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 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 Food 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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7 Undervalued Food Products 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 Products industry for Thursday, October 03, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Food 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.

B&G; Foods, Inc.’s Value Grade

Value Grade:

B&G; Foods, Inc. manufactures, sells, and distributes a portfolio of shelf-stable and frozen foods, and household products in the United States, Canada, and Puerto Rico. The company’s products include frozen and canned vegetables, vegetables, canola and other cooking oils, vegetable shortening, cooking sprays, oatmeal and other hot cereals, fruit spreads, canned meats and beans, bagel chips, spices, seasonings, hot sauces, wine vinegar, maple syrups, molasses, salad dressings, pizza crusts, Mexican-style sauces, dry soups, taco shells and kits, salsas, pickles, peppers, tomato-based products, crackers, baking powder and soda, corn starch, nut clusters, and other specialty products. It markets its products under various brands, including Ac’cent, B&G;, B&M;, Baker’s Joy, Bear Creek Country Kitchens, Brer Rabbit, Canoleo, Cary’s, Clabber Girl, Cream of Rice, Cream of Wheat, Crisco, Dash, Davis, Devonsheer, Don Pepino, Durkee, Grandma’s Molasses, Green Giant, Joan of Arc, Las Palmas, Le Sueur, MacDonald’s, Mama Mary’s, Maple Grove Farms of Vermont, McCann’s, Molly McButter, New York Flatbreads, New York Style, Old London, Ortega, Polaner, Red Devil, Regina, Rumford, Sa-són, Sclafani, Spice Islands, Spring Tree, Sugar Twin, Tone’s, Trappey’s, TrueNorth, Underwood, Vermont Maid, Victoria, Weber, and Wright’s. The company also sells, markets, and distributes household products under the Static Guard brand. It sells and distributes its products directly, as well as through a network of independent brokers and distributors to supermarket chains, foodservice outlets, mass merchants, warehouse clubs, non-food outlets, and specialty distributors. The company was formerly known as B&G; Foods Holdings Corp. and changed its name to B&G; Foods, Inc. in October 2004. B&G; Foods, Inc. was founded in 1822 and is headquartered in Parsippany, New Jersey.

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.

B&G; Foods, Inc. has a Value Score of 71, which is considered to be undervalued.

When you look at B&G; Foods, Inc.’s price-to-sales ratio at 0.33 compared to the industry median at 0.90, this company has a lower price relative to revenue compared to its peers. This could make B&G; Foods, Inc.’s stock more attractive for value investors.

Now, let’s assess B&G; Foods, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 11.7, when compared to the industry median of 11.5, the company may be considered overvalued 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. B&G; Foods, Inc.’s shareholder yield is lower than its industry median ratio of 1.10%. 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. B&G; Foods, Inc.’s price-to-book ratio is lower than its industry median ratio of 1.69. This could make B&G; Foods, Inc. more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at B&G; Foods, Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. B&G; Foods, Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 16.30. This could make B&G; Foods, Inc. more attractive because the lower P/FCF ratio indicates that B&G; Foods, Inc. 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.

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria’s Value Grade

Value Grade:

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria, an agricultural company, engages in the production of agricultural commodities in Brazil and other Latin American countries. The company operates through Agricultural Business, and Business Urban Properties and Investments segments. It is also involved in the management, development, and ownership of shopping malls, office buildings, and hotels; sale of grain derivatives, such as flour and oil; production and sale of crops, such as soybean, sugarcane, wheat, corn, oilseed, and sunflower, as well as sorghum and peanuts; and breeding, purchasing, and/or fattening of cattle for sale to slaughterhouses and supermarkets. In addition, it leases its farms to third parties for agriculture, cattle breeding, and seed production; and offers agricultural services. The company was incorporated in 1936 and is headquartered in Buenos Aires, Argentina.

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.

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria has a Value Score of 71, which is considered to be undervalued.

Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria’s price-earnings ratio is 67.0 compared to the industry median at 21.4. This means that it has a higher price relative to its earnings compared to its peers. This makes Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria less attractive for value investors.

You can read more about Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria’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.

Gruma, S.A.B. de C.V.’s Value Grade

Value Grade:

Gruma, S.A.B. de C.V., together with its subsidiaries, produces and sells corn flour, tortillas, and other related products. The company offers corn flour, snacks and/or cereal, beer grits, and polenta; prepared corn or wheat flours for pancakes, cakes, crêpes, brownies, churros, pizza dough, cachapas, sweet arepitas, etc.; corn and wheat tortillas; tortilla chips, taco shells, and tostadas; flatbreads, including wraps, pita bread, naan, chapatti, pizza doughs, piadina, breakfast breads, and crackers; sauces/dips; palmito; pasta; marinades; and rice and oats. It markets and sells its products under the Maseca, Mission, Guerrero, Tosty, TortiRicas, Rumba, La Cima, Masa Rica, Del Fogón, Delicados, Arroz Luisiana, Tortimasa, Juana, Minsa, Mimasa, Bravos, Tronaditas, and Mexifoods brand names. The company also designs, manufactures, and commercializes machines for production of corn and wheat flour tortillas, and tortilla chips under the TORTEC and RODOTEC names; and designs and manufactures equipment for corn masa flour, such as corn milling machinery, as well as provides engineering, design, and construction services. It provides its products to retail customers, including supermarkets, mass merchandisers, membership stores, and independent stores; food service customers comprising chain restaurants, food service distributors, schools, hospitals, and military; and tortilla manufacturers and corn chip producers. The company distributes its products primarily through independent distributors and wholesalers. It has operations in Mexico, the United States, Central America, Europe, Asia, and Oceania. The company was founded in 1949 and is headquartered in San Pedro Garza García, Mexico.

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.

Gruma, S.A.B. de C.V. has a Value Score of 76, which is considered to be undervalued.

Gruma, S.A.B. de C.V.’s price-earnings ratio is 14.1 compared to the industry median at 21.4. This means that it has a lower price relative to its earnings compared to its peers. This makes Gruma, S.A.B. de C.V. more attractive for value investors.

Gruma, S.A.B. de C.V.’s price-to-book ratio is lower than its peers. This could make Gruma, S.A.B. de C.V. more attractive for value investors when compared to the industry median at 1.69.

You can read more about Gruma, S.A.B. de C.V.’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.

BrasilAgro - Companhia Brasileira de Propriedades Agrícolas’s Value Grade

Value Grade:

BrasilAgro - Companhia Brasileira de Propriedades Agrícolas engages in the acquisition, development, exploration, and sale of rural properties suitable for agricultural activities in Brazil and internationally. It operates through six segments: Real Estate, Grains, Sugarcane, livestock, Cotton, and Other. The company involved in the cultivation of soybean, corn, sesame, and cotton, as well as sugarcane; and production and sale of beef calves after weaning. It also imports and exports agricultural products, livestock, and forestry activities and inputs; purchases, sells, and/or rents rural/urban properties; provides real estate brokerage services; and manages third-party assets. It operates farms through own and leased lands. BrasilAgro - Companhia Brasileira de Propriedades Agrícolas was incorporated in 2005 and is headquartered in São Paulo, Brazil.

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.

BrasilAgro - Companhia Brasileira de Propriedades Agrícolas has a Value Score of 88, which is considered to be undervalued.

BrasilAgro - Companhia Brasileira de Propriedades Agrícolas’s price-earnings ratio is 11.5 compared to the industry median at 21.4. This means that it has a lower price relative to its earnings compared to its peers. This makes BrasilAgro - Companhia Brasileira de Propriedades Agrícolas more attractive for value investors.

BrasilAgro - Companhia Brasileira de Propriedades Agrícolas’s price-to-book ratio is higher than its peers. This could make BrasilAgro - Companhia Brasileira de Propriedades Agrícolas less attractive for value investors when compared to the industry median at 1.69.

You can read more about BrasilAgro - Companhia Brasileira de Propriedades Agrícolas’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.

Minerva S.A.’s Value Grade

Value Grade:

Minerva S.A. produces and sells fresh beef, livestock, and by-products in South America and internationally. The company is also involved in slaughtering, deboning, and processing of cattle, meat, beef, and sheep meat; selling chilled, frozen, and processed meat, as well as beef, pork, and poultry products; exporting and selling live cattle; and breeding and selling live cattle, lambs, pigs, and other live animals. In addition, it trades in and sells electric power; trades in food products and carbon credits; sells third parties’ brands primarily Swift products; and prepares products for animals, which include meat/bone meal, blood, and tallow. The company was founded in 1957 and is headquartered in Barretos, Brazil.

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.

Minerva S.A. has a Value Score of 74, which is considered to be undervalued.

Minerva S.A.’s price-earnings ratio is 226.0 compared to the industry median at 21.4. This means that it has a higher price relative to its earnings compared to its peers. This makes Minerva S.A. less attractive for value investors.

Minerva S.A.’s price-to-book ratio is lower than its peers. This could make Minerva S.A. more attractive for value investors when compared to the industry median at 1.69.

You can read more about Minerva S.A.’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.

NuZee, Inc.’s Value Grade

Value Grade:

NuZee, Inc., together with its subsidiaries, manufactures, packs, and sells single-serve pour-over coffee and tea bag-style coffee for coffee roasters and food service companies in North America and South Korea. The company sells its products under Coffee Blenders, Twin Peaks, DRIPKIT, and Stone Brewing brand names. NuZee, Inc. was incorporated in 2011 and is headquartered in Vista, California.

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.

NuZee, Inc. has a Value Score of 67, which is considered to be undervalued.

NuZee, Inc.’s price-to-book ratio is higher than its peers. This could make NuZee, Inc. less attractive for value investors when compared to the industry median at 1.69.

You can read more about NuZee, 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.

S&W; Seed Company’s Value Grade

Value Grade:

S&W; Seed Company, an agricultural company, engages in breeding, growing, processing, and selling alfalfa and sorghum seeds. The company also offers sunflower, stevia, camelina, wheat, and pasture seeds. It sells its seeds to distributors and dealers in 40 countries. The company was founded in 1980 and is headquartered in Longmont, Colorado.

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.

S&W; Seed Company has a Value Score of 89, which is considered to be undervalued.

S&W; Seed Company’s price-to-book ratio is higher than its peers. This could make S&W; Seed Company less attractive for value investors when compared to the industry median at 1.69.

You can read more about S&W; Seed Company’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 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 Food Products stocks as well as other industrys.

Choosing Which of the 7 Best Food 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.

• B&G; Foods, Inc. stock has a Value Grade of B.
• Cresud Sociedad Anónima, Comercial, Inmobiliaria, Financiera y Agropecuaria stock has a Value Grade of B.
• Gruma, S.A.B. de C.V. stock has a Value Grade of B.
• BrasilAgro - Companhia Brasileira de Propriedades Agrícolas stock has a Value Grade of A.
• Minerva S.A. stock has a Value Grade of B.
• NuZee, Inc. stock has a Value Grade of B.
• S&W; Seed Company stock has a Value Grade of A.

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

Want to learn more about Food 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.

• 7 Undervalued Food Products Stocks for Thursday, October 03
• 3 Undervalued Food Processing Stocks for Monday, September 30
• Why B&G; Foods Inc’s (BGS) Stock Is Down 4.93%
• Why Beyond Meat Inc’s (BYND) Stock Is Down 5.31%

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