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Is Civista Bancshares (CIVB) a Great Value Stock 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Civista Bancshares (CIVB). CIVB is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.30, which compares to its industry's average of 12.82. Over the past 52 weeks, CIVB's Forward P/E has been as high as 12.11 and as low as 6.43, with a median of 10.35.

Investors should also note that CIVB holds a PEG ratio of 1.24. 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. CIVB's PEG compares to its industry's average PEG of 2.20. Over the last 12 months, CIVB's PEG has been as high as 1.33 and as low as 1.24, with a median of 1.29.

Investors should also recognize that CIVB has a P/B ratio of 0.70. 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 stock's P/B looks attractive against its industry's average P/B of 1.41. Over the past 12 months, CIVB's P/B has been as high as 1.18 and as low as 0.60, with a median of 1.04.

Finally, our model also underscores that CIVB has a P/CF ratio of 6.51. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.36. Within the past 12 months, CIVB's P/CF has been as high as 14.70 and as low as 5.55, with a median of 9.84.

Value investors will likely look at more than just these metrics, but the above data helps show that Civista Bancshares is likely undervalued currently. And when considering the strength of its earnings outlook, CIVB 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.

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