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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 71.85 (-1.24% today). The market cap for Magellan Midstream Partners LP is 16574.34, and is in the sector Basic Materials, and Oil & Gas Pipelines industry. The target price for Magellan Midstream Partners LP is 77.82. Currently Magellan Midstream Partners LP is trading with a P/E of 19.67, and a forward P/E of 19.35. Average volume for Magellan Midstream Partners LP is 776.47 and so far today it is 279006.

Performance in the last year for Magellan Midstream Partners LP has been 10.39%. For EPS growth, Magellan Midstream Partners LP has seen a growth of -2.50%, and is looking to grow in the next year to 8.83%. More long term stats show that EPS growth has been 20.30% over the last five years and could be 7.98% for the next five years. Magellan Midstream Partners LP has seen sales growth quarter over quarter at -0.40%, with EPS growth quarter over quarter at 12.60%. The 20-day simple moving average is -2.11%, with the 200-day simple moving average coming to 7.55%.

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 9.69%. With Magellan Midstream Partners LP trading at 71.85, the dividend yield is 4.41%, and the EPS is 3.7.

So could Magellan Midstream Partners LP, be undervalued? Well as said before P/E is 19.67. The PEG is 2.46, P/S is 7.58 and the P/B is at 8.14. The P/cash is 78.93, with P/free cash flow at *TBA.

Magellan Midstream Partners LP ability to deal with debt shows that the current ratio is 0.8, and the quick ratio is 0.6. This is with long term debt/equity at 1.74, and total debt/equity at 1.87.

In terms of margins, Magellan Midstream Partners LP has a gross margin of 55.20%, an operating margin of 43.90% and a profit margin of 38.50%.Payout ratio for Magellan Midstream Partners LP is 81.20%. Return on assets come to 14.00% with return on investment coming to 17.60%.

Insider ownership for Magellan Midstream Partners LP, is at 0.30% and institutional ownership comes to 62.80%. Outstanding shares are at 227.83. While shares float is 227.29. The float short is currently 2.39%, and short ratio is 6.99.

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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