Is Mazda Motor (MZDAY) a Great Value Stock Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now 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 6.15, which compares to its industry's average of 9.08. Over the past year, MZDAY's Forward P/E has been as high as 11.21 and as low as 5.37, with a median of 7.68.

We should also highlight that MZDAY has a P/B ratio of 0.46. The P/B ratio is used to compare a stock's market value with 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 0.84. Within the past 52 weeks, MZDAY's P/B has been as high as 0.54 and as low as 0.36, with a median of 0.45.

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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. MZDAY has a P/S ratio of 0.21. This compares to its industry's average P/S of 0.58.

Finally, our model also underscores that MZDAY has a P/CF ratio of 3.47. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. MZDAY's current P/CF looks attractive when compared to its industry's average P/CF of 4.16. Over the past 52 weeks, MZDAY's P/CF has been as high as 4.49 and as low as 2.62, with a median of 3.37.

Investors could also keep in mind Yamaha Motor Co. (YAMHF), an Automotive - Foreign stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.

Furthermore, Yamaha Motor Co. holds a P/B ratio of 0.88 and its industry's price-to-book ratio is 0.84. YAMHF's P/B has been as high as 1.31, as low as 0.76, with a median of 0.95 over the past 12 months.

These are just a handful of the figures considered in Mazda Motor and Yamaha Motor Co.'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 and YAMHF is an impressive value stock right now.

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Mazda Motor Corporation (MZDAY) : Free Stock Analysis Report
 
Yamaha Motor Co., Ltd. (YAMHF) : Free Stock Analysis Report
 
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