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Are Investors Undervaluing Malibu Boats (MBUU) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Malibu Boats (MBUU - Free Report) . MBUU is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.56, which compares to its industry's average of 14.26. Over the last 12 months, MBUU's Forward P/E has been as high as 18.04 and as low as 8.98, with a median of 13.42.

We also note that MBUU holds a PEG ratio of 0.70. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. MBUU's PEG compares to its industry's average PEG of 0.92. Within the past year, MBUU's PEG has been as high as 1.20 and as low as 0.60, with a median of 0.90.

Finally, our model also underscores that MBUU has a P/CF ratio of 12.54. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.78. Within the past 12 months, MBUU's P/CF has been as high as 27.17 and as low as 10.20, with a median of 19.83.

These are only a few of the key metrics included in Malibu Boats's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, MBUU looks like an impressive value stock at the moment.


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