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Are Investors Undervaluing The Mosaic Company (MOS) 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.

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.

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.

One company to watch right now is The Mosaic Company (MOS - Free Report) . MOS 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 4.57, which compares to its industry's average of 7.94. Over the last 12 months, MOS's Forward P/E has been as high as 21.24 and as low as 4.52, with a median of 11.40.

We should also highlight that MOS has a P/B ratio of 1.28. 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 1.80. Within the past 52 weeks, MOS's P/B has been as high as 1.52 and as low as 0.89, with a median of 1.21.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MOS has a P/S ratio of 1.24. This compares to its industry's average P/S of 1.68.

Finally, investors will want to recognize that MOS has a P/CF ratio of 5.15. 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 stock's P/CF looks attractive against its industry's average P/CF of 13.73. MOS's P/CF has been as high as 19.85 and as low as 4.77, with a median of 6.15, all within the past year.

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


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