Should Value Investors Buy Grindrod Shipping (GRIN) 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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One stock to keep an eye on is Grindrod Shipping (GRIN). GRIN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 2.75 right now. For comparison, its industry sports an average P/E of 3.59. Over the past year, GRIN's Forward P/E has been as high as 5.85 and as low as 2.36, with a median of 3.57.
We should also highlight that GRIN has a P/B ratio of 0.90. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.10. GRIN's P/B has been as high as 1.62 and as low as 0.63, with a median of 1.07, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GRIN has a P/S ratio of 0.61. This compares to its industry's average P/S of 1.25.
Finally, we should also recognize that GRIN has a P/CF ratio of 1.45. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 2.99. Over the past year, GRIN's P/CF has been as high as 2.93 and as low as 1.36, with a median of 2.19.
Nippon Yusen Kabushiki Kaisha (NPNYY) may be another strong Transportation - Shipping stock to add to your shortlist. NPNYY is a # 1 (Strong Buy) stock with a Value grade of A.
Furthermore, Nippon Yusen Kabushiki Kaisha holds a P/B ratio of 1 and its industry's price-to-book ratio is 1.10. NPNYY's P/B has been as high as 2.30, as low as 0.94, with a median of 1.20 over the past 12 months.
These are only a few of the key metrics included in Grindrod Shipping and Nippon Yusen Kabushiki Kaisha strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, GRIN and NPNYY look like an impressive value stock at the moment.
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Grindrod Shipping Holdings Ltd. (GRIN) : Free Stock Analysis Report
Nippon Yusen Kabushiki Kaisha (NPNYY) : Free Stock Analysis Report
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