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Should Value Investors Buy Bayerische Motoren Werke (BAMXF) Stock?

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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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 stock to keep an eye on is Bayerische Motoren Werke (BAMXF - Free Report) . BAMXF is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.52, which compares to its industry's average of 7.34. BAMXF's Forward P/E has been as high as 7.03 and as low as 3.09, with a median of 5.20, all within the past year.

We should also highlight that BAMXF has a P/B ratio of 0.62. 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 0.91. Over the past year, BAMXF's P/B has been as high as 0.76 and as low as 0.43, with a median of 0.51.

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. BAMXF has a P/S ratio of 0.42. This compares to its industry's average P/S of 0.48.

Finally, investors will want to recognize that BAMXF has a P/CF ratio of 2.23. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 4.89. Within the past 12 months, BAMXF's P/CF has been as high as 3.33 and as low as 1.57, with a median of 1.86.

If you're looking for another solid Automotive - Foreign value stock, take a look at Mercedes-Benz Group AG (MBGAF - Free Report) . MBGAF is a # 2 (Buy) stock with a Value score of A.

Shares of Mercedes-Benz Group AG are currently trading at a forward earnings multiple of 5.72 and a PEG ratio of 3.60 compared to its industry's P/E and PEG ratios of 7.34 and 1.23, respectively.

MBGAF's price-to-earnings ratio has been as high as 6.46 and as low as 3.90, with a median of 5.06, while its PEG ratio has been as high as 3.60 and as low as 0.14, with a median of 0.22, all within the past year.

Additionally, Mercedes-Benz Group AG has a P/B ratio of 0.94 while its industry's price-to-book ratio sits at 0.91. For MBGAF, this valuation metric has been as high as 1.07, as low as 0.65, with a median of 0.82 over the past year.

These are only a few of the key metrics included in Bayerische Motoren Werke and Mercedes-Benz Group AG strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BAMXF and MBGAF look like an impressive value stock at the moment.


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