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Is Embotelladora Andina (AKO.B) Stock Undervalued 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 Embotelladora Andina (AKO.B - Free Report) . AKO.B is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.60 right now. For comparison, its industry sports an average P/E of 21.06. AKO.B's Forward P/E has been as high as 12.59 and as low as 8.75, with a median of 10.05, all within the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. AKO.B has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.5.

Finally, investors should note that AKO.B has a P/CF ratio of 11.49. 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. AKO.B's current P/CF looks attractive when compared to its industry's average P/CF of 23.23. AKO.B's P/CF has been as high as 18.09 and as low as 9.26, with a median of 11.62, all within the past year.

These are only a few of the key metrics included in Embotelladora Andina'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, AKO.B looks like an impressive value stock at the moment.


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