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Is this Large Market Cap Stock target price reasonable for New Residential Investment Corp. (NYSE:NRZ)?

The company in question is, New Residential Investment Corp. (NYSE:NRZ) currently with a stock price of 13.87 (-0.43% today). The market cap for New Residential Investment Corp. is 3509.8, and is in the sector Financial, and REIT – Residential industry. The target price for New Residential Investment Corp. is 15.65. Currently New Residential Investment Corp. is trading with a P/E of 9.5, and a forward P/E of 6.84. Average volume for New Residential Investment Corp. is 2774.73 and so far today it is 477505.

Performance in the last year for New Residential Investment Corp. has been 29.49%. For EPS growth, New Residential Investment Corp. has seen a growth of -47.60%, and is looking to grow in the next year to 1.55%. More long term stats show that EPS growth has been 36.35% over the last five years and could be -0.21% for the next five years. New Residential Investment Corp. has seen sales growth quarter over quarter at -17.50%, with EPS growth quarter over quarter at -43.10%. The 20-day simple moving average is 0.57%, with the 200-day simple moving average coming to 16.24%.

Since the IPO date for New Residential Investment Corp. on the 05/02/2013, New Residential Investment Corp. has seen performance year to date to be 27.34%. With New Residential Investment Corp. trading at 13.87, the dividend yield is 13.21%, and the EPS is 1.47.

So could New Residential Investment Corp., be undervalued? Well as said before P/E is 9.5. The PEG is *TBA, P/S is 4.11 and the P/B is at 1.14. The P/cash is 15.01, with P/free cash flow at *TBA.

New Residential Investment Corp. ability to deal with debt shows that the current ratio is *TBA, and the quick ratio is *TBA. This is with long term debt/equity at 4.6, and total debt/equity at 4.6.

In terms of margins, New Residential Investment Corp. has a gross margin of 51.90%, an operating margin of 40.50% and a profit margin of 39.60%.Payout ratio for New Residential Investment Corp. is 125.30%. Return on assets come to 2.00% with return on investment coming to 2.00%.

Insider ownership for New Residential Investment Corp., is at 0.50% and institutional ownership comes to 55.30%. Outstanding shares are at 251.96. While shares float is 248.14. The float short is currently 2.30%, and short ratio is 2.06.

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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