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Is this Large Market Cap Stock target price reasonable for Sanderson Farms, Inc. (NASDAQ:SAFM)?

The company in question is, Sanderson Farms, Inc. (NASDAQ:SAFM) currently with a stock price of 94.14 (-0.98% today). The market cap for Sanderson Farms, Inc. is 2243.65, and is in the sector Consumer Goods, and Food – Major Diversified industry. The target price for Sanderson Farms, Inc. is 98.5. Currently Sanderson Farms, Inc. is trading with a P/E of 15.26, and a forward P/E of 11.09. Average volume for Sanderson Farms, Inc. is 403.71 and so far today it is 256853.

Performance in the last year for Sanderson Farms, Inc. has been 47.13%. For EPS growth, Sanderson Farms, Inc. has seen a growth of -11.80%, and is looking to grow in the next year to 16.08%. More long term stats show that EPS growth has been 9.40% over the last five years and could be *TBA for the next five years. Sanderson Farms, Inc. has seen sales growth quarter over quarter at -1.60%, with EPS growth quarter over quarter at 6.70%. The 20-day simple moving average is 1.34%, with the 200-day simple moving average coming to 8.46%.

Since the IPO date for Sanderson Farms, Inc. on the 12/20/1989, Sanderson Farms, Inc. has seen performance year to date to be 25.19%. With Sanderson Farms, Inc. trading at 94.14, the dividend yield is 1.01%, and the EPS is 6.23.

So could Sanderson Farms, Inc., be undervalued? Well as said before P/E is 15.26. The PEG is *TBA, P/S is 0.83 and the P/B is at 1.85. The P/cash is 9.23, with P/free cash flow at 188.54.

Sanderson Farms, Inc. ability to deal with debt shows that the current ratio is 4.1, and the quick ratio is 2.6. This is with long term debt/equity at 0, and total debt/equity at 0.

In terms of margins, Sanderson Farms, Inc. has a gross margin of 13.90%, an operating margin of 7.30% and a profit margin of 4.50%.Payout ratio for Sanderson Farms, Inc. is 16.10%. Return on assets come to 9.30% with return on investment coming to 21.00%.

Insider ownership for Sanderson Farms, Inc., is at 3.90% and institutional ownership comes to *TBA. Outstanding shares are at 23.6. While shares float is 21.5. The float short is currently 19.74%, and short ratio is 10.51.

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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