Is HeidelbergCement (HDELY) 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.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

HeidelbergCement (DE:HEIG) (HDELY) is a stock many investors are watching right now. HDELY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.39, which compares to its industry's average of 17.76. Over the past year, HDELY's Forward P/E has been as high as 10.78 and as low as 8.93, with a median of 9.94.

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. HDELY has a P/S ratio of 0.75. This compares to its industry's average P/S of 0.91.

Finally, our model also underscores that HDELY has a P/CF ratio of 5.89. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 23.53. Over the past 52 weeks, HDELY's P/CF has been as high as 7.13 and as low as 4.41, with a median of 5.70.

These are just a handful of the figures considered in HeidelbergCement'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 HDELY is an impressive value stock right now.