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Is this Large Market Cap Stock target price reasonable for Hanesbrands Inc. (NYSE:HBI)?

The company in question is, Hanesbrands Inc. (NYSE:HBI) currently with a stock price of 26.1 (-1.69% today). The market cap for Hanesbrands Inc. is 10023.16, and is in the sector Consumer Goods, and Textile – Apparel Clothing industry. The target price for Hanesbrands Inc. is 36. Currently Hanesbrands Inc. is trading with a P/E of 23.23, and a forward P/E of 11.87. Average volume for Hanesbrands Inc. is 3533.8 and so far today it is 1936394.

Performance in the last year for Hanesbrands Inc. has been -17.78%. For EPS growth, Hanesbrands Inc. has seen a growth of 7.20%, and is looking to grow in the next year to 15.79%. More long term stats show that EPS growth has been 16.60% over the last five years and could be 11.00% for the next five years. Hanesbrands Inc. has seen sales growth quarter over quarter at 0.80%, with EPS growth quarter over quarter at 60.00%. The 20-day simple moving average is -1.79%, with the 200-day simple moving average coming to -7.62%.

Since the IPO date for Hanesbrands Inc. on the 9/6/2006, Hanesbrands Inc. has seen performance year to date to be -9.02%. With Hanesbrands Inc. trading at 26.1, the dividend yield is 1.66%, and the EPS is 1.14.

So could Hanesbrands Inc., be undervalued? Well as said before P/E is 23.23. The PEG is 2.11, P/S is 1.75 and the P/B is at 10.79. The P/cash is 30.15, with P/free cash flow at *TBA.

Hanesbrands Inc. ability to deal with debt shows that the current ratio is 2.3, and the quick ratio is 0.8. This is with long term debt/equity at 3.11, and total debt/equity at 3.51.

In terms of margins, Hanesbrands Inc. has a gross margin of 37.40%, an operating margin of 10.90% and a profit margin of 8.00%.Payout ratio for Hanesbrands Inc. is 35.60%. Return on assets come to 7.90% with return on investment coming to 14.10%.

Insider ownership for Hanesbrands Inc., is at 0.90% and institutional ownership comes to 92.00%. Outstanding shares are at 377.52. While shares float is 374.08. The float short is currently 6.78%, and short ratio is 7.18.

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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