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Is Time Warner Inc.(NYSE: TWX), a large market cap stock a smart buy?

With a market cap of has a large market cap size. Time Warner Inc. (NYSE: TWX) has been on the stock market since its IPO date on the 3/19/1992. Time Warner Inc. is in the Entertainment – Diversified industry and Services sector. Average volume for Time Warner Inc., is 3542.57, and so far today it has a volume of 3435600. Performance year to date since the 3/19/1992 is 24.08%.

To help you determine whether Time Warner Inc. is undervalued the following values will help you decide. P/E is 15.84 and forward P/E is 13.11. PEG perhaps more useful shows that Time Warner Inc. has a value for PEG of 1.1. P/S ratio is 2.22 and the P/B ratio is 2.59. The P/Cash and P/Free cash flow is 24.8 and 26.1 respectively.

At the current price Time Warner Inc. is trading at, 78.92 (0.25% today), Time Warner Inc. has a dividend yield of 2.04%, and this is covered by a payout ratio of 29.70%. Earnings per share (EPS) is 4.98, and this is looking to grow in the next year to 10.97% after growing 4.10% this past year. EPS growth quarter over quarter is -47.50%, and -52.00% for sales growth quarter over quarter.

The number of shares outstanding is 784.5, and the number of shares float is 776.94. The senior management bring insider ownership to 0.10%, and institutional ownership is at 82.70%. The float short is 1.37%, with the short ratio at a value of 3.01. Management has seen a return on assets of 6.40%, and also a return on investment of 11.00%.

The ability for Time Warner Inc., to deal with debt, means it current ratio is 1.9, and quick ratio is 1.6. Long term debt/equity is 1.02 and total debt/equity is 1.02. In terms of margins, Time Warner Inc. has a gross margin of 43.60%, with its operating margin at 25.30%, and Time Warner Inc. has a profit margin of 14.50%.

The 52 week high is -2.47%, with 44.50% being its 52 week low. The 20 day simple moving average is 1.51% and the 200 day simple moving average is 9.94%.

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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Mark Hines

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