Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 stocks made the list for top value stocks in the Personal Products industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Personal Products Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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3 Undervalued Personal Products Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the Personal Products industry for Tuesday, May 14, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Personal Products industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Matthews International Corp’s Value Grade

Value Grade:

Matthews International Corporation is a global provider of memorialization products, industrial technologies, and brand solutions. The Company operates through three segments: Memorialization, Industrial Technologies and SGK Brand Solutions. The Memorialization segment consists primarily of bronze and granite memorials and other memorialization products, caskets, cremation-related products, and cremation and incineration equipment primarily for the cemetery and funeral home industries. The Industrial technologies segment includes the design, manufacturing, service and distribution of high-tech custom energy storage solutions, product identification and warehouse automation technologies and solutions. The SGK Brand Solutions segment consists of brand management, pre-media services, printing plates and cylinders, imaging services, digital asset management, merchandising display systems, and marketing and design services primarily for the consumer goods and retail industries.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Matthews International Corp has a Value Score of 66, which is considered to be undervalued.

When you look at Matthews International Corp’s price-to-sales ratio at 0.48 compared to the industry median at 2.08, this company has a lower price relative to revenue compared to its peers. This could make Matthews International Corp’s stock more attractive for value investors.

Matthews International Corp’s price-earnings ratio is 27.50 compared to the industry median at 27.65. This means it has a lower share price relative to earnings compared to its peers. This could make Matthews International Corp more attractive for value investors.

Now, let’s assess Matthews International Corp’s EV/EBITDA ratio, also known as enterprise multiple. At 8.6, when compared to the industry median of 14.6, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Matthews International Corp’s shareholder yield is higher than its industry median ratio of 1.99%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Matthews International Corp’s price-to-book ratio is lower than its industry median ratio of 4.09. This could make Matthews International Corp more attractive to investors looking for a new addition to their portfolio.

Nu Skin Enterprises, Inc.’s Value Grade

Value Grade:

Nu Skin Enterprises, Inc. is an integrated beauty and wellness company. The Company develops and distributes a comprehensive line of beauty and wellness solutions in approximately 50 markets worldwide. The Company has three brands, Nu Skin, a beauty brand; Pharmanex, a wellness brand; and ageLOC, an anti-aging brand. It develops and distributes products in two categories, beauty products and wellness products. The Company operates through seven segments: Mainland China; South Korea; Southeast Asia/Pacific, which includes Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam, Australia, New Zealand and other markets; Americas, which includes Canada, Latin America and the United States; Japan; Hong Kong/Taiwan, which also includes Macau; and Europe, Middle East and Africa, which includes markets in Europe, as well as Israel and South Africa. The Company’s Rhyz strategic investment arm also includes two additional segments: Manufacturing and Rhyz other.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Nu Skin Enterprises, Inc. has a Value Score of 61, which is considered to be undervalued.

Nu Skin Enterprises, Inc.’s price-earnings ratio is 83.3 compared to the industry median at 27.6. This means that it has a higher price relative to its earnings compared to its peers. This makes Nu Skin Enterprises, Inc. less attractive for value investors.

Nu Skin Enterprises, Inc.’s price-to-book ratio is higher than its peers. This could make Nu Skin Enterprises, Inc. less attractive for value investors when compared to the industry median at 4.09.

You can read more about Nu Skin Enterprises, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Yatsen Holding Ltd - ADR’s Value Grade

Value Grade:

Yatsen Holding Ltd is a China-based holding company engaged in production and sales of cosmetics and skincare products. The Company owns three brands which are Perfect Diary, Little Ondine and Abby’s Choice. It mainly sells the products through multiple online channels and the products provided directly to end consumers and third-party platform distributors. The Company conducts its business through the subsidiaries.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Yatsen Holding Ltd - ADR has a Value Score of 100, which is considered to be undervalued.

Yatsen Holding Ltd - ADR’s price-to-book ratio is higher than its peers. This could make Yatsen Holding Ltd - ADR less attractive for value investors when compared to the industry median at 4.09.

You can read more about Yatsen Holding Ltd - ADR’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Personal Products Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Personal Products stocks as well as other industrys.

Choosing Which of the 3 Best Personal Products Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Matthews International Corp stock has a Value Grade of B.
• Nu Skin Enterprises, Inc. stock has a Value Grade of B.
• Yatsen Holding Ltd - ADR stock has a Value Grade of A.

Now that you have a bit more background about each of the 3 undervalued stocks in the Personal Products industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Personal Products Stocks

Want to learn more about Personal Products stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 3 Undervalued Personal Products Stocks for Tuesday, May 14
• Why Oddity Tech Ltd’s (ODD) Stock Is Up 5.19%
• Why Oddity Tech Ltd’s (ODD) Stock Is Up 4.17%
• What You Need to Know About Edgewell Personal Care Co's Q2 Earnings

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.