As part of a new series here at The Acquirer’s Multiple, we’re providing a new feature called ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.
One of the cheapest stocks in our Stock Screeners is Industrias Bachoco, S.A.B. de C.V. (NYSE: IBA).
Industrias Bachoco SAB de CV produces, processes, markets, and sells poultry (chicken and eggs) in both Mexico and the United States. Additionally, it sells feed, swine, beef, turkey, and other products on a smaller scale. The company’s poultry business begins with purchasing infant birds and raising the birds to maturity. Eggs are produced and worked into the production process. Industrias Bachoco operates its own feed mills to produce balanced feed for internal use, and to sell to third parties. Several production facilities and distribution centers are located throughout Mexico and the United States to minimize transportation costs, and the company sells through wholesalers, supermarkets, retail, and other niche marketing channels.
A quick look at Industrias Bachoco’s share price history (below) over the past twelve months shows that the price is down 29%. Here’s why the company is undervalued.
Market Cap: $1.830 Billion
Enterprise Value: $1.127 Billion
Operating Earnings: $221 Million
Acquirer’s Multiple: 5.09
Free Cash Flow (TTM)
Free Cash Flow: $215 Million
FCF/EV Yield: 19%
Piotroski F-Score: 7
Altman Z-Score: 4.54
Beneish M-Score: -2.65
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