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Is Brenntag AG (BNTGY) 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 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 to watch right now is Brenntag AG (BNTGY - Free Report) . BNTGY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

BNTGY is also sporting a PEG ratio of 1.23. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BNTGY's PEG compares to its industry's average PEG of 2.84. Over the past 52 weeks, BNTGY's PEG has been as high as 1.86 and as low as 1.23, with a median of 1.66.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BNTGY has a P/S ratio of 0.65. This compares to its industry's average P/S of 0.84.

Finally, investors should note that BNTGY has a P/CF ratio of 10.47. 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. BNTGY's P/CF compares to its industry's average P/CF of 11.73. Over the past year, BNTGY's P/CF has been as high as 10.47 and as low as 5.67, with a median of 9.37.

These are only a few of the key metrics included in Brenntag AG'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, BNTGY looks like an impressive value stock at the moment.


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