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Is this Large Market Cap Stock target price reasonable for Dr Pepper Snapple Group, Inc. (NYSE:DPS)?

The company in question is, Dr Pepper Snapple Group, Inc. (NYSE:DPS) currently with a stock price of 91.04 (-0.24% today). The market cap for Dr Pepper Snapple Group, Inc. is 17513.71, and is in the sector Consumer Goods, and Beverages РSoft Drinks industry. The target price for Dr Pepper Snapple Group, Inc. is 98.6. Currently Dr Pepper Snapple Group, Inc. is trading with a P/E of 20.84, and a forward P/E of 19.18. Average volume for Dr Pepper Snapple Group, Inc. is 1140.83 and so far today it is 80121.

Performance in the last year for Dr Pepper Snapple Group, Inc. has been 22.09%. For EPS growth, Dr Pepper Snapple Group, Inc. has seen a growth of 11.50%, and is looking to grow in the next year to 8.81%. More long term stats show that EPS growth has been 12.80% over the last five years and could be 9.45% for the next five years. Dr Pepper Snapple Group, Inc. has seen sales growth quarter over quarter at 2.40%, with EPS growth quarter over quarter at 21.90%. The 20-day simple moving average is -4.46%, with the 200-day simple moving average coming to -0.59%.

Since the IPO date for Dr Pepper Snapple Group, Inc. on the 5/7/2008, Dr Pepper Snapple Group, Inc. has seen performance year to date to be -0.38%. With Dr Pepper Snapple Group, Inc. trading at 91.04, the dividend yield is 2.32%, and the EPS is 4.38.

So could Dr Pepper Snapple Group, Inc., be undervalued? Well as said before P/E is 20.84. The PEG is 2.21, P/S is 2.75 and the P/B is at 7.92. The P/cash is 71.48, with P/free cash flow at 37.18.

Dr Pepper Snapple Group, Inc. ability to deal with debt shows that the current ratio is 1.1, and the quick ratio is 0.9. This is with long term debt/equity at 1.36, and total debt/equity at 1.37.

In terms of margins, Dr Pepper Snapple Group, Inc. has a gross margin of 59.80%, an operating margin of 21.80% and a profit margin of 13.00%.Payout ratio for Dr Pepper Snapple Group, Inc. is 45.80%. Return on assets come to 9.80% with return on investment coming to 15.80%.

Insider ownership for Dr Pepper Snapple Group, Inc., is at 0.20% and institutional ownership comes to 94.20%. Outstanding shares are at 191.91. While shares float is 184.95. The float short is currently 3.94%, and short ratio is 6.4.

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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