POSCO Holdings PKX
South KoreaBasic Materials · SteelUSD
68.04 USD (+20.9%)
1 analysts
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POSCO Holdings is a South Korean conglomerate whose main business is steel production, with integrated operations ranging from raw material extraction to the manufacturing of high value-added steel products.
Key points
from its scores- ✓Strong growth7.2
- ✓Attractive dividend7.2
- ✕Unfavourable risk and backdrop0.3
- ✕Little competitive advantage1.4
- !Balance sheet could be stronger5.4
AI analysis
bottom line, main risk, context and newsThe cheap valuation does not compensate for low quality and cycle risk, and governance in South Korea adds an additional discount.
POSCO Holdings shows an attractive valuation (P/E 17.92, EV/EBITDA 6.47) and strong earnings growth (328.3%), but quality is poor (ROE 2.21%, gross margin 7.87%) and free cash flow conversion is negative (-55.59%), reflecting a cyclical business at a peak that may not be sustainable.
The main risk is the cyclical nature of steel: current earnings (growth of 328%) are at a peak that will likely reverse, and weak free cash flow conversion (-55.59%) limits the ability to maintain the dividend if the cycle turns.
Context and risks
POSCO Holdings operates in South Korea, a market with weak institutional governance and limited minority shareholder protection, adding significant governance risk. Additionally, its steel business is energy-intensive and depends on shipping routes for raw materials, exposed to geopolitical disruptions such as the Strait of Hormuz blockade and Red Sea attacks.
Is POSCO Holdings stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 21% below the Basic Materials median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 17.9 | 19.2 | −7% |
| EV / EBITDA | 6.5 | 10.0 | −35% |
| Price / book | 0.4 | 2.3 | −82% |
| Price / sales | 0.3 | 2.2 | −85% |
Sector: median of the 141 Basic Materials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 6.5 out of 10 (median for Basic Materials: 5.8).
Average analyst target: 68.04 USD, +20.9% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 5.4 (sector 7.1), Growth 7.2 (sector 6.8).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Basic Materials medianValuation
- P/E
- 17.9
- Forward P/E
- 9.8
- EV / EBITDA
- 6.5
- Price / book
- 0.4
- Price / sales
- 0.3
- PEG
- 0.89
- Market cap
- 17.0B USD
- Enterprise value
- 40.28T KRW
Profitability
- ROE
- 2.2%
- ROA
- 1.3%
- ROIC (approx.)
- 3.5%
- Gross margin
- 7.9%
- Operating margin
- 4.3%
- Net margin
- 1.9%
- Free cash flow
- −3.46T KRW
- FCF yield
- −15.2%
- Cash conversion
- −56%
Solvency
- Total debt
- 31.83T KRW
- Net debt
- 17.53T KRW
- Cash
- 14.30T KRW
- EBITDA
- 6.23T KRW
- Net debt / EBITDA
- 2.81
- Debt / equity
- 49.60
- Current ratio
- 1.98
- Quick ratio
- 1.29
Growth
- Revenue growth
- +9.7%
- Earnings growth
- +328.3%
- EPS (TTM)
- 3.14 USD
- EPS (forward)
- 5.77 USD
Dividend
- Dividend yield
- 2.8%
- Payout
- 51.6%
Risk and market
- Beta
- 1.68
- Analyst consensus
- none (1)
- Target price
- 68.04 USD
- 52-week range
- 44.99 – 92.40
Recent news
All PKX news →Compare it with its sector
All 141 in Basic Materials →Frequently asked questions about POSCO Holdings
Is POSCO Holdings stock cheap or expensive?
On P/E and EV / EBITDA, it trades 21% below the Basic Materials median on average. Valuation score: 6.5 out of 10 (median for Basic Materials: 5.8). Average analyst target: 68.04 USD, +20.9% versus the price. This is not investment advice.
What score does POSCO Holdings get on MeridIAn Screener?
It scores 4.4 out of 10, rank 1,907 of 2,130 (better than 10% of the companies analysed). Its strongest category is Growth (7.2) and its weakest, Risk & Context (0.3). Analysis of 08/10/2026.
What is POSCO Holdings's P/E ratio?
Its P/E is 17.9: the share price equals 17.9 times earnings per share over the last 12 months. The Basic Materials median is 19.2. Based on the earnings analysts expect, the forward P/E is 9.8.
How much is POSCO Holdings worth on the stock market?
Its market capitalisation is 17.0B USD and its enterprise value, debt included, is 40.28T USD.
How much debt does POSCO Holdings have?
Its net debt (debt minus cash) is 17.53T KRW. That is 2.81 times its EBITDA; the Basic Materials median is 1.41.
Does POSCO Holdings pay a dividend?
Yes: its dividend yield is 2.76% and it pays out 52% of its earnings.
How has POSCO Holdings stock performed over the last year?
It has risen 24.7% over the last year, excluding dividends. Over the last 52 weeks it has traded between 44.99 and 92.40 USD. Past performance does not guarantee future results.
What do analysts think of POSCO Holdings?
1 analysts cover it; their average recommendation is “none” and their average target is 68.04 USD (+20.9% versus the price). It is an estimate, not market data.