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Is this Large Market Cap Stock target price reasonable for Baxter International Inc. (NYSE:BAX)?

The company in question is, Baxter International Inc. (NYSE:BAX) currently with a stock price of 48.08 (0.20% today). The market cap for Baxter International Inc. is 26331.9, and is in the sector Healthcare, and Medical Instruments & Supplies industry. The target price for Baxter International Inc. is 50.25. Currently Baxter International Inc. is trading with a P/E of 5.54, and a forward P/E of 24.22. Average volume for Baxter International Inc. is 5435.49 and so far today it is 2150418.

Performance in the last year for Baxter International Inc. has been 19.64%. For EPS growth, Baxter International Inc. has seen a growth of -79.90%, and is looking to grow in the next year to 14.77%. More long term stats show that EPS growth has been -21.40% over the last five years and could be 12.63% for the next five years. Baxter International Inc. has seen sales growth quarter over quarter at -77.00%, with EPS growth quarter over quarter at 94.60%. The 20-day simple moving average is 3.67%, with the 200-day simple moving average coming to 16.59%.

Since the IPO date for Baxter International Inc. on the 10/27/1981, Baxter International Inc. has seen performance year to date to be 26.51%. With Baxter International Inc. trading at 48.08, the dividend yield is 1.08%, and the EPS is 8.66.

So could Baxter International Inc., be undervalued? Well as said before P/E is 5.54. The PEG is 0.44, P/S is 2.62 and the P/B is at 3.09. The P/cash is 10.01, with P/free cash flow at 33.8.

Baxter International Inc. ability to deal with debt shows that the current ratio is 1.8, and the quick ratio is 1.4. This is with long term debt/equity at 0.25, and total debt/equity at 0.37.

In terms of margins, Baxter International Inc. has a gross margin of 39.00%, an operating margin of -13.50% and a profit margin of 47.70%.Payout ratio for Baxter International Inc. is 5.40%. Return on assets come to 25.80% with return on investment coming to 3.40%.

Insider ownership for Baxter International Inc., is at 0.10% and institutional ownership comes to 93.00%. Outstanding shares are at 548.81. While shares float is 542.81. The float short is currently 3.73%, and short ratio is 3.73.

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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