Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 4 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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4 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 4 undervalued stocks in the Commercial Services & Supplies industry for Friday, November 08, 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.

ACCO Brands Corporation’s Value Grade

Value Grade:

ACCO Brands Corporation designs, manufactures, and markets consumer, school, technology, and office products. It operates through three segments: ACCO Brands North America, ACCO Brands EMEA, and ACCO Brands International. The company provides computer and gaming accessories, planners, dry erase boards, school notebooks, and janitorial supplies; storage and organization products, such as lever-arch binders, sheet protectors, and indexes; sheet protectors and indexes; laminating, binding, and shredding machines; writing instruments and art products; stapling and punching products; and do-it-yourself tools. It offers its products under the AT-A-GLANCE, Barrilito, Derwent, Esselte, Five Star, Foroni, GBC, Hilroy, Kensington, Leitz, Marbig, Mead, NOBO, PowerA, Quartet, Rapid, Rexel, Swingline, Tilibra, Artline, and Spirax brand names. The company markets and sells its products through various channels, including mass retailers, e-tailers, discount, drug/grocery, and variety chains; warehouse clubs; hardware and specialty stores; independent office product dealers; office superstores; wholesalers; contract stationers; and technology specialty businesses, as well as sells products directly to commercial and consumer end-users through its e-commerce platform and direct sales organization. The company was founded in 1893 and is headquartered in Lake Zurich, Illinois.

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.

ACCO Brands Corporation has a Value Score of 97, which is considered to be undervalued.

When you look at ACCO Brands Corporation’s price-to-sales ratio at 0.34 compared to the industry median at 1.22, this company has a lower price relative to revenue compared to its peers. This could make ACCO Brands Corporation’s stock more attractive for value investors.

Now, let’s assess ACCO Brands Corporation’s EV/EBITDA ratio, also known as enterprise multiple. At 8.1, when compared to the industry median of 12.0, 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. ACCO Brands Corporation’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. ACCO Brands Corporation’s price-to-book ratio is lower than its industry median ratio of 2.12. This could make ACCO Brands Corporation more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at ACCO Brands Corporation’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. ACCO Brands Corporation’s price-to-free-cash-flow ratio is lower than its industry median ratio of 19.20. This could make ACCO Brands Corporation more attractive because the lower P/FCF ratio indicates that ACCO Brands Corporation 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.

ARC Document Solutions, Inc.’s Value Grade

Value Grade:

ARC Document Solutions, Inc., a digital printing company, provides digital printing and document-related services in the United States. It provides managed print services, that places, manages, and optimizes print and imaging equipment in customers' offices, job sites, and other facilities; and cloud-based document management software and other digital hosting services. The company also provides professional services and software services to re-produce and distribute large-format and small-format documents, and specialized graphic color printing. In addition, it engages in the sale and supply of equipment; and provides ancillary services. The company operates service centers in the United States, Canada, China, the United Kingdom, India, and the United Arab Emirates. It serves local restaurant owners, construction subcontractors, international retailers, regional energy companies, and largest school districts, as well as retail, technology, energy, education, hospitality, public utilities, and others. The company was formerly known as American Reprographics Company and changed its name to ARC Document Solutions, Inc. in 2012. ARC Document Solutions, Inc. was founded in 1988 is headquartered in San Ramon, 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.

ARC Document Solutions, Inc. has a Value Score of 66, which is considered to be undervalued.

ARC Document Solutions, Inc.’s price-earnings ratio is 30.9 compared to the industry median at 29.0. This means that it has a higher price relative to its earnings compared to its peers. This makes ARC Document Solutions, Inc. less attractive for value investors.

ARC Document Solutions, Inc.’s price-to-book ratio is higher than its peers. This could make ARC Document Solutions, Inc. less attractive for value investors when compared to the industry median at 2.12.

You can read more about ARC Document Solutions, 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.

American Rebel Holdings, Inc.’s Value Grade

Value Grade:

American Rebel Holdings, Inc. designs and markets branded safes, and personal security and self-defense products. The company’s safes are offered in various sizes and shapes for home, office, and personal use, as well as provides vault doors, handgun vaults, and inventory control safes under the American Rebel brand. It also offers accessories, such as back-over and back-under handgun hangers, ballistic shields, safe light kits, mag minders, moisture guards, and rifle rod kits and rods. In addition, the company’s personal security and self-defense products include concealed carry backpacks; and concealed carry jackets, vests, and coats, as well as T-shirts for men and women under the American Rebel brand. Further, it offers beer under the American Rebel Light Beer brand. The company markets its products through regional retailers; and specialty safe, sporting goods, hunting, and firearms stores, as well as online through own website and e-commerce platforms. American Rebel Holdings, Inc. was incorporated in 2014 and is based in Nashville, Kansas.

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.

American Rebel Holdings, Inc. has a Value Score of 70, which is considered to be undervalued.

American Rebel Holdings, Inc.’s price-to-book ratio is higher than its peers. This could make American Rebel Holdings, Inc. less attractive for value investors when compared to the industry median at 2.12.

You can read more about American Rebel Holdings, 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.

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 87, which is considered to be undervalued.

Steelcase Inc.’s price-earnings ratio is 12.3 compared to the industry median at 29.0. 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 2.12.

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 4 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.

• ACCO Brands Corporation stock has a Value Grade of A.
• ARC Document Solutions, Inc. stock has a Value Grade of B.
• American Rebel Holdings, Inc. 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 4 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.

• 4 Undervalued Commercial Services & Supplies Stocks for Friday, November 08
• 5 Undervalued Commercial Services & Supplies Stocks for Thursday, November 07
• 6 Undervalued Commercial Services & Supplies Stocks for Wednesday, November 06
• 4 Undervalued Commercial Services & Supplies Stocks for Tuesday, November 05

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.