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Are Investors Undervaluing Societe Generale Group (SCGLY) 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 value investors might notice is Societe Generale Group (SCGLY - Free Report) . SCGLY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 7.02 right now. For comparison, its industry sports an average P/E of 9.54. Over the past year, SCGLY's Forward P/E has been as high as 7.02 and as low as 4.01, with a median of 4.85.

Investors will also notice that SCGLY has a PEG ratio of 0.26. 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. SCGLY's industry currently sports an average PEG of 0.73. Within the past year, SCGLY's PEG has been as high as 0.26 and as low as 0.08, with a median of 0.10.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. SCGLY has a P/S ratio of 1.22. This compares to its industry's average P/S of 1.38.

Finally, we should also recognize that SCGLY has a P/CF ratio of 8.71. 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. SCGLY's P/CF compares to its industry's average P/CF of 16.34. Over the past year, SCGLY's P/CF has been as high as 12.73 and as low as 5.77, with a median of 8.14.

These are only a few of the key metrics included in Societe Generale Group'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, SCGLY looks like an impressive value stock at the moment.


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