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Is this Large Market Cap Stock target price reasonable for China Eastern Airlines Corp. Ltd. (NYSE:CEA)?

The company in question is, China Eastern Airlines Corp. Ltd. (NYSE:CEA) currently with a stock price of 24.51 (-2.08% today). The market cap for China Eastern Airlines Corp. Ltd. is 11387.59, and is in the sector Services, and Major Airlines industry. The target price for China Eastern Airlines Corp. Ltd. is 175.07. Currently China Eastern Airlines Corp. Ltd. is trading with a P/E of 10.19, and a forward P/E of *TBA. Average volume for China Eastern Airlines Corp. Ltd. is 23.66 and so far today it is 30941.

Performance in the last year for China Eastern Airlines Corp. Ltd. has been -15.92%. For EPS growth, China Eastern Airlines Corp. Ltd. has seen a growth of 31.10%, and is looking to grow in the next year to *TBA. More long term stats show that EPS growth has been -4.50% over the last five years and could be *TBA for the next five years. China Eastern Airlines Corp. Ltd. has seen sales growth quarter over quarter at 7.50%, with EPS growth quarter over quarter at -68.40%. The 20-day simple moving average is -10.22%, with the 200-day simple moving average coming to -7.64%.

Since the IPO date for China Eastern Airlines Corp. Ltd. on the 2/4/1997, China Eastern Airlines Corp. Ltd. has seen performance year to date to be -12.90%. With China Eastern Airlines Corp. Ltd. trading at 24.51, the dividend yield is 1.56%, and the EPS is 2.41.

So could China Eastern Airlines Corp. Ltd., be undervalued? Well as said before P/E is 10.19. The PEG is *TBA, P/S is 0.79 and the P/B is at 0.88. The P/cash is 5.75, with P/free cash flow at 6.06.

China Eastern Airlines Corp. Ltd. ability to deal with debt shows that the current ratio is 0.3, and the quick ratio is 0.3. This is with long term debt/equity at 1.34, and total debt/equity at 2.52.

In terms of margins, China Eastern Airlines Corp. Ltd. has a gross margin of 37.80%, an operating margin of 14.70% and a profit margin of 4.40%.Payout ratio for China Eastern Airlines Corp. Ltd. is 0.00%. Return on assets come to 2.20% with return on investment coming to 7.70%.

Insider ownership for China Eastern Airlines Corp. Ltd., is at 58.20% and institutional ownership comes to 1.40%. Outstanding shares are at 464.61. While shares float is 67.21. The float short is currently 0.02%, and short ratio is 0.6.

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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Tony Dabbs

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