Core Viewpoint - The article highlights POSCO (PKX) as a strong value stock, supported by various financial metrics indicating it is currently undervalued in the market [4][8]. Financial Metrics - PKX has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential for value investors [4][3]. - The stock's P/E ratio is 9.84, which is lower than the industry average of 10.40, suggesting it is undervalued [4]. - PKX's PEG ratio stands at 0.27, significantly lower than the industry average of 0.56, indicating favorable earnings growth relative to its price [5]. - The P/S ratio for PKX is 0.26, compared to the industry's average of 0.34, further supporting the notion of undervaluation [6]. - PKX's P/CF ratio is 4.13, much lower than the industry average of 15.79, highlighting its strong cash flow outlook [7]. Investment Outlook - The combination of these metrics suggests that PKX is likely undervalued and stands out as one of the strongest value stocks in the market, particularly given its positive earnings outlook [8].

POSCO (PKX) is ramping up its expansion in the energy sector by launching a carrier dedicated to liquefied natural gas (LNG), aiming to enhance the stability of its energy transportation amid increasing global supply chain uncertainties. On May 23, POSCO International hosted a naming ceremony for the group's first LNG carrier, the ‘HL FORTUNA,’ at HD Hyundai Samho shipyard in Mokpo, Jeollanam-do, South Korea.The development of this LNG carrier was made possible through a cross-industry collaboration involvi ...

Core Viewpoint - Posco's shares have recently declined by 7.8% over the past two weeks, but the formation of a hammer chart pattern suggests potential support and a possible trend reversal in the future [1][2]. Technical Analysis - A hammer chart pattern indicates a minor difference between opening and closing prices, with a long lower wick, suggesting that the stock may have found support after a downtrend [4][5]. - The occurrence of a hammer pattern at the bottom of a downtrend signals that bears may have lost control, indicating a potential trend reversal [5]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for Posco, with a 2.9% increase in the consensus EPS estimate for the current year over the last 30 days, indicating that analysts expect better earnings than previously predicted [7][8]. - Posco currently holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [9].

Core Viewpoint - The analysis compares Posco (PKX) and United States Steel (X) to determine which stock represents a better undervalued investment opportunity for investors in the Steel - Producers sector [1]. Valuation Metrics - Posco (PKX) has a forward P/E ratio of 11.10, significantly lower than United States Steel (X) which has a forward P/E of 26.45 [5]. - PKX's PEG ratio is 0.30, indicating a more favorable valuation compared to X's PEG ratio of 1.31 [5]. - PKX's P/B ratio stands at 0.30, while X has a P/B ratio of 0.86, suggesting that PKX is undervalued relative to its book value [6]. - Based on these metrics, PKX holds a Value grade of A, whereas X has a Value grade of C [6]. Earnings Outlook - PKX is currently experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7]. - The positive earnings estimate revisions for PKX indicate a stronger potential for earnings growth compared to X, which is rated as Hold [3][7].

Group 1: Investment Overview - POSCO Holdings announced a total investment of KRW 922.6 billion (approximately $660 million) to enhance competitiveness in its rechargeable battery material subsidiaries [1] - The investment includes KRW 525.6 billion for POSCO Future M, KRW 328 billion for POSCO Pilbara Lithium Solution, and KRW 69 billion for POSCO GS Eco Materials [1] Group 2: Strategic Intent - This investment is part of the company's strategy to prepare for significant market expansion following a slowdown in the electric vehicle sector [2] - POSCO Holdings aims to bolster future competitiveness in the battery materials industry and improve financial stability [2] Group 3: Specific Investments - POSCO Holdings plans to acquire the full allocation of new shares in POSCO Future M, corresponding to its 59.7% ownership [3] - The capital increase for POSCO Future M is expected to support ongoing investments to boost production capacity for anode and cathode materials, including a joint plant in Canada [4] - Investments in POSCO Pilbara Lithium Solution and POSCO GS Eco Materials are aimed at sustainable growth in lithium and recycling operations [5] Group 4: Market Performance - In the past year, shares of PKX have lost 39.7%, compared to the industry's decline of 36.5% [7]

Core Viewpoint - The article emphasizes the importance of value investing and highlights specific stocks, particularly POSCO (PKX) and SSAB (SSAAY), which are currently considered undervalued based on various financial metrics [2][3][8]. Company Analysis POSCO (PKX) - PKX holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential as a value stock [3]. - The PEG ratio for PKX is 0.30, significantly lower than the industry average of 0.57, suggesting it may be undervalued relative to its expected earnings growth [4]. - PKX has a P/S ratio of 0.27, compared to the industry average of 0.35, reinforcing its undervaluation based on revenue [5]. - The P/CF ratio for PKX is 4.40, which is attractive compared to the industry average of 14.50, indicating strong operating cash flow relative to its valuation [6]. SSAB (SSAAY) - SSAAY also holds a Zacks Rank of 2 (Buy) and a Value grade of A, making it another strong candidate for value investors [7]. - The P/B ratio for SSAAY is 0.90, which is lower than the industry average of 1.42, suggesting it may be undervalued [7]. Industry Insights - Both PKX and SSAAY are positioned within the Steel - Producers industry, which currently presents opportunities for value investors due to the identified undervaluation of these stocks based on key financial metrics [8].

Core Viewpoint - Investors in the Steel - Producers sector should consider Posco (PKX) and United States Steel (X) for potential value investment opportunities [1] Group 1: Zacks Rank and Value Scores - Posco has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision trend compared to United States Steel, which has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank strategy focuses on companies with positive earnings estimate revisions, while the Style Scores system evaluates companies based on specific traits [2] Group 2: Valuation Metrics - Posco's forward P/E ratio is 12.05, significantly lower than United States Steel's forward P/E of 26.61, suggesting that PKX may be undervalued [5] - Posco has a PEG ratio of 0.33, while United States Steel has a PEG ratio of 1.31, indicating that PKX is expected to grow earnings at a more favorable rate relative to its price [5] - Posco's P/B ratio is 0.33, compared to United States Steel's P/B of 0.84, further supporting the notion that PKX is undervalued [6] Group 3: Overall Assessment - Posco's improving earnings outlook and favorable valuation metrics suggest it is the superior value option compared to United States Steel [7]

Group 1 - Posco is a member of the Basic Materials sector, which includes 232 individual stocks and holds a Zacks Sector Rank of 5 [2] - Posco currently has a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - Over the past 90 days, the Zacks Consensus Estimate for Posco's full-year earnings has increased by 2.9%, reflecting improved analyst sentiment [3] Group 2 - Year-to-date, Posco has gained approximately 7.2%, outperforming the Basic Materials sector average gain of 4.3% [4] - Salzgitter AG is another stock in the Basic Materials sector that has significantly outperformed, with a return of 58.7% since the beginning of the year [4] - In the Steel - Producers industry, which includes 18 stocks, Posco is ranked 29 in the Zacks Industry Rank and has slightly underperformed the industry average gain of 9.4% this year [6] Group 3 - Both Posco and Salzgitter AG are expected to continue their solid performance, making them noteworthy for investors interested in Basic Materials stocks [7]

Core Points - POSCO Holdings Inc. filed its Annual Report on Form 20-F for the year ended December 31, 2024, with the U.S. Securities and Exchange Commission [1] - The 2024 Annual Report can be downloaded from the company's website and the SEC's website [1] - Investors can request a hard copy of the 2024 Annual Report free of charge [1]

Revenue Performance - The Steel Segment generated revenue of W 44,547 billion in 2022, which decreased to W 40,393 billion in 2023, and is projected to further decline to W 39,104 billion in 2024, maintaining a percentage of 52.4% of total revenue for both 2022 and 2023, and increasing to 53.2% in 2024[127]. - The Trading Segment of the Infrastructure Business reported revenue of W 29,518 billion in 2022, which fell to W 24,034 billion in 2023, and is expected to decrease slightly to W 22,804 billion in 2024, accounting for 34.7% of total revenue in 2022, 31.2% in 2023, and 31.0% in 2024[127]. - The Secondary Battery Materials Segment's revenue increased from W 2,452 billion in 2022 to W 3,816 billion in 2023, and is projected to decrease to W 2,813 billion in 2024, representing 2.9% of total revenue in 2022, 5.0% in 2023, and 3.8% in 2024[127]. - Revenue decreased by 4.7%, or W 3,597 billion, from W 77,057 billion in 2023 to W 73,459 billion in 2024, primarily due to declines in external revenues across multiple segments[277]. - Total revenue from the Trading Segment of the Infrastructure Business decreased by 0.1%, or W 40 billion, from W 42,944 billion in 2023 to W 42,903 billion in 2024[280]. - Total revenue from the Secondary Battery Materials Segment decreased by 20.6%, or Won 992 billion, from Won 4,822 billion in 2023 to Won 3,830 billion in 2024[287]. Production and Capacity - The company produced approximately 39.2 million tons of crude steel and stainless steel in 2024, with an annual production capacity of 45.1 million tons[137]. - The actual crude steel output for PT. Krakatau POSCO in 2023 was 3.01 million tons, maintaining a capacity utilization rate of 100.5%[238]. - The capacity utilization rate for Pohang Works was 87.7% in 2023, while Gwangyang Works had a rate of 86.6%[236]. - The actual crude steel and stainless steel output increased from 38.6 million tons in 2022 to 39.9 million tons in 2023, with a slight decrease to 39.2 million tons projected for 2024[261]. - The capacity utilization rate improved from 85.2% in 2022 to 88.1% in 2023, with a projected decrease to 87.1% in 2024[261]. Market Share and Sales - Domestic sales of the Steel Segment accounted for 37.2% of total revenue in 2024, down from 39.6% in 2023, while export sales accounted for 62.8% in 2024, up from 60.4% in 2023[139]. - POSCO's domestic market share for stainless steel products was approximately 49% in 2024[151]. - Deliveries of plates reached 4,694 thousand tons in 2024, accounting for 16.1% of total sales volume, with a domestic market share of approximately 43%[153]. - Deliveries of wire rods totaled 1,527 thousand tons in 2024, representing 5.2% of total sales volume, with a domestic market share of approximately 51%[155]. - POSCO held a domestic market share of approximately 52% in hot rolled products, 56% in cold rolled products, and 49% in stainless steel products in 2024[186]. Financial Performance - Operating profit under K-IFRS decreased by 38.4% from W 3,531 billion in 2023 to W 2,174 billion in 2024[270]. - Profit attributable to owners of the controlling company decreased by 33.7%, from W 1,698 billion in 2023 to W 1,125 billion in 2024[272]. - Gross profit decreased by 14.5%, or W 929 billion, from W 6,417 billion in 2023 to W 5,488 billion in 2024[272]. - The company's profit decreased by 45.6%, or Won 841 billion, from Won 1,846 billion in 2023 to Won 1,005 billion in 2024, with a profit margin decline from 2.4% to 1.4%[320]. - The effective tax rate decreased from 30.0% in 2023 to 24.2% in 2024, with income tax expense dropping by 59.3%, or Won 468 billion, from Won 789 billion to Won 321 billion[318]. Cost and Pricing - The cost of sales as a percentage of revenue increased from 91.0% in 2022 to 91.7% in 2023, with a projected increase to 92.5% in 2024[259]. - The weighted average unit price for the company's principal steel products decreased by 11.3% from 2022 to 2023, primarily due to continued weakness in global economic conditions[251]. - The unit sales price of plates decreased by 13.7% in 2023 compared to 2022, accounting for 16.2% of total sales volume of principal steel products[252]. - In 2024, the weighted average unit price for principal steel products is projected to decrease by 4.3% from 2023, with the average exchange rate depreciating from Won 1,305.4 to US$1.00 in 2023 to Won 1,364.0 to US$1.00 in 2024[254]. - The unit sales price of stainless steel products decreased by 13.4% in 2023 compared to 2022, accounting for 8.5% of total sales volume of principal steel products[252]. Strategic Initiatives - The company aims for a 30% reduction in carbon emissions by 2035, 50% by 2040, and net zero emissions by 2050 as part of its 2050 Carbon Neutrality Roadmap[130]. - POSCO Energy merged into POSCO International on January 1, 2023, impacting the revenue reporting of the Trading Segment[125]. - The company is actively exploring diversification opportunities in promising business areas through POSCO HOLDINGS INC.[129]. - The company intends to expand its operations in renewable energy businesses, including solar and wind energy[200]. - The company plans to continue optimizing its fleet of dedicated vessels and upgrading existing vessels with energy-saving technologies[178]. External Factors - The average market price of iron ore was US$109 per dry metric ton in 2024, while the average market price of coal was US$240 per wet metric ton[176]. - In 2024, POSCO imported approximately 49 million dry metric tons of iron ore and 26 million wet metric tons of coal[173]. - Approximately 30% of iron ore imports and 24% of coal imports were sourced from foreign mines in which POSCO has investments[175]. - The average market price of nickel per ton on the London Metal Exchange was US$25,605 in 2022, US$21,474 in 2023, and is projected to be US$16,812 in 2024[177]. - The largest export market in 2024 was Asia (excluding China and Japan), accounting for 23.2% of export revenue, while exports to China accounted for 20.7%[165][166].