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PKX vs. X: Which Stock Is the Better Value Option?
ZACKS· 2025-05-07 16:45
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]
Has POSCO (PKX) Outpaced Other Basic Materials Stocks This Year?
ZACKS· 2025-05-06 14:46
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]
POSCO HOLDINGS INC. Files its Annual Report on Form 20-F
Prnewswire· 2025-04-30 11:17
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]
POSCO(PKX) - 2024 Q4 - Annual Report
2025-04-30 00:17
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].
Should Value Investors Buy POSCO (PKX) Stock?
ZACKS· 2025-04-25 14:45
Core Viewpoint - The article emphasizes the importance of value investing and highlights POSCO (PKX) as a strong value stock based on its financial metrics and Zacks Rank [1][2][6]. Group 1: Value Investing Metrics - Value investing is a popular strategy that focuses on identifying undervalued stocks using fundamental analysis [2]. - The Zacks Rank system is utilized to find winning stocks based on earnings estimates and revisions [1]. - PKX currently holds a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential for value investors [3]. Group 2: Financial Ratios - PKX has a Price-to-Sales (P/S) ratio of 0.27, which is lower than the industry average of 0.33, suggesting it may be undervalued [4]. - The Price-to-Cash Flow (P/CF) ratio for PKX is 3.31, significantly lower than the industry average of 12.62, indicating a solid cash outlook [5]. - Over the past 12 months, PKX's P/CF has fluctuated between 2.84 and 6.29, with a median of 5.17, further supporting its valuation as attractive [5]. Group 3: Overall Assessment - The combination of PKX's strong earnings outlook and favorable financial metrics positions it as an impressive value stock at the moment [6].
POSCO(PKX) - 2025 Q1 - Earnings Call Transcript
2025-04-25 13:47
Financial Data and Key Metrics Changes - In Q1 2025, consolidated revenue reached KRW 17.4 trillion, and operating profit was KRW 570 billion, showing improvement from the previous quarter despite economic uncertainties [4][10] - Operating profit rebounded from KRW 95 billion to KRW 568 billion across all business segments, reaching the same level as the previous year [10][11] - EBITDA for the quarter was KRW 1.6 trillion, with consolidated CapEx amounting to KRW 1.5 trillion [10] Business Segment Data and Key Metrics Changes - The industrial segment's operating profit improved from 2.3% to 3% quarter-on-quarter, with an operating margin recovery to 3.9% [11] - The overseas steel business showed improvement due to strong performance in engine operations and reduced losses at the Zhangjiagang plant in China [11] - POSCO Future M's turnaround to profit led to a reduction of overall operating losses in energy materials by half quarter-on-quarter [11][24] Market Data and Key Metrics Changes - The domestic steel market is showing moderate signs of stability, with iron ore and coking coal prices stabilizing [4][5] - POSCO's crude steel output declined by 5.5% quarter-on-quarter due to maintenance works, but selling prices slightly increased, and raw material costs remained stable [21] - The Indian subsidiary has expanded sales of high-margin products, while losses in China's Zhangjiagang plant have reduced due to rising regional stainless steel prices [23] Company Strategy and Development Direction - The company signed an MOU with Hyundai Motor Group to enhance collaboration in the future mobility materials business and to jointly invest in a steelmaking plant in the US [6][7] - POSCO is focusing on upstream expansion in India, the US, and Indonesia, with plans to establish a specialized automotive steel sheet company in India [14][15] - The company aims to comply with the USMCA "melted and poured" origin rule to ensure reliable supply of steel products to its auto panel manufacturing plant in Mexico [8][15] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the future, indicating that while Q1 results are not conclusive for recovery, there are positive signals [5][6] - The management acknowledged the challenges posed by the global tariff war and economic uncertainties but emphasized ongoing restructuring efforts to improve performance [3][39] - Future profitability in energy materials is expected to stabilize by 2027 as plants reach stable operations [42] Other Important Information - The company divested six underperforming assets in Q1, raising KRW 286.6 billion, contributing to a cumulative cash generation of KRW 949.1 billion since last year [17] - The CapEx plan for 2025 is set at KRW 8.8 trillion, with allocations of 43% to steel, 34% to energy materials, and 17% to infrastructure [19][20] - The company is actively pursuing ESG-related initiatives, including establishing a Human Rights Management framework aligned with global standards [29] Q&A Session Summary Question: Plans for improving performance of low-performing businesses like PZSS in China - Management acknowledged the overcapacity in the stainless steel market in China and indicated ongoing restructuring efforts, with a need to assess the situation further [38][39] Question: Projections for energy materials revenue and operating profits - Management stated that while initial stages of operation are causing losses, they expect to see profitability starting in the latter part of next year as customer certifications are achieved [41][42] Question: Update on capital raising for POSCO Future M - Management confirmed that they are exploring various financing options, including potential additional capital raising, due to higher-than-anticipated CapEx needs [44] Question: Impact of trade barriers on sales volume - Management explained that the impact varies by region, with some overseas operations potentially benefiting from tariff changes, while others may face challenges [64][66] Question: Progress on integrated mill investment in India - Management confirmed that the total investment is approximately KRW 11 trillion, with plans to implement it over five years, and they are currently finalizing the site selection [55][117] Question: Updates on lithium price projections - Management indicated that while there is a projected gradual price increase due to rising demand, uncertainties from tariff policies complicate predictions [71][72] Question: Financial evaluation of AD filings for heavy plates - Management noted that retail prices are rising post-AD filings, and negotiations with clients are ongoing, aligning with current market trends [122] Question: Acquisition of additional lithium assets - Management confirmed they are leveraging current market conditions to acquire prime lithium assets, but specific details cannot be disclosed at this time [124]
POSCO(PKX) - 2025 Q1 - Quarterly Report
2025-05-30 17:44
Share Capital and Structure - The total number of issued shares decreased from 84,571,230 to 82,624,377 due to the cancellation of treasury shares, with no change in share capital of KRW 482,403 million[19]. - The number of shares with voting rights is 75,620,779, after accounting for 7,003,598 shares classified as treasury stock[26]. - The company has not made any changes to its share capital in the last five years[16]. - The company’s treasury shares decreased from 8,695,023 to 7,003,598 after the cancellation of shares[23]. - The par value of common stock remains at KRW 5,000 per share[18]. Business Operations and Subsidiaries - The company reported a total of 193 consolidated subsidiaries as of December 31, 2024, an increase of 2 from the previous year[10]. - The company has 6 listed subsidiaries and 187 unlisted subsidiaries as of December 31, 2024[10]. - The company engaged in a vertical spin-off in March 2022, resulting in the formation of POSCO HOLDINGS INC. and a focus on managing the group's businesses[15]. - The company’s business scope has expanded to include management and licensing of intellectual property rights and investment in new technology[8]. Financial Performance - Consolidated profit for 2024 decreased to KRW 1,094,917 million, down 35.5% from KRW 1,698,092 million in 2023[28]. - Earnings per share (consolidated) fell to KRW 14,451, a decline of 35.4% compared to KRW 22,382 in 2023[28]. - Total revenue for 2024 was KRW 72,688,143 million, a decrease of 5.6% from KRW 77,127,197 million in 2023[182]. - Operating profit for 2024 was KRW 2,173,573 million, down 38.4% from KRW 3,531,423 million in 2023[182]. - Profit attributable to owners of the controlling company for 2024 was KRW 1,094,917 million, a decline of 35.5% compared to KRW 1,698,092 million in 2023[182]. - Total gross sales for the company in 2024 amount to 622,009 million KRW, down from 635,387 million KRW in 2023[156]. - Total current assets decreased to KRW 44,029,923 million in 2024 from KRW 46,212,299 million in 2023, reflecting a decline of 4.7%[181]. - Total assets increased to KRW 103,404,199 million in 2024, up from KRW 100,945,394 million in 2023, representing a growth of 2.4%[181]. - Total liabilities increased to KRW 41,953,831 million in 2024 from KRW 41,281,497 million in 2023, marking a rise of 1.6%[181]. Market and Production Insights - Global crude steel production in 2024 is projected at 1,839 million tons, a decrease from 1,850 million tons in 2023, reflecting a 0.6% decline[42]. - POSCO's market share in crude steel production for 2024 is 55%, maintaining its position as a leading producer[49]. - The total sales for the steel segment in 2024 were KRW 62,200,920 million, with an operating income of KRW 1,636,808 million, down from KRW 63,538,698 million and KRW 2,556,779 million in 2023[36]. - The infrastructure (trading) segment reported sales of KRW 42,903,253 million with an operating loss of KRW 1,113,710 million, slightly down from KRW 42,943,752 million and an operating loss of KRW 1,133,512 million in 2023[36]. - POSCO's crude steel production for 2024 is projected at 39,281 thousand tons, a slight decrease from 39,941 thousand tons in 2023[124]. - The utilization rate for POSCO's crude steel production is 86.6% for 2024, with a total capacity of 40,461 thousand tons[126]. Investments and Future Plans - The company plans to enhance its low-carbon product portfolio and aims to produce high value-added products starting in 2026 using a newly established electric furnace[51]. - The company aims to expand motor core production for electric vehicles to 7 million units by 2030[69]. - The company plans to achieve a three-fold increase in gas production in Australia by 2025 following the acquisition of Senex Energy[72]. - The company plans to invest KRW 926,302 million in the 4th stage development of the Myanmar gas field from July 2024 to June 2027[173]. - The company plans to expand its Gwangyang LNG terminal with an investment of 8,733 million KRW, of which 3,430 million KRW has already been invested[153]. Environmental and Sustainability Efforts - The onshore wind power complex in South Korea generates approximately 120,000 MWh of clean energy annually, reducing carbon dioxide emissions by about 49,000 tons[72]. - The company has established multiple R&D centers focusing on low-carbon processes and secondary battery materials to enhance innovation[176]. - The company plans to publish a sustainability report for 2023 and has approved the publication plan[197]. - The company has reported on the Group-wide ESG performance for Q1 2024 and is reviewing its ESG management plan for 2024[197]. Dividends and Shareholder Returns - The pay-out ratio for dividends increased to 69.2% in 2024, up from 44.7% in 2023, reflecting a commitment to returning value to shareholders[28]. Miscellaneous - The company approved the 56th financial statements and scheduled the general meeting of shareholders for March 21, 2024[193]. - The company is participating in the acquisition of hybrid bonds issued by POSCO Future M and has approved the transfer of steel-related business previously owned by POSCO Holdings[194]. - Currency swap valuation gains at the end of December 2024 amounted to KRW 548,353 million, with transaction gains of KRW 79,988 million[167]. - The company has approved the appointment of a Compliance Officer and the establishment of a Greenwashing Review Committee[197][199].
POSCO(PKX) - 2024 Q4 - Annual Report
2025-03-17 18:01
Ta b l e o f C o n t e n t s E x h i b i t 9 9 . 1 P O S C O H O L D I N G S I N C . a n d i t s s u b s i d i a r i e s C o n s o l i d a t e d fi n a n c i a l s t a t e m e n t s fo r t h e y e a r e n d e d D e c e m b e r 3 1, 2 0 2 4 w i t h t h e i n d e p e n d e n t a u d i t o r's r e p o r t Table of Contents Table of Contents | | Page | | --- | --- | | Independent Auditor's Report | 1 | | Consolidated Financial Statements | | | Consolidated Statements of Financial Position | 7 | | Consolidated S ...
POSCO Holdings: A Value Stock With Consistent Profitability
Seeking Alpha· 2025-03-02 14:36
Ryan Messick brings an analytical and fundamentally-driven approach to value investing, prioritizing companies with a strong margin of safety and growth catalysts. He models his approach on the legendary Benjamin Graham, updating his strategies for modern times while still using the core principles Graham taught. Other influences on Ryan's investing philosophy and strategy include Warren Buffett, Charlie Munger, and Joel Greenblatt.Ryan provides analysis on companies he has researched, mostly focusing on mi ...
POSCO(PKX) - 2024 Q4 - Earnings Call Transcript
2024-02-02 15:18
POSCO Holdings Inc. (NYSE:PKX) Q4 2024 Results Conference Call January 31, 2024 1:00 AM ET Company Participants Ki-Seop Jeong - CSO Ban Don-ho - CEO Byeong-Og Yoo - Head-Green Materials & Energy Business Kim Kyung-Han - Head-International Trade Affairs Office Kyung-Sub Lee - Co-Chief-LiB Materials Business & Executive Officer Seung-Jun Kim - Executive Officer & Head of Finance Team Suh Ji-Won - Head-Raw Materials Office Young-Ah Han - Head-IR Team, Executive Officer & SVP Conference Call Participants Eugene ...