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Is Teijin Limited (TINLY) a Great Stock for Value Investors?
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Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn’t want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?
One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let’s put Teijin Limited (TINLY - Free Report) stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks:
PE Ratio
A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar of earnings in a given stock, and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the stock’s current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole.
On this front, Teijin has a trailing twelve months PE ratio of 10.1, as you can see in the chart below:
This level actually compares largely favorably with the market at large, as the PE for the S&P 500 stands at about 22.7. Moreover, the current level is fairly below the highs for this stock, suggesting that the stock is undervalued compared to its historical levels.
Further, the stock’s PE also compares favorably with its industry’s trailing twelve months PE ratio, which stands at 22.2. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers.
We should also point out that Teijin has a forward PE ratio (price relative to this year’s earnings) of just 11.5, so it is fair to say that a slightly more value-oriented path may be ahead for Teijin stock in the near term too.
P/S Ratio
Another key metric to note is the Price/Sales ratio. This approach compares a given stock’s price to its total sales, where a lower reading is generally considered better. Some people like this metric more than other value-focused ones because it looks at sales, something that is far harder to manipulate with accounting tricks than earnings.
Right now, Teijin has a P/S ratio of about 0.7. This is significantly lower than the S&P 500 average, which comes in at 3.6 right now.
If anything, Teijin is towards the higher end of its range in the time period from a P/S metric, which suggests that the company’s stock price has already appreciated to some degree, relative to its sales.
Broad Value Outlook
In aggregate, Teijin currently has a Zacks Value Style Score of A, putting it into the top 20% of all stocks we cover from this look. This makes Teijin a solid choice for value investors, and some of its other key metrics make this pretty clear too.
For example, its P/CF ratio (another great indicator of value) comes in at 5.4, which is better than the industry average of 14. Clearly, TINLY is a solid choice on the value front from multiple angles.
What About the Stock Overall?
Though Teijin might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a Growth grade of B and a Momentum score of B. This gives TINLY a Zacks VGM score—or its overarching fundamental grade—of A. (You can read more about the Zacks Style Scores here >>)
Meanwhile, the company’s recent earnings estimates have been encouraging. The current year has seen one upward estimate revisions in the past sixty days compared to none downward, while the next year estimate has also seen one upward revisions and no downward revision in the same time period.
As a result, the current quarter consensus estimate increased 39.4% over the past two months. However, the next year estimate has inched higher by 28.5%.
This bullish trend is why the stock boasts a Zacks Rank #1 (Strong Buy) and why we are expecting outperformance from the company in the near term.
Bottom Line
Teijin is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. Its strong industry Rank (top 29% out of more than 250 industries) also indicates robust growth potential in the near term. In fact, over the past six months, its industry has clearly outperformed the broader market, as you can see below:
So, it might pay for value investors to delve deeper into the company’s prospects, as fundamentals indicate that this stock could be a compelling pick.
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Is Teijin Limited (TINLY) a Great Stock for Value Investors?
Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn’t want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?
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One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let’s put Teijin Limited (TINLY - Free Report) stock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks:
PE Ratio
A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar of earnings in a given stock, and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the stock’s current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole.
On this front, Teijin has a trailing twelve months PE ratio of 10.1, as you can see in the chart below:
This level actually compares largely favorably with the market at large, as the PE for the S&P 500 stands at about 22.7. Moreover, the current level is fairly below the highs for this stock, suggesting that the stock is undervalued compared to its historical levels.
Further, the stock’s PE also compares favorably with its industry’s trailing twelve months PE ratio, which stands at 22.2. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers.
We should also point out that Teijin has a forward PE ratio (price relative to this year’s earnings) of just 11.5, so it is fair to say that a slightly more value-oriented path may be ahead for Teijin stock in the near term too.
P/S Ratio
Another key metric to note is the Price/Sales ratio. This approach compares a given stock’s price to its total sales, where a lower reading is generally considered better. Some people like this metric more than other value-focused ones because it looks at sales, something that is far harder to manipulate with accounting tricks than earnings.
Right now, Teijin has a P/S ratio of about 0.7. This is significantly lower than the S&P 500 average, which comes in at 3.6 right now.
If anything, Teijin is towards the higher end of its range in the time period from a P/S metric, which suggests that the company’s stock price has already appreciated to some degree, relative to its sales.
Broad Value Outlook
In aggregate, Teijin currently has a Zacks Value Style Score of A, putting it into the top 20% of all stocks we cover from this look. This makes Teijin a solid choice for value investors, and some of its other key metrics make this pretty clear too.
For example, its P/CF ratio (another great indicator of value) comes in at 5.4, which is better than the industry average of 14. Clearly, TINLY is a solid choice on the value front from multiple angles.
What About the Stock Overall?
Though Teijin might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a Growth grade of B and a Momentum score of B. This gives TINLY a Zacks VGM score—or its overarching fundamental grade—of A. (You can read more about the Zacks Style Scores here >>)
Meanwhile, the company’s recent earnings estimates have been encouraging. The current year has seen one upward estimate revisions in the past sixty days compared to none downward, while the next year estimate has also seen one upward revisions and no downward revision in the same time period.
As a result, the current quarter consensus estimate increased 39.4% over the past two months. However, the next year estimate has inched higher by 28.5%.
This bullish trend is why the stock boasts a Zacks Rank #1 (Strong Buy) and why we are expecting outperformance from the company in the near term.
Bottom Line
Teijin is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. Its strong industry Rank (top 29% out of more than 250 industries) also indicates robust growth potential in the near term. In fact, over the past six months, its industry has clearly outperformed the broader market, as you can see below:
So, it might pay for value investors to delve deeper into the company’s prospects, as fundamentals indicate that this stock could be a compelling pick.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>