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Is Yamaha Motor Co. (YAMHF) a Great Value Stock Right Now?

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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Yamaha Motor Co. (YAMHF - Free Report) is a stock many investors are watching right now. YAMHF is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.28. This compares to its industry's average Forward P/E of 11.15. Over the past 52 weeks, YAMHF's Forward P/E has been as high as 12.52 and as low as 6.87, with a median of 9.50.

Finally, our model also underscores that YAMHF has a P/CF ratio of 4.80. 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. YAMHF's current P/CF looks attractive when compared to its industry's average P/CF of 6.29. Within the past 12 months, YAMHF's P/CF has been as high as 10.14 and as low as 4.50, with a median of 6.82.

Value investors will likely look at more than just these metrics, but the above data helps show that Yamaha Motor Co. Is likely undervalued currently. And when considering the strength of its earnings outlook, YAMHF sticks out at as one of the market's strongest value stocks.


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