POSCO HoldingsPKX -1.04%76 Operating Margin % is 4.47% as of Mar. 2026, which is 19% below its 10-year median of 5.53. GuruFocus rates PKX with a GF Score™ of 76/100 and a GF Value™ of $57.25 (Fairly Valued). The stock has 6 warning signs investors should review. Among 616 Steel companies, POSCO Holdings ranks better than 50.81% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
POSCO Holdings Operating Margin % Related Terms
POSCO Holdings Operating Margin % Historical Data
* Premium members only.
The historical data trend for POSCO Holdings's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PKX vs NUE, STLD, RS: Operating Margin % Comparison
For the Steel subindustry, POSCO Holdings's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
POSCO Holdings Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, POSCO Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where POSCO Holdings's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
POSCO Holdings's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
POSCO Holdings (PKX) has a Operating Margin % of 4.47% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on POSCO Holdings and its competitors. This is 19% below median its historical median of 5.53. Over the past decade, POSCO Holdings' Operating Margin % has ranged from 2.71 to 12.17. According to the industry distribution chart, POSCO Holdings ranks #303 out of 616 companies in the Steel industry, placing it in the top 49.2%.
Is POSCO Holdings' Operating Margin % too high?
POSCO Holdings' current Operating Margin % of 4.47% is 19% below median its 10-year median of 5.53. Over the past 10 years, this metric has ranged from a low of 2.71 to a high of 12.17. The Steel industry median Operating Margin % is 3.00. POSCO Holdings' value of 4.47% is 49% above this industry median. Based on the distribution chart, POSCO Holdings ranks #303 out of 616 companies in the Steel industry, which is above the industry midpoint. Overall, POSCO Holdings has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does POSCO Holdings' Operating Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, POSCO Holdings ranks #303 out of 616 companies for Operating Margin %. This puts POSCO Holdings in the upper half of its industry. The industry median Operating Margin % is 3.00. POSCO Holdings' value of 4.47% is 49% above this benchmark. Historically, POSCO Holdings' own Operating Margin % has ranged from 2.71 to 12.17 over the past decade. While the company's 10-year median is 5.53 vs. the industry median of 3.00, POSCO Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Steel company?
The median Operating Margin % among Steel companies is 3.00, based on 616 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. POSCO Holdings's current Operating Margin % of 4.47% is 49% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on POSCO Holdings and its competitors. For the Steel industry, the median Operating Margin % is 3.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. POSCO Holdings's current Operating Margin % is 4.47%, which is 19% below median its own 10-year median of 5.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is POSCO Holdings stock overvalued right now?
Based on GuruFocus' analysis, POSCO Holdings (PKX) is currently considered Fairly Valued. The stock's GF Value™ is $57.25, compared to a current price of $53.52 — trading 6.5% below its estimated fair value. The current Operating Margin % is 4.47%, which is 19% below median its 10-year median of 5.53 and 49% above the Steel industry median of 3.00. POSCO Holdings' overall GF Score™ is 76/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For POSCO Holdings (PKX), the current Operating Margin % is 4.47% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is POSCO Holdings (PKX) Overvalued in 2026?
Based on GuruFocus' analysis, POSCO Holdings stock appears to be undervalued.
The current stock price of $53.52 is trading 6.5% below its estimated GF Value™ of $57.25.
GuruFocus considers POSCO Holdings to be Fairly Valued.
Key valuation signals for PKX:
Operating Margin %: 4.47% (19% below median its 10-year median of 5.53)
GF Value™: $57.25 vs. price of $53.52 (6.5% below fair value)
Industry Position: 49% above the Steel median (#303 of 616)
No single metric tells the full story. See the PKX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
POSCO Holdings Inc is a holding company operating through its subsidiaries. Its business is divided into segments, with the Steel segment generating the majority of revenue from the manufacture and sale of steel products. The Infrastructure segment includes trading, construction, and logistics and system integration activities. The Rechargeable Battery Materials segment focuses on EV battery materials such as lithium, nickel, and cathode and anode materials. The Others segment includes the controlling company and investment business. Geographically, the Group generates majority of its revenue from Asia (excluding China and Japan).
76GF Score
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