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Is this Large Market Cap Stock target price reasonable for Ameren Corporation (NYSE:AEE)?

The company in question is, Ameren Corporation (NYSE:AEE) currently with a stock price of 52.62 (0.72% today). The market cap for Ameren Corporation is 12673.42, and is in the sector Utilities, and Electric Utilities industry. The target price for Ameren Corporation is 51.5. Currently Ameren Corporation is trading with a P/E of 22.07, and a forward P/E of 18.82. Average volume for Ameren Corporation is 1902.5 and so far today it is 831752.

Performance in the last year for Ameren Corporation has been 40.37%. For EPS growth, Ameren Corporation has seen a growth of -1.00%, and is looking to grow in the next year to 10.69%. More long term stats show that EPS growth has been 32.50% over the last five years and could be 5.20% for the next five years. Ameren Corporation has seen sales growth quarter over quarter at -7.80%, with EPS growth quarter over quarter at -2.80%. The 20-day simple moving average is 4.29%, with the 200-day simple moving average coming to 14.07%.

Since the IPO date for Ameren Corporation on the 1/2/1998, Ameren Corporation has seen performance year to date to be 22.98%. With Ameren Corporation trading at 52.62, the dividend yield is 3.25%, and the EPS is 2.37.

So could Ameren Corporation, be undervalued? Well as said before P/E is 22.07. The PEG is 4.24, P/S is 2.12 and the P/B is at 1.85. The P/cash is 974.88, with P/free cash flow at *TBA.

Ameren Corporation ability to deal with debt shows that the current ratio is 0.8, and the quick ratio is 0.5. This is with long term debt/equity at 1, and total debt/equity at 1.11.

In terms of margins, Ameren Corporation has a gross margin of 85.90%, an operating margin of 20.50% and a profit margin of 10.50%.Payout ratio for Ameren Corporation is 64.60%. Return on assets come to 2.70% with return on investment coming to 6.20%.

Insider ownership for Ameren Corporation, is at 0.30% and institutional ownership comes to 69.30%. Outstanding shares are at 242.6. While shares float is 241.88. The float short is currently 2.19%, and short ratio is 2.78.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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