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Is ANDRITZ AG (ADRZY) Stock Undervalued Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is ANDRITZ AG (ADRZY - Free Report) . ADRZY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 12.97, while its industry has an average P/E of 16.62. Over the last 12 months, ADRZY's Forward P/E has been as high as 16.56 and as low as 9.60, with a median of 11.57.

Investors should also recognize that ADRZY has a P/B ratio of 2.63. 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 6.29. Over the past 12 months, ADRZY's P/B has been as high as 3.43 and as low as 2.50, with a median of 2.90.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. ADRZY has a P/S ratio of 0.47. This compares to its industry's average P/S of 0.95.

Finally, investors should note that ADRZY has a P/CF ratio of 7.31. 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. This stock's P/CF looks attractive against its industry's average P/CF of 13.02. Over the past year, ADRZY's P/CF has been as high as 9.17 and as low as 6.80, with a median of 7.54.

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


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