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Is this Large Market Cap Stock target price reasonable for Northwestern Corporation (NYSE:NWE)?

The company in question is, Northwestern Corporation (NYSE:NWE) currently with a stock price of 55.04 (-0.63% today). The market cap for Northwestern Corporation is 2694.72, and is in the sector Utilities, and Diversified Utilities industry. The target price for Northwestern Corporation is 60. Currently Northwestern Corporation is trading with a P/E of 18.67, and a forward P/E of 16.19. Average volume for Northwestern Corporation is 334.95 and so far today it is 144859.

Performance in the last year for Northwestern Corporation has been 4.20%. For EPS growth, Northwestern Corporation has seen a growth of 6.40%, and is looking to grow in the next year to 4.81%. More long term stats show that EPS growth has been 8.40% over the last five years and could be 5.00% for the next five years. Northwestern Corporation has seen sales growth quarter over quarter at 8.30%, with EPS growth quarter over quarter at 12.40%. The 20-day simple moving average is -4.61%, with the 200-day simple moving average coming to -4.78%.

Since the IPO date for Northwestern Corporation on the 12/28/2007, Northwestern Corporation has seen performance year to date to be 4.71%. With Northwestern Corporation trading at 55.04, the dividend yield is 3.61%, and the EPS is 2.97.

So could Northwestern Corporation, be undervalued? Well as said before P/E is 18.67. The PEG is 3.73, P/S is 2.2 and the P/B is at 1.64. The P/cash is 299.41, with P/free cash flow at *TBA.

Northwestern Corporation ability to deal with debt shows that the current ratio is 0.5, and the quick ratio is 0.4. This is with long term debt/equity at 1.11, and total debt/equity at 1.26.

In terms of margins, Northwestern Corporation has a gross margin of 69.10%, an operating margin of 20.10% and a profit margin of 11.60%.Payout ratio for Northwestern Corporation is 66.10%. Return on assets come to 2.70% with return on investment coming to 6.50%.

Insider ownership for Northwestern Corporation, is at 1.00% and institutional ownership comes to 99.10%. Outstanding shares are at 48.65. While shares float is 47.76. The float short is currently 1.91%, and short ratio is 2.73.

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.

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Tony Dabbs

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