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Is this Large Market Cap Stock target price reasonable for China Southern Airlines Co. Ltd. (NYSE:ZNH)?

The company in question is, China Southern Airlines Co. Ltd. (NYSE:ZNH) currently with a stock price of 32.97 (-0.19% today). The market cap for China Southern Airlines Co. Ltd. is 10629.38, and is in the sector Services, and Major Airlines industry. The target price for China Southern Airlines Co. Ltd. is 183.08. Currently China Southern Airlines Co. Ltd. is trading with a P/E of 11.5, and a forward P/E of *TBA. Average volume for China Southern Airlines Co. Ltd. is 22.49 and so far today it is 5682.

Performance in the last year for China Southern Airlines Co. Ltd. has been -36.42%. For EPS growth, China Southern Airlines Co. Ltd. has seen a growth of 110.20%, and is looking to grow in the next year to *TBA. More long term stats show that EPS growth has been -11.40% over the last five years and could be *TBA for the next five years. China Southern Airlines Co. Ltd. has seen sales growth quarter over quarter at 124.60%, with EPS growth quarter over quarter at 184.50%. The 20-day simple moving average is 10.38%, with the 200-day simple moving average coming to 1.31%.

Since the IPO date for China Southern Airlines Co. Ltd. on the 7/30/1997, China Southern Airlines Co. Ltd. has seen performance year to date to be -13.42%. With China Southern Airlines Co. Ltd. trading at 32.97, the dividend yield is 1.85%, and the EPS is 2.87.

So could China Southern Airlines Co. Ltd., be undervalued? Well as said before P/E is 11.5. The PEG is *TBA, P/S is 0.63 and the P/B is at 1.1. The P/cash is *TBA, with P/free cash flow at 6.07.

China Southern Airlines Co. Ltd. ability to deal with debt shows that the current ratio is 0.2, and the quick ratio is 0.2. This is with long term debt/equity at 1.67, and total debt/equity at 2.6.

In terms of margins, China Southern Airlines Co. Ltd. has a gross margin of 29.50%, an operating margin of 12.00% and a profit margin of 3.30%.Payout ratio for China Southern Airlines Co. Ltd. is 210.20%. Return on assets come to 2.00% with return on investment coming to 8.60%.

Insider ownership for China Southern Airlines Co. Ltd., is at 78.10% and institutional ownership comes to 1.80%. Outstanding shares are at 321.81. While shares float is 11.12. The float short is currently 0.55%, and short ratio is 2.7.

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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Stephen Butters

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