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Are Investors Undervaluing Yara International ASA (YARIY) 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 value investors might notice is Yara International ASA (YARIY - Free Report) . YARIY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 4.81. This compares to its industry's average Forward P/E of 5.52. Over the past 52 weeks, YARIY's Forward P/E has been as high as 12.87 and as low as 3.73, with a median of 5.57.

Investors should also recognize that YARIY has a P/B ratio of 1.49. 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 stock's P/B looks attractive against its industry's average P/B of 1.95. YARIY's P/B has been as high as 1.98 and as low as 1.17, with a median of 1.64, over the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. YARIY has a P/S ratio of 0.48. This compares to its industry's average P/S of 1.25.

Finally, our model also underscores that YARIY has a P/CF ratio of 3.78. 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. YARIY's P/CF compares to its industry's average P/CF of 5.59. YARIY's P/CF has been as high as 9.84 and as low as 2.99, with a median of 5.70, all within the past year.

These are just a handful of the figures considered in Yara International ASA'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 YARIY is an impressive value stock right now.


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