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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 71.11 (1.40% today). The market cap for Magellan Midstream Partners LP is 16174.78, and is in the sector Basic Materials, and Oil & Gas Pipelines industry. The target price for Magellan Midstream Partners LP is 77.37. Currently Magellan Midstream Partners LP is trading with a P/E of 18.96, and a forward P/E of 18.72. Average volume for Magellan Midstream Partners LP is 766.67 and so far today it is 163877.

Performance in the last year for Magellan Midstream Partners LP has been 16.51%. For EPS growth, Magellan Midstream Partners LP has seen a growth of -2.50%, and is looking to grow in the next year to 8.20%. More long term stats show that EPS growth has been 20.30% over the last five years and could be 8.18% for the next five years. Magellan Midstream Partners LP has seen sales growth quarter over quarter at -47.40%, with EPS growth quarter over quarter at -47.10%. The 20-day simple moving average is -2.17%, with the 200-day simple moving average coming to 7.33%.

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 6.96%. With Magellan Midstream Partners LP trading at 71.11, the dividend yield is 4.68%, and the EPS is 3.7.

So could Magellan Midstream Partners LP, be undervalued? Well as said before P/E is 18.96. The PEG is 2.32, P/S is 7.4 and the P/B is at 7.84. The P/cash is 471.57, 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 55.20%, an operating margin of 44.80% and a profit margin of 39.00%.Payout ratio for Magellan Midstream Partners LP is 61.10%. 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 63.90%. Outstanding shares are at 230.64. While shares float is 227.29. The float short is currently 2.31%, and short ratio is 6.84.

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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