Is Century Casinos (CNTY) Stock Undervalued Right Now?

CNTY

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.

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.

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 value investors might notice is Century Casinos (CNTY - Free Report) . CNTY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. CNTY has a P/S ratio of 0.65. This compares to its industry's average P/S of 1.55.

Finally, our model also underscores that CNTY has a P/CF ratio of 5.04. 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. CNTY's current P/CF looks attractive when compared to its industry's average P/CF of 16.29. CNTY's P/CF has been as high as 7.63 and as low as 2.98, with a median of 4.09, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Century Casinos is likely undervalued currently. And when considering the strength of its earnings outlook, CNTY sticks out at as one of the market's strongest value stocks.

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