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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 26.72 (-0.58% today). The market cap for Hanesbrands Inc. is 10201.2, 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 23.51, and a forward P/E of 12.01. Average volume for Hanesbrands Inc. is 3633.99 and so far today it is 623362.

Performance in the last year for Hanesbrands Inc. has been -20.54%. For EPS growth, Hanesbrands Inc. has seen a growth of 7.20%, and is looking to grow in the next year to 15.73%. 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 0.50%, with the 200-day simple moving average coming to -5.54%.

Since the IPO date for Hanesbrands Inc. on the 9/6/2006, Hanesbrands Inc. has seen performance year to date to be -7.92%. With Hanesbrands Inc. trading at 26.72, the dividend yield is 1.64%, and the EPS is 1.14.

So could Hanesbrands Inc., be undervalued? Well as said before P/E is 23.51. The PEG is 2.14, P/S is 1.78 and the P/B is at 10.92. The P/cash is 30.69, 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 91.80%. Outstanding shares are at 379.65. While shares float is 374.08. The float short is currently 6.78%, and short ratio is 6.98.

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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