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Is ANDRITZ AG (ADRZY) a Great Value Stock Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

ANDRITZ AG (ADRZY - Free Report) is a stock many investors are watching right now. ADRZY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 13.61 right now. For comparison, its industry sports an average P/E of 17.26. Over the last 12 months, ADRZY's Forward P/E has been as high as 16.56 and as low as 9.60, with a median of 12.15.

We also note that ADRZY holds a PEG ratio of 1.61. 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. ADRZY's industry currently sports an average PEG of 1.75.

We should also highlight that ADRZY has a P/B ratio of 3.87. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 5.98. Over the past 12 months, ADRZY's P/B has been as high as 3.92 and as low as 2.50, with a median of 2.93.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. ADRZY has a P/S ratio of 0.69. This compares to its industry's average P/S of 1.5.

Finally, we should also recognize that ADRZY has a P/CF ratio of 10.60. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.06. Over the past year, ADRZY's P/CF has been as high as 10.74 and as low as 6.88, with a median of 8.01.

These are only a few of the key metrics included in ANDRITZ AG'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, ADRZY looks like an impressive value stock at the moment.


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