ICF International (ICFI) Attracts Value Investors With Solid P/B and P/CF Ratios

ICF International (ICFI) is a great value stock, according to Zacks Investment Research. The company has a Zacks Rank #2 (Buy) and an A grade for Value. Its P/B ratio of 1.74 is lower than its industry's average of 3.21, and its P/CF ratio of 10.65 is also lower than its industry's average of 16.62. These metrics suggest that ICFI is undervalued and has a strong earnings outlook.

ICF International (ICFI), a provider of management, technology, and policy consulting and implementation services, has been recognized as a great value stock by Zacks Investment Research. The company boasts a Zacks Rank #2 (Buy) and an A grade for Value, indicating strong potential for investors [1]. Its price-to-book (P/B) ratio of 1.74 is significantly lower than the industry average of 3.21, while its price-to-cash flow (P/CF) ratio of 10.65 is also below the industry average of 16.62. These metrics suggest that ICFI is undervalued and has a favorable earnings outlook.

Recent earnings reports have shown mixed results. In the second quarter of 2025, ICFI reported earnings per share (EPS) of $1.66, which exceeded analyst expectations by $0.03. However, revenue was down 7.2% year-over-year, indicating that while earnings growth is positive, revenue growth is lagging [2]. This trend may be a cause for concern among investors, but the company's strong earnings fundamentals could offset any revenue-related concerns.

Analysts have mixed views on ICFI's stock. While some have raised their earnings estimates, others have reduced their price targets or changed their ratings. For instance, Barrington Research increased their FY2025 EPS forecast to $7.06, while Wall Street Zen downgraded ICFI from a "buy" rating to a "hold" rating [1]. Despite these mixed signals, the consensus rating remains "Moderate Buy" with an average target price of $128.20 [1].

ICFI's debt-to-equity ratio of 0.47 indicates a relatively low level of debt, which is positive for the company's financial health. Additionally, the company's payout ratio is currently 9.74%, suggesting that it has room to increase dividends in the future [2].

Institutional investors have shown interest in ICFI, with several recent purchases and stake increases. BI Asset Management, Ethic Inc., Cornerstone Investment Partners LLC, Police & Firemen's Retirement System of New Jersey, and Entropy Technologies LP have all added to their positions in ICFI [2]. This institutional support could indicate that the company has long-term growth potential.

In conclusion, while ICFI's recent revenue growth has been disappointing, its strong earnings fundamentals, low valuation metrics, and institutional support make it an attractive investment opportunity. However, investors should closely monitor the company's revenue growth and earnings trends to make informed decisions.

References:
[1] https://www.marketbeat.com/instant-alerts/icfi-fy2025-eps-forecast-raised-by-barrington-research-2025-08-12/
[2] https://simplywall.st/stocks/us/commercial-services/nasdaq-icfi/icf-international