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Is this Large Market Cap Stock target price reasonable for Kate Spade & Company (NYSE:KATE)?

The company in question is, Kate Spade & Company (NYSE:KATE) currently with a stock price of 17.66 (0.23% today). The market cap for Kate Spade & Company is 2253.25, and is in the sector Consumer Goods, and Textile – Apparel Clothing industry. The target price for Kate Spade & Company is 21.75. Currently Kate Spade & Company is trading with a P/E of 22.5, and a forward P/E of 19.67. Average volume for Kate Spade & Company is 2621.52 and so far today it is 366809.

Performance in the last year for Kate Spade & Company has been -15.85%. For EPS growth, Kate Spade & Company has seen a growth of -72.00%, and is looking to grow in the next year to 37.21%. More long term stats show that EPS growth has been 16.70% over the last five years and could be 28.25% for the next five years. Kate Spade & Company has seen sales growth quarter over quarter at 13.70%, with EPS growth quarter over quarter at 164.10%. The 20-day simple moving average is -3.96%, with the 200-day simple moving average coming to -13.74%.

Since the IPO date for Kate Spade & Company on the 06/09/1981, Kate Spade & Company has seen performance year to date to be -0.84%. With Kate Spade & Company trading at 17.66, the dividend yield is *TBA, and the EPS is 0.78.

So could Kate Spade & Company, be undervalued? Well as said before P/E is 22.5. The PEG is 0.8, P/S is 1.73 and the P/B is at 7.34. The P/cash is 7.35, with P/free cash flow at 22.13.

Kate Spade & Company ability to deal with debt shows that the current ratio is 2.7, and the quick ratio is 1.8. This is with long term debt/equity at 1.27, and total debt/equity at 1.28.

In terms of margins, Kate Spade & Company has a gross margin of 60.60%, an operating margin of 10.60% and a profit margin of 7.90%.Payout ratio for Kate Spade & Company is 0.00%. Return on assets come to 10.60% with return on investment coming to 8.10%.

Insider ownership for Kate Spade & Company, is at 0.64% and institutional ownership comes to *TBA. Outstanding shares are at 127.88. While shares float is 127.41. The float short is currently 6.16%, and short ratio is 3.

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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Tony Dabbs

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