Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 stocks made the list for top value stocks in the Food Processing 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 Food Processing 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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7 Undervalued Food Processing Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 7 undervalued stocks in the Food Processing industry for Tuesday, July 30, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Food Processing 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.

Archer-Daniels-Midland Co’s Value Grade

Value Grade:

Archer-Daniels-Midland Company is a human and animal nutrition company. The Company is an agricultural supply chain manager and processor. It operates through three business segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition. The Ag Services and Oilseeds segment includes global activities related to the origination, merchandising, transportation, and storage of agricultural raw materials, and the crushing and further processing of oilseeds such as soybeans and soft seeds into vegetable oils and protein meals. The Carbohydrate Solutions segment is engaged in corn and wheat wet and dry milling and other activities. The Nutrition segment is engaged in the manufacturing, sale, and distribution of a range of ingredients and solutions, including plant-based proteins, natural flavors, flavor systems, natural colors, emulsifiers, soluble fiber, polyols, hydrocolloids, probiotics, prebiotics, enzymes, botanical extracts, and other specialty food and feed ingredients.

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.

Archer-Daniels-Midland Co has a Value Score of 92, which is considered to be undervalued.

When you look at Archer-Daniels-Midland Co’s price-to-sales ratio at 0.35 compared to the industry median at 0.94, this company has a lower price relative to revenue compared to its peers. This could make Archer-Daniels-Midland Co’s stock more attractive for value investors.

Archer-Daniels-Midland Co’s price-earnings ratio is 11.10 compared to the industry median at 20.24. This means it has a lower share price relative to earnings compared to its peers. This could make Archer-Daniels-Midland Co more attractive for value investors.

Now, let’s assess Archer-Daniels-Midland Co’s EV/EBITDA ratio, also known as enterprise multiple. At 8.9, when compared to the industry median of 11.5, 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. Archer-Daniels-Midland Co’s shareholder yield is higher than its industry median ratio of 0.00%. 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. Archer-Daniels-Midland Co’s price-to-book ratio is lower than its industry median ratio of 2.05. This could make Archer-Daniels-Midland Co more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Archer-Daniels-Midland Co’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Archer-Daniels-Midland Co’s price-to-free-cash-flow ratio is lower than its industry median ratio of 22.70. This could make Archer-Daniels-Midland Co more attractive because the lower P/FCF ratio indicates that Archer-Daniels-Midland Co is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

BBX Capital Inc’s Value Grade

Value Grade:

BBX Capital, Inc. is a diversified holding company. The Company's principal holdings include BBX Capital Real Estate LLC, BBX Sweet Holdings, LLC and Renin Holdings, LLC (Renin). BBX Capital Real Estate LLC is engaged in the acquisition, development, construction, ownership, financing and management of real estate and investments in real estate joint ventures, including investments in multifamily rental apartment communities, single-family master-planned for sale housing communities, warehouse and logistics facilities, and commercial properties located primarily in Florida. BBX Sweet Holdings, LLC is engaged in the ownership and management of operating businesses in the confectionery industry, including IT’SUGAR, a specialty candy retailer. Renin is engaged in the designing, manufacturing and distribution of sliding doors, door systems and hardware, and home decor products. In addition to its own manufacturing activities, Renin also sources various products and raw materials.

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.

BBX Capital Inc has a Value Score of 98, which is considered to be undervalued.

BBX Capital Inc’s price-to-book ratio is higher than its peers. This could make BBX Capital Inc less attractive for value investors when compared to the industry median at 2.05.

You can read more about BBX Capital 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.

Kraft Heinz Co’s Value Grade

Value Grade:

The Kraft Heinz Company is a global food and beverage company. The Company manufactures (and contract for the manufacture of) its products from a variety of raw materials. It purchases and uses commodities, including dairy products, meat products, tomato products, soybean and vegetable oils, sugar and other sweeteners, coffee beans, wheat and processed grains, eggs, and other fruits and vegetables to manufacture its products. In addition, the Company purchases and uses significant quantities of resins, fiberboard, metals and cardboard to package its products. The Company's geographic segments include North America and International. Its North America segment offers various brands, which include Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Ore-Ida, Capri Sun, Maxwell House, Kool-Aid and Jell-O. Its International segment offers various brands, such as Heinz, ABC, Master, Quero, Kraft, Golden Circle, Wattie’s, Pudliszki and Plasmon.

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.

Kraft Heinz Co has a Value Score of 67, which is considered to be undervalued.

Kraft Heinz Co’s price-earnings ratio is 14.6 compared to the industry median at 20.2. This means that it has a lower price relative to its earnings compared to its peers. This makes Kraft Heinz Co more attractive for value investors.

Kraft Heinz Co’s price-to-book ratio is higher than its peers. This could make Kraft Heinz Co less attractive for value investors when compared to the industry median at 2.05.

You can read more about Kraft Heinz Co’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.

Mannatech Inc’s Value Grade

Value Grade:

Mannatech, Incorporated is a global wellness solution provider. The Company develops and sells nutritional supplements, skin care and anti-aging products, and weight-management products that target optimal health and wellness. The Company's product category includes Integrative Health, Targeted Health, Weight and Fitness, Skin Care, Essentials, and Home Living. Integrative Health includes Ambrotose Complex, Ambrotose AO, Advanced Ambrotose, Ambrotose Life, Catalyst, Cognitate, Manapol Powder, MannaBears, and others. Targeted Health includes BounceBack, CardioBALANCE, GI-ProBalance Slimstick, GI-Zyme, GI-Defense, Blood Sugar ProBalance, ImmunoSTART, and others. Weight and Fitness includes OsoLean, SPORT, TruHealth Fat Loss System and others. Skin Care includes Emprizone, FIRM with Ambrotose, FreshDen, and others. Essentials include Catalyst Multivitamin, Liver Support, Joint Support SUPERFOOD, Sleep Support gummies and Stress Support gummies. Home Living includes Organt and PURO.

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.

Mannatech Inc has a Value Score of 89, which is considered to be undervalued.

Mannatech Inc’s price-to-book ratio is higher than its peers. This could make Mannatech Inc less attractive for value investors when compared to the industry median at 2.05.

You can read more about Mannatech 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.

Arcadia Biosciences Inc’s Value Grade

Value Grade:

Arcadia Biosciences, Inc. is a producer and marketer of plant-based health and wellness products. The Company’s product portfolio includes Zola Coconut Water (Zola). Zola is a natural, 100% coconut water. Zola is a non-genetically modified organisms (Non-GMO) project verified and only contains 60 calories per serving. It offers Zola in different varieties, such as Original, Slightly Sweetened; Original with Pulp, Slightly Sweetened; Espresso, Slightly Sweetened; Pineapple; Lime; and others. The recipe with Zola includes smoothies, desserts, cocktails and mocktails, and bowls.

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.

Arcadia Biosciences Inc has a Value Score of 64, which is considered to be undervalued.

Arcadia Biosciences Inc’s price-to-book ratio is higher than its peers. This could make Arcadia Biosciences Inc less attractive for value investors when compared to the industry median at 2.05.

You can read more about Arcadia Biosciences 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.

Shineco Inc’s Value Grade

Value Grade:

Shineco Inc is a holding company. The Company provides health and well-being focused plant-based products by using its subsidiaries' and variable interest entities' vertically and horizontally integrated production, distribution and sales channels. The Company operates through three segments. Developing, producing and distributing innovative rapid diagnostic products and related medical devices for the most common diseases (Rapid Diagnostic and Other Products) :This segment is conducted through Biowin, which specializes in the development, production and distribution of innovative rapid diagnostic products and related medical devices for the most common diseases; Producing, processing and distribution of agricultural products, such as silk and silk fabrics as well as fresh fruit s (Other agricultural products): This segment is conducted through Wintus, which specializes in producing, processing and distribution of agricultural products, such as silk and silk fabrics as well as tra

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.

Shineco Inc has a Value Score of 63, which is considered to be undervalued.

Shineco Inc’s price-to-book ratio is higher than its peers. This could make Shineco Inc less attractive for value investors when compared to the industry median at 2.05.

You can read more about Shineco 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.

Tyson Foods Inc’s Value Grade

Value Grade:

Tyson Foods, Inc. is a food company. The Company has a broad portfolio of products and brands, such as Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells, ibp and State Fair. Its segments include beef, pork, chicken and prepared foods. Beef segment includes its operations related to processing live fed cattle and fabricating dressed beef carcasses into primal and sub-primal meat cuts and case-ready products. Pork segment includes its operations related to processing live market hogs and fabricating pork carcasses into primal and sub-primal cuts and case-ready products. Chicken segment includes its domestic operations related to raising and processing live chickens into, and purchasing raw materials for fresh, frozen and value-added chicken products and sales from specialty products. Prepared foods segment includes its operations related to manufacturing and marketing frozen and refrigerated food products and logistics operations to move products through the supply chain.

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.

Tyson Foods Inc has a Value Score of 78, which is considered to be undervalued.

Tyson Foods Inc’s price-to-book ratio is higher than its peers. This could make Tyson Foods Inc less attractive for value investors when compared to the industry median at 2.05.

You can read more about Tyson Foods 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.

Other Food Processing 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 Food Processing stocks as well as other industrys.

Choosing Which of the 7 Best Food Processing 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.

• Archer-Daniels-Midland Co stock has a Value Grade of A.
• BBX Capital Inc stock has a Value Grade of A.
• Kraft Heinz Co stock has a Value Grade of B.
• Mannatech Inc stock has a Value Grade of A.
• Arcadia Biosciences Inc stock has a Value Grade of B.
• Shineco Inc stock has a Value Grade of B.
• Tyson Foods Inc stock has a Value Grade of B.

Now that you have a bit more background about each of the 7 undervalued stocks in the Food Processing 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 Food Processing Stocks

Want to learn more about Food Processing 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.

• 7 Undervalued Food Processing Stocks for Tuesday, July 30
• 4 Undervalued Food Processing Stocks for Monday, July 29
• 6 Undervalued Food Processing Stocks for Friday, July 26
• Which Is a Better Investment, Lamb Weston Holdings Inc or TreeHouse Foods Inc Stock?

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