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Are Investors Undervaluing Deutsche Post AG (DPSGY) 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.

Deutsche Post AG is a stock many investors are watching right now. DPSGY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

We also note that DPSGY holds a PEG ratio of 1.41. 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. DPSGY's industry currently sports an average PEG of 3.69. Over the past 52 weeks, DPSGY's PEG has been as high as 1.93 and as low as 1.34, with a median of 1.66.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. DPSGY has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.39.

Finally, investors will want to recognize that DPSGY has a P/CF ratio of 8.70. 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. DPSGY's current P/CF looks attractive when compared to its industry's average P/CF of 20.68. Over the past year, DPSGY's P/CF has been as high as 8.93 and as low as 3.59, with a median of 7.71.

These are only a few of the key metrics included in Deutsche Post 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, DPSGY looks like an impressive value stock at the moment.

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