Is Avino Silver (ASM) Stock Undervalued Right Now?
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, 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company value investors might notice is Avino Silver (ASM). ASM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 11.50, which compares to its industry's average of 21.62. Over the past year, ASM's Forward P/E has been as high as 18.74 and as low as 4.02, with a median of 9.36.
We should also highlight that ASM has a P/B ratio of 0.91. 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. ASM's current P/B looks attractive when compared to its industry's average P/B of 1.30. Over the past 12 months, ASM's P/B has been as high as 1.23 and as low as 0.58, with a median of 0.83.
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. ASM has a P/S ratio of 2.08. This compares to its industry's average P/S of 2.32.
Finally, investors will want to recognize that ASM has a P/CF ratio of 20.27. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ASM's current P/CF looks attractive when compared to its industry's average P/CF of 73.15. Over the past 52 weeks, ASM's P/CF has been as high as 27.52 and as low as 7.77, with a median of 16.68.
Fortuna Silver Mines (FSM) may be another strong Mining - Silver stock to add to your shortlist. FSM is a # 2 (Buy) stock with a Value grade of A.
Furthermore, Fortuna Silver Mines holds a P/B ratio of 0.79 and its industry's price-to-book ratio is 1.30. FSM's P/B has been as high as 0.94, as low as 0.42, with a median of 0.74 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Avino Silver and Fortuna Silver Mines are likely undervalued currently. And when considering the strength of its earnings outlook, ASM and FSM sticks out as one of the market's strongest value stocks.
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Avino Silver (ASM) : Free Stock Analysis Report
Fortuna Silver Mines Inc. (FSM) : Free Stock Analysis Report
