Posco Future M Co., Ltd. (003670.KS) stock analysis
In our weekly check, Posco Future M Co., Ltd. is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 8 pass, warnings: 5, red flags: 12.
About Posco Future M Co., Ltd.
Posco Future M Co., Ltd. is an Industrials company (Electrical Equipment & Parts) based in South Korea, listed on KSC as 003670.KS.
What our checks show for 003670.KS
Red flags
- Net debt is 28.9x a year of EBITDA (debt/equity 1.32). That limits room in a downturn and raises refinancing risk.
- Operating profit does not cover the interest bill (0.7x): interest is paid from cash or new debt.
- The net margin fell by 5.2 points over 5 years, to 1.6%: the company keeps less of each sale as profit.
- The gross margin fell by 2 points, to 10%: costs are rising faster than prices.
- Revenue fell 4.6% a year over the last 3 years.
- The net margin is only 1.6%: little room if costs rise.
- Free cash flow is negative (-30.3% of revenue): the business spends more cash than it brings in.
- The price swings a lot: 74.1% annual volatility. Expect large ups and downs.
- The stock has fallen as much as 84% from a peak. Would you have held through that?
- The share count grew by 31.9% in 2 years: each shareholder owns a smaller slice.
- Return on capital (ROCE) is only 0.6%.
- Pay in shares equals 0% of free cash flow: it dilutes shareholders.
Warning signs
- Earnings per share fell 51.7% a year over the last 3 years.
- Net profit fell 27.8% a year over the last 3 years.
- The stock is still below its previous peak.
- Beta 1.59: the stock usually moves more than the market, both up and down.
- Thinly traded (about 353 thousand shares a day): buying and selling can move the price.
Strengths
- Operating cash flow is 4.16x net profit: the profit arrives as real cash.
- Analysts expect earnings per share to grow about 145% a year over the next years.
- Analysts expect revenue to grow about 28.9% a year over the next years.
- The dividend takes 47% of profit: there is a cushion.
- A large company: market value $10.8 billion.
Next earnings report: 2026-11-02
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Questions
What grade does Posco Future M Co., Ltd. (003670.KS) have?
In our weekly check, Posco Future M Co., Ltd. is graded D (A to F). Of 25 checks on debt, profit, cash flow and trend: 8 pass, warnings: 5, red flags: 12. The grade is a risk check, not a buy or sell recommendation.
What are the main risks of 003670.KS stock?
This week's biggest flags for Posco Future M Co., Ltd.: High debt, Weak interest cover, Margins falling. In total 17 of 25 checks show a warning or a red flag.
What does Posco Future M Co., Ltd. do?
Posco Future M Co., Ltd. is an Industrials company (Electrical Equipment & Parts) based in South Korea, listed on KSC as 003670.KS.
When does Posco Future M Co., Ltd. report earnings next?
The next earnings report is expected on 2026-11-02. We re-run the checks every week, so the grade can change after it.
The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.
Updated 2026-10-31
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