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Is this Large Market Cap Stock target price reasonable for Industrias Bachoco S.A.B. de C.V. (NYSE:IBA)?

The company in question is, Industrias Bachoco S.A.B. de C.V. (NYSE:IBA) currently with a stock price of 51.64 (0.56% today). The market cap for Industrias Bachoco S.A.B. de C.V. is 2614.74, and is in the sector Consumer Goods, and Farm Products industry. The target price for Industrias Bachoco S.A.B. de C.V. is 65. Currently Industrias Bachoco S.A.B. de C.V. is trading with a P/E of 14.83, and a forward P/E of 10.79. Average volume for Industrias Bachoco S.A.B. de C.V. is 24.83 and so far today it is 12285.

Performance in the last year for Industrias Bachoco S.A.B. de C.V. has been -11.39%. For EPS growth, Industrias Bachoco S.A.B. de C.V. has seen a growth of -2.90%, and is looking to grow in the next year to 13.88%. More long term stats show that EPS growth has been 14.10% over the last five years and could be *TBA for the next five years. Industrias Bachoco S.A.B. de C.V. has seen sales growth quarter over quarter at 12.90%, with EPS growth quarter over quarter at 13.10%. The 20-day simple moving average is -0.81%, with the 200-day simple moving average coming to 3.59%.

Since the IPO date for Industrias Bachoco S.A.B. de C.V. on the 9/19/1997, Industrias Bachoco S.A.B. de C.V. has seen performance year to date to be 4.31%. With Industrias Bachoco S.A.B. de C.V. trading at 51.64, the dividend yield is 1.66%, and the EPS is 3.46.

So could Industrias Bachoco S.A.B. de C.V., be undervalued? Well as said before P/E is 14.83. The PEG is *TBA, P/S is 1.04 and the P/B is at 1.68. The P/cash is *TBA, with P/free cash flow at *TBA.

Industrias Bachoco S.A.B. de C.V. ability to deal with debt shows that the current ratio is 3.6, and the quick ratio is 2.8. This is with long term debt/equity at 0.08, and total debt/equity at 0.13.

In terms of margins, Industrias Bachoco S.A.B. de C.V. has a gross margin of 18.40%, an operating margin of 8.90% and a profit margin of 6.90%.Payout ratio for Industrias Bachoco S.A.B. de C.V. is 13.50%. Return on assets come to 8.20% with return on investment coming to 10.40%.

Insider ownership for Industrias Bachoco S.A.B. de C.V., is at 82.80% and institutional ownership comes to 4.60%. Outstanding shares are at 50.92. While shares float is 7.19. The float short is currently 1.66%, and short ratio is 4.81.

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.

About the author

Mark Hines

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