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Is this Large Market Cap Stock target price reasonable for Avista Corp. (NYSE:AVA)?

The company in question is, Avista Corp. (NYSE:AVA) currently with a stock price of 39.91 (0.25% today). The market cap for Avista Corp. is 2561.38, and is in the sector Utilities, and Diversified Utilities industry. The target price for Avista Corp. is 41.2. Currently Avista Corp. is trading with a P/E of 19.17, and a forward P/E of 18.4. Average volume for Avista Corp. is 285 and so far today it is 57754.

Performance in the last year for Avista Corp. has been 21.94%. For EPS growth, Avista Corp. has seen a growth of -2.60%, and is looking to grow in the next year to 3.89%. More long term stats show that EPS growth has been 2.70% over the last five years and could be 5.00% for the next five years. Avista Corp. has seen sales growth quarter over quarter at -5.50%, with EPS growth quarter over quarter at 6.80%. The 20-day simple moving average is -3.40%, with the 200-day simple moving average coming to 0.17%.

Since the IPO date for Avista Corp. on the 11/16/1987, Avista Corp. has seen performance year to date to be 15.54%. With Avista Corp. trading at 39.91, the dividend yield is 3.44%, and the EPS is 2.08.

So could Avista Corp., be undervalued? Well as said before P/E is 19.17. The PEG is 3.83, P/S is 1.78 and the P/B is at 1.56. The P/cash is 189.73, with P/free cash flow at *TBA.

Avista Corp. ability to deal with debt shows that the current ratio is 0.5, and the quick ratio is 0.4. This is with long term debt/equity at 0.95, and total debt/equity at 1.1.

In terms of margins, Avista Corp. has a gross margin of *TBA, an operating margin of 19.00% and a profit margin of 9.50%.Payout ratio for Avista Corp. is 62.00%. Return on assets come to 2.80% with return on investment coming to 5.70%.

Insider ownership for Avista Corp., is at 0.50% and institutional ownership comes to 69.60%. Outstanding shares are at 64.34. While shares float is 63.24. The float short is currently 2.68%, and short ratio is 5.96.

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

Mark Hines

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