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 4210.46, and so far today it has a volume of 2549300. Performance year to date since the 6/1/1999 is 9.59%.

To help you determine whether Reynolds American Inc. is undervalued the following values will help you decide. P/E is 13.44 and forward P/E is 19.28. PEG perhaps more useful shows that Reynolds American Inc. has a value for PEG of 1.13. P/S ratio is 5.81 and the P/B ratio is 3.32. The P/Cash and P/Free cash flow is 36.81 and *TBA respectively.

At the current price Reynolds American Inc. is trading at, 49.75 (0.36% today), Reynolds American Inc. has a dividend yield of 3.70%, 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 11.15% 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 1438.5, and the number of shares float is 824.16. The senior management bring insider ownership to 0.10%, and institutional ownership is at 47.70%. The float short is 1.42%, with the short ratio at a value of 2.78. 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 -8.68%, with 26.68% being its 52 week low. The 20 day simple moving average is -2.81% and the 200 day simple moving average is 1.66%.

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

Tony Dabbs

Leave a Comment