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Are Investors Undervaluing Fuji Heavy Industries (FUJHY) Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 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.

Fuji Heavy Industries (FUJHY - Free Report) is a stock many investors are watching right now. FUJHY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 6.97 right now. For comparison, its industry sports an average P/E of 7.91. Over the past 52 weeks, FUJHY's Forward P/E has been as high as 8.64 and as low as 5.76, with a median of 6.93.

Investors will also notice that FUJHY has a PEG ratio of 0.30. 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 0.66 right now. Over the last 12 months, FUJHY's PEG has been as high as 0.50 and as low as 0.11, with a median of 0.15.

Another notable valuation metric for FUJHY is its P/B ratio of 0.95. The P/B is a method of comparing a stock's market value to 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 1.76. FUJHY's P/B has been as high as 1 and as low as 0.77, with a median of 0.84, over the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FUJHY has a P/S ratio of 0.5. This compares to its industry's average P/S of 0.66.

Finally, investors will want to recognize that FUJHY has a P/CF ratio of 4.23. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. FUJHY's current P/CF looks attractive when compared to its industry's average P/CF of 6.46. Within the past 12 months, FUJHY's P/CF has been as high as 5.53 and as low as 3.55, with a median of 4.44.

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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