Yahoo Finance Should Value Investors Buy Flexsteel Industries (FLXS) Stock?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Flexsteel Industries (FLXS). FLXS 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 13.63, while its industry has an average P/E of 14.04. FLXS's Forward P/E has been as high as 23.87 and as low as 7.11, with a median of 10.21, all within the past year.
Another notable valuation metric for FLXS is its P/B ratio of 1.40. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. FLXS's current P/B looks attractive when compared to its industry's average P/B of 3.55. FLXS's P/B has been as high as 1.48 and as low as 0.59, with a median of 0.73, 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. FLXS has a P/S ratio of 0.42. This compares to its industry's average P/S of 0.51.
Finally, investors will want to recognize that FLXS has a P/CF ratio of 10.58. 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. FLXS's P/CF compares to its industry's average P/CF of 12.52. FLXS's P/CF has been as high as 11.50 and as low as 4.37, with a median of 6.05, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Flexsteel Industries is likely undervalued currently. And when considering the strength of its earnings outlook, FLXS sticks out at as one of the market's strongest value stocks.
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Flexsteel Industries, Inc. (FLXS) : Free Stock Analysis Report
