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Red Hat, Inc. (NYSE: RHT) – Is this large market cap stock undervalued?

Red Hat, Inc. (NYSE: RHT), is firmly in the large market cap category with market cap of 14119.31. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for Red Hat, Inc. is 76.92 (with a change from open of 0.60%), this in conjunction with a target price of 89.38. Volume today has so far reached 460836, with an average volume of about 1565.22. The GAP for this stock, is -0.93%.

The P/E ratio is 64.8, bringing the forward P/E to a value of 29.39. The current EPS for Red Hat, Inc., is 1.19, with a EPS growth for this year coming to a value of 12.50%. Performance has been interesting with performance year to date coming to -6.80%.

Looking further into the growth statistics for Red Hat, Inc., EPS is looking like it will grow 17.18% in the next year. Looking even further it is projected to be 16.94%. Quarter over quarter is 16.50% for EPS growth and for sales growth quarter over quarter it is 19.00%. Looking at past EPS growth statistics we see that for the past five years it has been 14.30%. Sales growth for the past five years has in fact been 17.70%.

Looking at the ownership, we see that the insider ownership is at 0.60% and institutional ownership is 96.60%. Shares outstanding is 182.94, while shares float is at a value of 179.9. Float short for Red Hat, Inc. is 3.07% and the short ratio is 3.53.

In terms of debt, long term debt/equity is 0.56, while the total debt/equity comes to 0.56. The ability to meet these debts, means that the current ratio is 1.2, and the quick ratio is 1.2. The most recent gross margin is 85.10% and their operating margin is 13.30%. The profit margin is 9.80%.

Red Hat, Inc. has seen returns on assets of 5.40%, and on investment, 10.30%. Return on equity is 16.40%. Price/Earnings to growth ratio is 3.83. Price/Sales ratio is at a value of 6.32, with Price/book ratio coming to 10.56 and Price/cash is 10.57, and finally Price/Free cash Flow is 41.93.

The simple moving averages are 1.78% and 4.37% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -8.91% and the 52 week low is 29.08%.

Red Hat, Inc. has a dividend yield of *TBA, with a current price of 76.92. The ability to pay this means the payout ratio is 0.00%. This is in an industry, Application Software, with equally high dividends from other companies in this sector, which it is Technology. Red Hat, Inc. is based in USA.

Performance in the Application Software industry means that Red Hat, Inc. has seen performance for the past week of -2.83%, with performance for the month coming to 6.57%. Looking at the data for the quarter it is at a value of 5.02%, and for the half year the performance is 3.29%. Volatility for this week is 1.50% and for the month this is 1.69%.

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

Mark Hines

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