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Is Malibu Boats (MBUU) 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 value investors might notice is Malibu Boats (MBUU - Free Report) . MBUU is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.99, which compares to its industry's average of 13.74. Over the last 12 months, MBUU's Forward P/E has been as high as 18.04 and as low as 8.76, with a median of 12.15.

Investors should also note that MBUU holds a PEG ratio of 0.90. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. MBUU's PEG compares to its industry's average PEG of 0.93. MBUU's PEG has been as high as 1.20 and as low as 0.60, with a median of 0.85, all within the past year.

Another valuation metric that we should highlight is MBUU's P/B ratio of 4.06. The P/B ratio pits a stock's market value against 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 4.45. Within the past 52 weeks, MBUU's P/B has been as high as 8.03 and as low as 3.94, with a median of 5.53.

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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MBUU has a P/S ratio of 1.24. This compares to its industry's average P/S of 1.25.

Finally, our model also underscores that MBUU has a P/CF ratio of 10.39. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. MBUU's current P/CF looks attractive when compared to its industry's average P/CF of 15.71. MBUU's P/CF has been as high as 27.17 and as low as 10.08, with a median of 17.29, all within the past year.

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


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