Morningstar Rating

Stock Research and Analysis

by Elizabeth Collins, CFA

Bulls Say

POSCO's success in technological innovation and proximity to emerging markets bode well for the company's cost leadership and long-term growth.
The Korean economy was largely unharmed by the global credit crisis, demonstrating the relative stability of POSCO's primary market.
The company is among the top public stocks held by Berkshire Hathaway, and Warren Buffett has stated intentions to increase its 5% ownership stake, raising the profile of POSCO in the global investment community. Read more 

Bears Say

The company is heavily leveraged to the macroeconomic outlook in China, which is on shaky ground.
Currency fluctuations between the won and dollar affect the valuation of POSCO's American depositary receipts, and the won's value can have large implications for POSCO's export sales.
POSCO's elevated growth capital expenditure commitments suppress free cash flow generation. Read more 

Management

CEO Chung Joon-Yang replaced Lee Ku-Taek in 2009. Chung rose from the rank and file of POSCO, having served the company in various positions, most recently as head of the construction unit. Despite its heritage as a former government-owned entity (the   Read more 

Profile

POSCO is the largest steel producer in South Korea and among the largest in the world. The company produces mainly flat-rolled products via integrated steel mills that primarily   Read more 

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