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POSCO (NYSE: PKX) – Is this large market cap stock undervalued?

POSCO (NYSE: PKX), is firmly in the large market cap category with market cap of 17352.79. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for POSCO is 48.78 (with a change from open of 0.14%), this in conjunction with a target price of 54.03. Volume today has so far reached 170318, with an average volume of about 307. The GAP for this stock, is 1.33%.

The P/E ratio is 65.94, bringing the forward P/E to a value of 11.21. The current EPS for POSCO, is 0.73, with a EPS growth for this year coming to a value of -75.40%. Performance has been interesting with performance year to date coming to 35.94%.

Looking further into the growth statistics for POSCO, EPS is looking like it will grow 31.80% in the next year. Looking even further it is projected to be 25.80%. Quarter over quarter is 49.30% for EPS growth and for sales growth quarter over quarter it is -15.40%. Looking at past EPS growth statistics we see that for the past five years it has been -49.00%. Sales growth for the past five years has in fact been 4.00%.

Looking at the ownership, we see that the insider ownership is at 9.30% and institutional ownership is 7.50%. Shares outstanding is 360.99, while shares float is at a value of 347.84. Float short for POSCO is 0.25% and the short ratio is 2.79.

In terms of debt, long term debt/equity is 0.31, while the total debt/equity comes to 0.58. The ability to meet these debts, means that the current ratio is 1.5, and the quick ratio is 1.1. The most recent gross margin is 11.60% and their operating margin is 3.20%. The profit margin is 0.50%.

POSCO has seen returns on assets of 0.30%, and on investment, 2.30%. Return on equity is 0.60%. Price/Earnings to growth ratio is 2.56. Price/Sales ratio is at a value of 0.37, with Price/book ratio coming to 0.42 and Price/cash is 2.32, and finally Price/Free cash Flow is 4.72.

The simple moving averages are -1.28% and 10.64% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -12.27% and the 52 week low is 57.51%.

POSCO has a dividend yield of 1.39%, with a current price of 48.78. The ability to pay this means the payout ratio is 290.00%. This is in an industry, Steel & Iron, with equally high dividends from other companies in this sector, which it is Basic Materials. POSCO is based in South Korea.

Performance in the Steel & Iron industry means that POSCO has seen performance for the past week of -4.89%, with performance for the month coming to -3.16%. Looking at the data for the quarter it is at a value of 11.04%, and for the half year the performance is 19.67%. Volatility for this week is 2.22% and for the month this is 1.89%.

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.

About the author

Mark Hines

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