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Is this Large Market Cap Stock target price reasonable for Convergys Corporation (NYSE:CVG)?

The company in question is, Convergys Corporation (NYSE:CVG) currently with a stock price of 29.77 (0.27% today). The market cap for Convergys Corporation is 2893.59, and is in the sector Services, and Business Services industry. The target price for Convergys Corporation is 32. Currently Convergys Corporation is trading with a P/E of 17.35, and a forward P/E of 14.22. Average volume for Convergys Corporation is 476.3 and so far today it is 148289.

Performance in the last year for Convergys Corporation has been 22.05%. For EPS growth, Convergys Corporation has seen a growth of 46.60%, and is looking to grow in the next year to 9.09%. More long term stats show that EPS growth has been 18.18% over the last five years and could be 10.00% for the next five years. Convergys Corporation has seen sales growth quarter over quarter at -3.40%, with EPS growth quarter over quarter at 17.00%. The 20-day simple moving average is 1.13%, with the 200-day simple moving average coming to 11.21%.

Since the IPO date for Convergys Corporation on the 8/13/1998, Convergys Corporation has seen performance year to date to be 20.43%. With Convergys Corporation trading at 29.77, the dividend yield is 1.21%, and the EPS is 1.71.

So could Convergys Corporation, be undervalued? Well as said before P/E is 17.35. The PEG is 1.74, P/S is 1 and the P/B is at 2.17. The P/cash is 11.39, with P/free cash flow at 19.33.

Convergys Corporation ability to deal with debt shows that the current ratio is 2.7, and the quick ratio is 2.7. This is with long term debt/equity at 0.28, and total debt/equity at 0.28.

In terms of margins, Convergys Corporation has a gross margin of 37.10%, an operating margin of 7.30% and a profit margin of 6.10%.Payout ratio for Convergys Corporation is 18.00%. Return on assets come to 7.40% with return on investment coming to 11.10%.

Insider ownership for Convergys Corporation, is at 1.10% and institutional ownership comes to 99.60%. Outstanding shares are at 97.46. While shares float is 94.38. The float short is currently 4.33%, and short ratio is 8.58.

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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Peter Clarke

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