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Is this Large Market Cap Stock target price reasonable for Pinnacle Foods Inc. (NYSE:PF)?

The company in question is, Pinnacle Foods Inc. (NYSE:PF) currently with a stock price of 50.58 (1.99% today). The market cap for Pinnacle Foods Inc. is 5788.82, and is in the sector Consumer Goods, and Food – Major Diversified industry. The target price for Pinnacle Foods Inc. is 53.86. Currently Pinnacle Foods Inc. is trading with a P/E of 29.47, and a forward P/E of 20.45. Average volume for Pinnacle Foods Inc. is 1197.22 and so far today it is 815512.

Performance in the last year for Pinnacle Foods Inc. has been 19.18%. For EPS growth, Pinnacle Foods Inc. has seen a growth of -14.80%, and is looking to grow in the next year to 13.16%. More long term stats show that EPS growth has been 43.30% over the last five years and could be 8.90% for the next five years. Pinnacle Foods Inc. has seen sales growth quarter over quarter at 19.70%, with EPS growth quarter over quarter at 4.40%. The 20-day simple moving average is 1.05%, with the 200-day simple moving average coming to 11.92%.

Since the IPO date for Pinnacle Foods Inc. on the 3/28/2013, Pinnacle Foods Inc. has seen performance year to date to be 18.93%. With Pinnacle Foods Inc. trading at 50.58, the dividend yield is 2.30%, and the EPS is 1.68.

So could Pinnacle Foods Inc., be undervalued? Well as said before P/E is 29.47. The PEG is 3.31, P/S is 2.02 and the P/B is at 3.15. The P/cash is 44.77, with P/free cash flow at 32.78.

Pinnacle Foods Inc. ability to deal with debt shows that the current ratio is 2, and the quick ratio is 1.1. This is with long term debt/equity at 1.7, and total debt/equity at 1.72.

In terms of margins, Pinnacle Foods Inc. has a gross margin of 28.60%, an operating margin of 15.10% and a profit margin of 6.90%.Payout ratio for Pinnacle Foods Inc. is 59.90%. Return on assets come to 3.30% with return on investment coming to 7.40%.

Insider ownership for Pinnacle Foods Inc., is at 0.90% and institutional ownership comes to 97.60%. Outstanding shares are at 116.71. While shares float is 116.1. The float short is currently 2.96%, and short ratio is 2.87.

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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