Stock Updates

Is this Large Market Cap Stock target price reasonable for Select Income REIT (NASDAQ:SIR)?

The company in question is, Select Income REIT (NASDAQ:SIR) currently with a stock price of 25.89 (0.15% today). The market cap for Select Income REIT is 2300.65, and is in the sector Financial, and REIT – Office industry. The target price for Select Income REIT is 29.3. Currently Select Income REIT is trading with a P/E of 21.94, and a forward P/E of 18.14. Average volume for Select Income REIT is 399.45 and so far today it is 50811.

Performance in the last year for Select Income REIT has been 40.79%. For EPS growth, Select Income REIT has seen a growth of -54.40%, and is looking to grow in the next year to 1.06%. More long term stats show that EPS growth has been -18.09% over the last five years and could be 6.50% for the next five years. Select Income REIT has seen sales growth quarter over quarter at 7.20%, with EPS growth quarter over quarter at 4.70%. The 20-day simple moving average is -3.29%, with the 200-day simple moving average coming to 9.18%.

Since the IPO date for Select Income REIT on the 03/07/2012, Select Income REIT has seen performance year to date to be 36.91%. With Select Income REIT trading at 25.89, the dividend yield is 7.89%, and the EPS is 1.18.

So could Select Income REIT, be undervalued? Well as said before P/E is 21.94. The PEG is 3.38, P/S is 5.01 and the P/B is at 1.1. The P/cash is 213.02, with P/free cash flow at *TBA.

Select Income REIT 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 1.12, and total debt/equity at 1.12.

In terms of margins, Select Income REIT has a gross margin of 80.50%, an operating margin of 45.50% and a profit margin of 22.90%.Payout ratio for Select Income REIT is 169.80%. Return on assets come to 2.20% with return on investment coming to 3.80%.

Insider ownership for Select Income REIT, is at 0.20% and institutional ownership comes to 48.50%. Outstanding shares are at 89. While shares float is 62.67. The float short is currently 2.14%, and short ratio is 3.36.

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.

About the author

Peter Clarke

Leave a Comment