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Is Infineon Technologies (IFNNY) a Great Value Stock Right Now?

Zacks Equity Research

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Infineon Technologies (IFNNY) is a stock many investors are watching right now. IFNNY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Another valuation metric that we should highlight is IFNNY's P/B ratio of 2.95. 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. IFNNY's current P/B looks attractive when compared to its industry's average P/B of 7.04. Over the past year, IFNNY's P/B has been as high as 4 and as low as 2.33, with a median of 3.13.

Finally, investors should note that IFNNY has a P/CF ratio of 14.41. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 20.49. Over the past year, IFNNY's P/CF has been as high as 17.82 and as low as 9, with a median of 11.50.

These are just a handful of the figures considered in Infineon Technologies'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 IFNNY is an impressive value stock right now.


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