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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 : 9/10

vs
industry
vs
history
Cash to Debt 0.09
PCP's Cash to Debt is ranked lower than
64% of the 1902 Companies
in the Global Metal Fabrication industry.

( Industry Median: 1.35 vs. PCP: 0.09 )
PCP' s 10-Year Cash to Debt Range
Min: 0.01   Max: 5.77
Current: 0.09

0.01
5.77
Equity to Asset 0.60
PCP's Equity to Asset is ranked higher than
70% of the 1914 Companies
in the Global Metal Fabrication industry.

( Industry Median: 0.53 vs. PCP: 0.60 )
PCP' s 10-Year Equity to Asset Range
Min: 0.31   Max: 0.8
Current: 0.6

0.31
0.8
Interest Coverage 55.89
PCP's Interest Coverage is ranked higher than
71% of the 1274 Companies
in the Global Metal Fabrication industry.

( Industry Median: 24.60 vs. PCP: 55.89 )
PCP' s 10-Year Interest Coverage Range
Min: 3.58   Max: 638
Current: 55.89

3.58
638
F-Score: 7
Z-Score: 4.86
M-Score: -2.49
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 : 8/10

vs
industry
vs
history
Operating margin (%) 25.42
PCP's Operating margin (%) is ranked higher than
98% of the 1909 Companies
in the Global Metal Fabrication industry.

( Industry Median: 5.93 vs. PCP: 25.42 )
PCP' s 10-Year Operating margin (%) Range
Min: 10   Max: 25.83
Current: 25.42

10
25.83
Net-margin (%) 17.03
PCP's Net-margin (%) is ranked higher than
96% of the 1909 Companies
in the Global Metal Fabrication industry.

( Industry Median: 4.16 vs. PCP: 17.03 )
PCP' s 10-Year Net-margin (%) Range
Min: -0.06   Max: 17.03
Current: 17.03

-0.06
17.03
ROE (%) 14.58
PCP's ROE (%) is ranked higher than
90% of the 1896 Companies
in the Global Metal Fabrication industry.

( Industry Median: 6.48 vs. PCP: 14.58 )
PCP' s 10-Year ROE (%) Range
Min: -0.1   Max: 24.41
Current: 14.58

-0.1
24.41
ROA (%) 8.44
PCP's ROA (%) is ranked higher than
91% of the 1912 Companies
in the Global Metal Fabrication industry.

( Industry Median: 3.38 vs. PCP: 8.44 )
PCP' s 10-Year ROA (%) Range
Min: -0.05   Max: 16.32
Current: 8.44

-0.05
16.32
ROC (Joel Greenblatt) (%) 39.57
PCP's ROC (Joel Greenblatt) (%) is ranked higher than
93% of the 1908 Companies
in the Global Metal Fabrication industry.

( Industry Median: 12.69 vs. PCP: 39.57 )
PCP' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 19.32   Max: 70.07
Current: 39.57

19.32
70.07
Revenue Growth (%) 14.10
PCP's Revenue Growth (%) is ranked higher than
87% of the 1516 Companies
in the Global Metal Fabrication industry.

( Industry Median: 5.40 vs. PCP: 14.10 )
PCP' s 10-Year Revenue Growth (%) Range
Min: -10.1   Max: 35.7
Current: 14.1

-10.1
35.7
EBITDA Growth (%) 13.50
PCP's EBITDA Growth (%) is ranked higher than
80% of the 1256 Companies
in the Global Metal Fabrication industry.

( Industry Median: 5.10 vs. PCP: 13.50 )
PCP' s 10-Year EBITDA Growth (%) Range
Min: -9.2   Max: 44.2
Current: 13.5

-9.2
44.2
EPS Growth (%) 14.50
PCP's EPS Growth (%) is ranked higher than
78% of the 1135 Companies
in the Global Metal Fabrication industry.

( Industry Median: 6.20 vs. PCP: 14.50 )
PCP' s 10-Year EPS Growth (%) Range
Min: -13.8   Max: 58.9
Current: 14.5

-13.8
58.9
» PCP's 10-Y Financials

Financials


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

» Details

Guru Trades

Q1 2013

PCP Guru Trades in Q1 2013

Steven Cohen 147,707 sh (+12087%)
Tom Russo 10,000 sh (+38.89%)
Signature Select Canadian Fund 28,700 sh (+8.3%)
Ron Baron 89,631 sh (+5.07%)
Jeff Auxier 11,416 sh (+2.2%)
Westport Asset Management 363,622 sh (+2.08%)
Ruane Cunniff 3,144,185 sh (+1.15%)
Mariko Gordon 2,324 sh (unchged)
Warren Buffett 1,977,336 sh (unchged)
Jean-Marie Eveillard 900 sh (unchged)
Caxton Associates Sold Out
Louis Moore Bacon Sold Out
Pioneer Investments 152,845 sh (-0.03%)
Mario Gabelli 912,944 sh (-2.18%)
Scott Black 28,000 sh (-2.38%)
Bill Frels 1,133 sh (-33.67%)
Ray Dalio 7,362 sh (-66.01%)
» More
Q2 2013

PCP Guru Trades in Q2 2013

Jim Simons 281,400 sh (New)
Scott Black 44,746 sh (+59.81%)
Mariko Gordon 2,633 sh (+13.3%)
Tom Russo 10,250 sh (+2.5%)
Ruane Cunniff 3,149,345 sh (+0.16%)
Jeff Auxier 11,416 sh (unchged)
Jean-Marie Eveillard 900 sh (unchged)
Warren Buffett 1,977,336 sh (unchged)
Bill Frels Sold Out
Ray Dalio Sold Out
Mario Gabelli 880,174 sh (-3.59%)
Westport Asset Management 341,622 sh (-6.05%)
Ron Baron 82,680 sh (-7.76%)
Steven Cohen 34,930 sh (-76.35%)
Pioneer Investments 17,357 sh (-88.64%)
» More
Q3 2013

PCP Guru Trades in Q3 2013

RS Investment Management 22,296 sh (New)
Louis Moore Bacon 10,000 sh (New)
Ray Dalio 30,709 sh (New)
Jeremy Grantham 54,880 sh (New)
Pioneer Investments 252,921 sh (+1357.17%)
Steven Cohen 95,590 sh (+173.66%)
Jim Simons 486,100 sh (+72.74%)
Signature Select Canadian Fund 35,100 sh (+22.3%)
Tom Russo 11,325 sh (+10.49%)
Mariko Gordon 2,787 sh (+5.85%)
Ruane Cunniff 3,150,357 sh (+0.03%)
Jeff Auxier 11,416 sh (unchged)
Jean-Marie Eveillard 900 sh (unchged)
Westport Asset Management 341,622 sh (unchged)
Warren Buffett 1,977,336 sh (unchged)
Ron Baron 82,330 sh (-0.42%)
Mario Gabelli 873,045 sh (-0.81%)
Scott Black 43,306 sh (-3.22%)
» More
Q4 2013

PCP Guru Trades in Q4 2013

Caxton Associates 9,482 sh (New)
Jeremy Grantham 263,880 sh (+380.83%)
Mariko Gordon 3,538 sh (+26.95%)
Pioneer Investments 304,879 sh (+20.54%)
Jeff Auxier 11,416 sh (unchged)
Jean-Marie Eveillard 900 sh (unchged)
Warren Buffett 1,977,336 sh (unchged)
Tom Russo 11,325 sh (unchged)
Jim Simons Sold Out
Louis Moore Bacon Sold Out
Ray Dalio Sold Out
Ruane Cunniff 3,113,652 sh (-1.17%)
Mario Gabelli 847,683 sh (-2.91%)
Scott Black 41,597 sh (-3.95%)
Ron Baron 76,392 sh (-7.21%)
RS Investment Management 19,535 sh (-12.38%)
Westport Asset Management 299,105 sh (-12.45%)
Steven Cohen 26,494 sh (-72.28%)
» More
» Details

Insider Trades

Latest Guru Trades with PCP

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Ray Dalio 2013-12-31 Sold Out 0.06%$229.91 - $270.98 $ 253.791%0
Mariko Gordon 2013-12-31 Add 26.95%0.01%$229.91 - $270.98 $ 253.791%3538
Ray Dalio 2013-09-30 New Buy0.06%$211.24 - $237.27 $ 253.7912%30709
Scott Black 2013-06-30 Add 59.81%0.45%$182.92 - $226.01 $ 253.7925%44746
Ray Dalio 2013-06-30 Sold Out 0.01%$182.92 - $226.01 $ 253.7925%0
Ray Dalio 2013-03-31 Reduce -66.01%0.03%$180.61 - $195.21 $ 253.7935%7362
Warren Buffett 2012-12-31 Add 58.33%0.18%$161.11 - $188.82 $ 253.7945%1977336
Ray Dalio 2012-12-31 Reduce -23.08%0.01%$161.11 - $188.82 $ 253.7945%21662
Warren Buffett 2012-09-30 New Buy0.27%$152.76 - $168.34 $ 253.7957%1248901
Ray Dalio 2012-06-30 New Buy0.07%$157.69 - $177.89 $ 253.7950%28162
Jean-Marie Eveillard 2011-12-31 Reduce -99.27%0.09%$145.62 - $173.14 $ 253.7957%900
Ron Baron 2011-12-31 Add 440.62%0.06%$145.62 - $173.14 $ 253.7957%70913
Jean-Marie Eveillard 2011-09-30 Reduce -42.1%0.07%$138.78 - $171.49 $ 253.7959%123500
Ray Dalio 2011-09-30 Sold Out 0.02%$138.78 - $171.49 $ 253.7960%0
George Soros 2011-06-30 Sold Out $142.24 - $161.93 $ 253.7967%0
Mario Gabelli 2011-03-31 Reduce -35.44%0.63%$136.58 - $151.25 $ 253.7977%1091554
George Soros 2011-03-31 Reduce -48.33%0.01%$136.58 - $151.25 $ 253.7977%3100
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Precision Castparts Corp.

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



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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.

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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.

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Westport Asset Management Comments on Precision Castparts - Aug 08, 2013

Making the third largest contribution for the half was Precision Castparts Corp. (PCP), the components supplier to the aerospace industry. After being essentially flat in the first quarter, the stock rose over 19% in the second quarter, adding 177 basis points to performance. As we had anticipated, the shares rose as problems with Boeing's 787 were resolved.

From Westport Asset Management's second quarter 2013 letter.


Check out Westport Asset Management latest stock trades

Top Ranked Articles about Precision Castparts Corp.

Sequoia Fund's Discussion of Precision Castparts
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. Read more...
Westport Asset Management Comments on Precision Castparts Corp.
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. Read more...
Mario Gabelli Comments on Precision Castparts Corp.
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. Read more...
Westport Asset Management Comments on Precision Castparts
Making the third largest contribution for the half was Precision Castparts Corp. (PCP), the components supplier to the aerospace industry. After being essentially flat in the first quarter, the stock rose over 19% in the second quarter, adding 177 basis points to performance. As we had anticipated, the shares rose as problems with Boeing's 787 were resolved. Read more...
Westport Funds Selects 1 Stock in Q2
Westport Funds, a firm led by Andrew Knuth and Edmund Nicklin that has beat its index since inception, is having a strong year as well. The Westport Select Cap Fund has returned 22.06% from the start of the year through July 31, even through higher volatility in May and June. “A focus on the long-term and avoidance of short-term fads, even those that seem compelling, is a key factor in these long-term results,” the fund’s manager wrote in their second quarter shareholder letter. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 22.20
PCP's P/E(ttm) is ranked higher than
61% of the 1563 Companies
in the Global Metal Fabrication industry.

( Industry Median: 20.10 vs. PCP: 22.20 )
PCP' s 10-Year P/E(ttm) Range
Min: 6.6   Max: 439.77
Current: 22.2

6.6
439.77
P/B 3.20
PCP's P/B is ranked lower than
65% of the 1848 Companies
in the Global Metal Fabrication industry.

( Industry Median: 1.55 vs. PCP: 3.20 )
PCP' s 10-Year P/B Range
Min: 1.41   Max: 6.15
Current: 3.2

1.41
6.15
P/S 4.00
PCP's P/S is ranked lower than
81% of the 1923 Companies
in the Global Metal Fabrication industry.

( Industry Median: 0.91 vs. PCP: 4.00 )
PCP' s 10-Year P/S Range
Min: 0.92   Max: 4.18
Current: 4

0.92
4.18
PFCF 24.70
PCP's PFCF is ranked higher than
52% of the 1025 Companies
in the Global Metal Fabrication industry.

( Industry Median: 18.90 vs. PCP: 24.70 )
PCP' s 10-Year PFCF Range
Min: 7.68   Max: 67.29
Current: 24.7

7.68
67.29
EV-to-EBIT 16.40
PCP's EV-to-EBIT is ranked higher than
57% of the 1637 Companies
in the Global Metal Fabrication industry.

( Industry Median: 14.80 vs. PCP: 16.40 )
PCP' s 10-Year EV-to-EBIT Range
Min: 4.2   Max: 17.6
Current: 16.4

4.2
17.6
PEG 2.70
PCP's PEG is ranked higher than
51% of the 823 Companies
in the Global Metal Fabrication industry.

( Industry Median: 1.90 vs. PCP: 2.70 )
PCP' s 10-Year PEG Range
Min: 0.16   Max: 14.81
Current: 2.7

0.16
14.81
Shiller P/E 29.60
PCP's Shiller P/E is ranked higher than
54% of the 813 Companies
in the Global Metal Fabrication industry.

( Industry Median: 22.75 vs. PCP: 29.60 )
PCP' s 10-Year Shiller P/E Range
Min: 12.74   Max: 72.63
Current: 29.6

12.74
72.63

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 34.80
PCP's Price/Tangible Book is ranked lower than
88% of the 1731 Companies
in the Global Metal Fabrication industry.

( Industry Median: 1.80 vs. PCP: 34.80 )
PCP' s 10-Year Price/Tangible Book Range
Min: 1.8   Max: 137.5
Current: 34.8

1.8
137.5
Price/DCF (Projected) 1.80
PCP's Price/DCF (Projected) is ranked higher than
51% of the 818 Companies
in the Global Metal Fabrication industry.

( Industry Median: 1.30 vs. PCP: 1.80 )
PCP' s 10-Year Price/DCF (Projected) Range
Min: 0.7   Max: 2.94
Current: 1.8

0.7
2.94
Price/Median PS Value 1.60
PCP's Price/Median PS Value is ranked lower than
67% of the 1806 Companies
in the Global Metal Fabrication industry.

( Industry Median: 1.10 vs. PCP: 1.60 )
PCP' s 10-Year Price/Median PS Value Range
Min: 0.17   Max: 1.67
Current: 1.6

0.17
1.67
Price/Peter Lynch Fair Value 1.90
PCP's Price/Peter Lynch Fair Value is ranked lower than
51% of the 396 Companies
in the Global Metal Fabrication industry.

( Industry Median: 1.30 vs. PCP: 1.90 )
PCP' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.3   Max: 4.81
Current: 1.9

0.3
4.81
Price/Graham Number 5.80
PCP's Price/Graham Number is ranked lower than
81% of the 1450 Companies
in the Global Metal Fabrication industry.

( Industry Median: 1.30 vs. PCP: 5.80 )
PCP' s 10-Year Price/Graham Number Range
Min: 1.06   Max: 15
Current: 5.8

1.06
15
Earnings Yield (Greenblatt) 6.10
PCP's Earnings Yield (Greenblatt) is ranked higher than
63% of the 1742 Companies
in the Global Metal Fabrication industry.

( Industry Median: 6.70 vs. PCP: 6.10 )
PCP' s 10-Year Earnings Yield (Greenblatt) Range
Min: 5.7   Max: 23.9
Current: 6.1

5.7
23.9
Forward Rate of Return (Yacktman) 13.58
PCP's Forward Rate of Return (Yacktman) is ranked higher than
84% of the 1135 Companies
in the Global Metal Fabrication industry.

( Industry Median: 4.73 vs. PCP: 13.58 )
PCP' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 1.2   Max: 47.3
Current: 13.58

1.2
47.3

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 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 ThixoFormed parts 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,

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