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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 0.20
NYSE:PKX's Cash to Debt is ranked higher than
63% of the 547 Companies
in the Global Steel industry.

( Industry Median: 0.26 vs. NYSE:PKX: 0.20 )
NYSE:PKX' s 10-Year Cash to Debt Range
Min: 0.18   Max: No Debt
Current: 0.2

Equity to Asset 0.49
NYSE:PKX's Equity to Asset is ranked higher than
68% of the 535 Companies
in the Global Steel industry.

( Industry Median: 0.47 vs. NYSE:PKX: 0.49 )
NYSE:PKX' s 10-Year Equity to Asset Range
Min: 0.39   Max: 0.81
Current: 0.49

0.39
0.81
Interest Coverage 3.91
NYSE:PKX's Interest Coverage is ranked higher than
56% of the 309 Companies
in the Global Steel industry.

( Industry Median: 6.49 vs. NYSE:PKX: 3.91 )
NYSE:PKX' s 10-Year Interest Coverage Range
Min: 1.4   Max: 40.74
Current: 3.91

1.4
40.74
F-Score: 6
Z-Score: 2.05
M-Score: -2.08
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 3.97
NYSE:PKX's Operating margin (%) is ranked higher than
76% of the 542 Companies
in the Global Steel industry.

( Industry Median: 3.00 vs. NYSE:PKX: 3.97 )
NYSE:PKX' s 10-Year Operating margin (%) Range
Min: 4.16   Max: 23.13
Current: 3.97

4.16
23.13
Net-margin (%) 2.24
NYSE:PKX's Net-margin (%) is ranked higher than
71% of the 542 Companies
in the Global Steel industry.

( Industry Median: 1.89 vs. NYSE:PKX: 2.24 )
NYSE:PKX' s 10-Year Net-margin (%) Range
Min: 2.22   Max: 15.91
Current: 2.24

2.22
15.91
ROE (%) 3.48
NYSE:PKX's ROE (%) is ranked higher than
68% of the 545 Companies
in the Global Steel industry.

( Industry Median: 3.56 vs. NYSE:PKX: 3.48 )
NYSE:PKX' s 10-Year ROE (%) Range
Min: 3.38   Max: 26.85
Current: 3.48

3.38
26.85
ROA (%) 1.72
NYSE:PKX's ROA (%) is ranked higher than
68% of the 550 Companies
in the Global Steel industry.

( Industry Median: 1.73 vs. NYSE:PKX: 1.72 )
NYSE:PKX' s 10-Year ROA (%) Range
Min: 1.68   Max: 17.37
Current: 1.72

1.68
17.37
ROC (Joel Greenblatt) (%) 5.01
NYSE:PKX's ROC (Joel Greenblatt) (%) is ranked higher than
72% of the 550 Companies
in the Global Steel industry.

( Industry Median: 4.63 vs. NYSE:PKX: 5.01 )
NYSE:PKX' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 5.21   Max: 42.9
Current: 5.01

5.21
42.9
Revenue Growth (%) 10.20
NYSE:PKX's Revenue Growth (%) is ranked higher than
89% of the 461 Companies
in the Global Steel industry.

( Industry Median: 1.00 vs. NYSE:PKX: 10.20 )
NYSE:PKX' s 10-Year Revenue Growth (%) Range
Min: 0.4   Max: 31.2
Current: 10.2

0.4
31.2
EBITDA Growth (%) -19.20
NYSE:PKX's EBITDA Growth (%) is ranked higher than
56% of the 404 Companies
in the Global Steel industry.

( Industry Median: -5.20 vs. NYSE:PKX: -19.20 )
NYSE:PKX' s 10-Year EBITDA Growth (%) Range
Min: -19.2   Max: 44.1
Current: -19.2

-19.2
44.1
EPS Growth (%) -29.70
NYSE:PKX's EPS Growth (%) is ranked higher than
55% of the 342 Companies
in the Global Steel industry.

( Industry Median: -9.30 vs. NYSE:PKX: -29.70 )
NYSE:PKX' s 10-Year EPS Growth (%) Range
Min: -29.7   Max: 77.3
Current: -29.7

-29.7
77.3
» NYSE:PKX's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q4 2013

PKX Guru Trades in Q4 2013

David Dreman 614 sh (New)
Charles Brandes 945,887 sh (+3.27%)
Charlie Munger 64,600 sh (unchged)
RS Investment Management Sold Out
Arnold Van Den Berg 170,240 sh (-0.71%)
Third Avenue Management 2,542,382 sh (-5.78%)
Jeremy Grantham 34,860 sh (-18.85%)
Martin Whitman 1,881,774 sh (-1.83%)
» More
Q1 2014

PKX Guru Trades in Q1 2014

Jim Simons 31,500 sh (New)
Steven Cohen 6,156 sh (New)
Arnold Van Den Berg 473,592 sh (+178.19%)
Charles Brandes 1,087,088 sh (+14.93%)
Third Avenue Management 2,574,148 sh (+1.25%)
Charlie Munger 64,600 sh (unchged)
David Dreman Sold Out
Jeremy Grantham 23,422 sh (-32.81%)
Martin Whitman 1,795,432 sh (-4.59%)
» More
Q2 2014

PKX Guru Trades in Q2 2014

Mohnish Pabrai 977,634 sh (New)
RS Investment Management 47,512 sh (New)
Charles Brandes 1,117,934 sh (+2.84%)
Martin Whitman 1,810,432 sh (+0.84%)
Charlie Munger 64,600 sh (unchged)
Jim Simons Sold Out
Arnold Van Den Berg 470,412 sh (-0.67%)
Third Avenue Management 2,321,005 sh (-9.83%)
Jeremy Grantham 12,796 sh (-45.37%)
» More
2014

PKX Guru Trades in 2014

Martin Whitman 1,432,345 sh (-20.88%)
» More
» Details

Insider Trades

Latest Guru Trades with NYSE:PKX

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Martin Whitman 2014-07-31 Reduce -20.88%1.34%$70.05 - $81.38 $ 74.230%1432345
Arnold Van Den Berg 2014-03-31 Add 178.19%1.79%$64.03 - $78 $ 74.238%473592
Charles Brandes 2014-03-31 Add 14.93%0.12%$64.03 - $78 $ 74.238%1087088
David Dreman 2014-03-31 Sold Out $64.03 - $78 $ 74.238%0
Martin Whitman 2014-01-31 Reduce -4.59%0.28%$67.97 - $80.4 $ 74.23-2%1795432
David Dreman 2013-12-31 New Buy$72.19 - $80.4 $ 74.23-2%614
Martin Whitman 2013-10-31 Reduce -1.83%0.11%$71.58 - $78.75 $ 74.230%1881774
Arnold Van Den Berg 2013-09-30 New Buy1.2%$64.29 - $78.75 $ 74.232%171465
Martin Whitman 2012-10-31 Reduce -25.93%2.33%$78.11 - $85.55 $ 74.23-9%2104774
Charles Brandes 2012-03-31 Add 32.67%0.16%$80.28 - $94.06 $ 74.23-11%909499
Charles Brandes 2011-12-31 Add 392.01%0.41%$72.51 - $89.16 $ 74.23-10%685557
George Soros 2011-06-30 Sold Out $95.86 - $116.83 $ 74.23-30%0
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on POSCO

Third Avenue Management Comments on Posco - Jul 23, 2014

The position in Posco (PKX) common was increased slightly at about a 50% discount to book value. Despite excess capacity and pricing pressure in the global steel industry, particularly in China, Posco's steel business continues to perform relatively well as evidenced by its 7% operating margin in both 2013 and the first quarter of 2014. The company continues to have a strong financial position, and its recent investments in non-steel businesses should start to contribute more meaningfully over the next couple of years, particularly in energy (more on this later in this letter). Posco common accounted for 5.4% of the Fund's net assets at quarter end.



Posco recently experienced a change in management. The new CEO, Oh-joon Kwon, started in March 2014. He had previously been the Chief Technical Officer. His stated mission is to reform the company and, to that end, four out of five board members have been replaced and three new outside directors added. His focus is on enhancing the existing business via organic growth and reducing leverage, whereas the prior CEO's focus was more about empire building. Despite the weakness in the steel business due to macroeconomic challenges, Posco has a substantial non-steel business. For example, via its stake in Daewoo international, Posco participates in the profits of Daewoo's Myanmar gas field which is just starting to ramp up. The field began production in June 2013 and was producing only 20% of potential production capacity in the fourth quarter of 2013. Posco expects the project to provide 150 billion KRW in pre-tax income in 2014, growing to KrW300 billion in 2015. Posco also has potential growth opportunities from its Engineering and Construction business and opportunities to divest non- core assets. Recent media reports suggest the company seeks to raise 2 trillion won by selling assets and is seeking to make an initial public offering of some of its affiliates including Posco Energy, Posco Engineering and Posco Specialty Steel.



From Martin Whitman (Trades, Portfolio)'s 2Q 2014 Shareholder Letters.



Check out Martin Whitman latest stock trades

Third Avenue Management Comments on Posco - Jun 06, 2014

Posco (PKX) recently experienced a change in management. The new CEO, Oh-joon Kwon, started in March 2014. He had previously been the Chief Technical Officer. His stated mission is to reform the company and, to that end, four out of five board members have been replaced and three new outside directors added. His focus is on enhancing the existing business via organic growth and reducing leverage, whereas the prior CEO's focus was more about empire building. Despite the weakness in the steel business due to macroeconomic challenges, posco has a substantial non-steel business. For example, via its stake in Daewoo international, posco participates in the profits of Daewoo's Myanmar gas field which is just starting to ramp up . The field began production in June 2013 and was producing only 20% of potential production capacity in the fourth quarter of 2013. posco expects the project to provide 150 billion KrW in pre-tax income in 2014, growing to KrW300 billion in 2015. posco also has potential growth opportunities from its Engineering and Construction business and opportunities to divest non- core assets. recent media reports suggest the company seeks to raise 2 trillion won by selling assets and is seeking to make an initial public offering of some of its affiliates including posco Energy, posco Engineering and posco Specialty Steel.







From Third Avenue Management (Trades, Portfolio)'s second quarter 2014 shareholder letter.

Check out Third Avenue Management latest stock trades

Third Avenue Management Comments on Posco - Jun 06, 2014

The position in posco (PKX) common was increased slightly at about a 50% discount to book value. Despite excess capacity and pricing pressure in the global steel industry, particularly in China, posco's steel business continues to perform relatively well as evidenced by its 7% operating margin in both 2013 and the first quarter of 2014. The company continues to have a strong financial position, and its recent investments in non-steel businesses should start to contribute more meaningfully over the next couple of years, particularly in energy (more on this later in this letter). posco common accounted for 5.4% of the Fund's net assets at quarter end.

From Third Avenue Management (Trades, Portfolio)'s second quarter 2014 shareholder letter.

Check out Third Avenue Management latest stock trades

Top Ranked Articles about POSCO

Third Avenue Management Comments on Posco
The position in Posco (PKX) common was increased slightly at about a 50% discount to book value. Despite excess capacity and pricing pressure in the global steel industry, particularly in China, Posco's steel business continues to perform relatively well as evidenced by its 7% operating margin in both 2013 and the first quarter of 2014. The company continues to have a strong financial position, and its recent investments in non-steel businesses should start to contribute more meaningfully over the next couple of years, particularly in energy (more on this later in this letter). Posco common accounted for 5.4% of the Fund's net assets at quarter end. Read more...
Third Avenue Management Comments on Posco
The position in posco (PKX) common was increased slightly at about a 50% discount to book value. Despite excess capacity and pricing pressure in the global steel industry, particularly in China, posco's steel business continues to perform relatively well as evidenced by its 7% operating margin in both 2013 and the first quarter of 2014. The company continues to have a strong financial position, and its recent investments in non-steel businesses should start to contribute more meaningfully over the next couple of years, particularly in energy (more on this later in this letter). posco common accounted for 5.4% of the Fund's net assets at quarter end. Read more...
Third Avenue Management Comments on Posco
Posco (PKX) recently experienced a change in management. The new CEO, Oh-joon Kwon, started in March 2014. He had previously been the Chief Technical Officer. His stated mission is to reform the company and, to that end, four out of five board members have been replaced and three new outside directors added. His focus is on enhancing the existing business via organic growth and reducing leverage, whereas the prior CEO's focus was more about empire building. Despite the weakness in the steel business due to macroeconomic challenges, posco has a substantial non-steel business. For example, via its stake in Daewoo international, posco participates in the profits of Daewoo's Myanmar gas field which is just starting to ramp up . The field began production in June 2013 and was producing only 20% of potential production capacity in the fourth quarter of 2013. posco expects the project to provide 150 billion KrW in pre-tax income in 2014, growing to KrW300 billion in 2015. posco also has potential growth opportunities from its Engineering and Construction business and opportunities to divest non- core assets. recent media reports suggest the company seeks to raise 2 trillion won by selling Read more...
Charlie Munger's Portfolio
Charlie Munger (Trades, Portfolio), Warren Buffett (Trades, Portfolio)’s trusted partner at Berkshire Hathaway (BRK.A)(BRK.B) and endless well of investing wisdom, also manages a small portfolio for and sits on the board of a small company called Daily Journal Corp. (DJCO). The company publishes a daily paper, a monthly booklet and provides online resources for attorneys and legal professionals in California and Arizona, for an annual fee. Read more...
Martin Whitman’s Third Avenue Value Fund’s Top Five Year-End Stocks
Martin Whitman, the chairman of the board at Third Avenue Asset Management, made a relatively early release of his fund’s third quarter portfolio this week. While Whitman no longer manages the funds at Third Avenue, he continues to write the shareholder letter each quarter. Third Avenue focuses on valuing its stocks from the bottom up, focusing on the “creditworthiness,” the ability for the “issuer to grow net asset value (NAV)” and the stock’s price in relation to its NAV. Read more...
PKX, AMX, WTW - Stocks at 10-Year Low P/S Held by Billionaire Investors
According to the GuruFocus Value Screen that shows value strategies of stocks traded at historical low P/S ratios, POSCO (PKX), America Movil S.A.B. de C.V. (AMX) and Weight Watchers International Inc. (WTW) are held by billionaire investors and are traded at or near their 10-year low. Here are the company updates and a few trade highlights as of the third quarter of 2013. Read more...
Warren Buffett's International Stocks: Update 2013
Warren Buffett invests mainly in U.S. companies through his own company, Berkshire Hathway (BRK.A)(BRK.B), but he has several large international stakes as well. These holdings are not updated as often because the companies do not report to the SEC, and information about them is usually only available when Buffett volunteers it in his famous annual letters. Though his recent buy and sell information on the stocks is not available, it is still possible to review the businesses and stock performance in the ailing global economy as almost a year has passed since Buffett’s last update. Read more...
Texas Investor Arnold Van Den Berg's Top New Q3 Stock Buys
Chairman and Co-Chief Investment Officer of the $2 billion value investing firm Century Management, Arnold Van Den Berg, reported his third-quarter stock holdings this week. He bought seven new stocks during the quarter, for a total of 64 companies represented in the portfolio and a 5% turnover from the previous quarter. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 17.90
PKX's P/E(ttm) is ranked higher than
77% of the 581 Companies
in the Global Steel industry.

( Industry Median: 31.30 vs. PKX: 17.90 )
PKX' s 10-Year P/E(ttm) Range
Min: 3.12   Max: 22.18
Current: 17.9

3.12
22.18
P/B 0.65
PKX's P/B is ranked higher than
80% of the 581 Companies
in the Global Steel industry.

( Industry Median: 0.93 vs. PKX: 0.65 )
PKX' s 10-Year P/B Range
Min: 0.52   Max: 1.97
Current: 0.65

0.52
1.97
P/S 0.40
PKX's P/S is ranked higher than
75% of the 581 Companies
in the Global Steel industry.

( Industry Median: 0.53 vs. PKX: 0.40 )
PKX' s 10-Year P/S Range
Min: 0.35   Max: 1.89
Current: 0.4

0.35
1.89
EV-to-EBIT 21.20
PKX's EV-to-EBIT is ranked higher than
75% of the 581 Companies
in the Global Steel industry.

( Industry Median: 30.88 vs. PKX: 21.20 )
PKX' s 10-Year EV-to-EBIT Range
Min: 2.8   Max: 54.1
Current: 21.2

2.8
54.1
Shiller P/E 8.73
PKX's Shiller P/E is ranked higher than
93% of the 581 Companies
in the Global Steel industry.

( Industry Median: 9999.00 vs. PKX: 8.73 )
PKX' s 10-Year Shiller P/E Range
Min: 3.82   Max: 21.09
Current: 8.73

3.82
21.09
Current Ratio 1.51
PKX's Current Ratio is ranked higher than
68% of the 546 Companies
in the Global Steel industry.

( Industry Median: 1.51 vs. PKX: 1.51 )
PKX' s 10-Year Current Ratio Range
Min: 1.17   Max: 5.18
Current: 1.51

1.17
5.18
Quick Ratio 1.00
PKX's Quick Ratio is ranked higher than
71% of the 546 Companies
in the Global Steel industry.

( Industry Median: 0.90 vs. PKX: 1.00 )
PKX' s 10-Year Quick Ratio Range
Min: 0.82   Max: 3.7
Current: 1

0.82
3.7

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.40
PKX's Dividend Yield is ranked higher than
62% of the 416 Companies
in the Global Steel industry.

( Industry Median: 1.71 vs. PKX: 0.40 )
PKX' s 10-Year Dividend Yield Range
Min: 0.4   Max: 3.93
Current: 0.4

0.4
3.93
Dividend growth (3y) -44.00
PKX's Dividend growth (3y) is ranked higher than
60% of the 251 Companies
in the Global Steel industry.

( Industry Median: -11.20 vs. PKX: -44.00 )
PKX' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 82.9
Current: -44

0
82.9
Yield on cost (5-Year) 0.40
PKX's Yield on cost (5-Year) is ranked higher than
58% of the 428 Companies
in the Global Steel industry.

( Industry Median: 1.64 vs. PKX: 0.40 )
PKX' s 10-Year Yield on cost (5-Year) Range
Min: 0.4   Max: 3.93
Current: 0.4

0.4
3.93
Share Buyback Rate -0.40
PKX's Share Buyback Rate is ranked higher than
75% of the 295 Companies
in the Global Steel industry.

( Industry Median: -1.00 vs. PKX: -0.40 )
PKX' s 10-Year Share Buyback Rate Range
Min: 5   Max: -0.8
Current: -0.4

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 0.76
PKX's Price/Tangible Book is ranked higher than
77% of the 581 Companies
in the Global Steel industry.

( Industry Median: 1.12 vs. PKX: 0.76 )
PKX' s 10-Year Price/Tangible Book Range
Min: 0.65   Max: 2.32
Current: 0.76

0.65
2.32
Price/DCF (Projected) 1.77
PKX's Price/DCF (Projected) is ranked higher than
78% of the 579 Companies
in the Global Steel industry.

( Industry Median: 19.00 vs. PKX: 1.77 )
PKX' s 10-Year Price/DCF (Projected) Range
Min: 0.35   Max: 2.16
Current: 1.77

0.35
2.16
Price/Median PS Value 0.55
PKX's Price/Median PS Value is ranked higher than
94% of the 581 Companies
in the Global Steel industry.

( Industry Median: 1.04 vs. PKX: 0.55 )
PKX' s 10-Year Price/Median PS Value Range
Min: 0.42   Max: 2.47
Current: 0.55

0.42
2.47
Price/Graham Number 0.83
PKX's Price/Graham Number is ranked higher than
79% of the 581 Companies
in the Global Steel industry.

( Industry Median: 1.73 vs. PKX: 0.83 )
PKX' s 10-Year Price/Graham Number Range
Min: 0.36   Max: 1.69
Current: 0.83

0.36
1.69
Earnings Yield (Greenblatt) 4.70
PKX's Earnings Yield (Greenblatt) is ranked higher than
66% of the 451 Companies
in the Global Steel industry.

( Industry Median: 5.50 vs. PKX: 4.70 )
PKX' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1.8   Max: 36
Current: 4.7

1.8
36
Forward Rate of Return (Yacktman) -0.17
PKX's Forward Rate of Return (Yacktman) is ranked higher than
71% of the 383 Companies
in the Global Steel industry.

( Industry Median: 2.07 vs. PKX: -0.17 )
PKX' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -8   Max: 50.2
Current: -0.17

-8
50.2

Business Description

Industry: Steel » Steel
Compare:XKRX:004020, XKRX:010520, XKRX:001230, XKRX:002240, XKRX:058650 » details
Traded in other countries:5412.Japan, PIDD.UK, 005490.Korea, PKX.Germany
POSCO was incorporated in Korea on April 1, 1968. The Company is engaged in the manufacturing and distribution of steel rolled products and plates in the domestic and overseas markets. It manufactures and sells a line of steel products, including: hot rolled products; plates; wire rods; cold rolled products; silicon steel sheets; and stainless steel products. Hot rolled coils and sheets are used to manufacture structural steel used in the construction of buildings, industrial pipes and tanks, and automobile chassis. Plates are used in shipbuilding, structural steelwork, offshore oil and gas production, power generation, mining, and the manufacture of earth-moving and mechanical handling equipment, boiler and pressure vessels and other industrial machinery. Wire rods are used mainly by manufacturers of wire, nails, bolts, nuts and welding rods. Wire rods are also used in the manufacture of coil springs, tension bars and tire cords in the automobile industry. Cold rolled coils and further refined galvanized cold rolled products are used mainly in the automobile industry to produce car body panels. Other users include the household goods, electrical appliances, engineering and metal goods industries. Silicon steel sheets are used mainly in the manufacture of power transformers and generators and rotating machines. Stainless steel products are used to manufacture household goods and are also used by the chemical industry, paper mills, the aviation industry, the automobile industry, the construction industry and the food processing industry. Other products include lower value-added semi-finished products such as pig iron, billets, blooms and slab. The main raw materials used in producing steel through the basic oxygen steelmaking method are iron ore and coal. The Company imports all of the coal and virtually all of the iron ore that it uses. The Company is subject to national and local environmental laws and regulations, including increasing pressure to reduce emission of carbon dioxide relating to its manufacturing process, and its steel manufacturing and construction operations could expose it to risk of substantial liability relating to environmental or health and safety issues, such as those resulting from discharge of pollutants and carbon dioxide into the environment, the handling, storage and disposal of solid or hazardous materials or wastes and the investigation and remediation of contaminated sites.

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