KOSE:A005490

Stock Analysis Report

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Market Cap

₩27.7t

Last Updated

2021/07/31 08:54 UTC

Data Sources

Company Financials +

Executive Summary

POSCO, together with its subsidiaries, manufactures and sells steel rolled products and plates in South Korea and internationally. More Details


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

How has POSCO's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: A005490 is not significantly more volatile than the rest of KR stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: A005490's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

3.7%

A005490

2.1%

KR Metals and Mining

-1.7%

KR Market


1 Year Return

89.4%

A005490

77.2%

KR Metals and Mining

38.9%

KR Market

Return vs Industry: A005490 exceeded the KR Metals and Mining industry which returned 77.2% over the past year.

Return vs Market: A005490 exceeded the KR Market which returned 38.9% over the past year.


Shareholder returns

A005490IndustryMarket
7 Day3.7%2.1%-1.7%
30 Day6.2%6.0%-2.2%
90 Day0.7%2.8%1.5%
1 Year96.1%89.4%82.2%77.2%42.4%38.9%
3 Year27.8%13.8%31.3%20.0%48.1%38.1%
5 Year97.3%65.5%40.2%24.1%67.5%47.1%

Long-Term Price Volatility Vs. Market

How volatile is POSCO's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is POSCO undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: A005490 (₩366500) is trading below our estimate of fair value (₩799223.46)

Significantly Below Fair Value: A005490 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: A005490 is good value based on its PE Ratio (7.2x) compared to the KR Metals and Mining industry average (17.9x).

PE vs Market: A005490 is good value based on its PE Ratio (7.2x) compared to the KR market (19x).


Price to Earnings Growth Ratio

PEG Ratio: A005490's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: A005490 is good value based on its PB Ratio (0.6x) compared to the KR Metals and Mining industry average (0.9x).


Future Growth

How is POSCO forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?

-10.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: A005490's earnings are forecast to decline over the next 3 years (-10.3% per year).

Earnings vs Market: A005490's earnings are forecast to decline over the next 3 years (-10.3% per year).

High Growth Earnings: A005490's earnings are forecast to decline over the next 3 years.

Revenue vs Market: A005490's revenue (1.7% per year) is forecast to grow slower than the KR market (9.8% per year).

High Growth Revenue: A005490's revenue (1.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: A005490's Return on Equity is forecast to be low in 3 years time (7.1%).


Past Performance

How has POSCO performed over the past 5 years?

3.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: A005490 has high quality earnings.

Growing Profit Margin: A005490's current net profit margins (6%) are higher than last year (1.5%).


Past Earnings Growth Analysis

Earnings Trend: A005490's earnings have grown by 3.9% per year over the past 5 years.

Accelerating Growth: A005490's earnings growth over the past year (322%) exceeds its 5-year average (3.9% per year).

Earnings vs Industry: A005490 earnings growth over the past year (322%) exceeded the Metals and Mining industry 33.9%.


Return on Equity

High ROE: A005490's Return on Equity (8.3%) is considered low.


Financial Health

How is POSCO's financial position?


Financial Position Analysis

Short Term Liabilities: A005490's short term assets (₩40,182.0B) exceed its short term liabilities (₩17,744.0B).

Long Term Liabilities: A005490's short term assets (₩40,182.0B) exceed its long term liabilities (₩14,871.0B).


Debt to Equity History and Analysis

Debt Level: A005490's debt to equity ratio (38.2%) is considered satisfactory.

Reducing Debt: A005490's debt to equity ratio has reduced from 53.2% to 38.2% over the past 5 years.

Debt Coverage: A005490's debt is well covered by operating cash flow (38.8%).

Interest Coverage: A005490's interest payments on its debt are well covered by EBIT (23.4x coverage).


Balance Sheet


Dividend

What is POSCO current dividend yield, its reliability and sustainability?

2.18%

Current Dividend Yield


Upcoming Dividend Payment

TodayJul 31 2021Ex Dividend DateSep 28 2021Dividend Pay DateNov 26 202159 days from Ex DividendBuy in the next 58 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: A005490's dividend (2.18%) is higher than the bottom 25% of dividend payers in the KR market (0.64%).

High Dividend: A005490's dividend (2.18%) is in the top 25% of dividend payers in the KR market (2.17%)


Stability and Growth of Payments

Stable Dividend: A005490's dividend payments have been volatile in the past 10 years.

Growing Dividend: A005490's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.8%), A005490's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: A005490's dividends in 3 years are forecast to be well covered by earnings (23.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average board tenure


CEO

Jeong-Woo Choi (64 yo)

3yrs

Tenure

₩2,260,000,000

Compensation

Mr. Jeong-Woo Choi has been Chief Executive Officer of POSCO since July 27, 2018 and served as its Chairman from July 27, 2018 to March 15, 2019. He served as the President of POSCO from March 10, 2017 to ...


CEO Compensation Analysis

Compensation vs Market: Jeong-Woo's total compensation ($USD1.96M) is about average for companies of similar size in the KR market ($USD2.15M).

Compensation vs Earnings: Jeong-Woo's compensation has increased by more than 20% in the past year.


Board Members

Experienced Board: A005490's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

POSCO's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: POSCO
  • Ticker: A005490
  • Exchange: KOSE
  • Founded: 1968
  • Industry: Steel
  • Sector: Materials
  • Market Cap: ₩27.717t
  • Shares outstanding: 75.63m
  • Website: https://www.posco.com

Location

  • POSCO
  • 6261, Donghaean-Ro
  • Nam-Gu
  • Pohang
  • Gyeongsangbuk-do
  • South Korea

Listings


Biography

POSCO, together with its subsidiaries, manufactures and sells steel rolled products and plates in South Korea and internationally. It operates through four segments: Steel, Construction, Trading, and Other...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 08:54
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.