ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. POSCO Holdings's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 2.75%.
As of today (2026-06-25), POSCO Holdings's WACC % is 5.28%. POSCO Holdings's ROC % is 1.39% (calculated using TTM income statement data).
POSCO Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
POSCO Holdings (NYSE:PKX) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, POSCO Holdings's WACC % is 5.28%. POSCO Holdings's ROC % is 1.39% (calculated using TTM income statement data).
POSCO Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
POSCO Holdings ROC % Related Terms
POSCO Holdings ROC % Historical Data
* Premium members only.
The historical data trend for POSCO Holdings's ROC % 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.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 ROC % of 2.75% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on POSCO Holdings and its competitors.
Is POSCO Holdings' ROC % too high?
POSCO Holdings' current ROC % is 2.75%. The Steel industry median ROC % is 2.61. POSCO Holdings' value of 2.75% is 5.4% above this industry median. Overall, POSCO Holdings has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does POSCO Holdings' ROC % compare to NUE and STLD?
POSCO Holdings' ROC % of 2.75% can be compared against companies in the Steel industry. The industry median ROC % is 2.61. POSCO Holdings' value of 2.75% is 5.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Steel company?
The median ROC % among Steel companies is 2.61, based on 625 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. POSCO Holdings's current ROC % of 2.75% is 5.4% 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on POSCO Holdings and its competitors. For the Steel industry, the median ROC % is 2.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. POSCO Holdings's current ROC % is 2.75%. 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 Modestly Undervalued. The stock's GF Value™ is $55.03, compared to a current price of $53.52 — trading 2.7% below its estimated fair value. The current ROC % is 2.75% and 5.4% above the Steel industry median of 2.61. 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 ROC % calculated?
ROC % is calculated from a company's financial statements. For POSCO Holdings (PKX), the current ROC % is 2.75% 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 2.7% below its estimated GF Value™ of $55.03.
GuruFocus considers POSCO Holdings to be Modestly Undervalued.
Key valuation signals for PKX:
ROC %: 2.75%
GF Value™: $55.03 vs. price of $53.52 (2.7% below fair value)
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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