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Is SB Financial Group (SBFG) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

SB Financial Group (SBFG) is a stock many investors are watching right now. SBFG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

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Another notable valuation metric for SBFG is its P/B ratio of 1.03. 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 solid versus its industry's average P/B of 1.54. SBFG's P/B has been as high as 1.08 and as low as 0.93, with a median of 1.01, 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SBFG has a P/S ratio of 1.88. This compares to its industry's average P/S of 2.57.

Finally, investors will want to recognize that SBFG has a P/CF ratio of 6.48. 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. SBFG's P/CF compares to its industry's average P/CF of 13.04. Within the past 12 months, SBFG's P/CF has been as high as 6.75 and as low as 5.03, with a median of 6.36.

These are only a few of the key metrics included in SB Financial Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SBFG looks like an impressive value stock at the moment.

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Zacks Investment Research