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Should Value Investors Buy Mitsui & Co. (MITSY) Stock?

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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.

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.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Mitsui & Co. (MITSY - Free Report) is a stock many investors are watching right now. MITSY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors should also recognize that MITSY has a P/B ratio of 0.85. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.20. Over the past year, MITSY's P/B has been as high as 0.88 and as low as 0.61, with a median of 0.75.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MITSY has a P/S ratio of 0.6. This compares to its industry's average P/S of 0.65.

Finally, investors should note that MITSY has a P/CF ratio of 7.19. 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. MITSY's P/CF compares to its industry's average P/CF of 10.31. Over the past year, MITSY's P/CF has been as high as 7.49 and as low as 3.76, with a median of 5.92.

These are just a handful of the figures considered in Mitsui & 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 MITSY is an impressive value stock right now.


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