Stock Updates

Is Reynolds American Inc.(NYSE: RAI), a large market cap stock a smart buy?

With a market cap of has a large market cap size. Reynolds American Inc. (NYSE: RAI) has been on the stock market since its IPO date on the 6/1/1999. Reynolds American Inc. is in the Cigarettes industry and Consumer Goods sector. Average volume for Reynolds American Inc., is 4236.53, and so far today it has a volume of 3207000. Performance year to date since the 6/1/1999 is 3.61%.

To help you determine whether Reynolds American Inc. is undervalued the following values will help you decide. P/E is 12.59 and forward P/E is 18.12. PEG perhaps more useful shows that Reynolds American Inc. has a value for PEG of 1.06. P/S ratio is 5.39 and the P/B ratio is 3.11. The P/Cash and P/Free cash flow is 34.21 and *TBA respectively.

At the current price Reynolds American Inc. is trading at, 46.61 (0.67% today), Reynolds American Inc. has a dividend yield of 3.95%, and this is covered by a payout ratio of 42.00%. Earnings per share (EPS) is 3.7, and this is looking to grow in the next year to 11.05% after growing 90.00% this past year. EPS growth quarter over quarter is -67.10%, and 33.00% for sales growth quarter over quarter.

The number of shares outstanding is 1426.74, and the number of shares float is 824.15. The senior management bring insider ownership to 0.10%, and institutional ownership is at 47.80%. The float short is 1.53%, with the short ratio at a value of 2.99. Management has seen a return on assets of 9.90%, and also a return on investment of 10.70%.

The ability for Reynolds American Inc., to deal with debt, means it current ratio is 1, and quick ratio is 0.7. Long term debt/equity is 0.62 and total debt/equity is 0.64. In terms of margins, Reynolds American Inc. has a gross margin of 57.90%, with its operating margin at 76.70%, and Reynolds American Inc. has a profit margin of 43.00%.

The 52 week high is -13.66%, with 9.39% being its 52 week low. The 20 day simple moving average is -4.60% and the 200 day simple moving average is -4.72%.

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.


About the author

Peter Clarke

Leave a Comment