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A look at a High Market Cap Stock: Reynolds American Inc., RAI

Reynolds American Inc., RAI is in the exchange NYSE and its industry is Cigarettes in the sector of Consumer Goods. Based in USA, Reynolds American Inc., RAIĀ  has a market cap of 66771.43. Since its IPO date on the 6/1/1999, Reynolds American Inc., RAI performance year to date is 4.03%. Today Reynolds American Inc., RAI has gained -0.28%, with a current price of 46.8.

Ownership of the company is 0.10% for insider ownership while institutional ownership is 47.80%. The management of the company have seen the company have a payout ratio of 42.00%. Return of assets are at 9.90%, with return on investment at 10.70%.

In terms of debt levels and profit levels, Reynolds American Inc., RAI is seeing a long-term debt/equity of 0.62. While Total debt/equity is 0.64. With a profit margin of 43.00%, this is combined with a gross margin of 57.90%, and operating margin of 76.70%. Reynolds American Inc. ability to meet debt levels, with a current ratio of 1, while the quick ratio is 0.7.

For the last year Reynolds American Inc., RAI has seen a EPS growth of 90.00%. A performance for the year of 7.85%. The 52-week high is -13.31%, and the 52-week low is 9.84%. The average volume for Reynolds American Inc., RAI is 6326600.

With a target price of 55.27, can Reynolds American Inc., RAI reach this target? Looking at the value indicators of Reynolds American Inc., RAI. Reynolds American Inc. has a P/E of 12.65 and a forward P/E of 18.19. Perhaps the more useful indicator than P/E, is PEG which has a value of 1.06. Reynolds American Inc. also has a P/S and a P/B of 5.42 and 3.12 respectively. For P/cash, Reynolds American Inc. has a value of 34.35, while it is *TBA for P/free cash flow.

At the current price of 46.8, Reynolds American Inc. has a dividend yield of 3.93%. We see a return on equity of 26.70%.

Looking more long-term Reynolds American Inc., is projected to get an EPS growth for the next five years of 11.93%. In the short-term an EPS growth of 11.05% in the next year is forecasted. This is after a EPS growth of 90.00% for this year and for the last five years a 17.60% 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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Mark Hines

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