POSCO International earns money from a trading (general-trading) business that buys and sells steel, grain and components, and from energy assets—the Senex gas field in Australia, an offshore gas field in Myanmar, the Gwangyang LNG terminal and power generation. Trading has large revenue but thin margins, while energy is small in weighting but thick in margin and thus governs the quality of earnings. In April 2026 the firm voluntarily disclosed a corporate-value enhancement plan raising the shareholder-return ratio from 25% to 50% and introducing an interim dividend, and it confirmed a record quarterly profit in Q1 on higher Senex volumes and processing-facility expansion. What stands out lately is that a high-margin energy axis, a 3.8% dividend, an upgraded return ratio, and a full-year lift from the Senex expansion make it look cheap on this year's earnings (about 10.7x)—set against the caution that the thin-margin trading segment sways with steel conditions, exchange rates and grain prices, while a 163% debt ratio carries an interest burden and exposure to Australian gas policy remains.
At-a-glance assessment financial health · growth · profitability · valuation
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue rose 0.4% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 3.4% higher than a year earlier.
- ROE is 9.2% (controlling-interest basis). It is above the sector average.
- Operating margin is 3.6%.
Ownership & governance As of 2025-12-31
Largest shareholder POSCO Holdings 70.71% (corporate)
Controlling bloc incl. related parties 70.72%
With the controlling bloc holding 71%, control is very secure but the free float is thin.
🔎 In-depth analysis
- POSCO International earns money along two main axes.
- The first is its long-standing trading (general-trading) business, buying and selling steel products in world markets, distributing grain and food raw materials, and brokering auto parts and materials.
- The second is directly held energy assets—profit from the gas field of its Australian subsidiary Senex (SENEX), an offshore gas field in Myanmar, the Gwangyang LNG terminal and power generation.
- Trading has large transaction scale (revenue) but thin margins, while energy, though small in revenue weighting, has thick margins and accounts for much of the firm's operating profit.
- So against ₩32 trillion in revenue the net margin is low, at about 2%, but the quality of earnings is heavily governed by the energy segment's performance.
- The recent close is ₩48,700 and market cap is ₩8.6 trillion.
- The price sits below its 20-day line (₩52,688) and below its 60-day line (₩65,508).
- Trading below both its short- and mid-term moving averages, the trend looks subdued.
- The RSI (an auxiliary gauge that weighs up-days against down-days over the past 14 days on a 0-100 scale) is 37.2, a neutral reading.
- The 1-month change is -16.5%, the 3-month change is -36.5%, and it stands -44.2% below its 52-week high.
- Relative strength versus the KOSPI is 32 (1-99, a recency-weighted conversion of returns against the index over the past year—higher means stronger than the market), placing it around the top 69% of all stocks by strength.
- Over the past three months it has lagged the index by 46.6%.
- Chart reading is best done alongside trading volume and the dates of disclosures.
- The P/E (how many times one year's earnings the price represents) is 13.95x, the P/B (how many times book net assets) is 1.28x, and the dividend yield is 3.8% (a per-share dividend of ₩1,850).
- ROE (how much is earned in a year on equity) is 9.2%, favorable within the general-trading sector.
- The debt ratio (debt against equity) of 163% is somewhat high because operating liabilities such as trade payables from large-scale trading are recorded together with energy-facility investment.
- The key point here is that the 14x P/E is on a trailing basis, when earnings were lower.
- With Q1 2026 net profit up 36%, valuation falls clearly to about 10.7x on a forward basis reflecting this year's full earnings.
- Over five years, operating profit grew steadily from ₩585.4 billion (2021) to ₩1,165.3 billion (2025), and net profit recovered from ₩514.6 billion (2024) to ₩614.1 billion (2025, +19.3%).
- Revenue is stuck in the ₩32-trillion range, but earnings have stepped up.
- The decisive shift is 2026.
- Q1 posted a record quarterly profit with consolidated revenue of ₩8,410.4 billion (+3.4%), operating profit of ₩357.5 billion (+29.9%), and net profit of ₩277.3 billion (+36.1%).
- The growth engine is the Senex gas expansion in Australia.
- Because the Atlas and Roma North expansions completed a 60 PJ/year production system at the end of 2025 and are reflected on a full-year basis in 2026, the Q1 strength is not a one-off but a structural increase that continues through the year.
- On this trajectory, this year's net profit has room to rise into the ₩800-billion range, in which case earnings-based valuation falls clearly below the present.
- On April 20, 2026 the company voluntarily disclosed a "corporate and shareholder value enhancement plan." It calls for lifting return on invested capital (ROIC) above 8%, exceeding the cost of capital (WACC 8.0%); growing pre-tax profit by at least 8% a year on average; raising the shareholder-return ratio from 25% to 50%; and introducing an interim dividend.
- It then confirmed a record quarterly profit in the Q1 provisional results (fair disclosure) on April 30, formally finalized revenue and earnings via the quarterly report on May 15, and held a results briefing (IR) on May 21.
- April also saw dividend-related decisions and a corporate-bond issuance disclosure.
- According to the company, Senex's Q1 sales volume rose sharply and the effect of gas-processing-facility expansion took hold in earnest, improving energy-segment earnings.
- Point to watch: earnings are improving while the price has corrected sharply, so the earnings trend and the price have diverged.
- With a high-margin axis in energy assets (gas, LNG, power), the quality of earnings is higher than a pure trading house; ROE and the dividend (3.8%) are top-tier within the sector; and raising the shareholder-return ratio to 50% is favorable on the dividend and returns front.
- Because 2026 is a stretch when the Senex expansion is reflected on a full-year basis and earnings rise structurally, the stock looks cheap on this year's earnings (about 10.7x) even though the P/E on past earnings looks high.
- Point of caution: the trading segment that makes up most of revenue has thin margins, so earnings can sway with steel conditions, exchange rates and grain prices, and with a debt ratio of 163% and relatively low interest coverage, the interest burden is something to keep checking.
- Energy earnings are also exposed to local Australian gas policy and selling prices.
- In sum, it is strong when the energy expansion and return policy proceed as planned, and weak when trading conditions and gas policy waver.
🔎 Valuation vs peers Undervalued
Compared with listed domestic general-trading companies that combine trading with resources and energy businesses.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| LX International | 10.15x | 0.52x | 5.12% |
| Hyundai Corporation | 3.43x | 0.43x | 12.53% |
| Samsung C&T | 25.17x | 1.23x | 4.89% |
(a) Position versus peers: at a trailing P/E of 14.08x, POSCO International is higher than LX International (10.1x) and Hyundai Corporation (3.5x). (b) Premium/discount: whereas those two peers center on resource and distribution intermediation, POSCO International runs a structure that generates thick margins from directly held gas and LNG assets, which justifies a premium—indeed its ROE and dividend are top-tier in the sector. (c) Limits of trailing and the forward case: 14x is on a pre-inflection (past) basis, and given that Q1 2026 net profit jumped 36% and the Senex expansion is reflected on a full-year basis, the forward P/E on this year's earnings falls to about 10.7x, sharply narrowing the gap with peers. A combination of top-tier sector ROE and dividend with a falling forward multiple reads, considering the quality of earnings, as an undervalued zone.
Price history Close · MA20 · MA60
The latest close is ₩48,700 and the market capitalization is ₩8.6 trillion. The price sits below its 20-day moving average (₩52,688) and below its 60-day moving average (₩65,508). 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 37.2, a neutral level. The one-month change is -16.5%, the three-month change is -36.5%, and the position relative to the 52-week high is -44.2%. Relative strength versus the KOSPI is 32 (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 31% of all stocks. Over the past three months it lagged the index by 46.6%. 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 -46.57% / 6M -38.26% / 12M -59.19%
Key metrics vs whole-market median
Valuation
The P/E is 13.95x. The P/B of 1.28x is in line with 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.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 9.8%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.316x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 9.2%, above the whole-market average (5.0%). The operating margin is 3.6%. The debt ratio is 163.1%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $21.9B | $21.4B | $21.5B | +0.35% ↑ faster |
| Operating profit | $794.3M | $767.4M | $772.3M | +0.65% ↑ faster |
| Net profit | $446.6M | $341.0M | $407.0M | +19.34% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $22.5B | $25.2B | $21.9B | $21.4B | $21.5B |
| Operating profit | $388.0M | $598.2M | $794.3M | $767.4M | $772.3M |
| Net profit | $239.1M | $390.9M | $446.6M | $341.0M | $407.0M |
| Revenue CAGR | 4-yr avg -1.18% | ||||
Revenue rose 0.4% year over year (2023 ₩33.0 trillion → 2024 ₩32.3 trillion → 2025 ₩32.4 trillion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Operating profit rose 0.7% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is -1.2%. The two-year revenue CAGR is -1.0%. In the most recent quarter (Q1 2026), revenue was 3.4% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- The dividend yield, at 3.8%, is on the high side.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-04-20FilingVoluntary disclosure of a corporate and shareholder value enhancement plan — lifting ROIC above 8%, exceeding the cost of capital (WACC 8.0%); at least 8% average annual pre-tax profit growth; raising the shareholder-return ratio from 25% to 50%; and introducing an interim dividend.Codifies medium-term earnings-improvement targets and expanded returns. Positive on dividends and shareholder returns, and sets a value-up direction. Source
- 2026-04-30EarningsQ1 2026 consolidated provisional results (fair disclosure) — revenue of ₩8,410.4 billion, operating profit of ₩357.5 billion (+29.9%), and net profit of ₩277.3 billion (+36.1%), a record quarterly profit.Confirms the earnings improvement in results as the energy expansion (Senex) is reflected in earnest. Positive both short and medium term. Source
- 2026-05-15FilingQ1 2026 quarterly report — revenue of ₩8.4 trillion and operating profit of ₩357.5 billion formally finalized, with the segment breakdown of earnings disclosed.Finalizes the provisional results. A first source for confirming the earnings weighting of the energy and materials segments. Source
- 2026-05-21IRInvestor briefing (IR) results presentation held — explanation of Q1 results and the energy and materials segments' business conditions.Explains expansion progress and the segment earnings structure directly to the market. Neutral-to-positive on information transparency. Source
- 2026-04-23DividendDividend and treasury-share decision disclosure — execution of shareholder returns reflecting 2025 results (a per-share dividend of ₩1,850).Continued returns at a dividend yield of 3.8% and a payout ratio of about 51%. Positive from a dividend-investment perspective. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 operating profit | 357,511,917 | approx. 3,575 | Confirmed | link |
| 2025 operating profit (full year) | 1,165,316,105 | 1 | Confirmed | link |
| Shareholder-return policy | approx. 51%(payout 0.513) | 50% | Confirmed | link |
| 2026 estimated net profit and forward P/E | net profit approx. 8,100 → forward PER approx. 10.7x | — | Unverified | link |
Recent filings
- 2026-05-29Corporate governance report
- 2026-05-29Large-business-group status disclosure (amended)
- 2026-05-29Large-business-group status disclosure (amended)
- 2026-05-29Large-business-group status disclosure
- 2026-05-21Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-04-30Disclosure
- 2026-04-30EarningsFair-disclosure notice
- 2026-04-23Earnings disclosure
- 2026-04-23Disclosure
- 2026-04-22Disclosure
- 2026-04-20Disclosure
📖 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.