POSCO Holdings Inc. (PKX)
Valuation Overview•Is POSCO Holdings Inc. Overvalued or Undervalued?
Trading at a relative discount to industry peers, suggesting a specific risk premium is applied.
Fragile underlying quality score of 26/100; weak margins or elevated debt leverage warrant caution.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Mixed fundamental profile with offsetting strengths and weaknesses.
Wall Street is highly bullish, projecting significant upside alongside robust expected earnings growth. However, capital return yields remain modest, anchored by a strong, well-covered dividend yield.
PKX struggles with subpar profitability and pressured margins. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company is facing top-line contraction (-6.6% 3Y CAGR) however, earnings have severely contracted over the same period. However, profitability remains a major concern with severely compressed operating margins (3.8%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $11.6B | -5.1% | -6.6% | +3.6% | +1.7% | |
| EBITDA | $749.8M | — | -12.1% | — | — | |
| Net Income | -$155.6M | -36.9% | -39.7% | — | +14.4% | |
| EPS (Diluted) | $-0.13 | -83.4% | -62.7% | -36.8% | +1.0% | |
| Free Cash Flow | $330.5B | +27.9% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 7.9% | 7.7% | 9.5% | 10.4% |
| Operating Margin | 3.8% | 3.6% | 5.9% | 6.2% |
| Net Margin | 1.7% | 1.6% | 3.4% | 3.2% |
| FCF Margin | -2.8% | -1.7% | -0.1% | 2.9% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.86 | $1.01 | +17.6% | ||
| Q2'26 | $0.80 | $1.01 | +26.4% | ||
| Q1'26 | $1.03 | $-0.61 | -159.2% | ||
| Q1'26 | $1.03 | $-0.61 | -159.2% | ||
| Q4'25 | $0.90 | $0.94 | +4.9% | ||
| Q3'25 | — | $0.36 | — | ||
| Q3'25 | $0.79 | $0.35 | -55.4% | ||
| Q3'25 | — | $0.64 | — |
Total return is +31.9% (1Y), outperforming the benchmark by +6.9%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +14.9% | +5.6% | — |
| 1Y | +31.9% | +6.9% | +3.4% |
| 3YCAGR | -4.1% | -22.8% | +7.1% |
| 5YCAGR | -0.5% | -12.6% | +14.8% |
| 10YCAGR | +6.3% | -6.8% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about POSCO Holdings Inc. (PKX) valuation, health, and returns.
POSCO Holdings Inc. is estimated to be fairly valued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. trading near fair value (DCF: $0.00)
POSCO Holdings Inc. has multiple valuation anchors: DCF Intrinsic Value: $0.00 | Peer Relative Fair Value: $56253.79 | Wall Street Analyst Target: $77.00 (implying +26.9% upside). A convergence of these signals offers higher conviction.
POSCO Holdings Inc. displays weak financial health with a composite quality score of 26/100, supported by a Altman Z-Score of 1.3 (distress zone), Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of 1.7%.
POSCO Holdings Inc. pays a 0.8% dividend yield, covered by a 133% payout ratio with 0 years of growth, supplemented by a 0.0% buyback yield.
POSCO Holdings Inc.'s current growth trajectory is Stable. The company achieved -5.1% 1Y revenue growth and -83.4% 1Y EPS growth, compared to its 3Y revenue CAGR of -6.6%.
Wall Street consensus is Buy based on 9 analysts, beating EPS expectations in 42% of recent quarters with a 2-quarter streak. The consensus price target represents a +26.9% change from current levels.
Investment risks for POSCO Holdings Inc. include: -36.0% 1-year max drawdown, high beta (1.31x market volatility), elevated distress risk, stretched payout ratio. Volatility risk is characterized by a beta of 1.31x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.