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Is Klabin (KLBAY) 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.

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 Klabin (KLBAY). KLBAY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 3.87, which compares to its industry's average of 5.70. KLBAY's Forward P/E has been as high as 10.79 and as low as 3.55, with a median of 5.44, all within the past year.

Investors should also recognize that KLBAY has a P/B ratio of 2.17. 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 2.57. Within the past 52 weeks, KLBAY's P/B has been as high as 4.71 and as low as 1.98, with a median of 2.85.

Finally, investors should note that KLBAY has a P/CF ratio of 4.18. 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. KLBAY's P/CF compares to its industry's average P/CF of 8.14. Over the past 52 weeks, KLBAY's P/CF has been as high as 6.32 and as low as 3.81, with a median of 4.88.

Another great Paper and Related Products stock you could consider is Veritiv (VRTV), which is a # 1 (Strong Buy) stock with a Value Score of A.

Shares of Veritiv currently holds a Forward P/E ratio of 5.66, and its PEG ratio is 0.33. In comparison, its industry sports average P/E and PEG ratios of 5.70 and 0.56.

VRTV's Forward P/E has been as high as 19.54 and as low as 5.25, with a median of 9.37. During the same time period, its PEG ratio has been as high as 0.62, as low as 0.31, with a median of 0.49.

Veritiv sports a P/B ratio of 2.11 as well; this compares to its industry's price-to-book ratio of 2.57. In the past 52 weeks, VRTV's P/B has been as high as 4.10, as low as 2, with a median of 2.82.

These are only a few of the key metrics included in Klabin and Veritiv strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, KLBAY and VRTV look like an impressive value stock at the moment.

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Klabin SA (KLBAY): Free Stock Analysis Report
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