Is the Bakkavor share price (LON:BAKK) cheap?

Bakkavor (LON:BAKK) is a mid cap stock focused on manufacturing fresh prepared foods (FPF) in the United States and China. For the 26 weeks ended 29 June 2019, Bakkavor Group Plc revenues increased 1% to £923m but net income decreased 58% to £17.2m.

Understandably the group's share price has come down in recent months, but right now the Bakkavor share price displays favourable value traits, as evidenced by its Value Rank of 82. Let's explore this in more detail.

Breaking down Bakkavor's Value Rank

We can see by using Bakkavor’s StockReport that the group has a:

• Rolling price to book value of 1.27,
• Trailing twelve month price to earnings ratio of 8.46
• Trailing twelve month price to free cashflow of 
• Rolling dividend yield of 4.47%
• Trailing twelve-month price to sales ratio of 0.39

This combination of financial traits suggests that Bakkavor stock might be good value at current levels, although further research is required if this is to be confirmed.

What does this mean for potential investors?

Some of the best quality stocks in the market have defensible models that can deliver high levels of shareholder returns over the long term. But there are no guarantees and it's important to do your own research. Indeed, we've identified some areas of concern with Bakkavor that you can find out about here.