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Is this Large Market Cap Stock target price reasonable for Coach, Inc. (NYSE:COH)?

The company in question is, Coach, Inc. (NYSE:COH) currently with a stock price of 36.84 (-1.10% today). The market cap for Coach, Inc. is 10626.31, and is in the sector Consumer Goods, and Textile РApparel Footwear & Accessories industry. The target price for Coach, Inc. is 44.35. Currently Coach, Inc. is trading with a P/E of 22.58, and a forward P/E of 15.37. Average volume for Coach, Inc. is 3576.42 and so far today it is 146980.

Performance in the last year for Coach, Inc. has been 31.27%. For EPS growth, Coach, Inc. has seen a growth of 13.60%, and is looking to grow in the next year to 12.18%. More long term stats show that EPS growth has been -10.80% over the last five years and could be 8.78% for the next five years. Coach, Inc. has seen sales growth quarter over quarter at 15.00%, with EPS growth quarter over quarter at 589.80%. The 20-day simple moving average is -8.62%, with the 200-day simple moving average coming to -0.91%.

Since the IPO date for Coach, Inc. on the 10/6/2000, Coach, Inc. has seen performance year to date to be 16.81%. With Coach, Inc. trading at 36.84, the dividend yield is 3.62%, and the EPS is 1.65.

So could Coach, Inc., be undervalued? Well as said before P/E is 22.58. The PEG is 2.57, P/S is 2.37 and the P/B is at 3.86. The P/cash is 8.05, with P/free cash flow at *TBA.

Coach, Inc. ability to deal with debt shows that the current ratio is 2.6, and the quick ratio is 2.1. This is with long term debt/equity at 0.32, and total debt/equity at 0.33.

In terms of margins, Coach, Inc. has a gross margin of 68.00%, an operating margin of 14.50% and a profit margin of 10.30%.Payout ratio for Coach, Inc. is 81.40%. Return on assets come to 9.80% with return on investment coming to 13.70%.

Insider ownership for Coach, Inc., is at 0.20% and institutional ownership comes to 92.90%. Outstanding shares are at 285.27. While shares float is 278.48. The float short is currently 5.25%, and short ratio is 4.08.

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

Mark Hines

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