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Are Investors Undervaluing Flexsteel Industries (FLXS) 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.

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Flexsteel Industries (FLXS - Free Report) . FLXS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.42, while its industry has an average P/E of 13.94. FLXS's Forward P/E has been as high as 23.87 and as low as 8.41, with a median of 10.61, all within the past year.

Another valuation metric that we should highlight is FLXS's P/B ratio of 1.22. The P/B ratio pits a stock's market value against 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 3.51. Within the past 52 weeks, FLXS's P/B has been as high as 1.46 and as low as 0.59, with a median of 0.76.

Finally, our model also underscores that FLXS has a P/CF ratio of 9.48. 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. FLXS's current P/CF looks attractive when compared to its industry's average P/CF of 14.24. Over the past year, FLXS's P/CF has been as high as 11.50 and as low as 4.37, with a median of 6.05.

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


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