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Is Safe Bulkers (SB) 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 Safe Bulkers (SB - Free Report) . SB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 5.51. This compares to its industry's average Forward P/E of 6.79. Over the past year, SB's Forward P/E has been as high as 8.68 and as low as 3.42, with a median of 4.58.

Investors should also recognize that SB has a P/B ratio of 0.71. Investors use the P/B ratio to look at a stock's market value versus 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 1.39. Over the past year, SB's P/B has been as high as 0.72 and as low as 0.44, with a median of 0.54.

Finally, we should also recognize that SB has a P/CF ratio of 4.20. 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. SB's P/CF compares to its industry's average P/CF of 7.12. Within the past 12 months, SB's P/CF has been as high as 4.27 and as low as 1.81, with a median of 2.70.

These are just a handful of the figures considered in Safe Bulkers'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 SB is an impressive value stock right now.


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