POSCO Future M: Thin Profits and High Multiples Despite a Strong Three-Month Share Price Rebound

Thesis

The data supports a story of a share price that has recovered well from its 52-week low of ₩114,700 but remains 40.9% below its 52-week high of ₩299,500. Over one year the shares are up 21.0%.

Profitability is still weak. Trailing operating income of ₩59.3B on revenue of ₩2.87T gives a 2.1% margin, and net income is ₩44.6B. That is better than 2024, when the company posted a net loss of ₩212.3B, but far below 2021 and 2022 levels.

A news headline dated 2026-10-13 says the company expects operating profit to triple next year. The data holds no guidance figures or filings that confirm this, so it should be treated as an unverified media report. Investor flow, foreign ownership and short balance data are not available.

Business overview

POSCO Future M (003670) is listed on the KOSPI in the batteries sector. It was founded on 1971-05-13 and listed on 2019-05-29, with 88,946,220 shares outstanding. The CEO is listed as 엄기천.

Revenue grew from ₩1.99T in 2021 to a peak of ₩4.76T in 2023, then fell to ₩3.70T in 2024 and ₩2.94T in 2025, declines of 22.3% and 20.6%. Trailing revenue as of H1 2026 is ₩2.87T.

Financial analysis

All figures come from filed financial statements (DART). Operating income was ₩121.7B in 2021 and ₩165.9B in 2022 (5.0% margin). It fell to ₩35.9B in 2023, ₩0.7B in 2024 and ₩32.8B in 2025 (1.1% margin). Net income was ₩134.2B in 2021, ₩118.3B in 2022, ₩28.7B in 2023, a loss of ₩212.3B in 2024 and ₩32.3B in 2025.

On a trailing basis to H1 2026, the operating margin is 2.1%, the net margin 1.6% and ROE 1.2%. ROE was -8.0% in 2024 and 5.6% in 2021.

The balance sheet carries borrowings of ₩3.99T against cash of ₩612.3B. Liabilities to equity are 103.8%. Trailing free cash flow is negative at -₩764.9B, so the company is spending more than it generates.

Valuation

The current P/E is 353.3, down from 515.6 at the end of 2025, and reflects very small earnings rather than a conventional earnings multiple. P/B is 3.7 versus 4.1 at the end of 2025. P/S is 5.5, the dividend yield is 0.1%, and enterprise value is ₩19.1T. EV/EBITDA is not available.

Among peers, LG Energy Solution has a P/B of 4.2 and Samsung SDI a P/B of 1.9 with a P/E of 1,200.9. P/E is not available for most peers, and Ecopro BM, L&F and Ecopro Materials have no multiples in the data. A full peer comparison is therefore limited. Earlier-year multiples before 2025 are not available.

Catalysts

• A 2026-10-13 news headline reports the company expects operating profit to triple next year, though the data has no filed guidance to confirm it.
• The company filed a major sales or supply contract on 2026-09-22 and an amendment on 2026-10-06, though contract values are not in the data.
• A filing dated 2026-10-13 reports a change in the largest shareholder's holdings, and several insider shareholding reports were filed in September and October.
• An IR event was held on 2026-09-21, and the half-year report for June 2026 was amended on 2026-09-02.
• The next financial statements will show whether the trailing 2.1% operating margin is improving.

Risks

• Revenue has fallen for three consecutive years, from ₩4.76T in 2023 to ₩2.94T in 2025.
• Margins are thin, with a trailing operating margin of 2.1% and ROE of 1.2%, leaving little buffer against cost pressure.
• Free cash flow is negative at -₩764.9B and borrowings of ₩3.99T far exceed cash of ₩612.3B.
• A sales or supply contract termination was filed on 2026-08-21, which suggests contract volatility.
• Valuation multiples (P/E 353.3, P/B 3.7) rest on a large earnings recovery that is not yet visible in filed results, and investor flow data are unavailable.

Closing view

The data shows a company with a recovering share price but still-weak fundamentals: shrinking revenue, a 2.1% operating margin, negative free cash flow and sizable borrowings. Earnings are positive again after the 2024 loss, and a news report points to a possible profit rebound, but filed numbers do not yet confirm it. Valuation multiples are high relative to current earnings, and gaps in flow and peer data limit the comparison. Investors would want to watch upcoming financial statements for evidence on margins and cash flow.

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Report history

1. Oct 13, 2026InitiationPOSCO Future M: Thin Profits and High Multiples Despite a Strong Three-Month Share Price Rebound