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 Wednesday, October 09, 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.

Bunge Global SA’s Value Grade

Value Grade:

Bunge Global SA operates as an agribusiness and food company worldwide. It operates through four segments: Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy. The Agribusiness segment purchases, stores, transports, processes, and sells agricultural commodities and commodity products, including oilseeds primarily soybeans, rapeseed, canola, and sunflower seeds, as well as grains comprising wheat and corn; and processes oilseeds into vegetable oils and protein meals. This segment offers its products for animal feed manufacturers, livestock producers, wheat and corn millers, and other oilseed processors, as well as third-party edible oil processing and biofuel companies for biofuel production applications. The Refined and Specialty Oils segment sells packaged and bulk oils and fats that comprise cooking oils, shortenings, margarines, mayonnaise, renewable diesel feedstocks, and other products for baked goods companies, snack food producers, confectioners, restaurant chains, foodservice operators, infant nutrition companies, and other food manufacturers, as well as grocery chains, wholesalers, distributors, and other retailers. This segment also refines and fractionates palm oil, palm kernel oil, coconut oil, and shea butter, and olive oil; and produces specialty ingredients derived from vegetable oils, such as lecithin. The Milling segment provides wheat flours and bakery mixes; corn milling products that comprise dry-milled corn meals and flours, wet-milled masa and flours, and flaking and brewer's grits, as well as soy-fortified corn meal, corn-soy blends, and other products; whole grain and fiber ingredients; die-cut pellets; and non-GMO products. The Sugar and Bioenergy segment produces sugar and ethanol; and generates electricity from burning sugarcane bagasse. Bunge Global SA was founded in 1818 and is headquartered in Chesterfield, Missouri.

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.

Bunge Global SA has a Value Score of 92, which is considered to be undervalued.

When you look at Bunge Global SA’s price-to-sales ratio at 0.26 compared to the industry median at 0.83, this company has a lower price relative to revenue compared to its peers. This could make Bunge Global SA’s stock more attractive for value investors.

Bunge Global SA’s price-earnings ratio is 11.10 compared to the industry median at 20.85. This means it has a lower share price relative to earnings compared to its peers. This could make Bunge Global SA more attractive for value investors.

Now, let’s assess Bunge Global SA’s EV/EBITDA ratio, also known as enterprise multiple. At 6.5, when compared to the industry median of 12.9, 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. Bunge Global SA’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. Bunge Global SA’s price-to-book ratio is lower than its industry median ratio of 1.61. This could make Bunge Global SA more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Bunge Global SA’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Bunge Global SA’s price-to-free-cash-flow ratio is lower than its industry median ratio of 18.15. This could make Bunge Global SA more attractive because the lower P/FCF ratio indicates that Bunge Global SA 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.

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 82, which is considered to be undervalued.

B&G; Foods, Inc.’s price-to-book ratio is higher than its peers. This could make B&G; Foods, Inc. less attractive for value investors when compared to the industry median at 1.61.

You can read more about B&G; 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.

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 93, which is considered to be undervalued.

BrasilAgro - Companhia Brasileira de Propriedades Agrícolas’s price-earnings ratio is 11.3 compared to the industry median at 20.9. 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 1.61.

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.

Moolec Science SA’s Value Grade

Value Grade:

Moolec Science SA, a science-based food ingredient company, focuses on developing real animal proteins in plants using molecular farming. It offers Chymosin SPC, a dairy ingredient; GLA SONOVA, a nutritional oil; POORK+, a plant-based, animal meat free ingredient with porcine proteins in soybeans; and BEEF+, a meat replacement product. It operates in the United States, Europe, and South America. The company was founded in 2020 and is based in Luxembourg.

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.

Moolec Science SA has a Value Score of 97, which is considered to be undervalued.

Moolec Science SA’s price-to-book ratio is higher than its peers. This could make Moolec Science SA less attractive for value investors when compared to the industry median at 1.61.

You can read more about Moolec Science SA’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.

Oatly Group AB’s Value Grade

Value Grade:

Oatly Group AB, an oatmilk company, provides a range of plant-based dairy products made from oats in Europe, the Middle East, Africa, the Americas, and Asia. It offers Barista edition oatmilk, oatgurts, frozen desserts, ice-creams, and yogurts; cooking products, including cooking cream, in regular and organic, Crème Fraiche, whipping cream, vanilla custard, and spreads in a variety of flavors; and ready-to-go drinks. The company was formerly known as Havre Global AB and changed its name to Oatly Group AB in March 2021. Oatly Group AB was founded in 1994 and is headquartered in Malmö, Sweden.

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.

Oatly Group AB has a Value Score of 61, which is considered to be undervalued.

Oatly Group AB’s price-to-book ratio is higher than its peers. This could make Oatly Group AB less attractive for value investors when compared to the industry median at 1.61.

You can read more about Oatly Group AB’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 93, 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 1.61.

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.

Village Farms International, Inc.’s Value Grade

Value Grade:

Village Farms International, Inc., together with its subsidiaries, produces, markets, and sells greenhouse-grown tomatoes, bell peppers, and cucumbers in North America. It operates through four segments: Produce, Cannabis-Canada, Cannabis-U.S., and Energy. The company also produces and supplies cannabis products to other licensed providers and provincial governments in Canada and internationally; develops and sells cannabinoid-based health and wellness products, including ingestible, edibles, and topical applications; and produces power. It markets and distributes its products under the Village Farms brand name to retail supermarkets and fresh food distribution companies, as well as products produced under exclusive and non-exclusive arrangements from greenhouse supply partners. The company was formerly known as Village Farms Canada Inc. and changed its name to Village Farms International, Inc. in December 2009. Village Farms International, Inc. was founded in 1989 and is headquartered in Delta, Canada.

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.

Village Farms International, Inc. has a Value Score of 88, which is considered to be undervalued.

Village Farms International, Inc.’s price-to-book ratio is higher than its peers. This could make Village Farms International, Inc. less attractive for value investors when compared to the industry median at 1.61.

You can read more about Village Farms International, 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 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.

• Bunge Global SA stock has a Value Grade of A.
• B&G; Foods, Inc. stock has a Value Grade of A.
• BrasilAgro - Companhia Brasileira de Propriedades Agrícolas stock has a Value Grade of A.
• Moolec Science SA stock has a Value Grade of A.
• Oatly Group AB stock has a Value Grade of B.
• S&W; Seed Company stock has a Value Grade of A.
• Village Farms International, Inc. 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 Wednesday, October 09
• 6 Undervalued Food Products Stocks for Tuesday, October 08
• 5 Undervalued Food Products Stocks for Monday, October 07
• 4 Undervalued Food Products Stocks for Friday, October 04

AAII Disclaimer

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