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Is Cambrex (CBM) a Great Value Stock Right Now?

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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.

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.

Cambrex is a stock many investors are watching right now. CBM is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.

Investors will also notice that CBM has a PEG ratio of 1.44. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CBM's industry currently sports an average PEG of 4.20. CBM's PEG has been as high as 2.20 and as low as 0.99, with a median of 1.28, all within the past year.

We should also highlight that CBM has a P/B ratio of 2.16. The P/B ratio is used to compare a stock's market value with 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 3.27. Over the past year, CBM's P/B has been as high as 3.62 and as low as 1.85, with a median of 2.98.

Finally, our model also underscores that CBM has a P/CF ratio of 8.76. 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 19.41. Over the past 52 weeks, CBM's P/CF has been as high as 14.94 and as low as 7.56, with a median of 12.76.

These are only a few of the key metrics included in Cambrex'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, CBM looks like an impressive value stock at the moment.

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