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Is this Large Market Cap Stock target price reasonable for Mead Johnson Nutrition Company (NYSE:MJN)?

The company in question is, Mead Johnson Nutrition Company (NYSE:MJN) currently with a stock price of 79.61 (-1.67% today). The market cap for Mead Johnson Nutrition Company is 14644.26, and is in the sector Consumer Goods, and Processed & Packaged Goods industry. The target price for Mead Johnson Nutrition Company is 91.73. Currently Mead Johnson Nutrition Company is trading with a P/E of 30, and a forward P/E of 21.23. Average volume for Mead Johnson Nutrition Company is 1396.29 and so far today it is 1708600.

Performance in the last year for Mead Johnson Nutrition Company has been 8.25%. For EPS growth, Mead Johnson Nutrition Company has seen a growth of -7.80%, and is looking to grow in the next year to 7.64%. More long term stats show that EPS growth has been 8.20% over the last five years and could be 5.91% for the next five years. Mead Johnson Nutrition Company has seen sales growth quarter over quarter at -55.70%, with EPS growth quarter over quarter at -54.80%. The 20-day simple moving average is -2.50%, with the 200-day simple moving average coming to -1.44%.

Since the IPO date for Mead Johnson Nutrition Company on the 2/11/2009, Mead Johnson Nutrition Company has seen performance year to date to be 2.44%. With Mead Johnson Nutrition Company trading at 79.61, the dividend yield is 2.07%, and the EPS is 2.65.

So could Mead Johnson Nutrition Company, be undervalued? Well as said before P/E is 30. The PEG is 5.08, P/S is 3.81 and the P/B is at *TBA. The P/cash is 8.53, with P/free cash flow at 62.58.

Mead Johnson Nutrition Company ability to deal with debt shows that the current ratio is 2.3, and the quick ratio is 1.9. This is with long term debt/equity at *TBA, and total debt/equity at *TBA.

In terms of margins, Mead Johnson Nutrition Company has a gross margin of 64.00%, an operating margin of 20.40% and a profit margin of 13.20%.Payout ratio for Mead Johnson Nutrition Company is 62.10%. Return on assets come to 12.90% with return on investment coming to 30.60%.

Insider ownership for Mead Johnson Nutrition Company, is at 0.21% and institutional ownership comes to 98.70%. Outstanding shares are at 183.95. While shares float is 183.87. The float short is currently 3.59%, and short ratio is 4.73.

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.

About the author

Peter Clarke

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