Should Value Investors Buy Civista Bancshares (CIVB) Stock?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Civista Bancshares (CIVB) is a stock many investors are watching right now. CIVB is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 7.23, while its industry has an average P/E of 10.27. Over the past 52 weeks, CIVB's Forward P/E has been as high as 8.41 and as low as 4.57, with a median of 6.22.
Investors should also recognize that CIVB has a P/B ratio of 0.77. 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. This stock's P/B looks solid versus its industry's average P/B of 1.85. Within the past 52 weeks, CIVB's P/B has been as high as 1.06 and as low as 0.65, with a median of 0.77.
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. CIVB has a P/S ratio of 1.21. This compares to its industry's average P/S of 1.77.
Finally, we should also recognize that CIVB has a P/CF ratio of 4.93. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CIVB's current P/CF looks attractive when compared to its industry's average P/CF of 11.94. Over the past 52 weeks, CIVB's P/CF has been as high as 8.03 and as low as 4.40, with a median of 5.20.
These are just a handful of the figures considered in Civista Bancshares'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 CIVB is an impressive value stock right now.
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Civista Bancshares, Inc. (CIVB) : Free Stock Analysis Report
