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Should Value Investors Buy KION GROUP AG (KIGRY) Stock?

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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 KION GROUP AG (KIGRY - Free Report) . KIGRY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Another valuation metric that we should highlight is KIGRY's P/B ratio of 2.48. The P/B is a method of comparing a stock's market value to 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 5.98. KIGRY's P/B has been as high as 2.55 and as low as 1, with a median of 2.28, over the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. KIGRY has a P/S ratio of 1.24. This compares to its industry's average P/S of 1.56.

Finally, our model also underscores that KIGRY has a P/CF ratio of 7.22. 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. KIGRY's current P/CF looks attractive when compared to its industry's average P/CF of 14.06. Over the past 52 weeks, KIGRY's P/CF has been as high as 7.42 and as low as 2.86, with a median of 6.49.

Value investors will likely look at more than just these metrics, but the above data helps show that KION GROUP AG is likely undervalued currently. And when considering the strength of its earnings outlook, KIGRY sticks out at as one of the market's strongest value stocks.


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