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Are Investors Undervaluing BRF (BRFS) 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 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.

BRF (BRFS - Free Report) is a stock many investors are watching right now. BRFS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 14.29, while its industry has an average P/E of 16.87. Over the last 12 months, BRFS's Forward P/E has been as high as 44.58 and as low as -13.90, with a median of 14.53.

We should also highlight that BRFS has a P/B ratio of 1.53. Investors use the P/B ratio to look at a stock's market value versus 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 2.31. Over the past 12 months, BRFS's P/B has been as high as 1.60 and as low as 0.70, with a median of 1.09.

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. BRFS has a P/S ratio of 0.49. This compares to its industry's average P/S of 0.96.

Finally, we should also recognize that BRFS has a P/CF ratio of 7.45. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 18.18. Over the past 52 weeks, BRFS's P/CF has been as high as 14.72 and as low as -32.62, with a median of 7.66.

These are only a few of the key metrics included in BRF'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, BRFS looks like an impressive value stock at the moment.


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