POSCO Holdings Inc. (PKX) vs Grupo Simec, S.A. de C.V. (SIM)

POSCO Holdings Inc. and Grupo Simec, S.A. de C.V. are both Steel companies. POSCO Holdings Inc. is the larger, with a market value of $17.0B against $5.0B — 3.4× the size. POSCO Holdings Inc. trades at the lower P/E: 21.6× against 24.0×. Grupo Simec, S.A. de C.V. grew revenue faster over the last twelve months: 7.58% against 2.62%. Grupo Simec, S.A. de C.V. has the higher net margin (11.2% vs 1.94%) and the higher return on invested capital (9.61% vs 1.66%). Across the 21 metrics below, Grupo Simec, S.A. de C.V. leads on 13 and POSCO Holdings Inc. on 8.

Valuation

Metric PKX SIM Steel median
P/E 21.57 24.04 21.10
P/S 0.35 2.78 0.70
P/B 0.38 1.39 1.39
Price to free cash flow n/m n/m 23.71
EV/EBITDA 4.83 9.19 10.71
EV/Sales 0.41 1.88 0.85
Earnings yield 4.64% 4.16% 4.56%
Free cash flow yield (9.89%) (1.22%) 0.00%

Profitability

Metric PKX SIM Steel median
Gross margin 7.86% 25.34% 13.91%
Operating margin 2.57% 16.91% 4.77%
Net margin 1.94% 11.21% 3.40%
Free cash flow margin (3.42%) (3.37%) 0.00%
Return on equity 2.21% 6.01% 2.21%
Return on assets 1.31% 5.03% 1.83%
Return on invested capital 1.66% 9.61% 2.52%

Growth

Metric PKX SIM Steel median
Revenue growth (TTM) 2.62% 7.58% 11.33%
EPS growth (last fiscal year) (31.90%) (87.37%) —
Revenue growth, 5-year CAGR 0.99% (1.23%) 6.73%
Net income growth, 5-year CAGR (17.50%) (9.86%) 0.00%

Health

Metric PKX SIM Steel median
Debt to equity 0.30 0.00 0.22
Current ratio 1.98 5.78 2.58
Net debt to EBITDA 0.10 (4.54) 0.10

Dividend

Metric PKX SIM Steel median
Dividend yield 2.48% — 2.48%
Payout ratio 0.30 0.00 0.04

Size

Metric PKX SIM Steel median
Market cap 16.96b 4.96b 1.46b

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