Should Value Investors Buy Flexsteel Industries (FLXS) 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Flexsteel Industries (FLXS). FLXS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 12.89, which compares to its industry's average of 16.05. Over the past 52 weeks, FLXS's Forward P/E has been as high as 15.73 and as low as 8.41, with a median of 11.93.
Investors will also notice that FLXS has a PEG ratio of 1.07. 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. FLXS's industry has an average PEG of 1.13 right now. Over the past 52 weeks, FLXS's PEG has been as high as 1.31 and as low as 0.70, with a median of 0.99.
We should also highlight that FLXS has a P/B ratio of 1.41. 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 3.95. Over the past 12 months, FLXS's P/B has been as high as 1.56 and as low as 0.59, with a median of 1.22.
Finally, investors should note that FLXS has a P/CF ratio of 15.57. 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. FLXS's P/CF compares to its industry's average P/CF of 22.55. FLXS's P/CF has been as high as 17.39 and as low as 4.37, with a median of 9.46, all within the past year.
These are just a handful of the figures considered in Flexsteel Industries'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 FLXS is an impressive value stock right now.
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Flexsteel Industries, Inc. (FLXS) : Free Stock Analysis Report