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Is Mazda Motor (MZDAY) Stock Undervalued Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

One company value investors might notice is Mazda Motor (MZDAY - Free Report) . MZDAY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.89, which compares to its industry's average of 9.49. Over the past year, MZDAY's Forward P/E has been as high as 13.24 and as low as 5.37, with a median of 8.67.

Another valuation metric that we should highlight is MZDAY's P/B ratio of 0.44. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.10. Over the past 12 months, MZDAY's P/B has been as high as 0.56 and as low as 0.36, with a median of 0.47.

Finally, we should also recognize that MZDAY has a P/CF ratio of 3.37. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 4.51. MZDAY's P/CF has been as high as 10.84 and as low as 2.59, with a median of 3.47, all within the past year.

Investors could also keep in mind Stellantis (STLA - Free Report) , an Automotive - Foreign stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Shares of Stellantis currently holds a Forward P/E ratio of 3.07, and its PEG ratio is 0.08. In comparison, its industry sports average P/E and PEG ratios of 9.49 and 0.40.

STLA's Forward P/E has been as high as 5.79 and as low as 2.90, with a median of 4.69. During the same time period, its PEG ratio has been as high as 0.28, as low as 0.08, with a median of 0.13.

Additionally, Stellantis has a P/B ratio of 0.63 while its industry's price-to-book ratio sits at 1.10. For STLA, this valuation metric has been as high as 1.40, as low as 0.60, with a median of 0.71 over the past year.

These are just a handful of the figures considered in Mazda Motor and Stellantis'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 MZDAY and STLA is an impressive value stock right now.


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