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Is this Large Market Cap Stock target price reasonable for Guangshen Railway Co. Ltd. (NYSE:GSH)?

The company in question is, Guangshen Railway Co. Ltd. (NYSE:GSH) currently with a stock price of 26.87 (1.36% today). The market cap for Guangshen Railway Co. Ltd. is 4219.33, and is in the sector Services, and Railroads industry. The target price for Guangshen Railway Co. Ltd. is 13. Currently Guangshen Railway Co. Ltd. is trading with a P/E of 19.45, and a forward P/E of 1395.26. Average volume for Guangshen Railway Co. Ltd. is 4.81 and so far today it is 1809.

Performance in the last year for Guangshen Railway Co. Ltd. has been 27.63%. For EPS growth, Guangshen Railway Co. Ltd. has seen a growth of 61.70%, and is looking to grow in the next year to -17.39%. More long term stats show that EPS growth has been -6.30% over the last five years and could be 8.00% for the next five years. Guangshen Railway Co. Ltd. has seen sales growth quarter over quarter at 12.70%, with EPS growth quarter over quarter at 107.40%. The 20-day simple moving average is 3.23%, with the 200-day simple moving average coming to 14.50%.

Since the IPO date for Guangshen Railway Co. Ltd. on the 5/13/1996, Guangshen Railway Co. Ltd. has seen performance year to date to be 10.08%. With Guangshen Railway Co. Ltd. trading at 26.87, the dividend yield is 2.30%, and the EPS is 1.36.

So could Guangshen Railway Co. Ltd., be undervalued? Well as said before P/E is 19.45. The PEG is 2.43, P/S is 1.71 and the P/B is at 0.91. The P/cash is 14.52, with P/free cash flow at *TBA.

Guangshen Railway Co. Ltd. ability to deal with debt shows that the current ratio is 1.5, and the quick ratio is 1.4. This is with long term debt/equity at 0, and total debt/equity at 0.

In terms of margins, Guangshen Railway Co. Ltd. has a gross margin of 10.30%, an operating margin of 10.40% and a profit margin of 7.80%.Payout ratio for Guangshen Railway Co. Ltd. is 0.00%. Return on assets come to 4.10% with return on investment coming to 3.90%.

Insider ownership for Guangshen Railway Co. Ltd., is at 42.60% and institutional ownership comes to 4.60%. Outstanding shares are at 159.16. While shares float is 33.64. The float short is currently 0.07%, and short ratio is 5.08.

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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Stephen Butters

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