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

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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.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

One company to watch right now is Mitsui & Co. (MITSY - Free Report) . MITSY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 6.44, while its industry has an average P/E of 9.56. MITSY's Forward P/E has been as high as 7.47 and as low as 4.51, with a median of 5.86, all within the past year.

Investors should also note that MITSY holds a PEG ratio of 0.54. 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. MITSY's PEG compares to its industry's average PEG of 1. Over the last 12 months, MITSY's PEG has been as high as 0.71 and as low as 0.23, with a median of 0.28.

We should also highlight that MITSY has a P/B ratio of 0.93. The P/B ratio pits a stock's market value against 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 1.70. Over the past 12 months, MITSY's P/B has been as high as 0.99 and as low as 0.69, with a median of 0.80.

Finally, investors will want to recognize that MITSY has a P/CF ratio of 3.92. 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 6.31. Over the past year, MITSY's P/CF has been as high as 4.73 and as low as 2.97, with a median of 3.75.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Mitsui & Co. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MITSY feels like a great value stock at the moment.


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