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Is Flexible Solutions International (FSI) Stock Undervalued Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 stock to keep an eye on is Flexible Solutions International (FSI - Free Report) . FSI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.29 right now. For comparison, its industry sports an average P/E of 10.95. FSI's Forward P/E has been as high as 11.91 and as low as 3.65, with a median of 8.79, all within the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FSI has a P/S ratio of 0.91. This compares to its industry's average P/S of 1.18.

Finally, investors will want to recognize that FSI has a P/CF ratio of 7.63. 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. This stock's P/CF looks attractive against its industry's average P/CF of 14.94. Within the past 12 months, FSI's P/CF has been as high as 11.68 and as low as 3.80, with a median of 8.05.

These are just a handful of the figures considered in Flexible Solutions International'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 FSI is an impressive value stock right now.


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