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

The company in question is, Domtar Corporation (NYSE:UFS) currently with a stock price of 37.29 (1.69% today). The market cap for Domtar Corporation is 2334.41, and is in the sector Consumer Goods, and Paper & Paper Products industry. The target price for Domtar Corporation is 39.5. Currently Domtar Corporation is trading with a P/E of 25.66, and a forward P/E of 11.18. Average volume for Domtar Corporation is 502.4 and so far today it is 95590.

Performance in the last year for Domtar Corporation has been -4.08%. For EPS growth, Domtar Corporation has seen a growth of -66.30%, and is looking to grow in the next year to 10.99%. More long term stats show that EPS growth has been -20.40% over the last five years and could be 3.00% for the next five years. Domtar Corporation has seen sales growth quarter over quarter at -3.30%, with EPS growth quarter over quarter at -51.90%. The 20-day simple moving average is 0.50%, with the 200-day simple moving average coming to 4.07%.

Since the IPO date for Domtar Corporation on the 03/07/2007, Domtar Corporation has seen performance year to date to be 2.64%. With Domtar Corporation trading at 37.29, the dividend yield is 4.53%, and the EPS is 1.43.

So could Domtar Corporation, be undervalued? Well as said before P/E is 25.66. The PEG is 8.55, P/S is 0.45 and the P/B is at 0.85. The P/cash is 21.03, with P/free cash flow at *TBA.

Domtar Corporation ability to deal with debt shows that the current ratio is 2, and the quick ratio is 1. This is with long term debt/equity at 0.46, and total debt/equity at 0.48.

In terms of margins, Domtar Corporation has a gross margin of 20.60%, an operating margin of 4.10% and a profit margin of 1.70%.Payout ratio for Domtar Corporation is 111.80%. Return on assets come to 1.60% with return on investment coming to 7.00%.

Insider ownership for Domtar Corporation, is at 0.10% and institutional ownership comes to 98.10%. Outstanding shares are at 63.66. While shares float is 62.53. The float short is currently 4.24%, and short ratio is 5.28.

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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Stephen Butters

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