KOSE:A005490

Stock Analysis Report

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Executive Summary

POSCO manufactures and sells steel rolled products and plates in South Korea and internationally. More Details


Snowflake Analysis

Excellent balance sheet, good value 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

-6.3%

A005490

-5.7%

KR Metals and Mining

-2.1%

KR Market


1 Year Return

7.7%

A005490

15.7%

KR Metals and Mining

38.5%

KR Market

Return vs Industry: A005490 underperformed the KR Metals and Mining industry which returned 15.7% over the past year.

Return vs Market: A005490 underperformed the KR Market which returned 38.5% over the past year.


Shareholder returns

A005490IndustryMarket
7 Day-6.3%-5.7%-2.1%
30 Day-1.1%3.3%10.1%
90 Day28.8%25.5%29.6%
1 Year11.5%7.7%19.0%15.7%41.6%38.5%
3 Year-21.2%-29.5%-19.2%-26.3%30.5%21.9%
5 Year85.7%56.5%24.7%11.1%75.0%54.7%

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?

49.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: A005490 (₩266000) is trading below our estimate of fair value (₩523275.15)

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


Price To Earnings Ratio

PE vs Industry: A005490 is poor value based on its PE Ratio (22.5x) compared to the KR Metals and Mining industry average (16.8x).

PE vs Market: A005490 is poor value based on its PE Ratio (22.5x) compared to the KR market (19.4x).


Price to Earnings Growth Ratio

PEG Ratio: A005490 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: A005490 is good value based on its PB Ratio (0.5x) compared to the KR Metals and Mining industry average (0.6x).


Next Steps

Future Growth

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

30.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: A005490's forecast earnings growth (30.5% per year) is above the savings rate (3.7%).

Earnings vs Market: A005490's earnings (30.5% per year) are forecast to grow slower than the KR market (34.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: A005490's revenue (4.1% per year) is forecast to grow slower than the KR market (11.1% per year).

High Growth Revenue: A005490's revenue (4.1% 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 (6.4%).


Next Steps

Past Performance

How has POSCO performed over the past 5 years?

12.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: A005490 has a large one-off loss of ₩460.8B impacting its September 30 2020 financial results.

Growing Profit Margin: A005490's current net profit margins (1.6%) are higher than last year (1.4%).


Past Earnings Growth Analysis

Earnings Trend: A005490 has become profitable over the past 5 years, growing earnings by 12.6% per year.

Accelerating Growth: A005490's earnings growth over the past year (2.7%) is below its 5-year average (12.6% per year).

Earnings vs Industry: A005490 earnings growth over the past year (2.7%) exceeded the Metals and Mining industry -8.8%.


Return on Equity

High ROE: A005490's Return on Equity (2.3%) is considered low.


Next Steps

Financial Health

How is POSCO's financial position?


Financial Position Analysis

Short Term Liabilities: A005490's short term assets (₩38,215.7B) exceed its short term liabilities (₩18,411.6B).

Long Term Liabilities: A005490's short term assets (₩38,215.7B) exceed its long term liabilities (₩15,889.2B).


Debt to Equity History and Analysis

Debt Level: A005490's debt to equity ratio (49.3%) is considered high.

Reducing Debt: A005490's debt to equity ratio has reduced from 60.6% to 49.3% over the past 5 years.

Debt Coverage: A005490's debt is well covered by operating cash flow (34.1%).

Interest Coverage: A005490's interest payments on its debt are well covered by EBIT (9x coverage).


Balance Sheet


Next Steps

Dividend

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

3.76%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: A005490's dividend (3.76%) is higher than the bottom 25% of dividend payers in the KR market (0.73%).

High Dividend: A005490's dividend (3.76%) is in the top 25% of dividend payers in the KR market (2.45%)


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 not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (63.4%), A005490's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: A005490's dividends in 3 years are forecast to be well covered by earnings (29.8% payout ratio).


Next Steps

Management

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

2.2yrs

Average management tenure


CEO

Jeong-Woo Choi (63 yo)

2.5yrs

Tenure

₩1,617,000,000

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 ($USD1.47M) is about average for companies of similar size in the KR market ($USD1.67M).

Compensation vs Earnings: Jeong-Woo's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jeong-Woo Choi
CEO & Representative Director2.5yrs₩1.62b0.0019%
₩ 420.6m
In-Hwa Chang
President3.83yrs₩1.14b0.0018%
₩ 381.8m
In-Hwan Oh
Chief Operating Officer3.83yrs₩1.45bno data
Hag-Dong Kim
VP, Head of Steel Production & Technology Division and Inside Director1.83yrs₩630.00m0.0019%
₩ 401.2m
Tak Jeong
Senior Executive VP1.83yrs₩628.00m0.0017%
₩ 358.1m
Kyung-Zoon Min
Senior Executive Vice President and President of Pt Krakatau Posco Co Ltdno data₩1.14bno data
Jung-Son Chon
Senior Executive VP2.83yrs₩948.00m0.0016%
₩ 347.3m
Sung Yoo
Vice Presidentno data₩2.14bno data
Seung-Kyu Lim
Executive VP & Head of Finance Officeno datano data0.00088%
₩ 189.8m
Byeong-Og Yoo
Senior EVP and Head of Purchasing & Investment Divisionno datano data0.0015%
₩ 314.9m
Sung-Wook Lee
Senior EVP & Head of Legal Affairs Officeno datano data0.00025%
₩ 53.9m
Young Choi
Senior VP & Head of Communication Officeno datano data0.00045%
₩ 97.1m

2.2yrs

Average Tenure

61yo

Average Age

Experienced Management: A005490's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeong-Woo Choi
CEO & Representative Director2.5yrs₩1.62b0.0019%
₩ 420.6m
In-Hwa Chang
President3.83yrs₩1.14b0.0018%
₩ 381.8m
Hag-Dong Kim
VP, Head of Steel Production & Technology Division and Inside Director1.83yrs₩630.00m0.0019%
₩ 401.2m
Tak Jeong
Senior Executive VP1.83yrs₩628.00m0.0017%
₩ 358.1m
Jung-Son Chon
Senior Executive VP2.83yrs₩948.00m0.0016%
₩ 347.3m
Shin-Bae Kim
Independent External Director3.83yrsno datano data
Byong-Won Bahk
Independent External Director5.83yrsno datano data
Joo-Hyun Kim
Independent External Director5.83yrsno datano data
Moon-Ki Chung
Independent Chairman0.83yrno datano data
Seung-Wha Chang
Independent External Director3.83yrsno datano data
Sung-Jin Kim
Independent Outside Director2.83yrsno datano data
Heui-Jae Pahk
Independent External Director1.83yrsno datano data

2.8yrs

Average Tenure

62yo

Average Age

Experienced Board: A005490's board of directors are not considered experienced ( 2.8 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: ₩21.571t
  • Shares outstanding: 78.44m
  • Website: https://www.posco.com

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
A005490KOSE (Korea Stock Exchange)YesCommon StockKRKRWJan 1992
PKXNYSE (New York Stock Exchange)ADR EACH REP 1/4 ORD KRW5000 (BNY)USUSDOct 1994
PKXDB (Deutsche Boerse AG)ADR EACH REP 1/4 ORD KRW5000 (BNY)DEEUROct 1994
PKX NBMV (Bolsa Mexicana de Valores)ADR EACH REP 1/4 ORD KRW5000 (BNY)MXMXNOct 1994

Biography

POSCO manufactures and sells steel rolled products and plates in South Korea and internationally. It operates through four segments: Steel, Construction, Trading, and Others. The company offers hot and col...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/18 08:31
End of Day Share Price2021/01/18 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.