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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 119.08 (-0.24% today). The market cap for CNOOC Ltd. is 53709.61, 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 17.45, and a forward P/E of 10.83. Average volume for CNOOC Ltd. is 144.54 and so far today it is 46562.

Performance in the last year for CNOOC Ltd. has been 2.89%. For EPS growth, CNOOC Ltd. has seen a growth of -66.30%, and is looking to grow in the next year to 486.95%. 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 -2.43%, with the 200-day simple moving average coming to 7.45%.

Since the IPO date for CNOOC Ltd. on the 2/27/2001, CNOOC Ltd. has seen performance year to date to be 17.45%. With CNOOC Ltd. trading at 119.08, the dividend yield is 5.40%, and the EPS is 6.84.

So could CNOOC Ltd., be undervalued? Well as said before P/E is 17.45. The PEG is *TBA, P/S is 2.08 and the P/B is at 0.91. The P/cash is 11.9, 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 449.98. While shares float is 158.72. The float short is currently 0.16%, and short ratio is 1.75.

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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