Switch to:

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 : 8/10

vs
industry
vs
history
Cash to Debt 0.20
PCP's Cash to Debt is ranked lower than
81% of the 1709 Companies
in the Global Metal Fabrication industry.

( Industry Median: 0.99 vs. PCP: 0.20 )
Ranked among companies with meaningful Cash to Debt only.
PCP' s 10-Year Cash to Debt Range
Min: 0.01  Med: 0.10 Max: 5.74
Current: 0.2
0.01
5.74
Equity to Asset 0.55
PCP's Equity to Asset is ranked higher than
55% of the 1545 Companies
in the Global Metal Fabrication industry.

( Industry Median: 0.52 vs. PCP: 0.55 )
Ranked among companies with meaningful Equity to Asset only.
PCP' s 10-Year Equity to Asset Range
Min: 0.31  Med: 0.54 Max: 0.8
Current: 0.55
0.31
0.8
Interest Coverage 37.86
PCP's Interest Coverage is ranked lower than
56% of the 1035 Companies
in the Global Metal Fabrication industry.

( Industry Median: 63.18 vs. PCP: 37.86 )
Ranked among companies with meaningful Interest Coverage only.
PCP' s 10-Year Interest Coverage Range
Min: 3.58  Med: 16.15 Max: 638
Current: 37.86
3.58
638
F-Score: 4
Z-Score: 4.04
M-Score: -2.58
WACC vs ROIC
9.97%
11.02%
WACC
ROIC
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 (%) 25.21
PCP's Operating margin (%) is ranked higher than
97% of the 1699 Companies
in the Global Metal Fabrication industry.

( Industry Median: 5.72 vs. PCP: 25.21 )
Ranked among companies with meaningful Operating margin (%) only.
PCP' s 10-Year Operating margin (%) Range
Min: 10  Med: 15.34 Max: 27.79
Current: 25.21
10
27.79
Net-margin (%) 14.61
PCP's Net-margin (%) is ranked higher than
91% of the 1699 Companies
in the Global Metal Fabrication industry.

( Industry Median: 4.13 vs. PCP: 14.61 )
Ranked among companies with meaningful Net-margin (%) only.
PCP' s 10-Year Net-margin (%) Range
Min: -0.06  Med: 8.67 Max: 18.48
Current: 14.61
-0.06
18.48
ROE (%) 12.61
PCP's ROE (%) is ranked higher than
72% of the 1675 Companies
in the Global Metal Fabrication industry.

( Industry Median: 7.09 vs. PCP: 12.61 )
Ranked among companies with meaningful ROE (%) only.
PCP' s 10-Year ROE (%) Range
Min: -0.1  Med: 15.66 Max: 28.7
Current: 12.61
-0.1
28.7
ROA (%) 7.34
PCP's ROA (%) is ranked higher than
77% of the 1719 Companies
in the Global Metal Fabrication industry.

( Industry Median: 3.52 vs. PCP: 7.34 )
Ranked among companies with meaningful ROA (%) only.
PCP' s 10-Year ROA (%) Range
Min: -0.05  Med: 8.05 Max: 17.46
Current: 7.34
-0.05
17.46
ROC (Joel Greenblatt) (%) 39.99
PCP's ROC (Joel Greenblatt) (%) is ranked higher than
85% of the 1710 Companies
in the Global Metal Fabrication industry.

( Industry Median: 11.26 vs. PCP: 39.99 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
PCP' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 24.91  Med: 47.71 Max: 77.8
Current: 39.99
24.91
77.8
Revenue Growth (3Y)(%) 12.10
PCP's Revenue Growth (3Y)(%) is ranked higher than
83% of the 1402 Companies
in the Global Metal Fabrication industry.

( Industry Median: 2.60 vs. PCP: 12.10 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
PCP' s 10-Year Revenue Growth (3Y)(%) Range
Min: -10.1  Med: 14.90 Max: 32.7
Current: 12.1
-10.1
32.7
EBITDA Growth (3Y)(%) 14.30
PCP's EBITDA Growth (3Y)(%) is ranked higher than
74% of the 1216 Companies
in the Global Metal Fabrication industry.

( Industry Median: 2.90 vs. PCP: 14.30 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
PCP' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -9.2  Med: 13.50 Max: 44.2
Current: 14.3
-9.2
44.2
EPS Growth (3Y)(%) 8.40
PCP's EPS Growth (3Y)(%) is ranked higher than
60% of the 1082 Companies
in the Global Metal Fabrication industry.

( Industry Median: 1.90 vs. PCP: 8.40 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
PCP' s 10-Year EPS Growth (3Y)(%) Range
Min: -13.8  Med: 14.40 Max: 58.9
Current: 8.4
-13.8
58.9
» PCP's 10-Y Financials

Financials


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

» Details

Guru Trades

Q3 2014

PCP Guru Trades in Q3 2014

Wallace Weitz 127,535 sh (New)
John Burbank 15,630 sh (New)
Prem Watsa 1,000 sh (New)
Steven Cohen 133,900 sh (+7338.89%)
Andreas Halvorsen 1,823,067 sh (+454.46%)
Tom Russo 24,680 sh (+120.85%)
Ray Dalio 34,211 sh (+43.64%)
Jeremy Grantham 749,670 sh (+10.31%)
Scott Black 29,609 sh (+0.08%)
First Eagle Investment 900 sh (unchged)
Jeff Auxier 11,416 sh (unchged)
Caxton Associates 50,000 sh (unchged)
Pioneer Investments 337,101 sh (unchged)
Warren Buffett 2,082,222 sh (unchged)
Jim Simons Sold Out
Signature Select Canadian Fund Sold Out
Joel Greenblatt 17,818 sh (-0.47%)
Ruane Cunniff 3,064,648 sh (-0.58%)
Westport Asset Management 262,105 sh (-1.87%)
Mario Gabelli 730,180 sh (-3.09%)
Ron Baron 71,645 sh (-8.90%)
RS Investment Management 14,958 sh (-10.93%)
Mariko Gordon 2,052 sh (-30.96%)
» More
Q4 2014

PCP Guru Trades in Q4 2014

Steven Cohen 368,100 sh (+174.91%)
Prem Watsa 2,000 sh (+100.00%)
Ray Dalio 65,211 sh (+90.61%)
Wallace Weitz 241,278 sh (+89.19%)
Joel Greenblatt 29,238 sh (+64.09%)
RS Investment Management 22,755 sh (+52.13%)
Pioneer Investments 468,615 sh (+39.01%)
Warren Buffett 2,853,688 sh (+37.05%)
Jeremy Grantham 812,869 sh (+8.43%)
Ruane Cunniff 3,092,962 sh (+0.92%)
Tom Russo 24,690 sh (+0.04%)
First Eagle Investment 900 sh (unchged)
Jeff Auxier 11,416 sh (unchged)
Andreas Halvorsen Sold Out
John Burbank Sold Out
Mariko Gordon Sold Out
Ron Baron 71,321 sh (-0.45%)
Scott Black 29,449 sh (-0.54%)
Mario Gabelli 709,451 sh (-2.84%)
Westport Asset Management 242,105 sh (-7.63%)
» More
Q1 2015

PCP Guru Trades in Q1 2015

Jeff Ubben 569,185 sh (New)
Lou Simpson 1,352,140 sh (New)
Daniel Loeb 500,000 sh (New)
Daniel Loeb 500,000 sh (New)
Paul Tudor Jones 2,396 sh (New)
Bill Nygren 1,000,000 sh (New)
George Soros 25,000 sh (New)
Joel Greenblatt 120,025 sh (+310.51%)
Wallace Weitz 377,852 sh (+56.60%)
Warren Buffett 4,200,792 sh (+47.21%)
Scott Black 41,433 sh (+40.69%)
Pioneer Investments 622,352 sh (+32.81%)
Tom Russo 31,375 sh (+27.08%)
Ruane Cunniff 3,527,635 sh (+14.05%)
Mario Gabelli 742,672 sh (+4.68%)
Westport Asset Management 242,105 sh (unchged)
Prem Watsa 2,000 sh (unchged)
First Eagle Investment 900 sh (unchged)
RS Investment Management Sold Out
Jeremy Grantham 803,934 sh (-1.10%)
Jeff Auxier 7,391 sh (-35.26%)
Steven Cohen 199,600 sh (-45.78%)
Ron Baron 33,423 sh (-53.14%)
Ray Dalio 26,943 sh (-58.68%)
» More
Q2 2015

PCP Guru Trades in Q2 2015

Jana Partners 2,471,385 sh (New)
Jim Simons 20,700 sh (New)
Michael Price 23,000 sh (New)
Chris Davis 2,011,431 sh (New)
Jeff Auxier 25,256 sh (+241.71%)
Scott Black 45,950 sh (+10.90%)
Wallace Weitz 396,524 sh (+4.94%)
Lou Simpson 1,374,773 sh (+1.67%)
Mario Gabelli 752,077 sh (+1.27%)
Tom Russo 31,465 sh (+0.29%)
Prem Watsa 2,000 sh (unchged)
First Eagle Investment 900 sh (unchged)
Warren Buffett 4,200,792 sh (unchged)
Bill Nygren 1,000,000 sh (unchged)
Paul Tudor Jones Sold Out
Daniel Loeb Sold Out
Jeff Ubben Sold Out
Pioneer Investments 620,912 sh (-0.23%)
Ruane Cunniff 3,512,391 sh (-0.43%)
Ron Baron 30,190 sh (-9.67%)
George Soros 22,500 sh (-10.00%)
Westport Asset Management 212,105 sh (-12.39%)
Joel Greenblatt 102,497 sh (-14.60%)
Jeremy Grantham 685,734 sh (-14.70%)
Steven Cohen 78,600 sh (-60.62%)
Ray Dalio 3,656 sh (-86.43%)
» More
» Details

Insider Trades

Latest Guru Trades with PCP

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

No Entry found in the selected group of Gurus. You can
  • 1. Modify your Personalized List of Gurus, or
  • 2. Click on Premium Premium Tools above to check out all the Gurus, or
  • 3. Click on Premium Plus Premium Plus above for the stocks picks of all the institutional investment advisors (>4000)
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Guru Investment Theses on Precision Castparts Corp

Sequoia Fund Comments on Precision Castparts - Aug 27, 2015

Question:



Could you update us on Precision Castparts (NYSE:PCP)? I know that the stock underperformed in 2014. I know it was kind of slowing down. And in 2015, it preannounced a couple quarters back to back. I was wondering if you could update us on that and if you still see compelling value there.



Greg Steinmetz:



We do see compelling value, but it has been a disappointment. It was supposed to earn $16 a share in the fiscal year that we just started. Instead, management is guiding to something like $13. The difficulty has been confined largely to the forged product segment, which is a very high fixed cost business. So when volume goes against you, you really feel it in the margin. We saw a 900 basis point drop in the margin of that segment last quarter. Furthermore, the oil & gas market has gone against Precision. Management had big plans for the oil & gas business, making very large diameter pipes that are highly resistant to corrosion. Precision is the only company on earth that can make that kind of pipe. Management thought that whatever happens with the oil & gas market, the company would be ready, and it would still be able to sell this pipe because of its compelling value. That did not happen, and the company was late to restructure that business and cut costs. The restructuring is now completed; so things should get a little better. Management was expecting $400 million in revenue out of that pipe business last year and only got $200 million, and it will probably be similar this year.



Another thing that has hurt is that Rolls-Royce is aggressively trying to take inventory out of its system. Rolls had too much inventory because managers were worried about not being able to meet delivery schedules and overdid it on inventory. Now they are cutting back the other way. There have been some other issues. Precision makes a lot of parts for the military. Military spares are down 35%. That was not something that the company foresaw happening in the current fiscal year.



That $16 a share was a number that was derived three years ago and as recently as six months ago management was still talking about $16 a share for this year. But lately management recognized that the world had changed and decided to throw in the towel. In addition to the restructuring I mentioned, the company also wrote down some inventory. This year, Precision thinks it is going to make about $13. I think that is a conservative number. Time will tell.



What we like about Precision and why we are keeping it is, as I mentioned, that it is the only company in the world that can make these large diameter highly corrosive resistant pipes. Precision is also far and away the leader in making powdered metal components that are used in large jet engines. It is the only company that can make certain large structural castings, and there are some other things that only Precision can supply. That gives the company a lot of leverage over its customers. Management is not afraid to use it. So it has a very strong competitive position. We also have what should be a growing market for aerospace.



I was with Boeing (BA) management this week — the company is talking about raising the monthly unit deliveries of the narrow body 737 from 42 a month now to 47, and then to 50-something. That could even go to 60 because the backlog is so big, and there is still an enormous appetite even in China — which, as you know, has a soft economy — to get these planes and get them now. The 787 has gone from 10 a month to 12 and that is going to go to maybe 14. So there is growth there. Precision is seeing that in some of its segments. The company will not see it in other areas because of de-stocking at Rolls-Royce. And the build rate for the 747 is being dialed back. Also there is a transition going on from the old models of the 737 and the Airbus narrow body, the A320, from the current generation to a re-engined version. Precision has had to absorb a lot of development costs along the way as that transition has taken place. But now it is coming to an end.



One thing that I think worries people is that, okay, aerospace is going to be a growing market, but is Precision losing share? We all know that because of Precision’s arrogance in the way it treats its customers — raising prices and making demands on them — they would like to cut Precision down to size. So is there a case of customers taking market share away from Precision and giving it to Alcoa and others? I have looked under as many rocks as I can think of to try to get to the bottom of this and I am not finding the evidence. Maybe I am looking under the wrong rocks, but the fact that I have not turned anything up and the fact that the customers buy under long term contracts which they are locked into, and the fact that competitors are not giving me any examples of how they have taken share from Precision make me think we are okay on the market share question.



If Precision can preserve market share in a growing market, we should be okay, which is why we are still holding the stock. Plus at its current price it is not expensive. It trades at a discount to some other of the big names in aerospace. Before it always traded at a premium.



From Ruane, Cunniff & Goldfarb Investor Day 2015 Transcript Part I.



Check out Ruane Cunniff latest stock trades

Westport Select Cap Fund Comments on Precision Castparts Corp - May 29, 2015

Precision Castparts (PCP) has experienced weakness in demand from one of its important jet engine customers and softness in its less important energy-related businesses. As a result, management was forced to withdraw its long-standing estimate of $16.00 per share earnings for fiscal 2016. On its earnings call for fiscal 2015, ended March 31, management is expected to lay out revised forecasts for the new year as well as long-term goals.

From Westport Asset Management (Trades, Portfolio)’s Westport Select Cap Fund Q1 2015 Commentary.

Check out Westport Asset Management latest stock trades

Bill Nygren Comments on Precision Castparts Corp - Apr 09, 2015

Precision Castparts Corp. (PCP - $212)

Precision Castparts Corp. (NYSE:PCP) is a manufacturer of complex metal components and products, including castings, forgings, fasteners and aerostructures for aerospace, power generation and general industrial applications. Precision Castparts enjoys what we believe is an outstanding corporate culture and is led by a long-tenured CEO who is known for aggressively pursuing operating efficiencies. For many years, the company’s stock traded at a significant premium to other aerospace and industrial peers, but recent weakness has brought the share price to attractive levels relative to these industry groups and the S&P 500. We believe the current valuation of less than 15x earnings is overly punitive, considering PCP’s organic growth prospects and the company’s ability to add value through acquisitions. PCP is providing more components on key new airplanes, which should allow the company to outgrow its end markets. In addition, management projects $4 billion-$6 billion of acquisition opportunities over the next couple of years with return characteristics similar to its existing business. Finally, the company’s unique technical and process capabilities, coupled with its efficiently run operations, should allow it to continue to generate above-average margins. We are pleased to have the opportunity to add shares of what we consider a best-in-class company at a price that implies it is only average.

From Bill Nygren (Trades, Portfolio)’s Oakmark Fund - 1Q 2015 Letter.

Check out Bill Nygren latest stock trades

Wallace Weitz Comments on Precision Castparts - Oct 17, 2014

Precision Castparts (PCP) is a global, diversified manufacturer of complex metal components and products sold primarily to aerospace, power and industrial customers. CEO Mark Donegan is a first-rate operator, sound strategic thinker and highly skilled acquirer / integrator. Concerns over the health of the new commercial aircraft cycle provided us an opportunity to establish an initial position at what we believe is an attractive discount. We have been heartened by management’s more recent decisions to repurchase stock and look forward to the prospect of additional value-accretive M&A in the future.

From Wallace Weitz (Trades, Portfolio)'s Value Fund Q3 2014 Commentary.

Check out Wallace Weitz latest stock trades

Westport Select Cap Fund Comments on Precision Castparts Corp - Jul 28, 2014

Precision Castparts Corp. (PCP), the Fund’s second largest position, was off 6%, costing 61 basis points. There are questions regarding the future organic growth rate of the commercial aircraft industry and the company. This comes despite the company’s continuing profit improvement as it integrates recent acquisitions.

From Westport Asset Management (Trades, Portfolio)’s Westport Select Cap Fund Second Quarter 2014 Commentary.

Check out Westport Asset Management latest stock trades

Westport Fund Comments on Precision Castparts Corp - Jul 28, 2014

The cancellation of a large order for Airbus A-350 aircraft by the United Arab Emirates caused investors to question the bright outlook for commercial aircraft production. Precision Castparts Corp. (PCP), a major supplier of aerospace components, saw its shares decline, decreasing portfolio return by 32 basis points in this period. These events appear transitory and should not have a long term impact on valuation.

From Westport Asset Management (Trades, Portfolio)’s Westport Fund Second Quarter 2014 Commentary.

Check out Westport Asset Management latest stock trades

Sequoia Fund's Discussion of Precision Castparts - Mar 07, 2014

The fiscal year of Precision Castparts ends in March. Through the first nine months of the fiscal year, sales increased 20% and earnings per share advanced 26%. The company is on track to earn about $12 for fiscal 2014, up about 23% from $9.36 a year ago. Precision continues to deploy its cash flow on acquisitions. Its $2.9 billion acquisition of Timet , the largest independent titanium manufacturer in the U.S., is on track to exceed original expectations for synergies. It expects to close the $600 million purchase of Permaswage, a maker of aerospace fittings, by the middle of 2014. Despite aggressive acquisition activity in recent years, Precision retains a strong balance sheet and plenty of flexibility to make more acquisitions. Management believes it will earn about $16 per share in fiscal year 2016, which implies high-teens annual growth.



Source: Sequoia Fund's 2013 Annual Report - Management's Discussion of Fund Performance



Check out Sequoia Fund latest stock trades

Westport Asset Management Comments on Precision Castparts Corp. - Jan 21, 2014

Precision Castparts Corp. (PCP) is a prime component supplier to the commercial aircraft manufacturers. Indicative of the attractiveness of this business was The Boeing Company ' s recent announcement that its year - end backlog was 5,080 planes compared to the 648 jets delivered in 2013. By the same token, Airbus ' (a subsidiary of Airbus Group NV) backlog at the end of November was 5,400 versus the 562 planes del ivered in the first eleven months of the year.

 

From Westport Asset Management (Trades, Portfolio)'s fourth quarter 2013 commentary.

Check out Westport Asset Management latest stock trades

Mario Gabelli Comments on Precision Castparts Corp. - Jan 06, 2014

Precision Castparts Corp. (1.6%) (PCP - $227.24 - NYSE)(PCP) is a manufacturer of investment castings and forgings, primarily for the aerospace and industrial gas turbine markets. The company also makes fasteners and industrial products for the automotive, aerospace, and general industrial markets. PCP is a strong cash flow generator, and we continue to believe the company will use its cash for acquisitions, such as the recently completed Titanium Metals Corporation. PCP's acquisition strategy centers on buying businesses within the company's core competencies, which include manufacturing component products for complex end users. The strategy also includes finding companies that have procurement or technologies similar to PCP's and similar customer profiles. These characteristics should provide opportunities for PCP to improve the acquired company's profitability, thereby enhancing PCP's earnings.

 

From Mario Gabelli (Trades, Portfolio)'s third quarter 2013 commentary.

Check out Mario Gabelli latest stock trades

Top Ranked Articles about Precision Castparts Corp

Sequoia Fund Comments on Precision Castparts
Question: Read more...
Chris Davis Acquires Nearly 24 Million Shares of Cabot Oil & Gas
Chris Davis (Trades, Portfolio), portfolio manager for Davis Financial Fund, favors stable businesses that are well managed and available at value prices when he seeks investment opportunities. His approach has been pretty successful at Davis Financial Fund, which has recorded returns of 13.01%, 31.45% and 18.15% in 2014, 2013 and 2012, respectively. Read more...
Buffett’s Purchase of Precision Castparts Is a Validation of GuruFocus DCF Calculator
Over the weekend news broke that Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) nears a deal for Precision Castparts (NYSE:PCP). Berkshire will take over Precision Castparts at the valuation of more than $30 billion. This puts PCP at around $220 a share. Interestingly, this is about where GuruFocus DCF calculator puts the fair value of PCP shares. Read more...
Lou Simpson Adds Precision Castparts to Portfolio in First Quarter
Warren Buffett (Trades, Portfolio) has called Lou Simpson (Trades, Portfolio) “a cinch to be inducted into the investment hall of fame,” and he should know. Simpson was CEO of capital operations for GEICO when Buffett bought the company in 1996, and he remained with the company until 2010. Read more...
Westport Select Cap Fund Comments on Precision Castparts Corp
Precision Castparts (PCP) has experienced weakness in demand from one of its important jet engine customers and softness in its less important energy-related businesses. As a result, management was forced to withdraw its long-standing estimate of $16.00 per share earnings for fiscal 2016. On its earnings call for fiscal 2015, ended March 31, management is expected to lay out revised forecasts for the new year as well as long-term goals. Read more...
Bill Nygren Buys 3 New Stocks in Q1
Bill Nygren (Trades, Portfolio) said in his first-quarter letter to investors of his Oakmark Fund that he found equities the most attractive class, and he purchased three of them in the first quarter: Caterpillar Inc. (NYSE:CAT), Precision Castparts Corp (NYSE:PCP) and Baker Hughes Inc. (NYSE:BHI). Read more...
Bill Nygren Comments on Precision Castparts Corp
Precision Castparts Corp. (PCP - $212)
Read more...
Bill Nygren Buys Two New Stocks, Sells Walmart
Bill Nygren (Trades, Portfolio) released his first quarter commentary on Wednesday in which he discussed his two new positions acquired during the quarter, Caterpillar Inc. (NYSE:CAT) and Precisions Castparts Corp. (NYSE:PCP), and reported that he sold his position in Walmart (NYSE:WMT). Read more...
Warren Buffett's 4 Portfolio Stocks That Are On Sale
The best living investor Warren Buffett (Trades, Portfolio) had another excellent year in 2014. His company, Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) experienced a 28% increase in book value, besting the S&P 500’s 11% gain. The outperformance takes him out of two years of returns more closely tracking the index. Read more...
Wallace Weitz Comments on Precision Castparts
Precision Castparts (PCP) is a global, diversified manufacturer of complex metal components and products sold primarily to aerospace, power and industrial customers. CEO Mark Donegan is a first-rate operator, sound strategic thinker and highly skilled acquirer / integrator. Concerns over the health of the new commercial aircraft cycle provided us an opportunity to establish an initial position at what we believe is an attractive discount. We have been heartened by management’s more recent decisions to repurchase stock and look forward to the prospect of additional value-accretive M&A in the future. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 22.59
PCP's P/E(ttm) is ranked lower than
59% of the 1311 Companies
in the Global Metal Fabrication industry.

( Industry Median: 18.70 vs. PCP: 22.59 )
Ranked among companies with meaningful P/E(ttm) only.
PCP' s 10-Year P/E(ttm) Range
Min: 6.6  Med: 20.15 Max: 439.77
Current: 22.59
6.6
439.77
Forward P/E 18.15
PCP's Forward P/E is ranked lower than
58% of the 574 Companies
in the Global Metal Fabrication industry.

( Industry Median: 15.95 vs. PCP: 18.15 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 22.40
PCP's PE(NRI) is ranked lower than
59% of the 1310 Companies
in the Global Metal Fabrication industry.

( Industry Median: 18.60 vs. PCP: 22.40 )
Ranked among companies with meaningful PE(NRI) only.
PCP' s 10-Year PE(NRI) Range
Min: 6.65  Med: 20.35 Max: 26.57
Current: 22.4
6.65
26.57
P/B 2.83
PCP's P/B is ranked lower than
72% of the 1595 Companies
in the Global Metal Fabrication industry.

( Industry Median: 1.50 vs. PCP: 2.83 )
Ranked among companies with meaningful P/B only.
PCP' s 10-Year P/B Range
Min: 1.41  Med: 2.96 Max: 6.15
Current: 2.83
1.41
6.15
P/S 3.28
PCP's P/S is ranked lower than
81% of the 1694 Companies
in the Global Metal Fabrication industry.

( Industry Median: 0.92 vs. PCP: 3.28 )
Ranked among companies with meaningful P/S only.
PCP' s 10-Year P/S Range
Min: 1.01  Med: 2.98 Max: 4.18
Current: 3.28
1.01
4.18
PFCF 27.11
PCP's PFCF is ranked lower than
61% of the 824 Companies
in the Global Metal Fabrication industry.

( Industry Median: 20.96 vs. PCP: 27.11 )
Ranked among companies with meaningful PFCF only.
PCP' s 10-Year PFCF Range
Min: 7.68  Med: 24.01 Max: 67.29
Current: 27.11
7.68
67.29
POCF 19.43
PCP's POCF is ranked lower than
62% of the 1126 Companies
in the Global Metal Fabrication industry.

( Industry Median: 14.29 vs. PCP: 19.43 )
Ranked among companies with meaningful POCF only.
PCP' s 10-Year POCF Range
Min: 6.24  Med: 19.43 Max: 38.39
Current: 19.43
6.24
38.39
EV-to-EBIT 14.40
PCP's EV-to-EBIT is ranked lower than
54% of the 1358 Companies
in the Global Metal Fabrication industry.

( Industry Median: 13.46 vs. PCP: 14.40 )
Ranked among companies with meaningful EV-to-EBIT only.
PCP' s 10-Year EV-to-EBIT Range
Min: 4.2  Med: 13.75 Max: 17.6
Current: 14.4
4.2
17.6
PEG 1.49
PCP's PEG is ranked higher than
51% of the 576 Companies
in the Global Metal Fabrication industry.

( Industry Median: 1.55 vs. PCP: 1.49 )
Ranked among companies with meaningful PEG only.
PCP' s 10-Year PEG Range
Min: 0.16  Med: 1.27 Max: 11.38
Current: 1.49
0.16
11.38
Shiller P/E 23.85
PCP's Shiller P/E is ranked lower than
56% of the 842 Companies
in the Global Metal Fabrication industry.

( Industry Median: 21.02 vs. PCP: 23.85 )
Ranked among companies with meaningful Shiller P/E only.
PCP' s 10-Year Shiller P/E Range
Min: 12.71  Med: 25.68 Max: 73.01
Current: 23.85
12.71
73.01
Current Ratio 2.99
PCP's Current Ratio is ranked higher than
80% of the 1571 Companies
in the Global Metal Fabrication industry.

( Industry Median: 1.83 vs. PCP: 2.99 )
Ranked among companies with meaningful Current Ratio only.
PCP' s 10-Year Current Ratio Range
Min: 0.99  Med: 1.93 Max: 3.95
Current: 2.99
0.99
3.95
Quick Ratio 1.28
PCP's Quick Ratio is ranked higher than
51% of the 1570 Companies
in the Global Metal Fabrication industry.

( Industry Median: 1.26 vs. PCP: 1.28 )
Ranked among companies with meaningful Quick Ratio only.
PCP' s 10-Year Quick Ratio Range
Min: 0.6  Med: 1.00 Max: 2.36
Current: 1.28
0.6
2.36
Days Inventory 198.94
PCP's Days Inventory is ranked lower than
85% of the 1672 Companies
in the Global Metal Fabrication industry.

( Industry Median: 92.90 vs. PCP: 198.94 )
Ranked among companies with meaningful Days Inventory only.
PCP' s 10-Year Days Inventory Range
Min: 65.13  Med: 87.62 Max: 190.99
Current: 198.94
65.13
190.99
Days Sales Outstanding 60.63
PCP's Days Sales Outstanding is ranked higher than
68% of the 1372 Companies
in the Global Metal Fabrication industry.

( Industry Median: 77.27 vs. PCP: 60.63 )
Ranked among companies with meaningful Days Sales Outstanding only.
PCP' s 10-Year Days Sales Outstanding Range
Min: 48.63  Med: 58.87 Max: 74.22
Current: 60.63
48.63
74.22

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.05
PCP's Dividend Yield is ranked lower than
99% of the 1790 Companies
in the Global Metal Fabrication industry.

( Industry Median: 1.92 vs. PCP: 0.05 )
Ranked among companies with meaningful Dividend Yield only.
PCP' s 10-Year Dividend Yield Range
Min: 0.04  Med: 0.09 Max: 0.24
Current: 0.05
0.04
0.24
Dividend Payout 0.01
PCP's Dividend Payout is ranked higher than
100% of the 1139 Companies
in the Global Metal Fabrication industry.

( Industry Median: 0.32 vs. PCP: 0.01 )
Ranked among companies with meaningful Dividend Payout only.
PCP' s 10-Year Dividend Payout Range
Min: 0.01  Med: 0.03 Max: 0.13
Current: 0.01
0.01
0.13
Yield on cost (5-Year) 0.05
PCP's Yield on cost (5-Year) is ranked lower than
99% of the 1816 Companies
in the Global Metal Fabrication industry.

( Industry Median: 2.31 vs. PCP: 0.05 )
Ranked among companies with meaningful Yield on cost (5-Year) only.
PCP' s 10-Year Yield on cost (5-Year) Range
Min: 0.04  Med: 0.09 Max: 0.24
Current: 0.05
0.04
0.24
Share Buyback Rate 0.50
PCP's Share Buyback Rate is ranked higher than
81% of the 1039 Companies
in the Global Metal Fabrication industry.

( Industry Median: -1.10 vs. PCP: 0.50 )
Ranked among companies with meaningful Share Buyback Rate only.
PCP' s 10-Year Share Buyback Rate Range
Min: 0.5  Med: -1.80 Max: -8.6
Current: 0.5

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 56.13
PCP's Price/Tangible Book is ranked lower than
99% of the 1516 Companies
in the Global Metal Fabrication industry.

( Industry Median: 1.71 vs. PCP: 56.13 )
Ranked among companies with meaningful Price/Tangible Book only.
PCP' s 10-Year Price/Tangible Book Range
Min: 3.37  Med: 11.51 Max: 137.5
Current: 56.13
3.37
137.5
Price/Projected FCF 1.25
PCP's Price/Projected FCF is ranked lower than
52% of the 869 Companies
in the Global Metal Fabrication industry.

( Industry Median: 1.17 vs. PCP: 1.25 )
Ranked among companies with meaningful Price/Projected FCF only.
PCP' s 10-Year Price/Projected FCF Range
Min: 0.7  Med: 1.54 Max: 2.94
Current: 1.25
0.7
2.94
Price/DCF (Earnings Based) 0.92
PCP's Price/DCF (Earnings Based) is ranked higher than
77% of the 78 Companies
in the Global Metal Fabrication industry.

( Industry Median: 1.48 vs. PCP: 0.92 )
Ranked among companies with meaningful Price/DCF (Earnings Based) only.
N/A
Price/Median PS Value 1.10
PCP's Price/Median PS Value is ranked higher than
50% of the 1565 Companies
in the Global Metal Fabrication industry.

( Industry Median: 1.09 vs. PCP: 1.10 )
Ranked among companies with meaningful Price/Median PS Value only.
PCP' s 10-Year Price/Median PS Value Range
Min: 0.14  Med: 0.53 Max: 1.39
Current: 1.1
0.14
1.39
Price/Peter Lynch Fair Value 1.33
PCP's Price/Peter Lynch Fair Value is ranked lower than
56% of the 373 Companies
in the Global Metal Fabrication industry.

( Industry Median: 1.15 vs. PCP: 1.33 )
Ranked among companies with meaningful Price/Peter Lynch Fair Value only.
PCP' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.3  Med: 1.03 Max: 4.59
Current: 1.33
0.3
4.59
Price/Graham Number 7.35
PCP's Price/Graham Number is ranked lower than
93% of the 1107 Companies
in the Global Metal Fabrication industry.

( Industry Median: 1.14 vs. PCP: 7.35 )
Ranked among companies with meaningful Price/Graham Number only.
PCP' s 10-Year Price/Graham Number Range
Min: 1.06  Med: 3.07 Max: 15
Current: 7.35
1.06
15
Earnings Yield (Greenblatt) (%) 6.89
PCP's Earnings Yield (Greenblatt) (%) is ranked higher than
57% of the 1679 Companies
in the Global Metal Fabrication industry.

( Industry Median: 5.50 vs. PCP: 6.89 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
PCP' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: 5.7  Med: 7.30 Max: 23.9
Current: 6.89
5.7
23.9
Forward Rate of Return (Yacktman) (%) 20.36
PCP's Forward Rate of Return (Yacktman) (%) is ranked higher than
81% of the 885 Companies
in the Global Metal Fabrication industry.

( Industry Median: 5.72 vs. PCP: 20.36 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
PCP' s 10-Year Forward Rate of Return (Yacktman) (%) Range
Min: 1.6  Med: 16.75 Max: 48.8
Current: 20.36
1.6
48.8

Analyst Estimate

Mar16 Mar17 Mar18
Revenue(Mil) 10,134 10,755 11,387
EPS($) 12.66 14.28 15.91
EPS without NRI($) 12.66 14.28 15.91

Business Description

Industry: Industrial Products » Metal Fabrication
Compare:RS, STBWY, AZZ, MLI, WOR » details
Traded in other countries:PC9.Germany,
Precision Castparts Corp was incorporated in the State of Oregon. The Company is a manufacturer of complex metal components and products provides high-quality investment castings, forgings and fasteners/fastener systems for critical aerospace and power applications. It also provides investment castings and forgings for general industrial, armament, medical and other applications; nickel alloys and mill forms, as well as cobalt alloys, for the aerospace, chemical processing, oil and gas, pollution control and other industries; seamless pipe for coal-fired, industrial gas turbine, and nuclear power plants, as well as oil and gas applications; fasteners for automotive and general industrial markets; specialty alloys for the investment casting industry; refiner plates, screen cylinders and other products for the pulp and paper industry; metal-injection-molded and ThixoFormedparts for automotive and other markets; grinder pumps and affiliated components for low pressure sewer systems; critical auxiliary equipment and gas monitoring systems for the power generation industry; and metalworking tools for the fastener market and other applications. It manufactures complex metal components and products in three main business segments: Investment Cast Products, Forged Products and Fastener Products. The Company's Investment Cast Products segment manufactures investment castings for aircraft engines, IGT engines, airframes, medical prostheses, armament, unmanned aerial vehicles and other industrial applications. The segment also provides alloys to PCC's investment casting operations, as well as to other investment casting companies. It manufactures forged components for the aerospace and power generation markets. Forged Products' aerospace and IGT sales are mainly derived from the same large engine customers served by the Investment Cast Products segment, with additional aerospace sales to manufacturers of landing gear and airframes. Therefore, the dynamics of the aerospace and IGT markets, as described in the Investment Cast Products section above, are virtually the same for Forged Products. It manufactures forged components for the aerospace and power generation markets. Forged Products' aerospace and IGT sales are mainly derived from the same large engine customers served by the Investment Cast Products segment, with additional aerospace sales to manufacturers of landing gear and airframes. Therefore, the dynamics of the aerospace and IGT markets, as described in the Investment Cast Products section above, are virtually the same for Forged Products. The Company's main competitors are Ladish Co., a subsidiary of Allegheny Technologies, Inc., Fortech, S.A. and Thyssen AG for aerospace turbine products, Alcoa Inc. and Firth Rixson Limited for aerospace structural products, Vallourec & Mannesmann Tubes and Sumitomo Corporation for energy products and Allegheny Technologies, Inc., Carpenter Technology Corporation, Haynes International, Inc., an
» More Articles for PCP

Headlines

Articles On GuruFocus.com
Jana Partners Buys 14 New Stakes in Second Quarter Sep 04 2015 
Michael Price Invests in Kearny Financial in Second Quarter Sep 02 2015 
Sequoia Fund Comments on Precision Castparts Aug 27 2015 
Lou Simpson Boosts Stake in Charles Schwab Aug 25 2015 
Chris Davis Acquires Nearly 24 Million Shares of Cabot Oil & Gas Aug 20 2015 
Does Berkshire Hathway Make the Cut as a “Retirement Stock”? Aug 17 2015 
Westport Asset Management Sells Bulk of Two Stakes Aug 17 2015 
Was Warren Buffett a True Value Investor When He Bought Precision Castparts? Aug 11 2015 
Like Precision Castparts, 3 Stocks With Lower Price Than Berkshire Paid Aug 11 2015 
Berkshire Hathaway to Buy Precision Castparts for $37 Billion in Largest Deal Ever Aug 10 2015 

More From Other Websites
Precision Castparts CEO Could Get $75.1 Million in Buffett Deal Sep 04 2015
Where Warren Buffett Is Investing Amid Volatility Aug 31 2015
Precision Castparts Buy Was Far From Warren Buffett's Finest Moment Aug 25 2015
How Berkshire Hathaway Could Back Out of Precision Castparts Deal Aug 21 2015
Merger Arbitrage: The Precision Castparts–Berkshire Hathaway Deal Aug 20 2015
Precision Castparts 101: An Overview for Merger Arbitrage Aug 20 2015
Precision Castparts downgraded by Citigroup Aug 19 2015
The Risk–Reward Ratio of the Precision Castparts Transaction Aug 17 2015
Could the Precision Castparts Deal Get Competitive? Aug 17 2015
PRECISION CASTPARTS CORP Files SEC form 8-K, Submission of Matters to a Vote of Security Holders Aug 17 2015
Precision-Berkshire Deal Put These Aerospace ETFs in Focus Aug 17 2015
Why Precision Castparts And Four Other Industrials Are Buffett-Like Stocks Aug 17 2015
Does Berkshire Hathway Make the Cut as a "Retirement Stock"? Aug 17 2015
PRECISION CASTPARTS CORP Financials Aug 15 2015
Will Antitrust Be an Issue in the Precision Castparts Transaction? Aug 15 2015
Warren Buffett's Berkshire Hathaway Sells Off Shares in Phillips 66, National Oilwell Varco Aug 14 2015
Hedge funds bought into Precision before Buffett arrived Aug 14 2015
US stocks gain after absorbing China currency surprise Aug 14 2015
Is Precision Castparts A Good Bet For Warren Buffett’s Berkshire Hathaway? Aug 14 2015
Global M&A activity surges towards record high Aug 14 2015

Personalized Checklist

Checklist has been moved to "Checklist" tab.

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK