Yahoo Finance Should Value Investors Buy Brother Industries (BRTHY) Stock?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is Brother Industries (BRTHY). BRTHY 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 13.02 right now. For comparison, its industry sports an average P/E of 17.62. Over the last 12 months, BRTHY's Forward P/E has been as high as 13.75 and as low as 9.19, with a median of 11.57.
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. BRTHY has a P/S ratio of 0.81. This compares to its industry's average P/S of 1.05.
Finally, our model also underscores that BRTHY has a P/CF ratio of 7.54. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 18.77. BRTHY's P/CF has been as high as 7.73 and as low as 5.97, with a median of 6.91, all within the past year.
These are just a handful of the figures considered in Brother Industries'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 BRTHY is an impressive value stock right now.
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Brother Industries Ltd. (BRTHY) : Free Stock Analysis Report
