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Is this Large Market Cap Stock target price reasonable for Darden Restaurants, Inc. (NYSE:DRI)?

The company in question is, Darden Restaurants, Inc. (NYSE:DRI) currently with a stock price of 62.53 (0.56% today). The market cap for Darden Restaurants, Inc. is 7766.28, and is in the sector Services, and Restaurants industry. The target price for Darden Restaurants, Inc. is 68.96. Currently Darden Restaurants, Inc. is trading with a P/E of 20.47, and a forward P/E of 14.47. Average volume for Darden Restaurants, Inc. is 1758.07 and so far today it is 311666.

Performance in the last year for Darden Restaurants, Inc. has been 0.87%. For EPS growth, Darden Restaurants, Inc. has seen a growth of 83.70%, and is looking to grow in the next year to 9.54%. More long term stats show that EPS growth has been -4.00% over the last five years and could be 13.86% for the next five years. Darden Restaurants, Inc. has seen sales growth quarter over quarter at 1.60%, with EPS growth quarter over quarter at 40.00%. The 20-day simple moving average is 1.64%, with the 200-day simple moving average coming to 0.21%.

Since the IPO date for Darden Restaurants, Inc. on the 05/09/1995, Darden Restaurants, Inc. has seen performance year to date to be 1.06%. With Darden Restaurants, Inc. trading at 62.53, the dividend yield is 3.60%, and the EPS is 3.04.

So could Darden Restaurants, Inc., be undervalued? Well as said before P/E is 20.47. The PEG is 1.48, P/S is 1.12 and the P/B is at 4.31. The P/cash is 67.71, with P/free cash flow at 24.58.

Darden Restaurants, Inc. ability to deal with debt shows that the current ratio is 0.5, and the quick ratio is 0.4. This is with long term debt/equity at 0.24, and total debt/equity at 0.

In terms of margins, Darden Restaurants, Inc. has a gross margin of 22.10%, an operating margin of 9.30% and a profit margin of 5.70%.Payout ratio for Darden Restaurants, Inc. is 66.90%. Return on assets come to 8.60% with return on investment coming to 22.20%.

Insider ownership for Darden Restaurants, Inc., is at 0.20% and institutional ownership comes to 99.50%. Outstanding shares are at 124.9. While shares float is 122.9. The float short is currently 8.77%, and short ratio is 6.13.

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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