Yahoo Finance Are Investors Undervaluing Mazda Motor (MZDAY) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Mazda Motor (MZDAY). MZDAY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 6, which compares to its industry's average of 8.04. Over the past 52 weeks, MZDAY's Forward P/E has been as high as 9.47 and as low as 4.72, with a median of 6.97.
Another valuation metric that we should highlight is MZDAY's P/B ratio of 0.47. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 0.88. Over the past 12 months, MZDAY's P/B has been as high as 0.57 and as low as 0.36, with a median of 0.46.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MZDAY has a P/S ratio of 0.18. This compares to its industry's average P/S of 0.5.
Finally, our model also underscores that MZDAY has a P/CF ratio of 2.70. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. MZDAY's current P/CF looks attractive when compared to its industry's average P/CF of 4.03. MZDAY's P/CF has been as high as 4.20 and as low as 2.14, with a median of 3.28, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Mazda Motor is likely undervalued currently. And when considering the strength of its earnings outlook, MZDAY sticks out at as one of the market's strongest value stocks.
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Mazda Motor Corporation (MZDAY) : Free Stock Analysis Report
