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Is this Large Market Cap Stock target price reasonable for Magellan Midstream Partners LP (NYSE:MMP)?

The company in question is, Magellan Midstream Partners LP (NYSE:MMP) currently with a stock price of 71.4 (0.14% today). The market cap for Magellan Midstream Partners LP is 16249.93, and is in the sector Basic Materials, and Oil & Gas Pipelines industry. The target price for Magellan Midstream Partners LP is 78. Currently Magellan Midstream Partners LP is trading with a P/E of 19.07, and a forward P/E of 18.83. Average volume for Magellan Midstream Partners LP is 590.21 and so far today it is 424100.

Performance in the last year for Magellan Midstream Partners LP has been 7.45%. For EPS growth, Magellan Midstream Partners LP has seen a growth of -2.50%, and is looking to grow in the next year to 7.39%. More long term stats show that EPS growth has been 20.30% over the last five years and could be 8.01% for the next five years. Magellan Midstream Partners LP has seen sales growth quarter over quarter at 4.10%, with EPS growth quarter over quarter at 5.70%. The 20-day simple moving average is 1.89%, with the 200-day simple moving average coming to 4.45%.

Since the IPO date for Magellan Midstream Partners LP on the 3/19/2001, Magellan Midstream Partners LP has seen performance year to date to be 8.90%. With Magellan Midstream Partners LP trading at 71.4, the dividend yield is 4.59%, and the EPS is 3.74.

So could Magellan Midstream Partners LP, be undervalued? Well as said before P/E is 19.07. The PEG is 2.38, P/S is 7.33 and the P/B is at 7.99. The P/cash is 473.76, with P/free cash flow at *TBA.

Magellan Midstream Partners LP ability to deal with debt shows that the current ratio is 0.5, and the quick ratio is 0.3. This is with long term debt/equity at 1.75, and total debt/equity at 1.88.

In terms of margins, Magellan Midstream Partners LP has a gross margin of 55.40%, an operating margin of 44.10% and a profit margin of 38.50%.Payout ratio for Magellan Midstream Partners LP is 82.50%. Return on assets come to 13.70% with return on investment coming to 17.60%.

Insider ownership for Magellan Midstream Partners LP, is at 0.10% and institutional ownership comes to 62.80%. Outstanding shares are at 227.59. While shares float is 227.29. The float short is currently 1.53%, and short ratio is 5.88.

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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Mark Hines

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