Is Coca-Cola FEMSA (KOF) 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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Coca-Cola FEMSA (KOF). KOF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 14.72, while its industry has an average P/E of 23.62. Over the past year, KOF's Forward P/E has been as high as 17.61 and as low as 10.60, with a median of 15.29.
Investors will also notice that KOF has a PEG ratio of 1.54. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. KOF's industry currently sports an average PEG of 3.74. Over the past 52 weeks, KOF's PEG has been as high as 1.93 and as low as 0.87, with a median of 1.49.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. KOF has a P/S ratio of 1.03. This compares to its industry's average P/S of 2.82.
Finally, investors will want to recognize that KOF has a P/CF ratio of 14.86. 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. KOF's P/CF compares to its industry's average P/CF of 19.21. Over the past year, KOF's P/CF has been as high as 15.84 and as low as 6.27, with a median of 7.87.
These are just a handful of the figures considered in Coca-Cola FEMSA'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 KOF is an impressive value stock right now.
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Coca Cola Femsa S.A.B. de C.V. (KOF) : Free Stock Analysis Report
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