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Is Phibro Animal Health (PAHC) Stock Undervalued Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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.

Phibro Animal Health (PAHC - Free Report) is a stock many investors are watching right now. PAHC is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 14.66. This compares to its industry's average Forward P/E of 21.95. Over the last 12 months, PAHC's Forward P/E has been as high as 15.18 and as low as 8.01, with a median of 11.

PAHC is also sporting a PEG ratio of 1.69. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PAHC's PEG compares to its industry's average PEG of 2.14. Over the past 52 weeks, PAHC's PEG has been as high as 6.24 and as low as 1.51, with a median of 4.36.

Investors should also recognize that PAHC has a P/B ratio of 3.50. 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 company's current P/B looks solid when compared to its industry's average P/B of 5.26. PAHC's P/B has been as high as 3.55 and as low as 1.42, with a median of 1.96, over the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. PAHC has a P/S ratio of 0.91. This compares to its industry's average P/S of 1.51.

Finally, investors should note that PAHC has a P/CF ratio of 22.72. 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. PAHC's P/CF compares to its industry's average P/CF of 37.45. Over the past 52 weeks, PAHC's P/CF has been as high as 23.07 and as low as 6.93, with a median of 10.58.

These are just a handful of the figures considered in Phibro Animal Health'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 PAHC is an impressive value stock right now.


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