Loading...

You're on the old version of Simply Wall St. We will no longer be supporting this site, so we recommend you switch to our brand new platform.

POSCO

KOSE:A005490
Snowflake Description

Very undervalued with excellent balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
A005490
KOSE
₩12,578B
Market Cap
  1. Home
  2. KR
  3. Materials
Company description

POSCO manufactures and sells steel rolled products and plates in South Korea and internationally. The last earnings update was 23 days ago. More info.


Add to Portfolio Compare Print
  • POSCO has significant price volatility in the past 3 months.
A005490 Share Price and Events
7 Day Returns
-4%
KOSE:A005490
1%
KR Metals and Mining
1.9%
KR Market
1 Year Returns
-42.9%
KOSE:A005490
-43.1%
KR Metals and Mining
-21.8%
KR Market
A005490 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
POSCO (A005490) -4% -20.3% -33.8% -42.9% -42.3% -37.9%
KR Metals and Mining 1% -17.1% -28.8% -43.1% -46.1% -50.9%
KR Market 1.9% -14.7% -19.6% -21.8% -19.8% -22%
1 Year Return vs Industry and Market
  • A005490 matched the Metals and Mining industry (-43.1%) over the past year.
  • A005490 underperformed the Market in Korea (Republic of) which returned -21.8% over the past year.
Price Volatility
A005490
Industry
5yr Volatility vs Market

A005490 Value

 Is POSCO undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of POSCO to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for POSCO.

KOSE:A005490 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 27 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.7%
Perpetual Growth Rate 10-Year KR Government Bond Rate 3.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for KOSE:A005490
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year KR Govt Bond Rate 3.4%
Equity Risk Premium S&P Global 6.1%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 0.82
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.82 (1 + (1- 30%) (167.89%))
1.525
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.53
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 3.43% + (1.525 * 6.07%)
12.69%

Discounted Cash Flow Calculation for KOSE:A005490 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for POSCO is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

KOSE:A005490 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (KRW, Millions) Source Present Value
Discounted (@ 12.69%)
2020 2,511,772.73 Analyst x11 2,228,926.84
2021 2,608,516.67 Analyst x12 2,054,114.09
2022 3,244,300.00 Analyst x3 2,267,083.02
2023 3,270,555.30 Est @ 0.81% 2,028,072.08
2024 3,322,736.76 Est @ 1.6% 1,828,408.78
2025 3,394,037.53 Est @ 2.15% 1,657,331.84
2026 3,479,943.71 Est @ 2.53% 1,507,927.73
2027 3,577,408.72 Est @ 2.8% 1,375,600.55
2028 3,684,356.59 Est @ 2.99% 1,257,189.98
2029 3,799,370.21 Est @ 3.12% 1,150,446.26
Present value of next 10 years cash flows ₩17,355,101.00
KOSE:A005490 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ₩3,799,370.21 × (1 + 3.43%) ÷ (12.69% – 3.43%)
₩42,438,254.43
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₩42,438,254.43 ÷ (1 + 12.69%)10
₩12,850,269.55
KOSE:A005490 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₩17,355,101.00 + ₩12,850,269.55
₩30,205,370.55
Equity Value per Share
(KRW)
= Total value / Shares Outstanding
= ₩30,205,370.55 / 80.12
₩377022.14
KOSE:A005490 Discount to Share Price
Calculation Result
Value per share (KRW) From above. ₩377,022.14
Current discount Discount to share price of ₩157,000.00
= -1 x (₩157,000.00 - ₩377,022.14) / ₩377,022.14
58.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price POSCO is available for.
Intrinsic value
>50%
Share price is ₩157000 vs Future cash flow value of ₩377022.14
Current Discount Checks
For POSCO to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • POSCO's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • POSCO's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for POSCO's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are POSCO's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
KOSE:A005490 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in KRW ₩22,823.00
KOSE:A005490 Share Price ** KOSE (2020-04-03) in KRW ₩157000
Korea (Republic of) Metals and Mining Industry PE Ratio Median Figure of 49 Publicly-Listed Metals and Mining Companies 11.56x
Korea (Republic of) Market PE Ratio Median Figure of 1,311 Publicly-Listed Companies 12.31x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of POSCO.

KOSE:A005490 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= KOSE:A005490 Share Price ÷ EPS (both in KRW)

= 157000 ÷ 22,823.00

6.88x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • POSCO is good value based on earnings compared to the KR Metals and Mining industry average.
  • POSCO is good value based on earnings compared to the Korea (Republic of) market.
Price based on expected Growth
Does POSCO's expected growth come at a high price?
Raw Data
KOSE:A005490 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.88x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 27 Analysts
15.1%per year
Korea (Republic of) Metals and Mining Industry PEG Ratio Median Figure of 6 Publicly-Listed Metals and Mining Companies 0.62x
Korea (Republic of) Market PEG Ratio Median Figure of 356 Publicly-Listed Companies 0.71x

*Line of best fit is calculated by linear regression .

KOSE:A005490 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 6.88x ÷ 15.1%

0.46x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • POSCO is good value based on expected growth next year.
Price based on value of assets
What value do investors place on POSCO's assets?
Raw Data
KOSE:A005490 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in KRW ₩547,136.10
KOSE:A005490 Share Price * KOSE (2020-04-03) in KRW ₩157000
Korea (Republic of) Metals and Mining Industry PB Ratio Median Figure of 73 Publicly-Listed Metals and Mining Companies 0.36x
Korea (Republic of) Market PB Ratio Median Figure of 1,954 Publicly-Listed Companies 0.84x
KOSE:A005490 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= KOSE:A005490 Share Price ÷ Book Value per Share (both in KRW)

= 157000 ÷ 547,136.10

0.29x

* Primary Listing of POSCO.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • POSCO is good value based on assets compared to the KR Metals and Mining industry average.
X
Value checks
We assess POSCO's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. POSCO has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

A005490 Future Performance

 How is POSCO expected to perform in the next 1 to 3 years based on estimates from 27 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
15.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is POSCO expected to grow at an attractive rate?
  • POSCO's earnings growth is expected to exceed the low risk savings rate of 3.4%.
Growth vs Market Checks
  • POSCO's earnings growth is positive but not above the Korea (Republic of) market average.
  • POSCO's revenue growth is positive but not above the Korea (Republic of) market average.
Annual Growth Rates Comparison
Raw Data
KOSE:A005490 Future Growth Rates Data Sources
Data Point Source Value (per year)
KOSE:A005490 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 27 Analysts 15.1%
KOSE:A005490 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 27 Analysts 0.4%
Korea (Republic of) Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 18.2%
Korea (Republic of) Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 0.7%
Korea (Republic of) Market Earnings Growth Rate Market Cap Weighted Average 27.8%
Korea (Republic of) Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
KOSE:A005490 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 27 Analyst Estimates (S&P Global) See Below
All numbers in KRW Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
KOSE:A005490 Future Estimates Data
Date (Data in KRW Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31 64,578,877 5,526,500 2,704,254 7
2021-12-31 64,824,936 6,050,315 2,584,560 27
2020-12-31 62,882,406 6,039,863 1,952,503 24
2020-04-04
KOSE:A005490 Past Financials Data
Date (Data in KRW Millions) Revenue Cash Flow Net Income *
2019-12-31 64,366,848 6,004,655 1,835,087
2019-09-30 64,945,270 5,590,628 910,296
2019-06-30 65,367,770 6,306,383 1,498,947
2019-03-31 65,129,731 5,759,609 1,418,984
2018-12-31 64,977,777 5,869,725 1,690,612
2018-09-30 63,953,700 6,771,952 3,065,919
2018-06-30 62,579,092 6,203,818 2,917,496
2018-03-31 61,440,200 6,277,602 2,899,645
2017-12-31 60,655,100 5,607,310 2,757,057
2017-09-30 60,075,076 3,130,639 2,391,034
2017-06-30 57,786,519 3,580,279 2,058,971
2017-03-31 55,699,499 4,316,945 1,829,743

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • POSCO's earnings are expected to grow by 15.1% yearly, however this is not considered high growth (20% yearly).
  • POSCO's revenue is expected to grow by 0.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
KOSE:A005490 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 27 Analyst Estimates (S&P Global) See Below

All data from POSCO Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

KOSE:A005490 Future Estimates Data
Date (Data in KRW Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 31,251.83 36,918.00 23,712.00 7.00
2021-12-31 29,808.26 36,549.00 21,812.00 23.00
2020-12-31 23,032.85 29,133.12 13,587.00 19.00
2020-04-04
KOSE:A005490 Past Financials Data
Date (Data in KRW Millions) EPS *
2019-12-31 22,823.00
2019-09-30 11,366.61
2019-06-30 18,723.62
2019-03-31 17,760.33
2018-12-31 20,911.00
2018-09-30 38,647.34
2018-06-30 36,687.35
2018-03-31 36,265.03
2017-12-31 34,463.82
2017-09-30 29,640.57
2017-06-30 25,585.58
2017-03-31 22,823.17

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • POSCO is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess POSCO's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Korea (Republic of) market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Korea (Republic of) market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
POSCO has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

A005490 Past Performance

  How has POSCO performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare POSCO's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • POSCO has delivered over 20% year on year earnings growth in the past 5 years.
  • POSCO's 1-year earnings growth is less than its 5-year average (8.5% vs 26.2%)
  • POSCO's earnings growth has exceeded the KR Metals and Mining industry average in the past year (8.5% vs -12.1%).
Earnings and Revenue History
POSCO's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from POSCO Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

KOSE:A005490 Past Revenue, Cash Flow and Net Income Data
Date (Data in KRW Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 64,366,847.81 1,835,086.52 2,007,953.28 110,315.00
2019-09-30 64,945,270.36 910,296.24 2,312,717.20 -609.00
2019-06-30 65,367,770.27 1,498,946.80 2,288,289.71 4,911.00
2019-03-31 65,129,731.02 1,418,983.54 2,331,689.26 5,906.00
2018-12-31 64,977,777.43 1,690,612.43 2,074,629.36 108,352.00
2018-09-30 63,953,700.35 3,065,918.62 2,730,037.87 2,134.00
2018-06-30 62,579,091.62 2,917,495.87 3,044,195.76 1,393.00
2018-03-31 61,440,199.99 2,899,644.96 3,342,038.39 -1,082.00
2017-12-31 60,655,100.00 2,757,057.20 3,643,181.00
2017-09-30 60,075,076.46 2,391,034.30 3,479,135.03 81,996.00
2017-06-30 57,786,518.73 2,058,971.27 3,617,832.92 50,378.00
2017-03-31 55,699,498.71 1,829,742.52 3,691,979.77 25,559.00
2016-12-31 53,083,513.00 1,330,084.84 3,744,925.00
2016-09-30 51,972,092.00 1,349,390.13 3,702,127.00
2016-06-30 53,220,523.85 245,704.38 3,843,679.58 -55,630.00
2016-03-31 55,552,631.37 160,303.57 3,920,358.40 -24,822.00
2015-12-31 58,192,345.00 147,617.37 4,027,456.00
2015-09-30 60,631,474.97 -199,335.03 3,923,586.10 88,536.00
2015-06-30 62,905,328.15 571,761.19 4,002,820.42 55,630.00
2015-03-31 64,419,408.63 876,511.67 4,016,027.60 24,822.00
2014-12-31 64,758,625.00 599,657.20 3,987,618.00
2014-09-30 64,844,074.00 1,060,975.20 3,874,388.00
2014-06-30 63,724,451.00 1,390,783.29 3,809,448.00
2014-03-31 62,623,988.00 1,136,285.98 3,791,275.00
2013-12-31 61,765,743.00 1,352,564.09 3,790,931.00
2013-09-30 60,403,421.00 1,678,128.61 3,754,723.00
2013-06-30 60,992,259.00 1,849,689.39 3,771,235.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • POSCO has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • POSCO used its assets more efficiently than the KR Metals and Mining industry average last year based on Return on Assets.
  • POSCO has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess POSCO's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
POSCO has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

A005490 Health

 How is POSCO's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up POSCO's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • POSCO is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • POSCO's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of POSCO's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from POSCO Company Filings, last reported 3 months ago.

KOSE:A005490 Past Debt and Equity Data
Date (Data in KRW Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 47,794,706.82 20,441,613.00 12,463,380.69
2019-09-30 48,128,182.91 19,854,882.38 10,539,248.96
2019-06-30 47,873,970.53 19,199,359.58 10,020,827.56
2019-03-31 47,244,402.19 19,931,698.92 10,886,639.00
2018-12-31 46,759,550.87 20,209,270.00 10,677,673.24
2018-09-30 48,073,179.44 22,068,505.02 11,722,759.23
2018-06-30 47,668,961.36 21,270,386.06 9,569,246.45
2018-03-31 47,951,262.08 21,082,159.97 10,675,735.65
2017-12-31 47,464,008.00 21,063,657.00 9,691,555.00
2017-09-30 47,573,596.00 22,469,863.00 8,673,569.00
2017-06-30 46,892,133.00 22,375,171.00 7,660,069.00
2017-03-31 46,112,820.37 21,466,758.06 7,614,139.95
2016-12-31 45,838,394.00 22,704,998.00 7,759,608.00
2016-09-30
2016-06-30 45,134,383.67 24,025,533.36 8,404,685.89
2016-03-31 44,878,807.00 24,003,020.00 8,676,924.00
2015-12-31 45,070,222.00 25,220,231.00 8,863,423.00
2015-09-30 44,998,985.00 27,330,887.00 8,932,720.00
2015-06-30 44,752,773.00 27,785,290.00 7,463,710.00
2015-03-31 44,572,909.97 28,094,466.09 6,490,969.41
2014-12-31 45,257,396.00 27,428,257.00 5,327,041.00
2014-09-30 45,298,169.00 27,726,081.00 5,582,414.00
2014-06-30 45,270,700.00 26,974,128.00 5,509,960.00
2014-03-31 45,310,462.00 28,087,380.00 6,498,266.00
2013-12-31 45,780,682.00 26,246,605.00 7,247,780.00
2013-09-30 45,603,964.00 25,585,032.00 6,915,192.00
2013-06-30 43,951,349.00 27,421,449.00 6,145,188.00
  • POSCO's level of debt (42.8%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (60.6% vs 42.8% today).
  • Debt is well covered by operating cash flow (29.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 11.6x coverage).
X
Financial health checks
We assess POSCO's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. POSCO has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

A005490 Dividends

 What is POSCO's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.37%
Current annual income from POSCO dividends. Estimated to be 6.23% next year.
If you bought ₩2,000 of POSCO shares you are expected to receive ₩127 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • POSCO's pays a higher dividend yield than the bottom 25% of dividend payers in Korea (Republic of) (1.25%).
  • POSCO's dividend is above the markets top 25% of dividend payers in Korea (Republic of) (3.9%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
KOSE:A005490 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 27 Analyst Estimates (S&P Global) See Below
Korea (Republic of) Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 36 Stocks 5.1%
Korea (Republic of) Market Average Dividend Yield Market Cap Weighted Average of 908 Stocks 2.9%
Korea (Republic of) Minimum Threshold Dividend Yield 10th Percentile 0.6%
Korea (Republic of) Bottom 25% Dividend Yield 25th Percentile 1.2%
Korea (Republic of) Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

KOSE:A005490 Future Dividends Estimate Data
Date (Data in ₩) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 8,333.33 6.00
2021-12-31 10,066.01 27.00
2020-12-31 9,825.01 27.00
2020-04-04
KOSE:A005490 Past Annualized Dividends Data
Date (Data in ₩) Dividend per share (annual) Avg. Yield (%)
2020-02-03 10,000.000 5.461
2019-01-31 10,000.000 4.224
2018-01-24 8,000.000 2.617
2017-11-03 8,000.000 2.359
2017-08-03 8,000.000 2.430
2017-05-12 8,000.000 2.751
2017-01-25 8,000.000 2.886
2016-11-04 8,250.000 3.189
2016-08-04 7,500.000 3.272
2016-01-28 8,000.000 3.794
2015-08-04 8,000.000 4.537
2015-04-29 8,000.000 3.554
2015-03-04 8,000.000 3.137
2015-02-23 8,000.000 2.927
2015-02-17 8,000.000 2.985
2014-08-08 8,000.000 2.656
2014-01-29 8,000.000 2.676
2013-08-13 8,000.000 2.486
2013-03-25 8,000.000 2.527
2012-08-10 9,500.000 2.706
2012-04-30 10,000.000 2.723
2012-03-30 10,000.000 2.642
2011-08-12 10,000.000 2.560
2011-06-24 10,000.000 2.207
2011-04-07 10,000.000 2.194
2011-03-30 10,000.000 1.994
2011-03-21 10,000.000 1.970
2010-01-15 8,000.000 1.611
2009-06-29 10,000.000 1.961

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • No dividend growth in 10 years.
Current Payout to shareholders
What portion of POSCO's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.7x coverage).
X
Income/ dividend checks
We assess POSCO's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can POSCO afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. POSCO has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

A005490 Management

 What is the CEO of POSCO's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jeong-Woo Choi
COMPENSATION ₩0
AGE 62
TENURE AS CEO 1.8 years
CEO Bio

Mr. Jeong-Woo Choi has been Chief Executive Officer of POSCO since July 27, 2018 and served as its Chairman from July 27, 2018 to March 15, 2019. He served as the President of POSCO from March 10, 2017 to March 9, 2018. Mr. Choi served as Chief Financial and Planning Officer, Head of Corporate Strategy & Finance Center and Senior Executive Vice President at POSCO until March 10, 2017. He served as an Executive Vice President of Corporate Audit Department at POSCO and served as its Senior Vice President of Corporate Audit Department. He joined Posco in 1983 and led POSCO for 20 years. As an expert in finance strategy planning and corporate strategy development, Mr. Choi was the head of the Posco Value Management Office, the POSCO 's de facto control tower. since 2015. Mr. Choi serves as Representative Director at POSCO. He is a graduate of Seoul National University and graduated from Pusan National University

CEO Compensation
  • Insufficient data for Jeong-Woo to compare compensation growth.
  • Insufficient data for Jeong-Woo to establish whether their remuneration is reasonable compared to companies of similar size in .
Management Team Tenure

Average tenure and age of the POSCO management team in years:

1.8
Average Tenure
57
Average Age
  • The average tenure for the POSCO management team is less than 2 years, this suggests a new team.
Management Team

Jeong-Woo Choi

TITLE
CEO & Representative Director
AGE
62
TENURE
1.8 yrs

In-Hwan Oh

TITLE
Chief Operating Officer
AGE
61
TENURE
3.1 yrs

In-Hwa Chang

TITLE
President & Representative Director
AGE
64
TENURE
1.1 yrs

Seung-Kyu Lim

TITLE
Executive VP & Head of Finance Office
AGE
56

Byeong-Og Yoo

TITLE
Senior EVP and Head of Purchasing & Investment Division
AGE
57

Sung-Wook Lee

TITLE
Executive VP & Head of Legal Affairs Office
AGE
55

Young Choi

TITLE
Senior VP & Head of Communication Office
AGE
50

Tak Jeong

TITLE
Senior EVP
AGE
60

Bok-Tae Kim

TITLE
Executive VP and Head of Sales & Production Coordination Office
AGE
57

Byeong-Ho Yang

TITLE
Senior VP and Head of Human Resources & Corporate Culture Office
AGE
53
Board of Directors Tenure

Average tenure and age of the POSCO board of directors in years:

2.1
Average Tenure
63
Average Age
  • The average tenure for the POSCO board of directors is less than 3 years, this suggests a new board.
Board of Directors

Moon-Ki Chung

TITLE
Chairman
AGE
60
TENURE
0.1 yrs

Jeong-Woo Choi

TITLE
CEO & Representative Director
AGE
62
TENURE
1.8 yrs

In-Hwa Chang

TITLE
President & Representative Director
AGE
64
TENURE
3.1 yrs

Tak Jeong

TITLE
Senior EVP
AGE
60
TENURE
1.1 yrs

Hag-Dong Kim

TITLE
VP, Head of Steel Production & Technology Division and Inside Director
AGE
60
TENURE
1.1 yrs

Jung-Son Chon

TITLE
VP, Head of Corporate Strategy & Planning Div
AGE
57
TENURE
2.1 yrs

Shin-Bae Kim

TITLE
External Director
AGE
65
TENURE
3.1 yrs

Sung-Jin Kim

TITLE
Outside Director
AGE
70
TENURE
2.1 yrs

Joo-Hyun Kim

TITLE
Independent Director
AGE
67
TENURE
5.1 yrs

Byong-Won Bahk

TITLE
Outside Director
AGE
67
TENURE
5.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₩) Value (₩)
X
Management checks
We assess POSCO's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. POSCO has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

A005490 News

Simply Wall St News

A005490 Company Info

Description

POSCO manufactures and sells steel rolled products and plates in South Korea and internationally. It operates through four segments: Steel, Construction, Trading, and Others. The company offers hot and cold rolled steel, wire rods, galvanized and electrical galvanized steel, steel plates, electrical and stainless steel, and titanium. It also designs and constructs industrial plants, civil engineering projects, and commercial and residential buildings; exports and imports steel products and raw materials; and generates electricity; produces gas and refuse derived fuel, as well as provides network and system integration, and logistics services. In addition, the company engages in the engineering and construction; coated steel, zinc relief, and components manufacturing; computer hardware and software distribution; economic research and consulting; business facility maintenance; architecture and consulting; investment in venture, energy, and bio tech industries; electronic commerce; refractories and quicklime manufacturing and sales; transporting and warehousing; real estate rental and sale; house and train manufacturing and management; education and real estate business; and hotel businesses. Further, it engages in the non-residential building rental; secondary and storage battery and textile manufacturing; resource development; iron ore and coal sales; and mine development. Additionally, the company engages in loading and unloading; IT service and DVR; electric control engineering; forest resources development; human resource; wastewater treatment operation and maintenance; crude oil and natural gas mining; refractory materials sales and furnace maintenance; rice processing; grain sales; packing materials manufacturing; and social enterprise businesses. POSCO was founded in 1968 and is headquartered in Pohang, South Korea.

Details
Name: POSCO
A005490
Exchange: KOSE
Founded: 1968
₩12,578,155,637,000
80,115,641
Website: http://www.posco.com
Address: POSCO
6261, Donghaean-Ro,
Nam-Gu,
Pohang,
Gyeongsangbuk-do, South Korea
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
KOSE A005490 Common Stock Korea Stock Exchange KR KRW 02. Jan 1992
NYSE PKX ADR EACH REP 1/4 ORD KRW5000 (BNY) New York Stock Exchange US USD 14. Oct 1994
DB PKX ADR EACH REP 1/4 ORD KRW5000 (BNY) Deutsche Boerse AG DE EUR 14. Oct 1994
BMV PKX N ADR EACH REP 1/4 ORD KRW5000 (BNY) Bolsa Mexicana de Valores MX MXN 14. Oct 1994
Number of employees
Current staff
Staff numbers
0
POSCO employees.
Industry
Steel
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/04 16:39
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/04/02
Last earnings filing: 2020/03/12
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.