Is Flexible Solutions International (FSI) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 to watch right now is Flexible Solutions International (FSI). FSI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 5.76, which compares to its industry's average of 13.07. Over the last 12 months, FSI's Forward P/E has been as high as 11.91 and as low as 3.65, with a median of 7.14.
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. FSI has a P/S ratio of 0.93. This compares to its industry's average P/S of 1.17.
Finally, our model also underscores that FSI has a P/CF ratio of 7.45. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.46. Over the past year, FSI's P/CF has been as high as 11.68 and as low as 3.80, with a median of 7.50.
Value investors will likely look at more than just these metrics, but the above data helps show that Flexible Solutions International is likely undervalued currently. And when considering the strength of its earnings outlook, FSI sticks out at as one of the market's strongest value stocks.
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Flexible Solutions International Inc. (FSI) : Free Stock Analysis Report
