Advertisement
Australia markets close in 1 hour 22 minutes
  • ALL ORDS

    8,058.70
    +59.50 (+0.74%)
     
  • ASX 200

    7,789.40
    +61.80 (+0.80%)
     
  • AUD/USD

    0.6639
    +0.0008 (+0.13%)
     
  • OIL

    77.99
    +0.27 (+0.35%)
     
  • GOLD

    2,343.40
    +8.90 (+0.38%)
     
  • Bitcoin AUD

    103,644.17
    -237.37 (-0.23%)
     
  • CMC Crypto 200

    1,496.24
    +28.14 (+1.92%)
     
  • AUD/EUR

    0.6116
    +0.0007 (+0.12%)
     
  • AUD/NZD

    1.0824
    +0.0001 (+0.01%)
     
  • NZX 50

    11,765.16
    -18.23 (-0.15%)
     
  • NASDAQ

    18,808.35
    +184.95 (+0.99%)
     
  • FTSE

    8,317.59
    -21.64 (-0.26%)
     
  • Dow Jones

    39,069.59
    +4.29 (+0.01%)
     
  • DAX

    18,693.37
    +2.07 (+0.01%)
     
  • Hang Seng

    18,665.79
    +56.85 (+0.31%)
     
  • NIKKEI 225

    38,724.69
    +78.58 (+0.20%)
     

Are Investors Undervaluing Mazda Motor (MZDAY) Right Now?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Mazda Motor (MZDAY). MZDAY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 4.52, which compares to its industry's average of 7.64. Over the past 52 weeks, MZDAY's Forward P/E has been as high as 9.47 and as low as 4.46, with a median of 6.59.

ADVERTISEMENT

We should also highlight that MZDAY has a P/B ratio of 0.45. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. MZDAY's current P/B looks attractive when compared to its industry's average P/B of 0.89. Over the past year, 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 frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.17. This compares to its industry's average P/S of 0.45.

Finally, our model also underscores that MZDAY has a P/CF ratio of 2.52. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 4.79. Within the past 12 months, MZDAY's P/CF has been as high as 4.07 and as low as 2.11, with a median of 3.22.

These are just a handful of the figures considered in Mazda Motor's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MZDAY is an impressive value stock right now.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Mazda Motor Corporation (MZDAY) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research