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Should Value Investors Buy Avino Silver (ASM) Stock?

Zacks Equity Research

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 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 Avino Silver (ASM). ASM 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 ASM's P/B ratio of 0.50. Investors use the P/B ratio to look at a stock's market value versus 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 1.36. Over the past year, ASM's P/B has been as high as 0.69 and as low as 0.35, with a median of 0.49.

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. ASM has a P/S ratio of 1.39. This compares to its industry's average P/S of 2.52.

Finally, investors should note that ASM has a P/CF ratio of 17.63. 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 45.41. Within the past 12 months, ASM's P/CF has been as high as 24.42 and as low as 5.06, with a median of 7.61.

Value investors will likely look at more than just these metrics, but the above data helps show that Avino Silver is likely undervalued currently. And when considering the strength of its earnings outlook, ASM sticks out at as one of the market's strongest value stocks.

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