Operating Margin

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Price: 331 500 KRW -5.69% Market Closed

Market Cap: 26.8T KRW

2.7%

Declining

by 1%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

2.7%

Operating Income

₩1.9T

Revenue

₩70.1T

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

2.7%

Operating Income

₩1.9T

Revenue

₩70.1T

Peer Comparison

Country		Company	Market Cap	Operating Margin
KR		Posco Holdings Inc KRX:005490	25.1T KRW	Loading...
ZA	K	Kumba Iron Ore Ltd JSE:KIO	113.6B Zac	Loading...
BR		Vale SA BOVESPA:VALE3	336.7B BRL	Loading...
AU		Fortescue Metals Group Ltd ASX:FMG	70.2B AUD	Loading...
AU	F	Fortescue Ltd XMUN:FVJ	40.2B EUR	Loading...
US		Nucor Corp NYSE:NUE	39.9B USD	Loading...
LU		ArcelorMittal SA AEX:MT	32.3B EUR	Loading...
IN		JSW Steel Ltd NSE:JSWSTEEL	2.9T INR	Loading...
IN		Tata Steel Ltd NSE:TATASTEEL	2.3T INR	Loading...
US		Steel Dynamics Inc NASDAQ:STLD	25.6B USD	Loading...
JP		Nippon Steel Corp TSE:5401	3.5T JPY	Loading...

Market Distribution

Min	-163 055.6%
30th Percentile	-0.5%
Median	3.3%
70th Percentile	7.5%
Max	22 874.8%

Other Profitability Ratios

Posco Holdings Inc
Glance View

Market Cap

26.8T KRW

Industry

Metals & Mining

Posco Holdings Inc., often hailed as South Korea's steel titan, is a company that artfully marries innovation with tradition in the metallurgical industry. Founded in 1968, amid South Korea's industrial boom, Posco began its journey with a vision to revitalize the country's economic landscape. Initially, it had to import raw materials and rely on foreign technology to fabricate steel, but through relentless ambition and strategic partnerships, Posco transformed itself into a globally recognized beacon of steel production. It became one of the world's largest steelmakers, defining its stature through a high-volume production model underpinned by cutting-edge technology and sustainable practices. Over the years, the company has expanded its footprint beyond South Korea, establishing an international presence that includes major operations in India, Vietnam, and China. Posco's prowess lies in its diversified portfolio, which encompasses traditional steel manufacturing for automotive and construction industries, as well as specialty products for the energy sector, catering to both domestic and international markets. In the modern era of economic complexities, Posco Holdings Inc. has adeptly navigated the shifting demands of the steel industry by integrating a value-driven approach. The company's revenue stream thrives on the back of its vertically integrated operations. From procuring raw materials through mining to transforming them into high-quality finished goods, Posco maintains a comprehensive supply chain that enhances cost efficiency and market responsiveness. Moreover, the years have seen Posco extending its operations into adjacent sectors — diversifying into chemicals, energy, and infrastructure, thus capitalizing on its steelmaking expertise to explore sustainable energy projects and lithium extraction, which are key to the future of electric vehicles. This diversification not only fortifies Posco's position but also augments its earnings, making it a resilient entity poised to adapt to the evolving global economic and industrial landscape.

View Posco Holdings Inc Analysis

Posco Holdings Inc Intrinsic Value

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What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Posco Holdings Inc
KRX:005490

Peer Comparison

Market Distribution

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Posco Holdings Inc
Glance View

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Posco Holdings Inc KRX:005490