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Is this Large Market Cap Stock target price reasonable for L-3 Communications Holdings Inc. (NYSE:LLL)?

The company in question is, L-3 Communications Holdings Inc. (NYSE:LLL) currently with a stock price of 146.88 (-0.62% today). The market cap for L-3 Communications Holdings Inc. is 11297.83, and is in the sector Industrial Goods, and Aerospace/Defense Products & Services industry. The target price for L-3 Communications Holdings Inc. is 149.45. Currently L-3 Communications Holdings Inc. is trading with a P/E of 34.16, and a forward P/E of 16.97. Average volume for L-3 Communications Holdings Inc. is 629.66 and so far today it is 86621.

Performance in the last year for L-3 Communications Holdings Inc. has been 24.11%. For EPS growth, L-3 Communications Holdings Inc. has seen a growth of -51.50%, and is looking to grow in the next year to 11.06%. More long term stats show that EPS growth has been -13.10% over the last five years and could be 12.37% for the next five years. L-3 Communications Holdings Inc. has seen sales growth quarter over quarter at -5.40%, with EPS growth quarter over quarter at 72.20%. The 20-day simple moving average is 2.59%, with the 200-day simple moving average coming to 17.98%.

Since the IPO date for L-3 Communications Holdings Inc. on the 5/19/1998, L-3 Communications Holdings Inc. has seen performance year to date to be 25.05%. With L-3 Communications Holdings Inc. trading at 146.88, the dividend yield is 1.89%, and the EPS is 4.33.

So could L-3 Communications Holdings Inc., be undervalued? Well as said before P/E is 34.16. The PEG is 2.76, P/S is 1.12 and the P/B is at 2.63. The P/cash is 21.16, with P/free cash flow at 16.19.

L-3 Communications Holdings Inc. 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 0.72, and total debt/equity at 0.83.

In terms of margins, L-3 Communications Holdings Inc. has a gross margin of 9.10%, an operating margin of 5.20% and a profit margin of -1.20%.Payout ratio for L-3 Communications Holdings Inc. is *TBA. Return on assets come to -0.90% with return on investment coming to 5.60%.

Insider ownership for L-3 Communications Holdings Inc., is at 0.90% and institutional ownership comes to 83.80%. Outstanding shares are at 76.44. While shares float is 76.34. The float short is currently 1.96%, and short ratio is 2.38.

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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