Back to top

Image: Bigstock

Is Bayerische Motoren Werke (BAMXF) a Great Value Stock Right Now?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 stock to keep an eye on is Bayerische Motoren Werke (BAMXF - Free Report) . BAMXF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 5.47, while its industry has an average P/E of 9.09. Over the past 52 weeks, BAMXF's Forward P/E has been as high as 7.48 and as low as 3.09, with a median of 6.13.

Investors should also recognize that BAMXF has a P/B ratio of 0.64. 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. BAMXF's current P/B looks attractive when compared to its industry's average P/B of 0.72. BAMXF's P/B has been as high as 0.73 and as low as 0.43, with a median of 0.64, over the past year.

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 0.39. This compares to its industry's average P/S of 0.7.

Finally, investors should note that BAMXF has a P/CF ratio of 3.33. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 6.75. Over the past 52 weeks, BAMXF's P/CF has been as high as 3.80 and as low as 1.57, with a median of 2.45.

Mazda Motor (MZDAY - Free Report) may be another strong Automotive - Foreign stock to add to your shortlist. MZDAY is a # 2 (Buy) stock with a Value grade of A.

Furthermore, Mazda Motor holds a P/B ratio of 0.62 and its industry's price-to-book ratio is 0.72. MZDAY's P/B has been as high as 0.64, as low as 0.38, with a median of 0.54 over the past 12 months.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Bayerische Motoren Werke and Mazda Motor are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BAMXF and MZDAY feels like a great value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Mazda Motor Corporation (MZDAY) - free report >>

Bayerische Motoren Werke AG (BAMXF) - free report >>

Published in