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Is this Large Market Cap Stock target price reasonable for Extended Stay America, Inc. (NYSE:STAY)?

The company in question is, Extended Stay America, Inc. (NYSE:STAY) currently with a stock price of 13.63 (2.02% today). The market cap for Extended Stay America, Inc. is 2681.35, and is in the sector Services, and Lodging industry. The target price for Extended Stay America, Inc. is 17. Currently Extended Stay America, Inc. is trading with a P/E of 24.38, and a forward P/E of 13.84. Average volume for Extended Stay America, Inc. is 637.05 and so far today it is 257721.

Performance in the last year for Extended Stay America, Inc. has been -21.20%. For EPS growth, Extended Stay America, Inc. has seen a growth of 185.40%, and is looking to grow in the next year to 4.78%. More long term stats show that EPS growth has been -42.50% over the last five years and could be 4.00% for the next five years. Extended Stay America, Inc. has seen sales growth quarter over quarter at -2.20%, with EPS growth quarter over quarter at 6.20%. The 20-day simple moving average is -3.99%, with the 200-day simple moving average coming to -4.22%.

Since the IPO date for Extended Stay America, Inc. on the 11/13/2013, Extended Stay America, Inc. has seen performance year to date to be -12.77%. With Extended Stay America, Inc. trading at 13.63, the dividend yield is 5.69%, and the EPS is 0.55.

So could Extended Stay America, Inc., be undervalued? Well as said before P/E is 24.38. The PEG is 6.09, P/S is 2.1 and the P/B is at 2.98. The P/cash is 19.56, with P/free cash flow at 100.8.

Extended Stay America, Inc. ability to deal with debt shows that the current ratio is *TBA, and the quick ratio is *TBA. This is with long term debt/equity at 3.06, and total debt/equity at 3.06.

In terms of margins, Extended Stay America, Inc. has a gross margin of 52.50%, an operating margin of 37.70% and a profit margin of 8.70%.Payout ratio for Extended Stay America, Inc. is 18.20%. Return on assets come to 2.50% with return on investment coming to 11.30%.

Insider ownership for Extended Stay America, Inc., is at 0.96% and institutional ownership comes to 99.10%. Outstanding shares are at 200.7. While shares float is 197.84. The float short is currently 2.78%, and short ratio is 8.64.

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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