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Is this Large Market Cap Stock target price reasonable for Potash Corporation of Saskatchewan Inc. (NYSE:POT)?

The company in question is, Potash Corporation of Saskatchewan Inc. (NYSE:POT) currently with a stock price of 16 (-0.31% today). The market cap for Potash Corporation of Saskatchewan Inc. is 13497.44, and is in the sector Basic Materials, and Agricultural Chemicals industry. The target price for Potash Corporation of Saskatchewan Inc. is 16.66. Currently Potash Corporation of Saskatchewan Inc. is trading with a P/E of 19.75, and a forward P/E of 23.19. Average volume for Potash Corporation of Saskatchewan Inc. is 9036.81 and so far today it is 5400400.

Performance in the last year for Potash Corporation of Saskatchewan Inc. has been -22.93%. For EPS growth, Potash Corporation of Saskatchewan Inc. has seen a growth of -16.60%, and is looking to grow in the next year to 34.24%. More long term stats show that EPS growth has been -4.90% over the last five years and could be -13.50% for the next five years. Potash Corporation of Saskatchewan Inc. has seen sales growth quarter over quarter at -39.20%, with EPS growth quarter over quarter at -71.10%. The 20-day simple moving average is -2.12%, with the 200-day simple moving average coming to -1.80%.

Since the IPO date for Potash Corporation of Saskatchewan Inc. on the 1/12/1990, Potash Corporation of Saskatchewan Inc. has seen performance year to date to be -0.51%. With Potash Corporation of Saskatchewan Inc. trading at 16, the dividend yield is 2.50%, and the EPS is 0.81.

So could Potash Corporation of Saskatchewan Inc., be undervalued? Well as said before P/E is 19.75. The PEG is *TBA, P/S is 2.62 and the P/B is at 1.67. The P/cash is 94.39, with P/free cash flow at *TBA.

Potash Corporation of Saskatchewan Inc. ability to deal with debt shows that the current ratio is 0.9, and the quick ratio is 0.4. This is with long term debt/equity at 0.46, and total debt/equity at 0.58.

In terms of margins, Potash Corporation of Saskatchewan Inc. has a gross margin of 26.60%, an operating margin of 21.20% and a profit margin of 13.20%.Payout ratio for Potash Corporation of Saskatchewan Inc. is 155.20%. Return on assets come to 3.90% with return on investment coming to 11.60%.

Insider ownership for Potash Corporation of Saskatchewan Inc., is at 0.20% and institutional ownership comes to 81.40%. Outstanding shares are at 843.59. While shares float is 837.99. The float short is currently 4.11%, and short ratio is 3.81.

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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