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Is this Large Market Cap Stock target price reasonable for Valero Energy Partners LP (NYSE:VLP)?

The company in question is, Valero Energy Partners LP (NYSE:VLP) currently with a stock price of 42.89 (-0.72% today). The market cap for Valero Energy Partners LP is 2928.96, and is in the sector Basic Materials, and Oil & Gas Pipelines industry. The target price for Valero Energy Partners LP is 54.8. Currently Valero Energy Partners LP is trading with a P/E of 17.6, and a forward P/E of 14.18. Average volume for Valero Energy Partners LP is 121.3 and so far today it is 35622.

Performance in the last year for Valero Energy Partners LP has been -7.80%. For EPS growth, Valero Energy Partners LP has seen a growth of 108.50%, and is looking to grow in the next year to 16.83%. More long term stats show that EPS growth has been 153.37% over the last five years and could be 14.38% for the next five years. Valero Energy Partners LP has seen sales growth quarter over quarter at 45.70%, with EPS growth quarter over quarter at 23.30%. The 20-day simple moving average is 1.58%, with the 200-day simple moving average coming to -3.58%.

Since the IPO date for Valero Energy Partners LP on the 12/11/2013, Valero Energy Partners LP has seen performance year to date to be -14.35%. With Valero Energy Partners LP trading at 42.89, the dividend yield is 3.38%, and the EPS is 2.46.

So could Valero Energy Partners LP, be undervalued? Well as said before P/E is 17.6. The PEG is 1.22, P/S is 9.51 and the P/B is at 4.67. The P/cash is 43.59, with P/free cash flow at 40.01.

Valero Energy Partners LP ability to deal with debt shows that the current ratio is 7.7, and the quick ratio is 7.7. This is with long term debt/equity at 1.12, and total debt/equity at 1.12.

In terms of margins, Valero Energy Partners LP has a gross margin of 70.40%, an operating margin of 51.70% and a profit margin of 50.70%.Payout ratio for Valero Energy Partners LP is 54.30%. Return on assets come to 18.50% with return on investment coming to 8.90%.

Insider ownership for Valero Energy Partners LP, is at 46.92% and institutional ownership comes to 57.00%. Outstanding shares are at 67.8. While shares float is 21.38. The float short is currently 5.10%, and short ratio is 8.99.

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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Peter Clarke

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