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Is Malibu Boats (MBUU) Stock Undervalued 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.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Malibu Boats (MBUU - Free Report) . MBUU is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Investors should also note that MBUU holds a PEG ratio of 0.97. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MBUU's industry currently sports an average PEG of 1.95. MBUU's PEG has been as high as 1.10 and as low as 0.60, with a median of 0.77, all within the past year.

Another valuation metric that we should highlight is MBUU's P/B ratio of 3.86. The P/B is a method of comparing a stock's market value to 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 5.24. MBUU's P/B has been as high as 5.84 and as low as 2.50, with a median of 4.03, over the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 1.14. This compares to its industry's average P/S of 1.29.

Finally, investors should note that MBUU has a P/CF ratio of 9.49. 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. MBUU's P/CF compares to its industry's average P/CF of 28.83. Over the past year, MBUU's P/CF has been as high as 15.64 and as low as 6.43, with a median of 10.27.

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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