Are Investors Undervaluing Screen Holdings (DINRF) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Screen Holdings (DINRF). DINRF is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.69. This compares to its industry's average Forward P/E of 20.85. DINRF's Forward P/E has been as high as 16.51 and as low as 6.31, with a median of 13.56, all within the past year.
Another notable valuation metric for DINRF is its P/B ratio of 1.54. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. DINRF's current P/B looks attractive when compared to its industry's average P/B of 4.45. Within the past 52 weeks, DINRF's P/B has been as high as 2.56 and as low as 0.90, with a median of 2.21.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. DINRF has a P/S ratio of 0.92. This compares to its industry's average P/S of 1.81.
Finally, our model also underscores that DINRF has a P/CF ratio of 7.33. 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. DINRF's current P/CF looks attractive when compared to its industry's average P/CF of 12.09. Over the past 52 weeks, DINRF's P/CF has been as high as 17.88 and as low as 6.82, with a median of 11.93.
Another great Semiconductor - General stock you could consider is SUMCO (SUOPY), which is a # 2 (Buy) stock with a Value Score of A.
SUMCO sports a P/B ratio of 0.98 as well; this compares to its industry's price-to-book ratio of 4.45. In the past 52 weeks, SUOPY's P/B has been as high as 2.25, as low as 0.91, with a median of 1.45.
These are only a few of the key metrics included in Screen Holdings and SUMCO strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, DINRF and SUOPY look like an impressive value stock at the moment.
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Screen Holdings Co., Ltd (DINRF) : Free Stock Analysis Report
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