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Should Value Investors Buy QIWI PLC (QIWI) Stock?

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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.

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.

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.

QIWI PLC (QIWI - Free Report) is a stock many investors are watching right now. QIWI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.49 right now. For comparison, its industry sports an average P/E of 26.58. Over the past 52 weeks, QIWI's Forward P/E has been as high as 16.04 and as low as 8.74, with a median of 10.17.

Another notable valuation metric for QIWI is its P/B ratio of 2.63. 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 company's current P/B looks solid when compared to its industry's average P/B of 7.18. Over the past year, QIWI's P/B has been as high as 3.43 and as low as 1.56, with a median of 2.45.

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. QIWI has a P/S ratio of 1.97. This compares to its industry's average P/S of 4.68.

Finally, our model also underscores that QIWI has a P/CF ratio of 12.88. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 25.62. QIWI's P/CF has been as high as 16.81 and as low as 10.49, with a median of 13.41, all within the past year.

These are only a few of the key metrics included in QIWI PLC's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, QIWI looks like an impressive value stock at the moment.


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