Back to top

Image: Bigstock

Is Flexible Solutions International (FSI) a Great Value Stock Right Now?

Read MoreHide Full Article

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.

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 to watch right now is Flexible Solutions International (FSI - Free Report) . FSI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 5.39 right now. For comparison, its industry sports an average P/E of 12.13. FSI's Forward P/E has been as high as 11.91 and as low as 5.38, with a median of 9.59, all within the past year.

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. FSI has a P/S ratio of 0.76. This compares to its industry's average P/S of 1.57.

Finally, we should also recognize that FSI has a P/CF ratio of 6.05. 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 8.91. Over the past 52 weeks, FSI's P/CF has been as high as 11.68 and as low as 5.86, with a median of 8.76.

Another great Chemical - Specialty stock you could consider is Hawkins (HWKN - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Additionally, Hawkins has a P/B ratio of 2.42 while its industry's price-to-book ratio sits at 3.48. For HWKN, this valuation metric has been as high as 3.43, as low as 2.34, with a median of 2.75 over the past year.

These are just a handful of the figures considered in Flexible Solutions International and Hawkins'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 FSI and HWKN is an impressive value stock right now.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Flexible Solutions International Inc. (FSI) - free report >>

Hawkins, Inc. (HWKN) - free report >>

Published in