Is Accel Entertainment (ACEL) Stock Undervalued Right Now?
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Accel Entertainment (ACEL) is a stock many investors are watching right now. ACEL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 13.51, while its industry has an average P/E of 32.29. ACEL's Forward P/E has been as high as 16.73 and as low as 8.55, with a median of 13.27, all within the past year.
We should also highlight that ACEL has a P/B ratio of 4.38. The P/B ratio pits a stock's market value against 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 9.61. ACEL's P/B has been as high as 5.45 and as low as 3.60, with a median of 4.45, 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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ACEL has a P/S ratio of 0.75. This compares to its industry's average P/S of 1.02.
Finally, investors will want to recognize that ACEL has a P/CF ratio of 8.66. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ACEL's current P/CF looks attractive when compared to its industry's average P/CF of 27.02. Within the past 12 months, ACEL's P/CF has been as high as 9.41 and as low as 5.60, with a median of 6.95.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Accel Entertainment is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ACEL feels like a great value stock at the moment.
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Accel Entertainment, Inc. (ACEL) : Free Stock Analysis Report
