Quarterly EBITDA reached KRW 1.9 trillion. CapEx was KRW 2.0 trillion in Q2 (H1 total KRW 3.7 trillion).
Negative Updates
Rising input costs and macro risks
Key raw material costs rose approximately 6% QoQ. Additional cost pressures from higher oil prices, foreign exchange volatility (weak Korean won), logistics and maintenance costs were noted, driven in part by the Middle East conflict and energy supply risks.
Read all updates
Q2-2026 Updates
Positive
Negative
Consolidated revenue and profit growth
Consolidated Q2 revenue of KRW 19.3 trillion (QoQ +KRW 1.4 trillion) and operating profit of KRW 819 billion (QoQ +16%). Quarterly EBITDA reached KRW 1.9 trillion. CapEx was KRW 2.0 trillion in Q2 (H1 total KRW 3.7 trillion).
Read all positive updates
Company Guidance
The company guided for continued quarter‑over‑quarter improvement but flagged a near‑term Q3 slowdown in rechargeable battery materials due to Argentina’s winter and LP dryer replacement, with full Plant 1/Plant 2 ramp and certified product sales expected in Q4 (uncertified products sell at ~10% discount). Key Q2 metrics: consolidated revenue KRW 19.3 trillion, operating profit KRW 819–820 billion, EBITDA KRW 1.9 trillion, CapEx KRW 2.0 trillion in Q2 (KRW 3.7 trillion H1); POSCO separate OP ~KRW 270–274 billion (2.9% margin), carbon steel ASP up to KRW 962,000/ton from KRW 920,000/ton, and raw material costs ~+6% q/q. Other notable figures factored into guidance: Q3 crude steel production target ~9 million tonnes (max), RBM swung to OP KRW 41 billion, POSCO Argentina sales +160% q/q and revenue +290% q/q with OP KRW 11 billion, P‑PLS revenue KRW 102 billion (OP loss ~KRW 1 billion), EAF 2.5 Mt completion included in H2 plans, H1 restructuring cash KRW 475.4 billion (plan to realize KRW 3.5 trillion by ’28), and a proposed KRW 3.5 trillion equity monetization with ~10% (~KRW 350 billion) earmarked for shareholder returns.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 | 69.43T | 68.99T | 72.69T | 77.13T | 84.75T | 76.33T |
| Gross Profit | 5.31T | 5.14T | 5.39T | 6.39T | 7.62T | 11.86T |
| EBITDA | 6.80T | 6.39T | 6.11T | 7.09T | 8.53T | 12.83T |
| Net Income | 855.75B | 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 | 14.90T | 15.59T | 14.80T | 17.91T | 18.74T | 18.16T |
| Total Debt | 30.28T | 28.53T | 25.58T | 25.90T | 22.83T | 21.53T |
| Total Liabilities | 44.95T | 42.89T | 42.00T | 41.89T | 40.15T | 37.58T |
| Stockholders Equity | 56.79T | 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
52.34
Price Trends
57.07
Negative
62.92
Negative
60.18
Negative
Market Momentum
-0.73
Negative
52.63
Neutral
84.77
Negative
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 52.34 is above the 20-day moving average (MA) of 52.10, below the 50-day MA of 57.07, and below the 200-day MA of 60.18, indicating a neutral trend. The MACD of -0.73 indicates Negative momentum. The RSI at 52.63 is Neutral, neither overbought nor oversold. The STOCH value of 84.77 is Negative, 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $20.73B | 23.47 | 12.35% | 1.20% | 15.44% | 25.45% | |
73 Outperform | $58.60B | 20.50 | 13.53% | 0.90% | 17.19% | 126.69% | |
69 Neutral | $36.01B | 22.70 | 17.60% | 0.83% | 19.77% | 60.80% | |
66 Neutral | $9.67B | 16.86 | 4.74% | 4.65% | -7.35% | ― | |
64 Neutral | $52.10B | 22.53 | 4.31% | 0.86% | 3.25% | -27.63% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
49 Neutral | $16.17B | 18.02 | 2.55% | 3.10% | -3.30% | 157.76% |
* Basic Materials Sector Average
PKX
POSCO
54.79
0.94
1.75%
MT
ArcelorMittal
75.35
43.99
140.27%
NUE
Nucor
274.74
138.05
101.00%
RS
Reliance Steel
421.08
139.67
49.63%
STLD
Steel Dynamics
265.96
145.17
120.19%
TX
Ternium SA
53.71
24.23
82.18%
POSCO Corporate Events
POSCO HOLDINGS Launches 2026 Value‑Up Plan With High Dividends and KRW 29 Trillion Investment Push
Jul 30, 2026
On July 30, 2026, POSCO HOLDINGS unveiled its 2026 Corporate Value‑up Plan, setting out a strategic pivot to a Triple‑Core portfolio in steel, lithium‑centered battery materials and energy to respond to geopolitical risks, supply...
POSCO Holdings Posts Strong Q2 2026 Earnings and Advances Safety Strategy
Jul 30, 2026
POSCO Holdings reported provisional consolidated results for the second quarter of 2026 on July 30, showing broad-based earnings recovery across its steel, rechargeable battery materials and infrastructure segments. Group revenue rose to KRW 19.26...
POSCO Posts Q2 2026 Revenue Growth but Sharp Profit Declines
Jul 30, 2026
POSCO’s subsidiary POSCO reported provisional separate-basis earnings for the second quarter of 2026, showing revenue of KRW 9.42 trillion, up 5.4% from Q1 2026 and 5.2% year-on-year, with year-to-date revenue rising 2.4% to KRW 18.35 trilli...
POSCO Holdings Files 2025 Sustainability Report, Strengthens ESG Disclosure
Jul 10, 2026
POSCO Holdings filed its 2025 Sustainability Report on July 10, 2026, detailing its approach to sustainable management and ESG practices across its global operations. The report, verified by KPMG Samjong Accounting Corp., is prepared under GRI, SA...
POSCO Holdings Unveils Triple-Core Growth and Capital Strategy at 2026 CEO Investor Day
Jul 2, 2026
On July 2, 2026, POSCO Holdings outlined a mid- to long-term portfolio transformation and financial strategy at its CEO Investor Day in Seoul. The group plans a “Triple-Core” portfolio built around Industrial, Strategic and Energy Reso...
POSCO Updates Market on Undecided Review of Potential HMM Acquisition
Jun 30, 2026
POSCO Holdings Inc., the South Korean steel and materials giant, is assessing expansion opportunities that could strengthen its logistics footprint. The group remains focused on aligning potential deals with its long-term strategy and maintaining ...
POSCO Holdings Updates Stake of Largest Shareholder National Pension Service
Jun 24, 2026
POSCO Holdings reported a change in the ownership of its largest shareholder, the state-run National Pension Service of Korea, as of June 18, 2026. On that date, the National Pension Service held 6,576,661 common shares of POSCO Holdings, represen...
POSCO to Outline Portfolio Transformation at July CEO Investor Day
Jun 22, 2026
On June 22, 2026, POSCO Holdings announced plans to host its 2026 POSCO Group CEO Investor Day in Seoul on July 2, 2026, at the Conrad Seoul, targeting analysts, institutional investors and the press. The event is designed to present the groupR...
POSCO Holdings Discloses Fatal Industrial Accident at POSCO E&C Site
Jun 10, 2026
POSCO HOLDINGS reported that its subsidiary POSCO EC suffered a serious industrial accident on June 9, 2026, at the Shinansan Line Section 3-2 construction site in Korea, where a worker died after falling from height during electrical work prepara...
POSCO Holdings Files Q1 2026 Report Detailing Segment Results Amid Softer Global Steel Demand
May 29, 2026
POSCO HOLDINGS INC. filed a Form 6-K with the U.S. Securities and Exchange Commission on May 29, 2026, furnishing an English translation of its quarterly report for the period from January 1 to March 31, 2026. The filing outlines the company’...
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 ...
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.