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Is this Large Market Cap Stock target price reasonable for Taro Pharmaceutical Industries Ltd. (NYSE:TARO)?

The company in question is, Taro Pharmaceutical Industries Ltd. (NYSE:TARO) currently with a stock price of 104.32 (-2.94% today). The market cap for Taro Pharmaceutical Industries Ltd. is 4565.75, and is in the sector Healthcare, and Drug Manufacturers – Other industry. The target price for Taro Pharmaceutical Industries Ltd. is 190. Currently Taro Pharmaceutical Industries Ltd. is trading with a P/E of 8.51, and a forward P/E of 8.67. Average volume for Taro Pharmaceutical Industries Ltd. is 242.28 and so far today it is 200562.

Performance in the last year for Taro Pharmaceutical Industries Ltd. has been -25.88%. For EPS growth, Taro Pharmaceutical Industries Ltd. has seen a growth of 11.60%, and is looking to grow in the next year to -3.61%. More long term stats show that EPS growth has been 25.00% over the last five years and could be 15.50% for the next five years. Taro Pharmaceutical Industries Ltd. has seen sales growth quarter over quarter at 8.60%, with EPS growth quarter over quarter at 6.00%. The 20-day simple moving average is -15.51%, with the 200-day simple moving average coming to -24.13%.

Since the IPO date for Taro Pharmaceutical Industries Ltd. on the 04/01/1993, Taro Pharmaceutical Industries Ltd. has seen performance year to date to be -30.46%. With Taro Pharmaceutical Industries Ltd. trading at 104.32, the dividend yield is *TBA, and the EPS is 12.64.

So could Taro Pharmaceutical Industries Ltd., be undervalued? Well as said before P/E is 8.51. The PEG is 0.55, P/S is 4.8 and the P/B is at 2.38. The P/cash is 4.68, with P/free cash flow at 12.79.

Taro Pharmaceutical Industries Ltd. ability to deal with debt shows that the current ratio is 6.9, and the quick ratio is 6.3. This is with long term debt/equity at 0, and total debt/equity at 0.

In terms of margins, Taro Pharmaceutical Industries Ltd. has a gross margin of 82.10%, an operating margin of *TBA and a profit margin of 57.60%.Payout ratio for Taro Pharmaceutical Industries Ltd. is *TBA. Return on assets come to 26.30% with return on investment coming to 26.90%.

Insider ownership for Taro Pharmaceutical Industries Ltd., is at 36.60% and institutional ownership comes to 17.90%. Outstanding shares are at 42.48. While shares float is 42.48. The float short is currently 6.88%, and short ratio is 12.05.

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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