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Are Investors Undervaluing Phibro Animal Health (PAHC) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 Phibro Animal Health (PAHC - Free Report) . PAHC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 10.62, while its industry has an average P/E of 21.19. Over the last 12 months, PAHC's Forward P/E has been as high as 11.82 and as low as 8.01, with a median of 10.26.

Another notable valuation metric for PAHC is its P/B ratio of 1.89. Investors use the P/B ratio to look at a stock's market value versus 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 4.63. Over the past year, PAHC's P/B has been as high as 2.36 and as low as 1.42, with a median of 1.90.

Finally, investors should note that PAHC has a P/CF ratio of 10.10. 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 34.41. Over the past 52 weeks, PAHC's P/CF has been as high as 10.96 and as low as 6.93, with a median of 8.87.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Phibro Animal Health is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PAHC feels like a great value stock at the moment.


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