POSCO Holdings (005490) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
POSCO Holdings is a holding company that fully owns the steelmaker POSCO and also oversees a battery-materials arm (POSCO Future M) plus a lithium and nickel raw-materials business. In the first quarter of 2026 it posted revenue of ₩17.9 trillion, operating profit of ₩707.0 billion and net profit of ₩543.4 billion, with net profit up 57.9% from a year earlier — a recovery in which steel is bottoming out, battery materials have swung to a profit, and lithium losses are narrowing. The most notable point is that the market value of its listed subsidiary stakes alone accounts for a large share of the company's market cap, leaving the wholly owned steel business essentially unpriced, so the shares trade at a deep discount to net asset value. That said, earnings can swing with the steel and lithium price cycles, so the pace of the recovery depends on the industry backdrop.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Steel & Metals” (Chemicals, Refining, Steel & Materials), a type typically read first through P/B.
Steel and metals swing hard with raw-material prices and downstream demand, so profits balloon in upturns and can flip to losses in downturns. Because earnings are so volatile, price-to-book (P/B) — the share price against the value of plant and assets — is the first lens.
Price against assets alone says little about where the cycle stands. Reading it together with price against this year's expected earnings shows how far profits have recovered.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue fell 4.9% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 2.5% higher than a year earlier.
- ROE is 1.5% (controlling-interest basis). It is above the sector average.
- Operating margin is 2.8%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder National Pension Service 7.96% (corporate)
Controlling bloc incl. related parties 7.96%
With the controlling bloc holding 8%, ownership is dispersed, leaving room for control-related or activist dynamics.
🔎 In-depth analysis Reading
POSCO Holdings does not sell products directly; it is a holding company that oversees operating subsidiaries. The largest piece is the wholly owned steelmaker POSCO, which makes steel products such as hot-rolled, cold-rolled and heavy plate for autos, construction and shipbuilding, forming the backbone of group earnings. The second pillar is battery materials, where listed subsidiary POSCO Future M (about a 59% stake) produces cathode and anode materials. The third pillar is battery raw materials — lithium and nickel — with lithium sourced from a salt lake in Argentina (POSCO Argentina) and mines in Australia (POSCO Pilbara Lithium Solution). On top of that, listed subsidiary POSCO International (about a 62% stake) runs the energy, trading and food businesses, while POSCO E&C handles construction. In short, the company's value should be viewed as the sum of these subsidiary stakes.
The latest close is ₩319,000 and the market capitalization is ₩25.3 trillion. The price sits above its 20-day moving average (₩308,100) and below its 60-day moving average (₩358,067). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 50.4, a neutral level. The one-month change is +1.1%, the three-month change is -37.0%, and the position relative to the 52-week high is -40.4%. Relative strength versus the KOSPI is 22 (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 21% of all stocks. Over the past three months it lagged the index by 29.1%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
The valuation signals diverge sharply by metric. On last year's earnings the P/E ratio (how many times one year's profit the price represents) is 38.44x, which looks high, but that reflects 2025 net profit being pressed down to a cyclical trough, so it should not be taken at face value. By contrast the P/B (how many times book net assets the price represents) is 0.45x, meaning the shares trade at less than half of book net assets. For a holding company, book equity carries subsidiary stakes at acquisition cost, which actually makes P/B look higher than the true value would suggest; the fact that it is still only 0.45x reads as a signal of undervaluation. The dividend yield is a steady 3.2%. The debt ratio (debt relative to equity) is 76.8%, which is not heavy. EV/EBITDA (enterprise value including debt divided by operating profit before depreciation) is 5.8x, on the low side. That said, last year's free cash flow (FCF) was negative because of large-scale investment, so cash is being spent on growth. ROE (how much is earned in a year on equity) is a low 1.2%, but that is based on 2025 when profit was at a trough, so the question is whether it recovers.
Over five years, earnings have been highly volatile. Net profit fell from a peak of ₩6.6 trillion in 2021 to ₩0.66 trillion in 2025, the combined result of a slowing steel cycle, losses during the lithium and battery-materials investment phase, and one-off valuation write-downs. In the first quarter of 2026, however, an inflection point appeared. Net profit came in at ₩543.4 billion, up 57.9% from a year earlier, and operating profit also rose 24.4%. The recovery is broad rather than concentrated in one area. Steel found a floor as volumes rose. Battery-materials arm POSCO Future M swung to a profit as cathode-material sales expanded. In lithium, the Argentine salt lake posted its first monthly profit in March, and a quarterly profit is expected in the second quarter. If this trend holds, this year's earnings will rebound sharply from last year's trough. Dividing the company's market cap by this year's estimated net profit gives a forward P/E of roughly 10x — a completely different picture from the 37.9x on last year's basis.
In March 2026 the company made a voluntary disclosure of a corporate value-up plan. Its core is a change in how it returns capital to shareholders. From this year through 2028 it adopted a performance-linked policy that applies a 35-40% payout ratio based on 'adjusted controlling-interest net profit,' which strips out one-off valuation gains and losses. The plan is to use part of the cash raised by monetizing listed subsidiary stakes to buy back and cancel the undervalued holding company's own shares, and to reinvest the rest in the wholly owned businesses. This is an attempt by the company itself to acknowledge and narrow the holding-company discount. For the first quarter of 2026 it declared a cash dividend of ₩2,000 per common share. Separately, in June a serious workplace accident at a subsidiary was disclosed; safety-related risk is an area that needs ongoing monitoring.
Because POSCO Holdings is a holding company, it should not be judged on P/E alone — it should be viewed through net asset value (NAV). The listed subsidiary stakes alone add up to considerable value. Adding the market value of the POSCO Future M stake (about 59%) and the POSCO International stake (about 62%) accounts for a large part of the market cap. On top of that, the group's backbone — the wholly owned steel business POSCO — remains entirely on top. In other words, the current share price is deeply discounted against asset value. The supportive case is clear: if steel prices recover and battery-materials and lithium profitability take hold, both earnings and asset value rise together, and the company's share buyback-and-cancellation plan could act as a catalyst to narrow the discount. The cautions are just as clear: earnings are sensitive to the steel and lithium price cycles, so the pace of the rebound hinges on the industry backdrop, and the lithium business is only at the early stage of profitability, so a renewed drop in prices could delay the recovery. In sum, the appeal of undervaluation against asset value is large, but the timing of when that value is realized in earnings depends on the industry cycle.
🔎 Valuation vs peers Undervalued
Large-cap Korean materials names viewed together across the core steel business, battery materials and non-ferrous metals.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Hyundai Steel | 0.00x | 0.19x | -0.04% |
| POSCO Future M | 406.67x | 3.17x | -0.25% |
| Korea Zinc | 33.23x | 2.30x | 8.62% |
Because POSCO Holdings is a holding company, it is hard to judge on P/E and P/B alone. The 37.9x P/E on last year's basis reflects 2025 net profit being pressed to a cyclical trough; with first-quarter profit rebounding sharply, the forward basis falls to roughly 10x. The real yardstick is the value of the stakes it holds. Adding the market value of POSCO Future M (about a 59% stake) and POSCO International (about a 62% stake) accounts for a large part of the market cap, and on top of that sits the group's core — the wholly owned steel business. A holding company's book equity carries subsidiary stakes at acquisition cost, below their true value, yet the P/B is still only 0.45x, which points to a deep discount to net asset value. Among comparables, battery-materials subsidiary POSCO Future M trades at a P/B of 3.35x on growth expectations and non-ferrous name Korea Zinc at 1.95x, which contrasts with the holding company — owner of more than half of those stakes — at 0.45x. On balance the read is undervaluation against asset value, though the timing of when that value is realized in earnings depends on the steel and lithium cycles.
Price history Close · MA20 · MA60
The latest close is ₩319,000 and the market capitalization is ₩25.3 trillion. The price sits above its 20-day moving average (₩308,100) and below its 60-day moving average (₩358,067). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 50.4, a neutral level. The one-month change is +1.1%, the three-month change is -37.0%, and the position relative to the 52-week high is -40.4%. Relative strength versus the KOSPI is 22 (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 21% of all stocks. Over the past three months it lagged the index by 29.1%. 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 -29.07% / 6M -26.57% / 12M -47.32%
Key metrics Computed vs sector median
Valuation
The P/E of 38.44x is above the sector median (14.17x). The P/B is 0.45x. That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
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.
Intrinsic value (DCF estimate) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
DCF (discounted cash flow) estimate — discount rate 10.1%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, earnings-based. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 1.5%, above the sector average (1.0%). The operating margin is 2.8%. The debt ratio is 79.1%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $54.2B | $51.1B | $48.5B | -4.94% ↑ faster |
| Operating profit | $2.5B | $1.5B | $1.3B | -15.94% ↑ faster |
| Net profit | $1.2B | $769.2M | $462.0M | -39.94% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $53.6B | $59.5B | $54.2B | $51.1B | $48.5B |
| Operating profit | $6.5B | $3.4B | $2.5B | $1.5B | $1.3B |
| Net profit | $4.6B | $2.2B | $1.2B | $769.2M | $462.0M |
| Revenue CAGR | 4-yr avg -2.46% | ||||
Revenue fell 4.9% year over year (2023 ₩77.1 trillion → 2024 ₩72.7 trillion → 2025 ₩69.1 trillion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Operating profit fell 15.9% year over year. That said, the decline narrowed. Over the 5 years on record, revenue compound annual growth (CAGR) is -2.5%. The two-year revenue CAGR is -5.3%. In the most recent quarter (Q1 2026), revenue was 2.5% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- The dividend yield, at 3.1%, is on the high side.
Points to watch
- Revenue fell 4.9% year over year (3-year trend: falling).
Recent news & events searched · sourced
- 2026-03-25FilingVoluntary disclosure of a corporate value-up plan — for 2026-2028, a 35-40% payout ratio based on adjusted controlling-interest net profit, with proceeds from monetizing listed subsidiary stakes used to buy back and cancel undervalued treasury sharesA catalyst for stronger medium-term shareholder returns and a narrower holding-company discount Source
- 2026-05-15EarningsFirst-quarter 2026 report — revenue ₩17.9 trillion, operating profit ₩707.0 billion, net profit ₩543.4 billion (net profit +57.9% year on year), with higher steel sales, battery materials swinging to a profit, and narrower lithium lossesA signal that earnings have passed their trough; positive near term Source
- 2026-05-12DividendFirst-quarter 2026 cash dividend declared — ₩2,000 per common shareContinued quarterly dividend, keeping the yield in the 3% range Source
- 2026-06-10UpdateDisclosure of a serious workplace accident at a subsidiary — a group safety and environmental management matterSafety risk warrants ongoing monitoring, though the direct financial impact is limited Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-06-10Disclosure
- 2026-06-01Large-business-group status disclosure (amended)
- 2026-05-29Corporate governance report
- 2026-05-28Large-business-group status disclosure
- 2026-05-28Disclosure
- 2026-05-27Large-business-group status disclosure
- 2026-05-26Amended filing
- 2026-05-15PeriodicQuarterly report
- 2026-05-12DividendCash/stock dividend decision
- 2026-05-12DividendCash/stock dividend decision
- 2026-05-08Disclosure
- 2026-05-08OwnershipOfficers'/major-shareholders' holdings report
📖 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.