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POSCO (PKX)
NYSE:PKX

POSCO (PKX) AI Stock Analysis

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PKX

POSCO

(NYSE:PKX)

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Neutral 60 (OpenAI - 4o)
Rating:60Neutral
Price Target:
$53.00
▲(3.09% Upside)
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 (PKX) vs. SPDR S&P 500 ETF (SPY)

POSCO Business Overview & Revenue Model

Company DescriptionPOSCO 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 and cold rolled steel, steel plates, wire rods, galvanized sheets, electrical steel, stainless steel, and titanium. It also engages in the design, manufacture, and construction of steel mills and their facilities, and commercial and residential facilities; export and import of raw materials, as well as provision of supply and purchase transactions between domestic and foreign companies, and various steel products; power generation activities; and provision of network, system integration, and logistics services. In addition, the company is involved in the engineering and construction; research and consulting; architectural design and supervision; investment in venture, energy, and technology industries; electronic commerce; intellectual property services and consulting; transporting and warehousing; real estate development, rental, sale, and management; and education and real estate business. Further, it engages in the resource development; mine development; business facility maintenance; fuel cell; iron ore and coal sales; anode reproduction; and cargo handling business, as well as operates housing business agency. Additionally, the company is involved in the IT service and DVR; electric control engineering; forest resources development; refractory materials sales and furnace maintenance; quicklime manufacturing and sales; wastewater treatment operation and maintenance; rice processing; grain sales; and social enterprise businesses. POSCO Holdings Inc. was incorporated in 1968 and is headquartered in Pohang, South Korea.
How the Company Makes MoneyPOSCO 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 Earnings Call Summary

Earnings Call Date:Apr 24, 2025
(Q1-2025)
|
% Change Since: |
Next Earnings Date:Jan 29, 2026
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 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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue70.06T72.69T77.13T84.75T76.33T57.79T
Gross Profit5.20T5.39T6.39T7.62T11.86T4.71T
EBITDA6.08T6.11T7.09T8.53T12.83T5.97T
Net Income454.78B1.09T1.70T3.14T6.62T1.60T
Balance Sheet
Total Assets10.00T>10.00T>10.00T>98.41T91.47T79.09T
Cash, Cash Equivalents and Short-Term Investments15.84T14.80T17.91T18.74T18.16T16.36T
Total Debt27.59T26.90T25.90T22.83T21.53T20.17T
Total Liabilities10.00T>41.95T41.89T40.15T36.67T31.41T
Stockholders Equity55.62T55.39T54.15T52.51T50.43T44.33T
Cash Flow
Free Cash Flow-555.67B-1.01T-1.06T766.31B2.75T5.19T
Operating Cash Flow4.68T6.66T6.17T6.19T6.26T8.69T
Investing Cash Flow-6.32T-4.49T-7.39T-4.22T-5.58T-6.26T
Financing Cash Flow856.69B-2.30T-178.59B1.32T-768.67B-1.09T

POSCO Technical Analysis

Technical Analysis Sentiment
Positive
Last Price51.41
Price Trends
50DMA
53.41
Positive
100DMA
52.36
Positive
200DMA
50.97
Positive
Market Momentum
MACD
-0.04
Positive
RSI
52.80
Neutral
STOCH
48.55
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 51.41 is below the 20-day moving average (MA) of 53.11, below the 50-day MA of 53.41, and above the 200-day MA of 50.97, indicating a bullish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 52.80 is Neutral, neither overbought nor oversold. The STOCH value of 48.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
74
Outperform
$37.48B23.017.98%1.34%1.66%-31.25%
74
Outperform
$25.14B22.4612.47%1.11%-1.49%-31.82%
74
Outperform
$16.15B22.599.94%1.63%-0.88%-25.15%
71
Outperform
$35.02B14.284.72%1.03%-4.51%
68
Neutral
$7.86B13.694.80%7.02%-16.69%585.38%
61
Neutral
$10.43B7.12-0.05%2.87%2.86%-36.73%
60
Neutral
$15.61B50.280.78%3.22%-8.97%-67.03%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PKX
POSCO
53.80
9.38
21.12%
MT
ArcelorMittal
47.85
25.85
117.50%
NUE
Nucor
165.97
44.65
36.80%
RS
Reliance Steel
310.06
39.88
14.76%
STLD
Steel Dynamics
169.35
47.49
38.97%
TX
Ternium SA
40.47
13.86
52.09%

POSCO Corporate Events

POSCO Clarifies HMM-Related Reports, Confirms Preliminary U.S. Expansion Talks With Cleveland-Cliffs
Jan 5, 2026

On January 5, 2026, POSCO Holdings filed a report with the U.S. Securities and Exchange Commission clarifying a December 5, 2025 article in Maeil Business Newspaper concerning a high-profile 10 trillion won takeover battle for shipping company HMM involving businessman Kim Jae-chul. POSCO stated that, as part of its steel business strategy to pursue overseas growth and expand in the high-profit U.S. market, it has signed a memorandum of understanding with U.S. steelmaker Cleveland-Cliffs and is discussing potential equity ownership and investment size, but emphasized that no decisions have yet been finalized and the situation remains undetermined. The company indicated it will provide an additional disclosure once specific terms are decided or by April 1, 2026, underscoring that any prospective deal could be strategically significant for its U.S. expansion but is still at a preliminary stage for investors and other stakeholders.

The most recent analyst rating on (PKX) stock is a Hold with a $53.00 price target. To see the full list of analyst forecasts on POSCO stock, see the PKX Stock Forecast page.

POSCO Clarifies Status of Potential HMM Acquisition, Says No Decision Yet
Dec 31, 2025

On December 31, 2025, POSCO Holdings filed a report addressing a September 5, 2025 Korea Economic Daily article that suggested the group was a potential bidder for shipping line HMM. The company stated that the POSCO Group is conducting only a preliminary assessment of a possible HMM acquisition to evaluate strategic synergies and alignment with its long-term business goals, and emphasized that no decision has yet been made on whether to participate in any transaction. POSCO said it would provide an additional update when concrete decisions are reached or by June 30, 2026, signaling to investors and other stakeholders that the HMM situation remains exploratory rather than a committed deal at this stage.

The most recent analyst rating on (PKX) stock is a Hold with a $53.00 price target. To see the full list of analyst forecasts on POSCO stock, see the PKX Stock Forecast page.

POSCO Holdings Reports Fatal Industrial Accident at POSCO E&C Shinansan Line Site
Dec 19, 2025

On December 18, 2025, a serious industrial accident occurred at POSCO Holdings’ construction subsidiary POSCO E&C on the Shinansan Line Section 4-2 tunnel project, where a worker was fatally struck and two others injured by a falling reinforcing bar installed at the top of the tunnel. The incident was reported the same day to the Ministry of Employment and Labor, which, along with the police, conducted an on-site inspection and prompted the Seoul Regional Employment and Labor Office’s Southern Branch to order a partial suspension of all lining operations in Section 4-2, signaling potential operational disruption and increased regulatory scrutiny for POSCO E&C’s rail infrastructure activities as the company prepares measures to prevent recurrence.

The most recent analyst rating on (PKX) stock is a Hold with a $53.00 price target. To see the full list of analyst forecasts on POSCO stock, see the PKX Stock Forecast page.

POSCO Announces Strategic Investment in US Steel Mill
Dec 16, 2025

On December 16, 2025, POSCO Holdings Inc. announced its decision to acquire shares in a new venture, POS-Louisiana, to build an electric arc furnace steel mill in Louisiana, USA. This strategic investment, amounting to approximately USD 582 million, is part of a collaboration with Hyundai Motor Group to enhance their presence in the North American steel market and support sustainable automotive steel production. The acquisition is scheduled to be completed by the end of 2027, with POSCO establishing a wholly-owned subsidiary to facilitate this investment.

The most recent analyst rating on (PKX) stock is a Hold with a $53.00 price target. To see the full list of analyst forecasts on POSCO stock, see the PKX Stock Forecast page.

POSCO Updates Dividend Record Date for FY2025
Dec 12, 2025

POSCO Holdings Inc. announced a change in its dividend distribution procedure for the fiscal year 2025. The record date for year-end dividends will now be determined by the Board of Directors rather than being fixed at the end of the fiscal year. This change, decided at the Annual General Meeting in March 2023, allows investors to make informed decisions based on known dividend amounts. The record date for the year-end dividends will be set in February 2026, and shareholders must be listed on the registry by this date to be eligible for dividends.

The most recent analyst rating on (PKX) stock is a Hold with a $53.00 price target. To see the full list of analyst forecasts on POSCO stock, see the PKX Stock Forecast page.

POSCO Addresses HMM Acquisition Rumors and US Expansion Plans
Dec 8, 2025

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.

The most recent analyst rating on (PKX) stock is a Hold with a $53.00 price target. To see the full list of analyst forecasts on POSCO stock, see the PKX Stock Forecast page.

POSCO Reports Q3 2025 Results Amid Global Steel Production Decline
Nov 28, 2025

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.

The most recent analyst rating on (PKX) stock is a Hold with a $53.00 price target. To see the full list of analyst forecasts on POSCO stock, see the PKX Stock Forecast page.

POSCO Announces Q3 2025 Cash Dividend
Nov 12, 2025

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.

The most recent analyst rating on (PKX) stock is a Hold with a $53.00 price target. To see the full list of analyst forecasts on POSCO stock, see the PKX Stock Forecast page.

POSCO Holdings to Acquire 30% Stake in Australian Lithium Venture
Nov 12, 2025

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.

The most recent analyst rating on (PKX) stock is a Hold with a $53.00 price target. To see the full list of analyst forecasts on POSCO stock, see the PKX Stock Forecast page.

POSCO Reports Serious Industrial Accident at Pohang Plant
Nov 5, 2025

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.

The most recent analyst rating on (PKX) stock is a Hold with a $53.00 price target. To see the full list of analyst forecasts on POSCO stock, see the PKX Stock Forecast page.

POSCO Holdings Reports Q3 2025 Earnings and Advances Safety Initiatives
Oct 27, 2025

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.

The most recent analyst rating on (PKX) stock is a Hold with a $53.00 price target. To see the full list of analyst forecasts on POSCO stock, see the PKX Stock Forecast page.

POSCO Reports Q3 2025 Earnings with Increased Profitability Amid Revenue Decline
Oct 27, 2025

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.

The most recent analyst rating on (PKX) stock is a Hold with a $53.00 price target. To see the full list of analyst forecasts on POSCO stock, see the PKX Stock Forecast page.

POSCO to Announce Q3 2025 Earnings on October 27
Oct 14, 2025

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.

The most recent analyst rating on (PKX) stock is a Hold with a $46.00 price target. To see the full list of analyst forecasts on POSCO stock, see the PKX Stock Forecast page.

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: Oct 17, 2025