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Should Value Investors Buy SB Financial Group (SBFG) Stock?

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 to watch right now is SB Financial Group (SBFG - Free Report) . SBFG is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.09, which compares to its industry's average of 9.95. Over the past 52 weeks, SBFG's Forward P/E has been as high as 13.56 and as low as 8.14, with a median of 9.99.

Another valuation metric that we should highlight is SBFG's P/B ratio of 1.03. 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 1.20. Within the past 52 weeks, SBFG's P/B has been as high as 1.26 and as low as 0.85, with a median of 1.01.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SBFG has a P/S ratio of 1.54. This compares to its industry's average P/S of 2.08.

Finally, we should also recognize that SBFG has a P/CF ratio of 8.39. 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 12.88. Within the past 12 months, SBFG's P/CF has been as high as 10.29 and as low as 7.29, with a median of 8.35.

These are only a few of the key metrics included in SB Financial Group'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, SBFG looks like an impressive value stock at the moment.

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