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Are Investors Undervaluing Marubeni (MARUY) Right Now?

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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.

Marubeni (MARUY - Free Report) is a stock many investors are watching right now. MARUY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 10 right now. For comparison, its industry sports an average P/E of 19.93. Over the past 52 weeks, MARUY's Forward P/E has been as high as 10.69 and as low as 7.20, with a median of 8.99.

We should also highlight that MARUY has a P/B ratio of 1.48. Investors use the P/B ratio to look at a stock's market value versus 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 3.40. Within the past 52 weeks, MARUY's P/B has been as high as 1.48 and as low as 1.06, with a median of 1.20.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.64. This compares to its industry's average P/S of 1.24.

Finally, our model also underscores that MARUY has a P/CF ratio of 7.48. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 28.73. Within the past 12 months, MARUY's P/CF has been as high as 7.48 and as low as 4.59, with a median of 6.09.

Value investors will likely look at more than just these metrics, but the above data helps show that Marubeni is likely undervalued currently. And when considering the strength of its earnings outlook, MARUY sticks out at as one of the market's strongest value stocks.


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