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Is this Large Market Cap Stock target price reasonable for The Michaels Companies, Inc. (NASDAQ:MIK)?

The company in question is, The Michaels Companies, Inc. (NASDAQ:MIK) currently with a stock price of 23.86 (0.78% today). The market cap for The Michaels Companies, Inc. is 4915.97, and is in the sector Services, and Specialty Retail, Other industry. The target price for The Michaels Companies, Inc. is 30.69. Currently The Michaels Companies, Inc. is trading with a P/E of 13.48, and a forward P/E of 10.84. Average volume for The Michaels Companies, Inc. is 1091.06 and so far today it is 256226.

Performance in the last year for The Michaels Companies, Inc. has been 4.18%. For EPS growth, The Michaels Companies, Inc. has seen a growth of 65.40%, and is looking to grow in the next year to 11.83%. More long term stats show that EPS growth has been 27.90% over the last five years and could be 19.46% for the next five years. The Michaels Companies, Inc. has seen sales growth quarter over quarter at 7.70%, with EPS growth quarter over quarter at 0.80%. The 20-day simple moving average is -3.26%, with the 200-day simple moving average coming to -6.73%.

Since the IPO date for The Michaels Companies, Inc. on the 6/27/2014, The Michaels Companies, Inc. has seen performance year to date to be 7.10%. With The Michaels Companies, Inc. trading at 23.86, the dividend yield is *TBA, and the EPS is 1.76.

So could The Michaels Companies, Inc., be undervalued? Well as said before P/E is 13.48. The PEG is 0.69, P/S is 0.97 and the P/B is at *TBA. The P/cash is 42.82, with P/free cash flow at 8.01.

The Michaels Companies, Inc. ability to deal with debt shows that the current ratio is 1.6, and the quick ratio is 0.3. This is with long term debt/equity at *TBA, and total debt/equity at *TBA.

In terms of margins, The Michaels Companies, Inc. has a gross margin of 39.60%, an operating margin of 14.00% and a profit margin of 7.20%.Payout ratio for The Michaels Companies, Inc. is 0.00%. Return on assets come to 18.20% with return on investment coming to 48.10%.

Insider ownership for The Michaels Companies, Inc., is at 0.30% and institutional ownership comes to 66.50%. Outstanding shares are at 207.6. While shares float is 146.8. The float short is currently 2.83%, 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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Stephen Butters

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