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Are Investors Undervaluing Marubeni (MARUY) 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.

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.

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 Marubeni (MARUY - Free Report) . MARUY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8.90, which compares to its industry's average of 19.34. Over the past year, MARUY's Forward P/E has been as high as 10.31 and as low as 5.34, with a median of 8.63.

Another valuation metric that we should highlight is MARUY's P/B ratio of 1.22. 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 3.56. Over the past 12 months, MARUY's P/B has been as high as 1.42 and as low as 1.01, with a median of 1.14.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MARUY has a P/S ratio of 0.54. This compares to its industry's average P/S of 0.89.

Finally, we should also recognize that MARUY has a P/CF ratio of 6.11. 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 15.70. Over the past year, MARUY's P/CF has been as high as 6.47 and as low as 3.86, with a median of 5.64.

These are just a handful of the figures considered in Marubeni'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 MARUY is an impressive value stock right now.


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