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Should Value Investors Buy Riverview Bancorp (RVSB) Stock?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

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.

Riverview Bancorp (RVSB - Free Report) is a stock many investors are watching right now. RVSB is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.93, while its industry has an average P/E of 11.45. Over the last 12 months, RVSB's Forward P/E has been as high as 11.20 and as low as 8.85, with a median of 9.67.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. RVSB has a P/S ratio of 2.92. This compares to its industry's average P/S of 2.98.

Finally, our model also underscores that RVSB has a P/CF ratio of 8.85. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. RVSB's P/CF compares to its industry's average P/CF of 10.19. Within the past 12 months, RVSB's P/CF has been as high as 10.73 and as low as 7.83, with a median of 8.80.

Value investors will likely look at more than just these metrics, but the above data helps show that Riverview Bancorp is likely undervalued currently. And when considering the strength of its earnings outlook, RVSB sticks out at as one of the market's strongest value stocks.


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