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Is Grindrod Shipping (GRIN) Stock Undervalued Right Now?

·3-min read

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, 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.

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 Grindrod Shipping (GRIN). GRIN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GRIN has a P/S ratio of 0.92. This compares to its industry's average P/S of 1.48.

Finally, we should also recognize that GRIN has a P/CF ratio of 2.36. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 3.46. GRIN's P/CF has been as high as 2.93 and as low as 1.59, with a median of 2.27, all within the past year.

Investors could also keep in mind Seanergy Maritime Holdings (SHIP), an Transportation - Shipping stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Seanergy Maritime Holdings sports a P/B ratio of 0.75 as well; this compares to its industry's price-to-book ratio of 1.25. In the past 52 weeks, SHIP's P/B has been as high as 1.19, as low as 0.54, with a median of 0.74.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Grindrod Shipping and Seanergy Maritime Holdings are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GRIN and SHIP feels like a great value stock at the moment.


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Grindrod Shipping Holdings Ltd. (GRIN) : Free Stock Analysis Report
 
Seanergy Maritime Holdings Corp (SHIP) : Free Stock Analysis Report
 
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