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Is this Large Market Cap Stock target price reasonable for Coach, Inc. (NYSE:COH)?

The company in question is, Coach, Inc. (NYSE:COH) currently with a stock price of 42.85 (-0.65% today). The market cap for Coach, Inc. is 11981.51, and is in the sector Consumer Goods, and Textile – Apparel Footwear & Accessories industry. The target price for Coach, Inc. is 42.75. Currently Coach, Inc. is trading with a P/E of 30.76, and a forward P/E of 19.69. Average volume for Coach, Inc. is 3521.37 and so far today it is 1783450.

Performance in the last year for Coach, Inc. has been 45.90%. For EPS growth, Coach, Inc. has seen a growth of -47.90%, and is looking to grow in the next year to 13.59%. More long term stats show that EPS growth has been -9.00% over the last five years and could be 8.20% for the next five years. Coach, Inc. has seen sales growth quarter over quarter at 11.20%, with EPS growth quarter over quarter at 26.70%. The 20-day simple moving average is 7.35%, with the 200-day simple moving average coming to 19.54%.

Since the IPO date for Coach, Inc. on the 10/6/2000, Coach, Inc. has seen performance year to date to be 34.07%. With Coach, Inc. trading at 42.85, the dividend yield is 3.13%, and the EPS is 1.4.

So could Coach, Inc., be undervalued? Well as said before P/E is 30.76. The PEG is 3.75, P/S is 2.76 and the P/B is at 4.56. The P/cash is 9.34, with P/free cash flow at *TBA.

Coach, Inc. ability to deal with debt shows that the current ratio is 3.1, and the quick ratio is 2.5. This is with long term debt/equity at 0.33, and total debt/equity at 0.34.

In terms of margins, Coach, Inc. has a gross margin of 68.30%, an operating margin of 13.30% and a profit margin of 9.00%.Payout ratio for Coach, Inc. is 115.20%. Return on assets come to 8.40% with return on investment coming to 12.10%.

Insider ownership for Coach, Inc., is at 0.12% and institutional ownership comes to 90.10%. Outstanding shares are at 277.8. While shares float is 277.7. The float short is currently 5.55%, and short ratio is 4.37.

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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