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Is Fuji Heavy Industries (FUJHY) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

Fuji Heavy Industries (FUJHY - Free Report) is a stock many investors are watching right now. FUJHY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.72. This compares to its industry's average Forward P/E of 9.48. Over the last 12 months, FUJHY's Forward P/E has been as high as 10.57 and as low as 7.16, with a median of 8.55.

We also note that FUJHY holds a PEG ratio of 0.14. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. FUJHY's industry has an average PEG of 0.38 right now. Over the past 52 weeks, FUJHY's PEG has been as high as 0.29 and as low as 0.13, with a median of 0.22.

Another valuation metric that we should highlight is FUJHY's P/B ratio of 0.79. 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 0.95. Over the past year, FUJHY's P/B has been as high as 0.95 and as low as 0.64, with a median of 0.84.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FUJHY has a P/S ratio of 0.53. This compares to its industry's average P/S of 0.66.

These are only a few of the key metrics included in Fuji Heavy Industries'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, FUJHY looks like an impressive value stock at the moment.


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