POSCO Future M draws most of its revenue from cathode materials used in electric-vehicle and electronics batteries, and it is effectively the only Korean maker that mass-produces synthetic-graphite anode material, with base materials such as needle coke and refractories made from steelmaking byproducts adding steady cash on the second leg. In March it signed a ₩1.0149 trillion synthetic-graphite anode contract with a global automaker (34.5% of recent annual revenue, supply running 2027-2032), unveiled a plant expansion in Vietnam and a 2027 revenue target of ₩8.3 trillion, and in Q1 2026 kept its recovery going, filling half of last year's full-year operating profit in a single quarter. The strengths are its unique anode mass-production capability, large long-term orders and expansion, and a P/B of 4.36x that is lower than peers on an asset-value basis. The cautions are two straight years of declining revenue, a 224.8% debt ratio, and interest coverage below 1x.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 224.8%).
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue fell 20.6% year over year (3-year trend: falling).
- Net profit swung from a loss a year earlier back into the black (a turnaround).
- Most recent quarter (Q1 2026) revenue was 10.4% lower than a year earlier.
- ROE is 0.8% (controlling-interest basis). It is below the sector average.
- Operating margin is 1.1%.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder POSCO Holdings 58.2% (corporate)
Controlling bloc incl. related parties 60.6%
With the controlling bloc holding 61%, control is very secure but the free float is thin.
🔎 In-depth analysis
- POSCO Future M makes the core materials that go into electric-vehicle and electronics batteries.
- Its largest business is cathode material, the ingredient that acts directly when a battery stores and releases energy, and it accounts for most of the company's revenue.
- The second pillar is anode material, the ingredient that holds electricity as a battery charges, and the company is effectively the only Korean maker that mass-produces synthetic-graphite anode material.
- On top of that, a base-materials business built from steelmaking byproducts, such as needle coke and refractories, provides a long-standing source of cash as a foundation.
- In short, EV battery materials (cathodes and anodes) are the growth engine, and the steel-affiliated base materials add steady cash on a two-legged structure.
- The latest close is ₩146,000 and the market cap is ₩13.0 trillion.
- The price sits below its 20-day line (₩178,565) and its 60-day line (₩218,430).
- Trading below both its short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a gauge that weighs 14 days of gains against losses on a 0-100 scale) is 31.6, a neutral level.
- The stock is down 22.2% over one month and 30.1% over three months, and stands 50.7% below its 52-week high.
- Relative strength versus the KOSPI is 28 (1-99, a return-versus-index measure over the past year weighted toward recent performance; higher means stronger than the market), placing it in roughly the top 72% of all stocks by strength.
- Over the past three months it lagged the index by 45.9%.
- Chart reading is best done alongside trading volume and the dates of disclosures.
- The P/E (how many times one year of net profit the price trades at) computed on finalized 2025 full-year results comes out at a very high 402.54x.
- But that reflects 2025 net profit of only ₩32.3 billion, still in the early stage of recovery, so a single snapshot like this is a poor gauge of fair value.
- The forward P/E on this year's results is also still high, because the company is at a turning point where profit has only just left the bottom and the denominator is still small.
- The P/B (how many times net assets the price reflects) is 3.19x, which is actually low against the same business group (7-9x).
- ROE (how much it earns on equity in a year) is 0.8% and the operating margin is 1.1%, so profitability from working its capital is still at an early recovery level.
- The debt ratio (debt against equity) is 224.8%, meaning debt somewhat exceeds equity, and interest coverage (how far operating profit can cover interest) is below 1x, so a year of operating profit is tight for covering all interest.
- Meanwhile, Q1 2026 operating profit of ₩17.7 billion filled half of 2025's full-year operating profit (₩32.8 billion) in one quarter, so the profit trend itself is clearly climbing above last year's bottom.
- On asset value (P/B) it sits low versus peers, while on the earnings multiple (P/E) the recovery still needs to fill in before it comes down to a normal range.
- The top line is clearly on a shrinking trend.
- Annual revenue fell for two straight years, from ₩4.8 trillion in 2023 to ₩3.7 trillion in 2024 to ₩2.9 trillion in 2025, and Q1 2026 revenue of ₩757.5 billion was down 10.4% from the same period a year earlier.
- Slowing sales of its mainstay cathode material are the main reason behind the top-line decline.
- Profit, by contrast, has turned up off the bottom.
- Operating profit nearly vanished at ₩0.7 billion in 2024 before recovering to ₩32.8 billion in 2025, and net profit swung from a ₩212.3 billion loss in 2024 to a ₩32.3 billion profit in 2025.
- In Q1 2026 operating profit rose to ₩17.7 billion, up year on year, filling half of last year's full-year figure in one quarter, which shows the profit recovery continuing on a quarterly basis (net profit, however, was ₩6.3 billion and swings from quarter to quarter due to non-operating items).
- The picture ahead comes from two tracks the company has laid down itself.
- One is the trillion-won-scale long-term anode supply contract signed in March 2026, a new revenue base to make up for the shrunken cathode top line.
- The other is the Vietnam anode expansion that broadens its production footprint.
- In line with these, the company has disclosed a medium-term target of growing revenue from ₩4.8 trillion in 2023 to ₩8.3 trillion in 2027.
- In short, this year still carries the effect of the cathode slowdown on the top line, but profit is recovering past the bottom, while anode orders and expansion build the foundation for the next stage of growth.
- The through-line of recent disclosures is 'offsetting the cathode slowdown with anodes.' On March 16, 2026, the company signed a contract to supply synthetic-graphite anode material for secondary batteries worth ₩1.0149 trillion to a global automaker.
- That is a large deal equal to 34.5% of recent annual revenue, with supply running from October 2027 to September 2032.
- On the 26th of the same month, it voluntarily disclosed a corporate-value enhancement plan setting medium-term targets of ₩8.3 trillion in 2027 revenue and a 3.7% ROIC.
- On April 27 it decided to set up a new synthetic-graphite anode production entity in Vietnam and to invest about US$242 million, formally confirming the move to broaden its anode production footprint overseas.
- On April 30 it fair-disclosed preliminary Q1 2026 results, and on May 15 the quarterly report published the finalized results and financial position in full.
- In short, the aim is to fill the shrunken cathode top line with new anode orders and overseas expansion.
- The strengths are clear.
- On the back of what is effectively Korea's only synthetic-graphite anode mass-production capability, the company won a trillion-won-scale long-term supply contract, and the Vietnam expansion and the company's official growth blueprint of ₩8.3 trillion in 2027 revenue point to the direction ahead.
- Profit also swung from a 2024 bottom to a 2025 profit, and in Q1 2026 the recovery continued enough to fill half of last year's full-year operating profit in one quarter.
- On asset value, the P/B of 4.36x sits low against the 7-9x of the same business group, so on a net-asset basis it is not heavy versus peers.
- The cautions are just as clear.
- Revenue has fallen for two straight years and the cathode slowdown still weighs on the top line, while a 224.8% debt ratio and interest coverage below 1x show that financial slack is tight.
- The high earnings multiple (P/E) is because the recovery is still early, and for that multiple to come down to a normal range profit needs to fill in further.
- In conclusion, if new anode orders and expansion translate into actual revenue and profit and cathodes find a bottom, the below-asset valuation stands to shine; if the top-line decline drags on or the profit recovery is slow, the high earnings multiple lingers longer.
- Rather than pinning it to one side, it is more appropriate to weigh under which conditions it is strong and under which it is weak.
🔎 Valuation vs peers Inconclusive
Peers were chosen from the same EV-battery-materials business group where the business is closest and data is verifiable: L&F is a pure cathode maker, EcoPro BM is a large cathode-centered player, and SKC mixes anode copper foil and materials, so POSCO Future M's cathode-plus-anode structure can be weighed from both sides — though differing business mixes limit a simple multiple comparison.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Ecopro BM | 277.09x | 6.31x | 2.28% |
| L&F | — | 5.51x | -79.27% |
| SKC | — | 5.48x | -88.26% |
(a) Position: against the same business group, POSCO Future M's P/B of 4.1x is below peers' 7-9x, so on the surface it looks like a discounted zone, and its growing anode weight beyond cathodes is a differentiator. (b) Premium/discount: however, L&F and SKC have deeply negative ROE amid an industry downturn and EcoPro BM manages only 2.3%, so profitability across the peer set is depressed, making it hard to declare cheap or expensive on multiples alone. POSCO Future M's own ROE of 0.8% and low capital efficiency are the backdrop to the P/B discount. (c) Limits of trailing: 2025 was an inflection point with profit pressed to a bottom, so the trailing P/E of 517.5x on last year's finalized results is an exaggerated figure; to look forward, one should weigh the company's disclosed 2027 revenue target of ₩8.3 trillion together with a seasonality-approximated revenue (about ₩2.7 trillion) starting from finalized Q1 results. Until the profit recovery is actually confirmed, it is more reasonable to hold off than to pin the call to either side.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩656.8 billion | — | — |
Price history Close · MA20 · MA60
The latest close is ₩146,000 and the market capitalization is ₩13.0 trillion. The price sits below its 20-day moving average (₩178,565) and below its 60-day moving average (₩218,430). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 31.6, a neutral level. The one-month change is -22.2%, the three-month change is -30.1%, and the position relative to the 52-week high is -50.7%. Relative strength versus the KOSPI is 28 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 27% of all stocks. Over the past three months it lagged the index by 45.9%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -45.94% / 6M -50.41% / 12M -52.11%
Key metrics vs whole-market median
Valuation
The P/E of 402.54x is above the whole-market median (13.81x). The P/B of 3.19x is above the whole-market median (1.15x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is 0.8%, below the whole-market average (5.0%). The operating margin is 1.1%. The debt ratio is 224.8%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $3.2B | $2.5B | $1.9B | -20.57% ↑ faster |
| Operating profit | $23.8M | $478,023 | $21.8M | +4451.47% ↑ faster |
| Net profit | $19.0M | -$140.7M | $21.4M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.3B | $2.2B | $3.2B | $2.5B | $1.9B |
| Operating profit | $80.6M | $109.9M | $23.8M | $478,023 | $21.8M |
| Net profit | $88.9M | $78.4M | $19.0M | -$140.7M | $21.4M |
| Revenue CAGR | 4-yr avg 10.24% | ||||
Revenue fell 20.6% year over year (2023 ₩4.8 trillion → 2024 ₩3.7 trillion → 2025 ₩2.9 trillion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Operating profit rose 4451.5% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 10.2%. The two-year revenue CAGR is -21.4%. In the most recent quarter (Q1 2026), revenue was 10.4% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Revenue fell 20.6% year over year (3-year trend: falling).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-03-16UpdateSigned a synthetic-graphite anode supply contract for secondary batteries with a global automaker (contract value ₩1.0149 trillion, 34.5% of recent annual revenue, supply period Oct 2027-Sep 2032).Medium term. A new anode revenue base offsetting the shrunken cathode top line. It does not feed directly into results until supply begins in 2027, however. Source
- 2026-03-26FilingCorporate-value enhancement plan (voluntary disclosure) — targets revenue of ₩4.8 trillion (2023) to ₩8.3 trillion (2027) and ROIC of 1.3% to 3.7%.Medium term. A growth direction the company set itself, but these are 2027 targets, not confirmed figures for this year. Source
- 2026-04-27FilingDecision to invest in a new synthetic-graphite anode production entity in Vietnam (acquisition amount about US$242 million, to be contributed in installments).Medium term. An investment extending the anode production footprint overseas; startup and mass production will take time. Source
- 2026-04-30EarningsFair disclosure of preliminary Q1 2026 consolidated operating results — revenue of ₩757.5 billion (down 10.4%), operating profit of ₩17.7 billion (up 3.2%).Short term. The top line shrank but operating profit rose slightly, a quarter for checking whether profit is climbing off last year's bottom. Source
- 2026-05-15FilingFiling of the Q1 2026 quarterly report (official confirmation of finalized results and financial position).Short term. A source for confirming the detailed line items of the preliminary results and the financial structure in full. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Anode supply contract size | approx. 1 ₩14.9 billion | approx. ₩1,014,945,300,000 | Confirmed | link |
| Corporate-value enhancement targets (revenue and ROIC) | revenue ₩4.8 trillion(2023)→₩8.3 trillion(2027), ROIC 1.3%→3.7% | revenue ₩4.8 trillion('23)→₩8.3 trillion('27), ROIC 1.3%('23)→3.7%('27) | Confirmed | link |
| Q1 2026 operating profit | ₩17.7 billion | ₩17,699,640,745 | Confirmed | link |
| 2026 annual revenue (seasonality approximation) | approx. ₩2.7 trillion | — | Unverified | link |
Recent filings
- 2026-05-29Corporate governance report
- 2026-05-28Large-business-group status disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-12OwnershipLargest-shareholder ownership change report
- 2026-04-30EarningsFair-disclosure notice
- 2026-04-30EarningsFair-disclosure notice
- 2026-04-27Amended filing
- 2026-04-15Disclosure
- 2026-03-26Disclosure
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-16Single supply/sales contract
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.