Core Insights - The Price-to-Book (P/B) ratio is a valuation metric that compares a company's market capitalization to its book value, helping investors identify undervalued stocks with strong fundamentals [1][2][6] - The P/B ratio is particularly useful in value investing, where investors seek stocks that are cheap yet fundamentally strong [1][10] - A P/B ratio of less than one indicates that a stock is trading below its book value, suggesting it may be undervalued, while a ratio above one may indicate overvaluation [6][8] Understanding Book Value - Book value represents the total value remaining for shareholders if a company were to liquidate its assets after settling all liabilities [4][5] - It is calculated by subtracting total liabilities from total assets, often equating to common stockholders' equity [5] P/B Ratio Analysis - The P/B ratio is calculated as market capitalization divided by book value of equity, providing insight into whether a stock is under- or overvalued [2][6] - Stocks with low P/B ratios and strong projected earnings growth are considered attractive investment opportunities [10][16] Screening Parameters for Investment - Stocks should have a P/B ratio lower than the industry median, a P/S ratio below the industry average, and a P/E ratio using F(1) estimates that is also lower than the industry median [12][13] - A PEG ratio of less than 1 indicates that a stock is undervalued relative to its growth prospects, while a minimum trading price of $5 and a substantial average trading volume are also recommended [14][15] Notable Stocks with Low P/B Ratios - CVS Health (CVS) has a projected 3-5 year EPS growth rate of 11.4% and holds a Zacks Rank of 2 with a Value Score of A [16] - Signet Jewelers (SIG) has a projected EPS growth rate of 12.2% and also holds a Zacks Rank of 2 with a Value Score of A [17] - KB Financial Group (KB) has a projected EPS growth rate of 12.33% and a Zacks Rank of 2 with a Value Score of B [18] - Affiliated Managers Group (AMG) has a projected EPS growth rate of 14.2% and a Zacks Rank of 2 with a Value Score of A [19] - PagSeguro Digital (PAGS) has a projected EPS growth rate of 11.3% and holds a Zacks Rank of 1 with a Value Score of A [21]

Core Insights - Signet Jewelers Limited (SIG) started fiscal 2026 with strong momentum, reporting first-quarter revenues of $1.54 billion and a year-over-year same-store sales growth of 2.5% driven by its "Grow Brand Love" strategy [1][9] Brand Performance - The three core brands, Kay, Zales, and Jared, achieved a combined same-store sales growth of 4%, significantly contributing to overall performance [2][9] - Kay positioned itself as a romantic gifting destination, introduced new fashion collections, and reduced reliance on promotions, which improved unit sales and margins [2] - Zales targeted self-purchasing consumers with its "Own It" campaign and launched affordable, stackable collections, while also utilizing modern marketing strategies [3] - Jared focused on aspirational luxury, expanding high-end collections and reducing discounting by over 20%, attracting more premium customers [3] Digital and Product Trends - Signet's digital brands had mixed results; Blue Nile rebounded after technical fixes, while James Allen struggled due to low awareness, prompting stronger marketing efforts [4] - Lab-grown diamonds (LGD) emerged as a significant growth driver, now accounting for 20% of overall sales, with LGD penetration in bridal reaching the mid-30% range [4] - Fashion jewelry priced under $500 saw strong improvement due to enhanced assortments, and all three brands reported double-digit e-commerce growth [5] Financial Performance and Valuation - SIG's stock increased by 41.8% over the past three months, outperforming the industry growth of 39.6% [6] - The forward 12-month price-to-sales ratio for SIG is 0.48, lower than the industry average of 0.79, indicating a favorable valuation [8] - The Zacks Consensus Estimate for SIG's fiscal 2025 earnings suggests a year-over-year rise of 2%, while fiscal 2026 indicates growth of 11.2% [11]

Core Insights - Investors in the Retail - Jewelry sector should consider Signet (SIG) and Compagnie Financiere Richemont AG (CFRUY) for potential value opportunities [1] Valuation Metrics - Signet has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Compagnie Financiere Richemont AG has a Zacks Rank of 3 (Hold) [3] - Signet's forward P/E ratio is 8.77, significantly lower than Richemont's forward P/E of 25.17, suggesting that Signet may be undervalued [5] - The PEG ratio for Signet is 0.72, compared to Richemont's PEG ratio of 2.86, indicating better value relative to expected earnings growth [5] - Signet's P/B ratio is 1.85, while Richemont's P/B ratio is 8.57, further supporting the notion that Signet is more attractively valued [6] - Based on these metrics, Signet has earned a Value grade of A, whereas Richemont has a Value grade of D [6] Earnings Outlook - Signet is experiencing an improving earnings outlook, which enhances its attractiveness as a value investment [7]

Three Part Advisors East Coast IDEAS Conference June 12, 2025 Forward-Looking Statements This Presentation ( the "Presentation"), contain forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historica ...

First Quarter 2025 Financial Results Forward-Looking Statements This Presentation and statements to be made on the earnings conference call (collectively, the "Presentation"), contain forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All ...