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China Telecom Corp. Ltd. (NYSE: CHA) – Is this large market cap stock undervalued?

China Telecom Corp. Ltd. (NYSE: CHA), is firmly in the large market cap category with market cap of 40060.69. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for China Telecom Corp. Ltd. is 50.16 (with a change from open of 0.30%), this in conjunction with a target price of 60.77. Volume today has so far reached 7058, with an average volume of about 33.46. The GAP for this stock, is 0.62%.

The P/E ratio is 12.93, bringing the forward P/E to a value of 12.92. The current EPS for China Telecom Corp. Ltd., is 3.84, with a EPS growth for this year coming to a value of 13.40%. Performance has been interesting with performance year to date coming to 7.00%.

Looking further into the growth statistics for China Telecom Corp. Ltd., EPS is looking like it will grow 11.54% in the next year. Looking even further it is projected to be 16.90%. Quarter over quarter is 131.30% for EPS growth and for sales growth quarter over quarter it is 117.10%. Looking at past EPS growth statistics we see that for the past five years it has been 5.50%. Sales growth for the past five years has in fact been 8.50%.

Looking at the ownership, we see that the insider ownership is at 45.30% and institutional ownership is 3.40%. Shares outstanding is 806.05, while shares float is at a value of 13.74. Float short for China Telecom Corp. Ltd. is 0.41% and the short ratio is 1.66.

In terms of debt, long term debt/equity is 0.23, while the total debt/equity comes to 0.34. The ability to meet these debts, means that the current ratio is 0.3, and the quick ratio is 0.3. The most recent gross margin is 73.30% and their operating margin is . The profit margin is .

China Telecom Corp. Ltd. has seen returns on assets of , and on investment, 4.70%. Return on equity is . Price/Earnings to growth ratio is 0.77. Price/Sales ratio is at a value of 0.78, with Price/book ratio coming to 0.87 and Price/cash is 8.12, and finally Price/Free cash Flow is .

The simple moving averages are -0.19% and 3.82% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -10.19% and the 52 week low is 18.78%.

China Telecom Corp. Ltd. has a dividend yield of 2.47%, with a current price of 50.16. The ability to pay this means the payout ratio is . This is in an industry, Telecom Services – Foreign, with equally high dividends from other companies in this sector, which it is Technology. China Telecom Corp. Ltd. is based in China.

Performance in the Telecom Services – Foreign industry means that China Telecom Corp. Ltd. has seen performance for the past week of -1.23%, with performance for the month coming to -2.76%. Looking at the data for the quarter it is at a value of 15.10%, and for the half year the performance is -4.29%. Volatility for this week is 1.36% and for the month this is 1.11%.

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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