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Is this Large Market Cap Stock target price reasonable for Beacon Roofing Supply, Inc. (NASDAQ:BECN)?

The company in question is, Beacon Roofing Supply, Inc. (NASDAQ:BECN) currently with a stock price of 42.59 (0.90% today). The market cap for Beacon Roofing Supply, Inc. is 2598.03, and is in the sector Industrial Goods, and General Building Materials industry. The target price for Beacon Roofing Supply, Inc. is 51.1. Currently Beacon Roofing Supply, Inc. is trading with a P/E of 32.17, and a forward P/E of 17.04. Average volume for Beacon Roofing Supply, Inc. is 553.94 and so far today it is 125694.

Performance in the last year for Beacon Roofing Supply, Inc. has been 22.49%. For EPS growth, Beacon Roofing Supply, Inc. has seen a growth of 15.10%, and is looking to grow in the next year to 16.40%. More long term stats show that EPS growth has been 10.60% over the last five years and could be 15.00% for the next five years. Beacon Roofing Supply, Inc. has seen sales growth quarter over quarter at 60.50%, with EPS growth quarter over quarter at 20.10%. The 20-day simple moving average is -3.28%, with the 200-day simple moving average coming to 0.79%.

Since the IPO date for Beacon Roofing Supply, Inc. on the 9/23/2004, Beacon Roofing Supply, Inc. has seen performance year to date to be 2.50%. With Beacon Roofing Supply, Inc. trading at 42.59, the dividend yield is *TBA, and the EPS is 1.31.

So could Beacon Roofing Supply, Inc., be undervalued? Well as said before P/E is 32.17. The PEG is 2.14, P/S is 0.69 and the P/B is at 1.98. The P/cash is 71.18, with P/free cash flow at 18.05.

Beacon Roofing Supply, Inc. ability to deal with debt shows that the current ratio is 1.9, and the quick ratio is 1.1. This is with long term debt/equity at 0.93, and total debt/equity at 0.94.

In terms of margins, Beacon Roofing Supply, Inc. has a gross margin of 24.10%, an operating margin of 4.50% and a profit margin of 2.00%.Payout ratio for Beacon Roofing Supply, Inc. is 0.00%. Return on assets come to 2.70% with return on investment coming to 6.60%.

Insider ownership for Beacon Roofing Supply, Inc., is at 0.30% and institutional ownership comes to *TBA. Outstanding shares are at 61.55. While shares float is 59.45. The float short is currently 4.77%, and short ratio is 5.12.

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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