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Is this Large Market Cap Stock target price reasonable for Dunkin’ Brands Group, Inc. (NASDAQ:DNKN)?

The company in question is,¬†Dunkin’ Brands Group, Inc. (NASDAQ:DNKN)¬†currently with a stock price of 51.16 (0.61% today). The market cap for Dunkin’ Brands Group, Inc. is 4688.88, and is in the sector Services, and Restaurants industry. The target price for Dunkin’ Brands Group, Inc. is 48.5. Currently Dunkin’ Brands Group, Inc. is trading with a P/E of 38.32, and a forward P/E of 20.89. Average volume for Dunkin’ Brands Group, Inc. is 1431.27 and so far today it is 638827.

Performance in the last year for Dunkin’ Brands Group, Inc. has been 25.65%. For EPS growth, Dunkin’ Brands Group, Inc. has seen a growth of -34.50%, and is looking to grow in the next year to 10.04%. More long term stats show that EPS growth has been 20.40% over the last five years and could be 13.26% for the next five years. Dunkin’ Brands Group, Inc. has seen sales growth quarter over quarter at 2.30%, with EPS growth quarter over quarter at 22.70%. The 20-day simple moving average is 4.59%, with the 200-day simple moving average coming to 13.14%.

Since the IPO date for Dunkin’ Brands Group, Inc. on the 7/27/2011, Dunkin’ Brands Group, Inc. has seen performance year to date to be 21.76%. With Dunkin’ Brands Group, Inc. trading at 51.16, the dividend yield is 2.36%, and the EPS is 1.33.

So could Dunkin’ Brands Group, Inc., be undervalued? Well as said before P/E is 38.32. The PEG is 2.89, P/S is 5.72 and the P/B is at *TBA. The P/cash is 18.89, with P/free cash flow at 51.75.

Dunkin’ Brands Group, Inc.¬†ability to deal with debt shows that the current ratio is 1.4, and the quick ratio is 1.4. This is with long term debt/equity at *TBA, and total debt/equity at *TBA.

In terms of margins, Dunkin’ Brands Group, Inc. has a gross margin of 83.80%, an operating margin of 40.80% and a profit margin of 15.10%.Payout ratio for Dunkin’ Brands Group, Inc. is 83.70%. Return on assets come to 3.90% with return on investment coming to 9.10%.

Insider ownership for Dunkin’ Brands Group, Inc., is at 0.20% and institutional ownership comes to 99.00%. Outstanding shares are at 92.21. While shares float is 91.3. The float short is currently 12.28%, and short ratio is 7.83.

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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Tony Dabbs

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