Is Repsol (REPYY) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Repsol (REPYY). REPYY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 3.98. This compares to its industry's average Forward P/E of 8. Over the past 52 weeks, REPYY's Forward P/E has been as high as 4.57 and as low as 2.94, with a median of 3.98.
Investors will also notice that REPYY has a PEG ratio of 0.45. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. REPYY's PEG compares to its industry's average PEG of 0.63. Within the past year, REPYY's PEG has been as high as 0.58 and as low as 0.37, with a median of 0.46.
Another valuation metric that we should highlight is REPYY's P/B ratio of 0.61. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.25. Over the past year, REPYY's P/B has been as high as 0.87 and as low as 0.58, with a median of 0.72.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. REPYY has a P/S ratio of 0.25. This compares to its industry's average P/S of 0.54.
Finally, investors should note that REPYY has a P/CF ratio of 2.81. 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 3.67. REPYY's P/CF has been as high as 3.59 and as low as 2.37, with a median of 2.93, all within the past year.
Another great Oil and Gas - Integrated - International stock you could consider is Sasol (SSL), which is a # 1 (Strong Buy) stock with a Value Score of A.
Shares of Sasol currently holds a Forward P/E ratio of 3.08, and its PEG ratio is 0.29. In comparison, its industry sports average P/E and PEG ratios of 8 and 0.63.
Over the past year, SSL's P/E has been as high as 5.40, as low as 2.87, with a median of 4.25; its PEG ratio has been as high as 0.33, as low as 0.24, with a median of 0.46 during the same time period.
Sasol sports a P/B ratio of 0.73 as well; this compares to its industry's price-to-book ratio of 1.25. In the past 52 weeks, SSL's P/B has been as high as 1.11, as low as 0.64, with a median of 0.82.
These are just a handful of the figures considered in Repsol and Sasol'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 REPYY and SSL is an impressive value stock right now.
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Repsol SA (REPYY) : Free Stock Analysis Report
Sasol Ltd. (SSL) : Free Stock Analysis Report
