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Is Schweitzer-Mauduit (SWM) 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.

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.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is Schweitzer-Mauduit . SWM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 8.70, while its industry has an average P/E of 10.29. Over the past 52 weeks, SWM's Forward P/E has been as high as 12.18 and as low as 5.56, with a median of 8.81.

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. SWM has a P/S ratio of 1.06. This compares to its industry's average P/S of 1.83.

Finally, we should also recognize that SWM has a P/CF ratio of 7. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 26.33. Over the past year, SWM's P/CF has been as high as 10.71 and as low as 4.53, with a median of 6.66.

These are only a few of the key metrics included in Schweitzer-Mauduit'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, SWM looks like an impressive value stock at the moment.

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