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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 50.11 (1.81% today). The market cap for POSCO is 17878.25, and is in the sector Basic Materials, and Steel & Iron industry. The target price for POSCO is 52.53. Currently POSCO is trading with a P/E of 67.72, and a forward P/E of 12.22. Average volume for POSCO is 301.87 and so far today it is 269700.

Performance in the last year for POSCO has been 30.66%. For EPS growth, POSCO has seen a growth of -75.40%, and is looking to grow in the next year to 34.21%. More long term stats show that EPS growth has been -49.00% over the last five years and could be 25.80% for the next five years. POSCO has seen sales growth quarter over quarter at -15.40%, with EPS growth quarter over quarter at 49.30%. The 20-day simple moving average is 6.06%, with the 200-day simple moving average coming to 16.59%.

Since the IPO date for POSCO on the 10/14/1994, POSCO has seen performance year to date to be 41.71%. With POSCO trading at 50.11, the dividend yield is 5.19%, and the EPS is 0.74.

So could POSCO, be undervalued? Well as said before P/E is 67.72. The PEG is 2.62, P/S is 0.37 and the P/B is at 0.43. The P/cash is 2.36, with P/free cash flow at 4.81.

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 0.31, and total debt/equity at 0.58.

In terms of margins, POSCO has a gross margin of 11.60%, an operating margin of 3.20% and a profit margin of 0.50%.Payout ratio for POSCO is 290.00%. Return on assets come to 0.30% with return on investment coming to 2.30%.

Insider ownership for POSCO, is at 9.30% and institutional ownership comes to 7.40%. Outstanding shares are at 356.78. While shares float is 347.84. The float short is currently 0.26%, and short ratio is 2.99.

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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Mark Hines

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