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Is this Large Market Cap Stock target price reasonable for Compania Cervecerias Unidas S.A. (NYSE:CCU)?

The company in question is, Compania Cervecerias Unidas S.A. (NYSE:CCU) currently with a stock price of 20.56 (0.05% today). The market cap for Compania Cervecerias Unidas S.A. is 3783.46, and is in the sector Consumer Goods, and Beverages – Brewers industry. The target price for Compania Cervecerias Unidas S.A. is 20.68. Currently Compania Cervecerias Unidas S.A. is trading with a P/E of 23.04, and a forward P/E of 18.96. Average volume for Compania Cervecerias Unidas S.A. is 269.08 and so far today it is 63685.

Performance in the last year for Compania Cervecerias Unidas S.A. has been -10.52%. For EPS growth, Compania Cervecerias Unidas S.A. has seen a growth of 13.70%, and is looking to grow in the next year to -5.74%. More long term stats show that EPS growth has been -1.20% over the last five years and could be 11.37% for the next five years. Compania Cervecerias Unidas S.A. has seen sales growth quarter over quarter at -0.90%, with EPS growth quarter over quarter at -66.10%. The 20-day simple moving average is -3.27%, with the 200-day simple moving average coming to -3.86%.

Since the IPO date for Compania Cervecerias Unidas S.A. on the 2/22/1993, Compania Cervecerias Unidas S.A. has seen performance year to date to be -3.90%. With Compania Cervecerias Unidas S.A. trading at 20.56, the dividend yield is 2.82%, and the EPS is 0.89.

So could Compania Cervecerias Unidas S.A., be undervalued? Well as said before P/E is 23.04. The PEG is 2.03, P/S is 1.65 and the P/B is at 2.4. The P/cash is 18.42, with P/free cash flow at *TBA.

Compania Cervecerias Unidas S.A. ability to deal with debt shows that the current ratio is 1.8, and the quick ratio is 1.2. This is with long term debt/equity at 0.13, and total debt/equity at 0.17.

In terms of margins, Compania Cervecerias Unidas S.A. has a gross margin of 53.30%, an operating margin of 12.60% and a profit margin of 7.20%.Payout ratio for Compania Cervecerias Unidas S.A. is 76.40%. Return on assets come to 6.10% with return on investment coming to 13.20%.

Insider ownership for Compania Cervecerias Unidas S.A., is at 62.00% and institutional ownership comes to 17.40%. Outstanding shares are at 184.11. While shares float is 48.53. The float short is currently 1.34%, and short ratio is 2.41.

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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Mark Hines

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