Back to top

Image: Bigstock

Should Value Investors Buy BPOST SA (BPOSY) Stock?

Read MoreHide Full Article

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is BPOST SA . BPOSY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 7.97, while its industry has an average P/E of 15.79. BPOSY's Forward P/E has been as high as 12.09 and as low as 6.66, with a median of 8.91, all within the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BPOSY has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.51.

Finally, we should also recognize that BPOSY has a P/CF ratio of 2.42. 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. This stock's P/CF looks attractive against its industry's average P/CF of 9.19. BPOSY's P/CF has been as high as 4.40 and as low as 2.01, with a median of 3.50, all within the past year.

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

Published in