As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘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 the share price history for Industrias Bachoco (below) over the past twelve months shows that the price is up 39%. Here’s why the company is undervalued.
Summary
Market Cap: $2 Billion
Enterprise Value: $1.22 Billion
Operating Earnings
Operating Earnings: $223 Million
Acquirer’s Multiple
Acquirer’s Multiple: 5.42
Free Cash Flow (TTM)
Free Cash Flow: $140 Million
FCF/EV Yield
FCF/EV Yield: 11.6%
Other Indicators
Piotroski F-Score: 8
Altman Z-Score: 4.79
Beneish M-Score: -1.85
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