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Is this Large Market Cap Stock target price reasonable for Sinopec Shanghai Petrochemical Co. Ltd. (NYSE:SHI)?

The company in question is, Sinopec Shanghai Petrochemical Co. Ltd. (NYSE:SHI) currently with a stock price of 50.57 (-0.34% today). The market cap for Sinopec Shanghai Petrochemical Co. Ltd. is 8180.3, and is in the sector Basic Materials, and Oil & Gas Refining & Marketing industry. The target price for Sinopec Shanghai Petrochemical Co. Ltd. is 58.36. Currently Sinopec Shanghai Petrochemical Co. Ltd. is trading with a P/E of 7.86, and a forward P/E of 7.76. Average volume for Sinopec Shanghai Petrochemical Co. Ltd. is 8.77 and so far today it is 1559.

Performance in the last year for Sinopec Shanghai Petrochemical Co. Ltd. has been 29.16%. For EPS growth, Sinopec Shanghai Petrochemical Co. Ltd. has seen a growth of 573.10%, and is looking to grow in the next year to 68.48%. More long term stats show that EPS growth has been 12.10% over the last five years and could be 5.80% for the next five years. Sinopec Shanghai Petrochemical Co. Ltd. has seen sales growth quarter over quarter at 21.50%, with EPS growth quarter over quarter at 16.20%. The 20-day simple moving average is -1.23%, with the 200-day simple moving average coming to 9.63%.

Since the IPO date for Sinopec Shanghai Petrochemical Co. Ltd. on the 7/26/1993, Sinopec Shanghai Petrochemical Co. Ltd. has seen performance year to date to be 32.61%. With Sinopec Shanghai Petrochemical Co. Ltd. trading at 50.57, the dividend yield is 3.00%, and the EPS is 6.46.

So could Sinopec Shanghai Petrochemical Co. Ltd., be undervalued? Well as said before P/E is 7.86. The PEG is 1.35, P/S is 0.87 and the P/B is at 1.67. The P/cash is 12.26, with P/free cash flow at 28.05.

Sinopec Shanghai Petrochemical Co. Ltd. ability to deal with debt shows that the current ratio is 1.3, and the quick ratio is 0.8. This is with long term debt/equity at 0, and total debt/equity at 0.04.

In terms of margins, Sinopec Shanghai Petrochemical Co. Ltd. has a gross margin of 9.40%, an operating margin of 8.80% and a profit margin of 7.40%.Payout ratio for Sinopec Shanghai Petrochemical Co. Ltd. is 0.00%. Return on assets come to 15.40% with return on investment coming to 13.60%.

Insider ownership for Sinopec Shanghai Petrochemical Co. Ltd., is at 67.60% and institutional ownership comes to 0.80%. Outstanding shares are at 161.22. While shares float is 17.21. The float short is currently 0.14%, and short ratio is 2.65.

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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