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Are Investors Undervaluing Coca-Cola FEMSA (KOF) 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 value investors might notice is Coca-Cola FEMSA (KOF - Free Report) . KOF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 17 right now. For comparison, its industry sports an average P/E of 25.19. Over the last 12 months, KOF's Forward P/E has been as high as 20.20 and as low as 14.99, with a median of 17.14.

Investors will also notice that KOF has a PEG ratio of 1.86. 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. KOF's industry currently sports an average PEG of 2.79. Over the last 12 months, KOF's PEG has been as high as 2.05 and as low as 1.52, with a median of 1.83.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. KOF has a P/S ratio of 1.35. This compares to its industry's average P/S of 1.38.

Finally, investors should note that KOF has a P/CF ratio of 7.83. 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 stock's P/CF looks attractive against its industry's average P/CF of 22.26. Over the past year, KOF's P/CF has been as high as 11.74 and as low as 6.85, with a median of 10.19.

These are just a handful of the figures considered in Coca-Cola FEMSA'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 KOF is an impressive value stock right now.


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