POSCO HoldingsPOSCO홀딩스

POSCO Holdings shares have fallen sharply over the past year, and a union dispute over wages is now escalating.

Trailing twelve-month revenue is ₩71.2T with a thin 3.1% operating margin, and net income of ₩1.3T is down from earlier years. The share price of ₩269,500 sits near its 52-week low of ₩268,500, well below the 52-week high of ₩542,000. Wage talks with unionised workers have broken down and the union has warned of an indefinite walkout.

What stands out

• Profitability has shrunk: operating margin fell from 12.1% in 2021 to 3.1% on a trailing basis, and free cash flow is negative at -₩2.1T.
• Borrowings of ₩30.4T are large relative to cash of ₩6.3T, and liabilities are 71% of equity.
• Valuation metrics are lower than a year ago: P/E 15.8, P/B 0.4, with a 3.7% dividend yield, but the data gives no fair value estimate.
• Foreign ownership eased from 32.5% to 31.8% over 60 days, and foreign investors were net sellers over the last 20 days.
• Recent filings and news include a cash dividend decision, an LNG cargo tank partnership with Hanwha Ocean, and a 'harvest period' framing in one press report.

What to watch

• Whether the union follows through on its warned indefinite walkout and how it affects operations.
• The next earnings release and any change to the margin trend from the 3.1% trailing figure.
• Any further responses to market rumours, which the company has filed several times recently.