Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 5 stocks made the list for top value stocks in the Commercial Services & Supplies 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 Commercial Services & Supplies 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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5 Undervalued Commercial Services & Supplies Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 5 undervalued stocks in the Commercial Services & Supplies industry for Friday, October 04, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Commercial Services & Supplies 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.

CDT Environmental Technology Investment Holdings Limited’s Value Grade

Value Grade:

CDT Environmental Technology Investment Holdings Limited designs, develops, manufactures, sells, installs, operates, and maintains sewage treatment systems in China. The company sells complete sewage treatment systems; constructs rural sewage treatment plants; installs systems; and provides on-going operation and maintenance services for systems and plants in China for municipalities and enterprise clients. It provides sewage treatment services, such as on-site or in-situ septic tank treatment services in the urban and rural areas for municipalities, and residential and business property management companies. The company was incorporated in 2016 and is based in Shenzhen, China.

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.

CDT Environmental Technology Investment Holdings Limited has a Value Score of 89, which is considered to be undervalued.

When you look at CDT Environmental Technology Investment Holdings Limited’s price-to-sales ratio at 0.95 compared to the industry median at 1.03, this company has a lower price relative to revenue compared to its peers. This could make CDT Environmental Technology Investment Holdings Limited’s stock more attractive for value investors.

CDT Environmental Technology Investment Holdings Limited’s price-earnings ratio is 4.40 compared to the industry median at 27.20. This means it has a lower share price relative to earnings compared to its peers. This could make CDT Environmental Technology Investment Holdings Limited more attractive for value investors.

Now, let’s assess CDT Environmental Technology Investment Holdings Limited’s EV/EBITDA ratio, also known as enterprise multiple. At 5.3, when compared to the industry median of 13.0, 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. CDT Environmental Technology Investment Holdings Limited’s shareholder yield is the same 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. CDT Environmental Technology Investment Holdings Limited’s price-to-book ratio is lower than its industry median ratio of 1.83. This could make CDT Environmental Technology Investment Holdings Limited more attractive to investors looking for a new addition to their portfolio.

Deluxe Corporation’s Value Grade

Value Grade:

Deluxe Corporation provides technology-enabled solutions to enterprises, small businesses, and financial institutions in the United States, Canada, and Australia. It operates through Merchant Services, B2B Payments, Data Solutions, and Print segments. The Merchant Services offers credit and debit card authorization and payment systems, as well as processing services primarily to small and medium-sized retail and service businesses. The B2B Payments segment provides treasury management solutions, including remittance and lockbox processing, remote deposit capture, automated receivables management, payment processing, and cash application, as well as automated payables management, such as medical payment and deluxe payment exchange. The Data solutions segment offers data-driven marketing solutions, financial institution profitability reporting, and business incorporation services. The Print segment provides printed personal and business checks, printed business forms, business accessories, and promotional products. It sells through multi-channel sales and marketing, and scalable partnerships. The company was formerly known as Deluxe Check Printers, Incorporated and changed its name to Deluxe Corporation in 1988. Deluxe Corporation was founded in 1915 and is headquartered in Minneapolis, Minnesota.

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.

Deluxe Corporation has a Value Score of 84, which is considered to be undervalued.

Deluxe Corporation’s price-earnings ratio is 21.7 compared to the industry median at 27.2. This means that it has a lower price relative to its earnings compared to its peers. This makes Deluxe Corporation more attractive for value investors.

Deluxe Corporation’s price-to-book ratio is higher than its peers. This could make Deluxe Corporation less attractive for value investors when compared to the industry median at 1.83.

You can read more about Deluxe Corporation’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.

MillerKnoll, Inc.’s Value Grade

Value Grade:

MillerKnoll, Inc. researches, designs, manufactures, and distributes interior furnishings worldwide. It operates through three segments: Americas Contract, International Contract & Specialty, and Global Retail. The company also provides seating products, furniture systems, other freestanding furniture elements, textiles, leather, felt, home furnishings and related services, casegoods, storage products, as well as residential, education, and healthcare furniture solutions. It offers its products under the MillerKnoll, Herman Miller, Herman Miller Circled Symbolic M, Knoll, Maharam, Geiger, Design Within Reach, DWR, HAY, NaughtOne, Nemschoff, Aeron, Mirra, Embody, Setu, Sayl, Cosm, Caper, Eames, Knoll, KnollExtra, Knoll Luxe, KnollStudio, KnollTextiles, Edelman Leather, Spinneybeck Leather, Generation by Knoll, Regeneration by Knoll, MultiGeneration by Knoll, Remix, Holly Hunt, Vladimir Kagan, Muuto, Barcelona, and Womb names. The company offers its products through independent contract furniture dealers, direct contract sales, e-commerce websites, and wholesale and retail stores. Its products are used in institutional, health/science, and residential and other environments, and industrial and educational settings, as well as transportation terminals. The company was formerly known as Herman Miller, Inc. and changed its name to MillerKnoll, Inc. in November 2021. MillerKnoll, Inc. was incorporated in 1905 and is headquartered in Zeeland, Michigan.

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.

MillerKnoll, Inc. has a Value Score of 65, which is considered to be undervalued.

MillerKnoll, Inc.’s price-earnings ratio is 27.2 compared to the industry median at 27.2. This means that it has a higher price relative to its earnings compared to its peers. This makes MillerKnoll, Inc. fairly attractive for value investors.

MillerKnoll, Inc.’s price-to-book ratio is higher than its peers. This could make MillerKnoll, Inc. less attractive for value investors when compared to the industry median at 1.83.

You can read more about MillerKnoll, 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.

Roma Green Finance Limited’s Value Grade

Value Grade:

Roma Green Finance Limited, through its subsidiaries, provides environmental, social, and governance (ESG); sustainability; and climate change related advisory services in Hong Kong and Singapore. It also offers sustainability program development, ESG reporting, corporate governance and risk management, climate change strategies and solutions, environmental audit, ESG rating support and shareholder communication, and education and training services. It serves private companies and non-governmental organizations. The company was founded in 2018 and is based in Wan Chai, Hong Kong. Roma Green Finance Limited operates as a subsidiary of Top Elect Group Limited.

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.

Roma Green Finance Limited has a Value Score of 67, which is considered to be undervalued.

Roma Green Finance Limited’s price-to-book ratio is higher than its peers. This could make Roma Green Finance Limited less attractive for value investors when compared to the industry median at 1.83.

You can read more about Roma Green Finance Limited’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.

Steelcase Inc.’s Value Grade

Value Grade:

Steelcase Inc. provides a portfolio of furniture and architectural products and services in the United States and internationally. It operates through Americas and International segments. The company’s furniture portfolio includes furniture systems, seating, storage, fixed and height-adjustable desks, benches, and tables, as well as complementary products, such as work accessories, lighting, mobile power, and screens. Its seating products comprise task chairs; seating for collaborative environments and casual settings; and specialty seating for specific vertical markets, including education and healthcare. The company’s interior architectural products comprise full and partial height walls and architectural pods. It also provides textiles and surface imaging products for architects and designers; and workplace strategy consulting, lease origination, and furniture and asset management services. The company markets and sells its products to corporate, government, healthcare, education, and retail customers under the Steelcase, AMQ, Coalesse, Designtex, HALCON, Orangebox, Smith System, and Viccarbe brands. It distributes its products and services through a network of independent and company-owned dealers, as well as directly to end-use customers. The company was incorporated in 1912 and is headquartered in Grand Rapids, Michigan.

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.

Steelcase Inc. has a Value Score of 86, which is considered to be undervalued.

Steelcase Inc.’s price-earnings ratio is 11.9 compared to the industry median at 27.2. This means that it has a lower price relative to its earnings compared to its peers. This makes Steelcase Inc. more attractive for value investors.

Steelcase Inc.’s price-to-book ratio is higher than its peers. This could make Steelcase Inc. less attractive for value investors when compared to the industry median at 1.83.

You can read more about Steelcase 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 Commercial Services & Supplies 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 Commercial Services & Supplies stocks as well as other industrys.

Choosing Which of the 5 Best Commercial Services & Supplies 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.

• CDT Environmental Technology Investment Holdings Limited stock has a Value Grade of A.
• Deluxe Corporation stock has a Value Grade of A.
• MillerKnoll, Inc. stock has a Value Grade of B.
• Roma Green Finance Limited stock has a Value Grade of B.
• Steelcase Inc. stock has a Value Grade of A.

Now that you have a bit more background about each of the 5 undervalued stocks in the Commercial Services & Supplies 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 Commercial Services & Supplies Stocks

Want to learn more about Commercial Services & Supplies 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.

• 5 Undervalued Commercial Services & Supplies Stocks for Friday, October 04
• 3 Undervalued Office Equipment Stocks for Monday, September 30
• 4 Undervalued Business Support Services Stocks for Monday, September 30
• Why Ambipar Emergency Response’s (AMBI) Stock Is Up 7.76%

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.