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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 РBrewers 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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