Fact based stock research
Posco (KOSE:A005490)
KR7005490008
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Posco stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 52 (better than 52% compared with investment alternatives), Posco (Steel, South Korea) shares have above-average financial characteristics compared with similar stocks. Shares of Posco are a good value (attractively priced) with a consolidated Value Rank of 63 (better than 63% of alternatives), are safely financed (Safety Rank of 56, which means low debt burdens), but show below-average growth (Growth Rank of 47). ...read more
RECOMMENDATION: A Combined Rank of 52, is a buy recommendation based on Posco's financial characteristics. As the company Posco's key financial metrics exhibit good value (Obermatt Value Rank of 63) but low growth (Obermatt Growth Rank of 47) while being safely financed (Obermatt Safety Rank of 56), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 63% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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Country | South Korea |
Industry | Steel |
Index | Low Emissions, KOSPI |
Size class | XX-Large |
10-Oct-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Posco
RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
VALUE | ||||||||
VALUE | 93 |
|
83 |
|
48 |
|
63 |
|
GROWTH | ||||||||
GROWTH | 9 |
|
13 |
|
83 |
|
47 |
|
SAFETY | ||||||||
SAFETY | 68 |
|
75 |
|
67 |
|
56 |
|
SENTIMENT | ||||||||
SENTIMENT | n/a |
|
66 |
|
58 |
|
new | |
360° VIEW | ||||||||
360° VIEW | n/a |
|
69 |
|
73 |
|
new |
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 52 (better than 52% compared with investment alternatives), Posco (Steel, South Korea) shares have above-average financial characteristics compared with similar stocks. Shares of Posco are a good value (attractively priced) with a consolidated Value Rank of 63 (better than 63% of alternatives), are safely financed (Safety Rank of 56, which means low debt burdens), but show below-average growth (Growth Rank of 47). ...read more
RECOMMENDATION: A Combined Rank of 52, is a buy recommendation based on Posco's financial characteristics. As the company Posco's key financial metrics exhibit good value (Obermatt Value Rank of 63) but low growth (Obermatt Growth Rank of 47) while being safely financed (Obermatt Safety Rank of 56), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 63% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
VALUE | ||||||||
VALUE | 93 |
|
83 |
|
48 |
|
63 |
|
GROWTH | ||||||||
GROWTH | 9 |
|
13 |
|
83 |
|
47 |
|
SAFETY | ||||||||
SAFETY | 68 |
|
75 |
|
67 |
|
56 |
|
COMBINED | ||||||||
COMBINED | 88 |
|
54 |
|
73 |
|
52 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 63 (better than 63% compared with alternatives), Posco shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, where three out of four indicators are above average for Posco. Price-to-Sales (P/S) is 74 which means that the stock price compared with what market professionals expect for future sales is lower than for 74% of comparable companies, indicating a good value for Posco's revenue size. The same is valid for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 70. Finally, compared with other companies in the same industry, dividend yields of Posco are expected to be higher than for 53% of all competitors (a Dividend Yield rank of 53). The only low rank is for expected profits with a Price-to-Profit Rank of 22, indicating that the market expects the company's profit to be low despite a high dividend. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 63, is a buy recommendation based on Posco's stock price compared with the company's operational size and dividend yields. The low Profit Rank could result from a one-off charge, for instance, for an accident, a legal settlement, or a restructuring project. If the company keeps its dividends high, the low expected profit may be transitory. If that is the case, the three good value ranks for Sales, Capital, and Dividends are reliable indicators for good stock price value, a low stock price. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
PRICE VS. REVENUES (P/S) | ||||||||
PRICE VS. REVENUES (P/S) | 88 |
|
78 |
|
70 |
|
74 |
|
PRICE VS. PROFITS (P/E) | ||||||||
PRICE VS. PROFITS (P/E) | 85 |
|
74 |
|
28 |
|
22 |
|
PRICE VS. CAPITAL (Market-to-Book) | ||||||||
PRICE VS. CAPITAL (Market-to-Book) | 98 |
|
78 |
|
59 |
|
70 |
|
DIVIDEND YIELD | ||||||||
DIVIDEND YIELD | 84 |
|
57 |
|
44 |
|
53 |
|
CONSOLIDATED RANK: VALUE | ||||||||
CONSOLIDATED RANK: VALUE | 93 |
|
83 |
|
48 |
|
63 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 47 (better than 47% compared with alternatives), Posco shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Posco. Sales Growth has a value of 51 which means that currently professionals expect the company to grow more than 51% of its competitors. Profit Growth with a value of 67 and Capital Growth with a rank of 52 means that currently, professionals expect the company to grow both profits and invested capital more than of its competitors. But Stock Returns has only a rank of 11, which means that stock returns have recently been below 89% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 47, is a hold recommendation for growth and momentum investors. Posco has only one below-average growth indicator, the stock returns. This is probably the least reliable growth indicator, because it measures company and investor expectations at the same time. The three other growth indicators, which are all positive for Posco, are more reliable measures of growth momentum. For this reason, the company seems to be on a good trajectory, unless you think the current period is not representative, because of unique events that will not be repeated in the future. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
REVENUE GROWTH | ||||||||
REVENUE GROWTH | 19 |
|
29 |
|
70 |
|
51 |
|
PROFIT GROWTH | ||||||||
PROFIT GROWTH | 57 |
|
13 |
|
41 |
|
67 |
|
CAPITAL GROWTH | ||||||||
CAPITAL GROWTH | n/a |
|
72 |
|
60 |
|
52 |
|
STOCK RETURNS | ||||||||
STOCK RETURNS | 24 |
|
35 |
|
91 |
|
11 |
|
CONSOLIDATED RANK: GROWTH | ||||||||
CONSOLIDATED RANK: GROWTH | 9 |
|
13 |
|
83 |
|
47 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 56 (better than 56% compared with alternatives), the company Posco has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Posco is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Posco and the other two below average. Refinancing is at 89, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 89% of its competitors. But Leverage is high with a rank of 32, meaning the company has an above-average debt-to-equity ratio. It has more debt than 68% of its competitors. Liquidity is also on the riskier side with a rank of 37, meaning the company generates less profit to service its debt than 63% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 56 (better than 56% compared with alternatives), Posco has a financing structure that is safer than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Posco are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Posco and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
LEVERAGE | ||||||||
LEVERAGE | 34 |
|
40 |
|
46 |
|
32 |
|
REFINANCING | ||||||||
REFINANCING | 92 |
|
91 |
|
77 |
|
89 |
|
LIQUIDITY | ||||||||
LIQUIDITY | 42 |
|
64 |
|
44 |
|
37 |
|
CONSOLIDATED RANK: SAFETY | ||||||||
CONSOLIDATED RANK: SAFETY | 68 |
|
75 |
|
67 |
|
56 |
|
Sentiment Metrics in Detail
SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
---|---|---|---|---|---|---|---|---|
ANALYST OPINIONS | ||||||||
ANALYST OPINIONS | n/a |
|
48 |
|
63 |
|
new | |
OPINIONS CHANGE | ||||||||
OPINIONS CHANGE | n/a |
|
48 |
|
50 |
|
new | |
PRO HOLDINGS | ||||||||
PRO HOLDINGS | n/a |
|
60 |
|
40 |
|
new | |
MARKET PULSE | ||||||||
MARKET PULSE | n/a |
|
69 |
|
78 |
|
new | |
CONSOLIDATED RANK: SENTIMENT | ||||||||
CONSOLIDATED RANK: SENTIMENT | n/a |
|
66 |
|
58 |
|
new |
Free stock analysis by the purely fact based Obermatt Method for Posco from October 10, 2024.
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