De Amerikaanse Wessanen: Amira Nature Foods

ANFI (NYSE / NASDAQ)

Koers: $ 5,90
Winst per aandeel: $ 1,41

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Many investors like to look for value in stocks, but this can be very tough to define. There is great debate regarding which metrics are the best to focus on in this regard, and which are not really quality indicators of future performance. Fortunately, with our new style score system we have identified the key statistics to pay close attention to and thus which stocks might be the best for value investors in the near term.

This method discovered several great candidates for value-oriented investors, but today let’s focus on Amira Nature Foods Ltd. (ANFI) as this stock is looking especially impressive right now. And while there are numerous reasons why this is the case, we have highlighted three of the most vital reasons for ANFI’s status as a solid value stock below:

Forward PE for Amira Nature Foods

Easily one of the most popular readings for value investors, the forward PE ratio shows us the current price of a stock divided by the full year earnings. Generally speaking, value investors like to see this ratio below 20, though it can vary by industry.

Right now, ANFI has a forward PE of 4.77, which means that investors are paying $4.77 for each dollar in expected Amira Nature Foods earnings this year. Compared to the industry at large, this is pretty favorable as the overall space has an average PE of 16.93 in comparison.
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PEG Ratio for ANFI

While earnings are definitely important, it is vital to know how much you are paying for the growth of earnings as well. One can easily do that with the PEG ratio as this metric looks to show investors how much they are paying for each unit of earnings growth.

ANFI manages to impress on this front as well, as the company’s PEG is just 0.32, suggesting that Amira Nature Foods is trading as a relative bargain right now. This is particularly the case when you compare this PEG to the industry, as the broader segment has an average PEG of 2.39 in comparison.

ANFI Earnings Estimate Revisions Moving in the Right Direction

The solid value ratios outlined in the preceding paragraphs might be enough for some investors, but we should also note that the earnings estimate revisions have been trending in a positive direction as well. Analysts who follow ANFI stock have been raising their estimates for the company lately, meaning that the EPS picture is looking a bit more favorably for Amira Nature Foods now.

Over the past 30 days, 1 earnings estimate has gone higher compared to none lower for the full year. The revision has helped to boost the consensus estimate as 30 days ago, ANFI was expected to post earnings of $1.60 per share for the full year, though today it looks to have EPS of $1.85 for the full year.

Bottom Line

For the reasons detailed above, investors shouldn’t be surprised to read that we have ANFI as a stock with a Value Score of ‘A’ and a Zacks Rank #2 (Buy). So if you are a value investor, definitely keep ANFI on your short list as this looks be a stock that is very well-positioned for gains in the near term.