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Is Grifols (GRFS) a Great Value Stock Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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.

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 Grifols (GRFS - Free Report) . GRFS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Another notable valuation metric for GRFS is its P/B ratio of 1.46. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.54. Within the past 52 weeks, GRFS's P/B has been as high as 2.30 and as low as 1.37, with a median of 1.62.

Finally, we should also recognize that GRFS has a P/CF ratio of 10.67. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.28. Over the past 52 weeks, GRFS's P/CF has been as high as 18.40 and as low as 10.21, with a median of 11.50.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Grifols is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GRFS feels like a great value stock at the moment.


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