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Is BASF (BASFY) Stock Undervalued Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is BASF (BASFY - Free Report) . BASFY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.17 right now. For comparison, its industry sports an average P/E of 9.36. Over the last 12 months, BASFY's Forward P/E has been as high as 14.51 and as low as 7.17, with a median of 10.97.

Investors will also notice that BASFY has a PEG ratio of 0.45. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BASFY's industry currently sports an average PEG of 0.59. BASFY's PEG has been as high as 1.12 and as low as 0.45, with a median of 0.65, all within the past year.

Investors should also recognize that BASFY has a P/B ratio of 0.79. The P/B is a method of comparing a stock's market value to 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 1.94. Over the past 12 months, BASFY's P/B has been as high as 1.63 and as low as 0.79, with a median of 1.36.

Finally, investors should note that BASFY has a P/CF ratio of 3.68. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.10. Over the past year, BASFY's P/CF has been as high as 7.20 and as low as 3.68, with a median of 5.99.

If you're looking for another solid Chemical - Diversified value stock, take a look at Univar Solutions . UNVR is a # 2 (Buy) stock with a Value score of A.

Univar Solutions is trading at a forward earnings multiple of 7.61 at the moment, with a PEG ratio of 0.53. This compares to its industry's average P/E of 9.36 and average PEG ratio of 0.59.

UNVR's price-to-earnings ratio has been as high as 15.66 and as low as 7.61, with a median of 13.07, while its PEG ratio has been as high as 1.21 and as low as 0.49, with a median of 0.98, all within the past year.

Additionally, Univar Solutions has a P/B ratio of 1.59 while its industry's price-to-book ratio sits at 1.94. For UNVR, this valuation metric has been as high as 2.52, as low as 1.59, with a median of 2.04 over the past year.

These are only a few of the key metrics included in BASF and Univar Solutions strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BASFY and UNVR look like an impressive value stock at the moment.


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