Advertisement
UK markets closed
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • CRUDE OIL

    82.89
    +1.54 (+1.89%)
     
  • GOLD FUTURES

    2,240.40
    +27.70 (+1.25%)
     
  • DOW

    39,766.16
    +6.08 (+0.02%)
     
  • Bitcoin GBP

    55,986.11
    +1,258.75 (+2.30%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • NASDAQ Composite

    16,379.77
    -19.75 (-0.12%)
     
  • UK FTSE All Share

    4,338.05
    +12.12 (+0.28%)
     

Should Value Investors Buy IBEX Limited (IBEX) Stock?

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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is IBEX Limited (IBEX). IBEX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 10.25, while its industry has an average P/E of 17.08. Over the past 52 weeks, IBEX's Forward P/E has been as high as 17.93 and as low as 9.38, with a median of 12.44.

ADVERTISEMENT

Investors should also recognize that IBEX has a P/B ratio of 3.09. 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 stock's P/B looks attractive against its industry's average P/B of 3.26. IBEX's P/B has been as high as 4.98 and as low as 2.81, with a median of 3.46, 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. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. IBEX has a P/S ratio of 0.71. This compares to its industry's average P/S of 0.78.

Finally, investors will want to recognize that IBEX has a P/CF ratio of 6.73. 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. IBEX's current P/CF looks attractive when compared to its industry's average P/CF of 15.03. Over the past year, IBEX's P/CF has been as high as 10.55 and as low as 4.98, with a median of 6.48.

Mitie Group (MITFY) may be another strong Business - Services stock to add to your shortlist. MITFY is a # 2 (Buy) stock with a Value grade of A.

Mitie Group also has a P/B ratio of 3.26 compared to its industry's price-to-book ratio of 3.26. Over the past year, its P/B ratio has been as high as 3.40, as low as 1.65, with a median of 2.57.

These are just a handful of the figures considered in IBEX Limited and Mitie Group'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 IBEX and MITFY is an impressive value stock right now.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

IBEX Limited (IBEX) : Free Stock Analysis Report

Mitie Group PLC. (MITFY) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research