Back to top

Image: Bigstock

Should Value Investors Buy ANDRITZ AG (ADRZY) Stock?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is ANDRITZ AG (ADRZY - Free Report) . ADRZY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 14.04, while its industry has an average P/E of 16.57. Over the last 12 months, ADRZY's Forward P/E has been as high as 16.56 and as low as 9.60, with a median of 11.81.

Investors should also recognize that ADRZY has a P/B ratio of 2.87. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 6.29. Within the past 52 weeks, ADRZY's P/B has been as high as 3.43 and as low as 2.50, with a median of 2.87.

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. ADRZY has a P/S ratio of 0.51. This compares to its industry's average P/S of 1.06.

Finally, we should also recognize that ADRZY has a P/CF ratio of 7.98. 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. ADRZY's current P/CF looks attractive when compared to its industry's average P/CF of 13.02. Within the past 12 months, ADRZY's P/CF has been as high as 9.21 and as low as 6.82, with a median of 7.54.

These are just a handful of the figures considered in ANDRITZ AG's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ADRZY is an impressive value stock right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Andritz (ADRZY) - free report >>

Published in