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Is this Large Market Cap Stock target price reasonable for CNOOC Ltd. (NYSE:CEO)?

The company in question is, CNOOC Ltd. (NYSE:CEO) currently with a stock price of 123.08 (-1.82% today). The market cap for CNOOC Ltd. is 56583.74, and is in the sector Basic Materials, and Oil & Gas Drilling & Exploration industry. The target price for CNOOC Ltd. is 128.69. Currently CNOOC Ltd. is trading with a P/E of 18.47, and a forward P/E of 11.3. Average volume for CNOOC Ltd. is 152 and so far today it is 49594.

Performance in the last year for CNOOC Ltd. has been 10.60%. For EPS growth, CNOOC Ltd. has seen a growth of -66.30%, and is looking to grow in the next year to 218.76%. More long term stats show that EPS growth has been -17.90% over the last five years and could be -6.90% for the next five years. CNOOC Ltd. has seen sales growth quarter over quarter at -44.30%, with EPS growth quarter over quarter at -75.00%. The 20-day simple moving average is 1.43%, with the 200-day simple moving average coming to 11.20%.

Since the IPO date for CNOOC Ltd. on the 2/27/2001, CNOOC Ltd. has seen performance year to date to be 23.35%. With CNOOC Ltd. trading at 123.08, the dividend yield is 5.15%, and the EPS is 6.79.

So could CNOOC Ltd., be undervalued? Well as said before P/E is 18.47. The PEG is *TBA, P/S is 2.2 and the P/B is at 0.97. The P/cash is 12.63, with P/free cash flow at *TBA.

CNOOC Ltd. ability to deal with debt shows that the current ratio is 1.7, and the quick ratio is 1.6. This is with long term debt/equity at 0.34, and total debt/equity at 0.43.

In terms of margins, CNOOC Ltd. has a gross margin of 71.80%, an operating margin of 10.20% and a profit margin of 11.80%.Payout ratio for CNOOC Ltd. is 88.40%. Return on assets come to 3.00% with return on investment coming to 3.70%.

Insider ownership for CNOOC Ltd., is at *TBA and institutional ownership comes to 1.70%. Outstanding shares are at 451.37. While shares float is 158.72. The float short is currently 0.16%, and short ratio is 1.64.

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.

About the author

Peter Clarke

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