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A look at a High Market Cap Stock: Red Hat, Inc., RHT

Red Hat, Inc., RHT is in the exchange NYSE and its industry is Application Software in the sector of Technology. Based in USA, Red Hat, Inc., RHT  has a market cap of 13699.51. Since its IPO date on the 8/11/1999, Red Hat, Inc., RHT performance year to date is -8.49%. Today Red Hat, Inc., RHT has gained -0.21%, with a current price of 75.78.

Ownership of the company is 0.70% for insider ownership while institutional ownership is 96.80%. The management of the company have seen the company have a payout ratio of 0.00%. Return of assets are at 5.30%, with return on investment at 10.30%.

In terms of debt levels and profit levels, Red Hat, Inc., RHT is seeing a long-term debt/equity of 0.54. While Total debt/equity is 0.54. With a profit margin of 9.90%, this is combined with a gross margin of 84.90%, and operating margin of 13.70%. Red Hat, Inc. ability to meet debt levels, with a current ratio of 1.3, while the quick ratio is 1.3.

For the last year Red Hat, Inc., RHT has seen a EPS growth of 12.50%. A performance for the year of 4.21%. The 52-week high is -10.26%, and the 52-week low is 27.17%. The average volume for Red Hat, Inc., RHT is 1428200.

With a target price of 87.71, can Red Hat, Inc., RHT reach this target? Looking at the value indicators of Red Hat, Inc., RHT. Red Hat, Inc. has a P/E of 66.18 and a forward P/E of 29.18. Perhaps the more useful indicator than P/E, is PEG which has a value of 3.95. Red Hat, Inc. also has a P/S and a P/B of 6.4 and 10.17 respectively. For P/cash, Red Hat, Inc. has a value of 9.81, while it is 28.68 for P/free cash flow.

At the current price of 75.78, Red Hat, Inc. has a dividend yield of *TBA. We see a return on equity of 15.70%.

Looking more long-term Red Hat, Inc., is projected to get an EPS growth for the next five years of 16.74%. In the short-term an EPS growth of 17.35% in the next year is forecasted. This is after a EPS growth of 12.50% for this year and for the last five years a 14.30% growth has been seen.

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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