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Is Merchants Bancorp (MBIN) Stock Undervalued 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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Merchants Bancorp (MBIN - Free Report) . MBIN is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 6.98, while its industry has an average P/E of 8.94. Over the past year, MBIN's Forward P/E has been as high as 7.74 and as low as 4.82, with a median of 5.82.
Another valuation metric that we should highlight is MBIN's P/B ratio of 1.42. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.53. Within the past 52 weeks, MBIN's P/B has been as high as 1.71 and as low as 1.07, with a median of 1.22.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MBIN has a P/S ratio of 2.21. This compares to its industry's average P/S of 2.59.
Finally, investors should note that MBIN has a P/CF ratio of 5.90. 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. MBIN's P/CF compares to its industry's average P/CF of 13.96. Over the past year, MBIN's P/CF has been as high as 5.90 and as low as 3.42, with a median of 4.79.
Value investors will likely look at more than just these metrics, but the above data helps show that Merchants Bancorp is likely undervalued currently. And when considering the strength of its earnings outlook, MBIN sticks out at as one of the market's strongest value stocks.
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Is Merchants Bancorp (MBIN) Stock Undervalued Right Now?
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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Merchants Bancorp (MBIN - Free Report) . MBIN is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 6.98, while its industry has an average P/E of 8.94. Over the past year, MBIN's Forward P/E has been as high as 7.74 and as low as 4.82, with a median of 5.82.
Another valuation metric that we should highlight is MBIN's P/B ratio of 1.42. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.53. Within the past 52 weeks, MBIN's P/B has been as high as 1.71 and as low as 1.07, with a median of 1.22.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MBIN has a P/S ratio of 2.21. This compares to its industry's average P/S of 2.59.
Finally, investors should note that MBIN has a P/CF ratio of 5.90. 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. MBIN's P/CF compares to its industry's average P/CF of 13.96. Over the past year, MBIN's P/CF has been as high as 5.90 and as low as 3.42, with a median of 4.79.
Value investors will likely look at more than just these metrics, but the above data helps show that Merchants Bancorp is likely undervalued currently. And when considering the strength of its earnings outlook, MBIN sticks out at as one of the market's strongest value stocks.