Is AdvanSix (ASIX) Stock Undervalued 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.

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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is AdvanSix (ASIX). ASIX is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8.53, which compares to its industry's average of 15.97. Over the past year, ASIX's Forward P/E has been as high as 11.16 and as low as 6.60, with a median of 9.22.

We should also highlight that ASIX has a P/B ratio of 2.30. 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 5.92. ASIX's P/B has been as high as 2.50 and as low as 1.52, with a median of 1.93, over the past year.

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. ASIX has a P/S ratio of 0.83. This compares to its industry's average P/S of 1.68.

Finally, investors will want to recognize that ASIX has a P/CF ratio of 7.02. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ASIX's P/CF compares to its industry's average P/CF of 26.39. Over the past year, ASIX's P/CF has been as high as 7.67 and as low as 4.89, with a median of 6.43.

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

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.