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Are Investors Undervaluing ANDRITZ AG (ADRZY) Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is ANDRITZ AG (ADRZY - Free Report) . ADRZY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 11.06, which compares to its industry's average of 14.14. Over the past 52 weeks, ADRZY's Forward P/E has been as high as 16.56 and as low as 9.60, with a median of 12.29.

Another valuation metric that we should highlight is ADRZY's P/B ratio of 2.72. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.98. Over the past 12 months, ADRZY's P/B has been as high as 3.43 and as low as 2.50, with a median of 2.93.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ADRZY has a P/S ratio of 0.49. This compares to its industry's average P/S of 1.13.

Finally, investors will want to recognize that ADRZY has a P/CF ratio of 7.44. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ADRZY's current P/CF looks attractive when compared to its industry's average P/CF of 14.06. Over the past 52 weeks, ADRZY's P/CF has been as high as 9.21 and as low as 6.88, with a median of 8.01.

These are just a handful of the figures considered in ANDRITZ AG's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ADRZY is an impressive value stock right now.


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