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Should Value Investors Buy The Mosaic Company (MOS) Stock?

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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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is The Mosaic Company (MOS - Free Report) . MOS is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 13.82, which compares to its industry's average of 15.98. Over the past year, MOS's Forward P/E has been as high as 15.57 and as low as 10.58, with a median of 12.58.

We should also highlight that MOS has a P/B ratio of 0.96. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. MOS's current P/B looks attractive when compared to its industry's average P/B of 2.52. Over the past year, MOS's P/B has been as high as 0.98 and as low as 0.61, with a median of 0.73.

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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MOS has a P/S ratio of 1.04. This compares to its industry's average P/S of 1.51.

Finally, investors should note that MOS has a P/CF ratio of 7.40. 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. MOS's current P/CF looks attractive when compared to its industry's average P/CF of 17.26. Within the past 12 months, MOS's P/CF has been as high as 7.60 and as low as 4.68, with a median of 6.10.

These are just a handful of the figures considered in The Mosaic Company'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 MOS is an impressive value stock right now.


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