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Is this Large Market Cap Stock target price reasonable for Raytheon Company (NYSE:RTN)?

The company in question is, Raytheon Company (NYSE:RTN) currently with a stock price of 137.34 (-0.55% today). The market cap for Raytheon Company is 40752.9, and is in the sector Industrial Goods, and Aerospace/Defense Products & Services industry. The target price for Raytheon Company is 156.36. Currently Raytheon Company is trading with a P/E of 19.25, and a forward P/E of 17.79. Average volume for Raytheon Company is 1534.47 and so far today it is 1090300.

Performance in the last year for Raytheon Company has been 25.45%. For EPS growth, Raytheon Company has seen a growth of -3.10%, and is looking to grow in the next year to 4.07%. More long term stats show that EPS growth has been 7.10% over the last five years and could be 10.26% for the next five years. Raytheon Company has seen sales growth quarter over quarter at 3.20%, with EPS growth quarter over quarter at 44.70%. The 20-day simple moving average is -1.00%, with the 200-day simple moving average coming to 5.78%.

Since the IPO date for Raytheon Company on the 12/31/1981, Raytheon Company has seen performance year to date to be 12.76%. With Raytheon Company trading at 137.34, the dividend yield is 2.13%, and the EPS is 7.13.

So could Raytheon Company, be undervalued? Well as said before P/E is 19.25. The PEG is 1.88, P/S is 1.7 and the P/B is at 3.96. The P/cash is 14.99, with P/free cash flow at 25.13.

Raytheon Company ability to deal with debt shows that the current ratio is 1.6, and the quick ratio is 1.5. This is with long term debt/equity at 0.52, and total debt/equity at 0.52.

In terms of margins, Raytheon Company has a gross margin of 24.70%, an operating margin of 13.00% and a profit margin of 9.00%.Payout ratio for Raytheon Company is 39.00%. Return on assets come to 7.40% with return on investment coming to 14.70%.

Insider ownership for Raytheon Company, is at 0.20% and institutional ownership comes to 78.70%. Outstanding shares are at 296.73. While shares float is 293.98. The float short is currently 1.05%, and short ratio is 2.02.

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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