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

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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 ANDRITZ AG (ADRZY - Free Report) . ADRZY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 10.25 right now. For comparison, its industry sports an average P/E of 16.41. 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 12.66.

Another notable valuation metric for ADRZY is its P/B ratio of 3.21. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 5.98. Over the past year, ADRZY's P/B has been as high as 3.87 and as low as 2.50, with a median of 2.93.

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. ADRZY has a P/S ratio of 0.61. This compares to its industry's average P/S of 1.48.

Finally, investors should note that ADRZY has a P/CF ratio of 7.92. 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. ADRZY's P/CF compares to its industry's average P/CF of 14.06. ADRZY's P/CF has been as high as 9.56 and as low as 6.44, with a median of 7.98, all within the past year.

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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