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Should Value Investors Buy KION GROUP AG (KIGRY) Stock?

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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 KION GROUP AG (KIGRY - Free Report) . KIGRY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 13.51, which compares to its industry's average of 13.86. Over the last 12 months, KIGRY's Forward P/E has been as high as 14.25 and as low as 8.38, with a median of 10.67.

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. KIGRY has a P/S ratio of 0.74. This compares to its industry's average P/S of 1.08.

Finally, our model also underscores that KIGRY has a P/CF ratio of 5.04. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 15.67. Over the past year, KIGRY's P/CF has been as high as 5.32 and as low as 3.38, with a median of 4.36.

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


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