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Is this Large Market Cap Stock target price reasonable for POSCO (NYSE:PKX) ?

The company in question is, POSCO (NYSE:PKX) currently with a stock price of 58.37 (3.16% today). The market cap for POSCO is 20662.4, and is in the sector Basic Materials, and Steel & Iron industry. The target price for POSCO is 65.8. Currently POSCO is trading with a P/E of 15.94, and a forward P/E of 11.45. Average volume for POSCO is 343.05 and so far today it is 428800.

Performance in the last year for POSCO has been 8.86%. For EPS growth, POSCO has seen a growth of 801.00%, and is looking to grow in the next year to 24.54%. More long term stats show that EPS growth has been -18.80% over the last five years and could be 25.80% for the next five years. POSCO has seen sales growth quarter over quarter at 8.00%, with EPS growth quarter over quarter at -10.90%. The 20-day simple moving average is -3.74%, with the 200-day simple moving average coming to 6.99%.

Since the IPO date for POSCO on the 10/14/1994, POSCO has seen performance year to date to be 11.08%. With POSCO trading at 58.37, the dividend yield is 5.21%, and the EPS is 3.66.

So could POSCO, be undervalued? Well as said before P/E is 15.94. The PEG is 0.62, P/S is 0.44 and the P/B is at 0.5. The P/cash is 3.06, with P/free cash flow at 11.12.

POSCO ability to deal with debt shows that the current ratio is 1.5, and the quick ratio is 1.1. This is with long term debt/equity at 0.3, and total debt/equity at 0.54.

In terms of margins, POSCO has a gross margin of 12.60%, an operating margin of 4.20% and a profit margin of 2.50%.Payout ratio for POSCO is 48.10%. Return on assets come to 1.70% with return on investment coming to 2.80%.

Insider ownership for POSCO, is at 9.30% and institutional ownership comes to 6.50%. Outstanding shares are at 353.99. While shares float is 347.82. The float short is currently 0.13%, and short ratio is 1.28.

Graphs: POSCO NYSE: PKX | Friday April 21, 2017







Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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